Review of Boston Pizza Royalties Income Fund

NOV 21, 2023 - BPF.UN's sales have recovered to pre-pandemic levels, but the distribution per unit has not reached its previous levels yet. Therefore, there is room to raise dividends in the near term given the financial flexibility. BPF.UN also repurchased its units in the market for the very first time, which is encouraging. Overall, we like BPF.UN as a royalty income play, but at the same time the weak same-restaurant sales and a declining restaurant base are quite concerning, we will maintain our rating at “B-“, and we will be open for a downgrade if future operating results continue to weaken.