Keg Royalties Income Fund (TSX:KEN.UN) sales rose 13% to $206.2 million for the six-month period ending June 30, 2007, compared with 2006's first six months on the strength of higher same-store growth and the addition of four new restaurants to the fund's royalty pool.
Same-store sales growth increased 9.5% in Canada and 4.6% in the U.S. for the six-month period, for an average growth of 8.6%.
As a result of the sales increase, royalty income for the fund was up 14.3% to $8.4 million compared with the same period last year, which generated a 9.9% increase in distributable cash for unitholders. The fund declared distributions of $0.49 per unit for the six-month period.
However, because of the federal government's new income trust distribution tax, the fund recorded for the first time a $17.8 million future income tax expense.
The Keg's unit share price range during the past week: between $14.02 and $14.25; 52-week high: $14.80; 52-week low: $10.75.