BURLINGTON, ON, May 9, 2024 /CNW/ - SIR Royalty Income Fund (TSX:SRV) (the "Fund") today reported its financial results for the first quarter ended March 31, 2024 ("Q1 2024"). "We further enhanced our restaurant portfolio during the quarter, completing renovations to two Jack Astor's restaurants, opening a new Scaddabush in Toronto's Don Mills neighbourhood and developing the new Edna + Vita fine dining Italian restaurant in downtown Toronto, which is an exciting new brand for us. Subsequent to quarter end, we opened another new Scaddabush in London, Ontario and opened Edna + Vita," said Peter Fowler, CEO of SIR Corp. "We also strengthened the Royalty Pool during the quarter with the addition of our Scaddabush location in Whitby, Ontario in January, and we expect to add our new Don Mills and London Scaddabush locations to the Royalty Pool in January of 2025. We are also advancing plans to develop two additional Scaddabush restaurants, one new Jack Astor's and one new Duke's Refresher. We are making strong progress in further elevating our brands and strengthening our market presence in support of the best interests of Fund unitholders." Q1 2024 Summary Pooled Revenue totaled $60.5 million compared to $61.4 million for the three months ended March 31, 2023 ("Q1 2023"). Royalty income in the SIR Royalty Limited Partnership (the "Partnership") was $3.6 million, compared to $3.7 million in Q1 2023. Equity income from the Partnership, which represents the Fund's pro rata share of the residual distributions of the Partnership, was $2.5 million, compared to $2.5 million in Q1 2023. The Royalty Pooled Restaurants (the "Royalty Pool") had a same store sales ("SSS")(1) decline of 1.1%. Net earnings increased to $2.3 million, from $0.3 million in Q1 2023. Distributable cash(2) totaled $2.3 million, or $0.28 (basic) and $0.27 (diluted) per Fund Unit, and cash distributed to unitholders totaled $2.4 million, representing a payout ratio(2) of 103.6%. The payout ratio(2) since the Fund's inception in 2004, up to and including Q1 2024, is 100%, in line with the Fund's target payout ratio per annum. SIR Corp. ("SIR") completed renovations to two Jack Astor's® locations (in Ancaster and Richmond Hill, Ontario). Effective January 1, 2024, the new Scaddabush Italian Kitchen & Bar® ("Scaddabush") location in Whitby, Ontario was added to the Royalty Pooled Restaurants (the "Royalty Pool"), and three closed restaurants were removed (Reds® Wine Tavern, Reds® Kitchen + Wine Bar Fallsview and the Scaddabush location in the Mimico neighbourhood of Etobicoke, Ontario). On February 27, 2024, SIR opened a new Scaddabush restaurant in the Don Mills neighbourhood in Toronto, Ontario. This new Scaddabush restaurant is expected to be added to the Royalty Pool effective January 1, 2025. Subsequent Events On April 17, 2024, SIR opened a new Scaddabush restaurant in London, Ontario. This new Scaddabush restaurant is expected to be added to the Royalty Pool effective January 1, 2025. On April 26, 2024, SIR opened a new Italian-themed, fine dining restaurant called Edna + VitaTM at the site of the former Reds Wine Tavern in downtown Toronto. Q1 2024 Financial Results Summary ($000s except restaurantsand per Unit amounts)(unaudited)   Three-month  period ended Mar. 31, 2024 Three-month  period ended Mar. 31, 2023 Royalty Pooled Restaurants 49 51 Pooled Revenue generated by SIR Corp. 60,527 61,366 Royalty income to Partnership – 6% of Pooled Revenue 3,631   3,682 Partnership income allocated to Fund 2,481 2,541 Change in estimated fair value of the SIR Loan 750 (1,250) Net earnings 2,267   300   Net earnings per Fund Unit (basic) $0.27   $0.04 Net earnings per Fund Unit (diluted) $0.27 $0.04 Pooled Revenue in Q1 2024 decreased 1.4% to $60.5 million, compared to $61.4 million in Q1 2023. The slight year-over-year decrease reflects declines in delivery sales and dine-in guest traffic, and the permanent closures of three Royalty Pooled Restaurants in late 2023. These factors were partially offset by system-wide price increases, the addition of one new Scaddabush location to the Royalty Pool at the start of Q1 2024 and increased guest counts at Scaddabush restaurants. Net earnings for Q1 2024 were $2.3 million, or $0.27 per Fund Unit (basic and diluted), compared to net earnings of $0.3 million, or $0.04 per Fund Unit (basic and diluted), for Q1 2023. The year-over-year increase in net earnings was primarily attributable to an increase of $0.8 million in the estimated fair value of the SIR Loan in Q1 2024, ...