Pizza Pizza Royalty Income Fund Increases Monthly Distribution by 2%

About this update from Pizza Pizza Royalty Corp.

[{"type":"text","content":"\n\n\n\nTORONTO, June 19 /CNW/ - Today the Pizza Pizza Royalty Income Fund (the\n"Fund") announced a 2% increase in its monthly cash distribution. (TSX:\nPZA.UN)\n\n\nBeginning with the period June 1 to June 30, the distribution per unit\nwill increase to $0.0775 from $0.076, with the first distribution at this\nlevel payable July 15, 2008 to unitholders of record at the close of business\non June 30, 2008.\n\n\nThe new, monthly distribution equates to an annualized distribution of\n$0.93 per Fund unit or a 16.3% increase over the level at the time of the\nFund's initial public offering in July 2005. This is the sixth distribution\nincrease since the initial public offering.\n\n\nAbout the Fund\n\n\nThe Fund is a limited purpose, open-ended trust established under the\nlaws of Ontario. The Fund, indirectly through the Pizza Pizza Royalty Limited\nPartnership (the "Partnership"), has acquired the trademarks and trade names\nused by Pizza Pizza Limited ("the Company") in its Pizza Pizza and Pizza 73\nrestaurants. The Pizza Pizza trademarks were licensed to the Company in 2005\nfor 99 years, for which the Company pays the Fund a royalty equal to 6% of the\nsystem sales of its Pizza Pizza restaurants in the Royalty Pool. There are 559\nPizza Pizza restaurants in the Royalty Pool for 2008. On July 24, 2007, the\nPartnership acquired the trademarks and other intellectual property of Pizza\n73 (the "Pizza 73 Rights") and licensed them to the Company for 99 years, for\nwhich the Company pays the Fund a royalty equal to 9% of the system sales of\nthe 50 Pizza 73 restaurants in the Royalty Pool for 2008. The 2008 Royalty\nPool has 609 total restaurants.\n\n\nA key attribute of the Fund is that revenues are based on top-line,\nsystem sales of the Royalty Pool restaurants and not on the profitability of\neither the Company or the restaurants in the Royalty Pool. Moreover, the Fund\nis not subject to the variability of earnings or expenses of the operating\ncompanies. The Fund's only expenses are administration expenses and the\ninterest on debt. Thus, the success of the Fund depends primarily on the\nability of Pizza Pizza to maintain and increase system sales of the Royalty\nPool restaurants and to meet its royalty obligations.\n\n\nThe Fund's trust units are listed on the Toronto Stock Exchange unde...

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