SIR Royalty Income Fund Announces Filing of SIR Corp. Fiscal 2025 Fourth Quarter and Year-End Results

BURLINGTON, ON, Nov. 20, 2025 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) (the "Fund") today announced that SIR Corp. ("SIR" or the "Company"), the operating entity from which the Fund's equity income is ultimately derived, has filed its financial results for the 17-week and 53-week periods ended August 31, 2025 ("Q4 2025" and "Fiscal 2025", respectively). SIR's audited consolidated financial statements and management's discussion & analysis ("MD&A") for Fiscal 2025 can be accessed via the Fund's profile on the SEDAR+ website at www.sedarplus.ca under "Other", or the SIR website at www.sircorp.com/sir-royalty-income-fund/financial-reports.

SIR's Fiscal 2025 year consists of 53 weeks versus 52 weeks for Fiscal 2024, and Q4 2025 consists of 17 weeks compared to 16 weeks for the fourth quarter of Fiscal 2024. Therefore, all revenue and expense information provided in this news release for Fiscal 2025 and Q4 2025, unless otherwise noted, includes an additional week of operations and that should be considered when comparing to prior year periods. Included in this news release is certain unaudited financial information for Q4 2025 on a 16-week basis in order to assist readers in making comparisons to the prior year.

Q4 2025 Business Update

• Food and beverage revenue from corporate restaurant operations increased by 10.8% to $100.4 million, compared to $90.7 million for the 16-week period ended August 25, 2024 ("Q4 2024"). If the additional week was removed from Q4 2025, food and beverage revenue from corporate restaurant operations would be $94.1 million, an increase of 4.0% from Q4 2024.
• Consolidated Same Store Sales ("SSS") ⁽¹⁾ increased by 9.4%. If the additional week of revenue was removed from Q4 2025, the consolidated Same Store Sales ("SSS") ⁽¹⁾ increase would be 2.7%.
• On June 25, 2025, SIR opened a new Scaddabush location in Barrie, Ontario. This restaurant is expected to be added to the Royalty Pooled Restaurants effective January 1, 2026.
• On May 15, 2025, SIR entered into a new credit agreement ("New Credit Agreement") with a syndicate of two Schedule 1 Canadian chartered banks (the "Lenders") to refinance the previous credit facility. The New Credit Agreement provides for a three-year facility for a maximum principal amount of $68.0 million consisting of: i) a $5.0 million revolving term credit facility, ii) a $38.0 million revolving term loan and iii) a $25.0 million non-revolving term loan. The Company and the Lenders have also entered into a purchase card agreement providing credit of up to an additional $1.5 million. The revolving term loan was fully drawn at closing and was used to extinguish SIR's existing senior debt.
• Following the previously disclosed cybersecurity incident on September 26, 2024, SIR submitted a business interruption claim and worked with its insurance provider to determine the appropriate compensation for the disruption. During Q4 2025, SIR received the maximum payout for first party losses of $2.0 million under the cyber insurance policy. The approved proceeds paid to SIR were comprised of a $0.2 million reimbursement of costs directly attributable to the cybersecurity incident and $1.8 million toward the business interruption portion of the claim. The insurer had also previously paid directly to SIR's external IT consultants $0.4 million of the $0.5 million maximum for breach response costs.

Subsequent Events

• On September 1, 2025, SIR temporarily closed the Jack Astor's® location in Barrie, Ontario for a period of 30 days for a major renovation and to train personnel on an entirely new service package, including new food and beverage menus, before re-opening on October 1, 2025. This renovation also included the unveiling of SIR's new concept, Freida's Beverage Kitchen™ ("Freida's") at this location. SIR has revamped the menu so that every dish is designed for sharing, including a new pizza category, making each meal at Jack Astor's and Freida's an event to mix, match, and indulge together. SIR has developed Freida's as a place where the art of cocktail creation is crafted and celebrated through iconic categories of Margaritas, Classics, Dirty Sodas and more.
• On September 15, 2025, SIR closed the Duke's Refresher location at the intersection of Queen Street East and Broadview Avenue due to current economic conditions and the anticipated impact of a forthcoming six-month closure of Queen Street in downtown Toronto due to construction activity.

Results of Operations Summary

SIR has advised the Fund that food and beverage revenue from corporate restaurant operations totaled $100.4 million and $289.5 million in Q4 2025 and Fiscal 2025, respectively, representing increases of 10.8% and 6.7% compared to $90.7 million and $271.3 million in Q4 2024 and Fiscal 2024, respectively. The increases reflect the impact of the six new restaurants opened during and subsequent to Q3 2024 (four new Scaddabush Italian Kitchen & Bar® ("Scaddabush") locations, a Duke's Refresher® + Bar and Edna + Vita^TM) and consolidated SSS⁽¹⁾ growth, partially offset by the permanent closures of the Jack Astor's locations in North York, Ontario (on September 4, 2024) and Longueuil, Quebec (on April 27, 2025).

*The figures in the table above reflect an additional week of revenue in Fiscal 2025.

