Welcome to The Keg Royalties Income Fund frequently asked questions. This section will provide you with quick answers to the questions our investors ask the most.
What is The Keg Royalties Income Fund's current distribution? As of the March 2008 distribution, the Fund's distribution is $0.1065 per unit per month. This equates to an annualized distribution in excess of $1.278 per unit.
back to top
When are distributions paid? The Keg Royalties Income Fund pays unitholders a cash distribution each month. Unitholders who own units on the 21st of every month will receive their distribution payment on the last business day of that month.
When did the distributions begin? The Fund paid its initial distribution on $0.09 per unit on July 31, 2002 to unitholders of record on July 21, 2002, for the period of May 31-June 30, 2002.
Are fund distributions taxable? Specific tax treatment can vary from year to year. Click here to view taxability since inception.
Are all Keg Restaurants included in the royalty pool? Yes. The Keg Royalties Income Fund includes every Keg restaurant, both corporate and franchised in Canada and the United States. On January 1st of each year, any new restaurants that have opened on or before October 2nd of the prior year are rolled into the Fund. Currently there are 96 restaurants in the Royalty Pool.
What happens if you close a restaurant in the pool during the year? If a restaurant closes during the year, the Fund’s “make whole” provision specifies that the royalty stream will still be protected. The operating company is obligated to pay an equivalent royalty stream to the Fund annually until it replaces those revenues with royalties from a new restaurant, all at no cost to the Fund or its unitholders.
Does the Fund pay management fees? The Fund does not pay management fees. Keg Restaurants Ltd. provides accounting, bookkeeping and administrative services on behalf of The Keg Royalties Income Fund at no cost to the Fund.
What is the role of Keg Restaurants Ltd.? KRL is a premier operator and franchisor of casual steakhouse restaurants and bars in Canada and, through its wholly owned subsidiaries in select markets in the United States. KRL will carry on the business of operating, franchising and growing the chain of restaurants and bars. KRL currently owns units in a related entity of the Fund. These securities are exchangeable for Fund units and if exchanged would give KRL approximately a 20% interest in the Fund. The number of Fund units that KRL is entitled to receive upon exchange of these securities should increase as new restaurants are added to the royalty pool.
What exchange are The Keg Royalties Income Fund units traded on? Units are traded on the Toronto Stock Exchange under the symbol KEG.UN.
How can I find out the current price of The Keg Royalties Income Fund units? A 20-minute delayed price and fund information is available on the homepage of this website. Unit prices are also quoted in most major Canadian newspapers in the “Income Trust” section under the TSX listings.
How many publicly traded units of The Keg Royalties Income Fund are currently outstanding? There are 9,703,500 publicly traded Fund units outstanding.
How can I purchase units of The Keg Royalties Income Fund? To purchase units of The Keg Royalties Income Fund contact any brokerage firm or through your financial advisor.
How can I contact The Keg Royalties Income Fund? Please direct any questions regarding The Keg Royalties Income Fund to: Karyn Byrne Manager, Investor Relations Email: investorrelations@kegincomefund.com Tel: 416-646-4960 Fax: 416-695-2401 295 The West Mall Suite 420 Toronto ON M9C 4Z4
