The Keg Royalties Income Fund Announces An Increase In Distributions to Unitholders

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VANCOUVER, British Columbia, Oct. 13, 2020 (GLOBE NEWSWIRE) -- The Keg Royalties Income Fund (TSX: KEG.UN or the “Fund”) today announced that it would be increasing the monthly distributions on units of the Fund (“Units”) commencing with the October 2020 distribution. Monthly distributions will be increased from their current level of $0.035 per Unit to $0.05 per Unit. The revised monthly distribution of $0.05 per Unit has therefore been declared and will be paid on October 30, 2020 to unitholders of record on October 21, 2020. Annually, the revised distributions result in an increase from the current level of $0.42 per Unit to $0.60 per Unit. The Fund currently plans to make those distributions each month for the next three months on the traditional pattern beginning on October 30, 2020, as noted above.

The Fund’s objective continues to be to provide consistent monthly distributions to unitholders at the highest sustainable level, and the Trustees of the Fund continue to review distribution levels on an on ongoing basis to fulfill that objective. The Trustees have reviewed current Royalty Pool sales forecasts as prepared by senior management of KRL, and after due consideration, the Trustees have concluded that the revised distribution of $0.05 cents per Unit per month is sustainable, at least for the next three months. However, should a surplus in cash available for distribution to the Fund’s unitholders arise over the next three months, as a result of royalty fee income exceeding current expectations, a special distribution will be declared in December 2020 to resolve that issue. The magnitude of that special distribution, should it be required, will be subject to reserves as considered reasonable by the Trustees in the circumstances at that time.

“At this point, the outlook remains uncertain and unpredictable for The Keg’s sales levels going forward. We have been relatively satisfied with our performance since restaurants have reopened starting in late May through to the beginning of July. Despite substantially limited capacity due to COVID-related mandates involving physical distancing and hours of operation, our guests have been very supportive of The Keg,” said David Aisenstat, CEO of The Keg.