SSS⁽¹⁾ performance includes all SIR restaurants, except for those restaurants that were not open for the entire comparable periods in Fiscal 2025 and Fiscal 2024.  Accordingly, SSS ⁽¹⁾ performance for Q4 2025 and Fiscal 2025 does not include the five new Scaddabush restaurants in Whitby, Guelph, London and Barrie, Ontario and in the Don Mills neighbourhood of Toronto, as well as Edna + Vita and the Duke's Refresher at the intersection of Queen Street East and Broadview Avenue (now closed), since these were not open for both comparable periods in Fiscal 2025 and Fiscal 2024. Abbey's Bakehouse® is also not included as it is not a SIR restaurant.

Net (loss) income and comprehensive (loss) income was ($19.3) million for Q4 2025, compared to $10.0 million for Q4 2024. Net (loss) income and comprehensive (loss) income was ($26.6) million for Fiscal 2025, compared to $35.1 million for Fiscal 2024. The negative variances reflect changes in the amortized cost of the Ordinary LP Units and Class A Units of the SIR Royalty Limited Partnership (the "Partnership") that SIR holds. This resulted in expenses of $26.4 million in Q4 2025 and $36.4 million in Fiscal 2025, compared to income of $3.9 million in Q4 2024 and $27.4 million in Fiscal 2024. These non-cash changes in Q4 2025 and Fiscal 2025 are due to changes in the underlying unit price of the Fund compared to the end of Q3 2025 and Fiscal 2024, respectively.

Adjusted Net Earnings⁽²⁾ were $7.2 million in Q4 2025 compared to $6.1 million in Q4 2024. Adjusted Net Earnings⁽²⁾  for Fiscal 2025 were $9.8 million compared to $7.7 million in Fiscal 2024. The increase in Q4 2025 is primarily attributable to a $1.0 million increase in earnings before interest and income taxes and a $0.4 million decrease in other expenses, partially offset by a $0.3 million increase in interest expenses. The increase in Fiscal 2025 is primarily attributable to a $2.9 million increase in earnings before interest and income taxes, partially offset by a $0.7 million increase in interest expenses.

Liquidity and Capital Resources

As at August 31, 2025, SIR had cash of $12.5 million ($4.9 million as at August 25, 2024) and had drawn approximately $38.9 million against the $68.0 million maximum principal borrowing amount under the Company's credit facility.

Outlook

SIR continues to monitor consumer spending behavior in light of current evolving macroeconomic factors, including inflation, interest rates and the impact of new cross-border tariffs between Canada and the United States, and their potential impact on the Canadian economy and consumer confidence. Ongoing business impacts due to changes in the minimum wage and rising commodity costs have been influential in the bar and restaurant industry's changes in pricing overall.

SIR continues to innovate and provide immersive new product and service offerings to increase dine-in guest visits to its restaurants and to capitalize on the growth of take-out and delivery services in commercial foodservice.

The new Scaddabush location in Barrie, Ontario (opened in June 2025) is expected to be added to the Royalty Pooled Restaurants effective January 1, 2026.

The permanently closed Jack Astor's restaurant in the Greenfield Park neighborhood of Longueuil, Quebec (closed on April 27, 2025) will cease to be a Royalty Pooled Restaurant effective January 1, 2026.

SIR is currently developing a new Jack Astor's location on a leased property in Oshawa, Ontario, which is expected to open by the end of December 2025, and has leased another property in Windsor, Ontario, upon which it plans to develop a new Scaddabush. There can be no assurance at this time that the planned new restaurant in Windsor will be opened, or that either of these two new locations will become part of the Royalty Pooled Restaurants.

SIR is pursuing additional sites to continue the successful growth of Scaddabush. SIR will also continue its practice of investing in existing restaurants to drive improved sales and earnings. In consideration of the ongoing economic and market conditions mentioned above, restaurant opening and renovation plans will be reviewed regularly and adjusted as necessary.

Reconciliation of Adjusted Net Earnings⁽²⁾

The following table reconciles net income (loss) and comprehensive income (loss) to Adjusted Net Earnings⁽²⁾ for the 17-week and 53-week periods ended August 31, 2025, and the 16-week and 52-week periods ended August 25, 2024, respectively.

About SIR Corp.

SIR Corp. is a privately held Canadian corporation that owns a portfolio of 53 restaurants in Canada. SIR's Concept brands include Jack Astor's Bar and Grill® with 35 locations, and Scaddabush Italian Kitchen & Bar® with 14 locations. SIR also operates one-of-a-kind "Signature" brands including The Loose Moose®, Reds® Square One and Edna + Vita^TM. All trademarks related to the Concept and Signature brands noted above are used by SIR under a License and Royalty Agreement with SIR Royalty Limited Partnership. SIR also owns a Duke's Refresher® + Bar location, which is currently not part of the Royalty Pool. For more information on SIR or the SIR Royalty Income Fund, please visit www.sircorp.com.

