Business
Pizza Pizza Royalty Income Fund Increases Distribution in July
Pizza Pizza Royalty Income Fund Increases Distribution in July.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, July 12 /CNW/ - Pizza Pizza Royalty Income Fund (the \"Fund\")\n(TSX: PZA.UN) is pleased to announce an increase in its monthly cash\ndistributions to unitholders. This is the third distribution increase since\nthe Fund's initial public offering one year ago.\nFor the period July 1 to July 31, 2006, the monthly distribution per unit\nwill increase 2.16% to $0.071 from $0.0695. It will be paid on August 15, 2006\nto unitholders of record at the close of business on July 31, 2006.\nThe monthly distribution of $0.071 is equal to $0.852 annually.\nDistributions in 2006 are projected to be 47% taxable income and 53% of return\nof capital.\n\nThe Fund is a limited purpose, open-ended trust established under the\nlaws of Ontario to indirectly acquire certain trademarks and trade names used\nby Pizza Pizza in its restaurants. The trademarks are licensed to Pizza Pizza\nfor 99 years, for which Pizza Pizza pays the Fund a royalty equal to 6% of the\nsystem sales of its 501 Pizza Pizza restaurants in Canada as at January 1,\n2006 (the \"Royalty Pool\"). A key attribute of the Fund is that it is based on\ntop-line, system sales of the Royalty Pool restaurants and not on the\nprofitability of either Pizza Pizza or the restaurants in the Royalty Pool.\nThe success of the Fund depends primarily on the ability of Pizza Pizza to\nmaintain and increase system sales of the Royalty Pool and to meet its royalty\nobligations.\n\nPizza Pizza Limited, a privately held-Canadian corporation, is one of\nCanada's most successful players in the quick service restaurant industry.\nFounded in 1967, Pizza Pizza is guided by a mission to provide the \"best food,\nmade especially for you\" and a focus on quality ingredients, customer service,\ncommunity contribution and continual innovation.\nThe Fund's trust units are listed on the Toronto Stock Exchange under the\nsymbol PZA.UN.\n\n%SEDAR: 00022262EF\n\n\n","length":1957,"tagName":"div"}]