About SIR Royalty Income Fund

The Fund is a trust governed by the laws of the province of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR Loan. The Fund intends to pay distributions to unitholders on a monthly basis.

(1) Same store sales ("SSS") and same store sales growth ("SSSG") are non-GAAP financial measures and do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS"). However, SIR believes that SSS and SSSG are useful measures and provide investors with an indication of the change in year-over-year sales. SIR's method of calculating SSS and SSSG may differ from those of other issuers and accordingly, SSS and SSSG may not be comparable to measures used by other issuers. SSSG is the percentage increase in SSS over the prior comparable period. SSS includes revenue from all SIR restaurants except for those restaurants that were not open for the entire comparable period and Abbey's Bakehouse in Muskoka, Ontario as it is not a SIR restaurant. When a SIR Restaurant is closed, the revenue for the closed restaurant is excluded from the calculation of SSS for both the quarter in which the restaurant is closed and the current year-to-date.

(2) Adjusted Net Earnings (Loss) is calculated by removing the change in amortized cost of the Ordinary LP Units and Class A LP Units of the Partnership from the net income (loss)and comprehensive income (loss) for the period. Adjusted Net Earnings (Loss) is a non-GAAP financial measure and does not have a standardized meaning prescribed by IFRS. Management believes that in addition to net income (loss) and comprehensive income (loss), Adjusted Net Earnings (Loss) is a useful supplemental measure to evaluate SIR's performance. Changes in the amortized cost of the Ordinary LP Units and Class A LP Units of the Partnership is a non-cash transaction and varies with changes in the market price of the Fund units. The exclusion of the change in amortized cost of the Ordinary LP Units and Class A LP Units of the Partnership eliminates this non-cash impact. Management cautions investors that Adjusted Net Earnings (Loss) should not replace net income (loss) and comprehensive income (loss) or cash flows from operating, investing and financing activities (as determined in accordance with IFRS), as an indicator of SIR's performance. SIR's method of calculating Adjusted Net Earnings (Loss) may differ from the methods used by other issuers. Please refer to the reconciliation of net loss and comprehensive loss to Adjusted Net Earnings for Q4 2025 and Fiscal 2025 provided in this news release.

Caution concerning forward-looking information

Certain statements contained in this report, or incorporated herein by reference, including the information set forth as to the future financial or operating performance of the Fund or SIR, that are not current or historical factual statements may constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements concerning the objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of the Fund, the SIR Holdings Trust (the "Trust"), the SIR Royalty Limited Partnership (the "Partnership"), SIR, the SIR Restaurants or industry results, are forward-looking statements. The words "may", "will", "should", "would", 'could", "expect", "believe", "plan", "anticipate", "intend", "estimate" and other similar terminology and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Fund, the Trust, the Partnership, SIR, the SIR Restaurants or industry results, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. These statements reflect Management's current expectations, estimates and projections regarding future events and operating performance and speak only as of the date of this document. Readers should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. Risks related to forward-looking statements include, among other things, challenges presented by a number of factors, including: market conditions at the time of this filing; competition; changes in demographic trends; weather; changing consumer preferences and discretionary spending patterns; changes in consumer confidence; changes in national and local business and economic conditions; pandemics or other material outbreaks of disease or safety issues affecting humans or animals or food products; the ability to maintain staffing levels; the impact of inflation, including on input prices and wages; the impact of the war in the Ukraine; changes in tariffs and international trade; changes in foreign exchange and interest rates; changes in availability of credit; legal proceedings and challenges to intellectual property rights; dependence of the Fund on the financial condition of SIR; legislation and governmental regulation, including the cost and/or availability of labour as it relates to changes in minimum wage rates or other changes to labour legislation and forced closures of or other limits placed on restaurants and bars; laws affecting the sale and use of alcohol (including availability and enforcement); changes in cannabis laws; changes in environmental laws; privacy matters; accounting policies and practices; changes in tax laws; the impact of cybersecurity breaches; and the results of operations and financial condition of SIR. The foregoing list of factors is not exhaustive. Many of these issues can affect the Fund's or SIR's actual results and could cause their actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Fund or SIR. There can be no assurance that SIR will remain compliant in the future with all of its financial covenants under the Credit Agreement and imposed by the lender. Given these uncertainties, readers are cautioned that forward-looking statements are not guarantees of future performance and should not place undue reliance on them. The Fund and SIR expressly disclaim any obligation or undertaking to publicly disclose or release any updates or revisions to any forward-looking statements. Forward-looking statements are based on Management's current plans, estimates, projections, beliefs and opinions, and the Fund and SIR do not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as expressly required by applicable securities laws.

All of the forward-looking statements made herein are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Fund or SIR. For more information concerning risks and uncertainties, please refer to the 'Risk Factors' in the Fund's March 13, 2025 Annual Information Form, for the period ended December 31, 2024, and the Fund and SIR's most recent interim and / or annual filings, which are available under the Fund's profile at www.sedarplus.ca.

SOURCE SIR Royalty Income Fund