BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES 2024 FIRST QUARTER RESULTS AND APRIL 2024 CASH DISTRIBUTION OF $0.113 PER UNIT

Toronto Stock Exchange: BPF.UN

HIGHLIGHTS

• Franchise Sales¹ of $222.0 million for the Period, representing a decrease of 1.0% versus the same period one year ago.
• Same Restaurant Sales² of negative 1.0% for the Period.
• Cash flows generated from operating activities of $9.1 million for the Period, representing a decrease of 1.3% versus the same period one year ago.
• Distributable Cash³ increased 1.8% for the Period and Distributable Cash per Unit⁴ increased 3.0% for the Period.
• Payout Ratio⁵ of 96.8% for the Period and 89.9% on a trailing 12-month basis. Cash balance at the end of the Period was $4.7 million.
• On February 13, 2024, the Fund increased its monthly distribution rate to $0.113 per unit of the Fund ("Unit") for the January 2024 distribution from the previous monthly rate of $0.107 per Unit, being an increase of $0.006 per Unit or 5.6%.
• On May 9, 2024, the trustees of the Fund declared a distribution for the period of April 1, 2024 to April 30, 2024 of $0.113 per Unit, which will be payable on May 31, 2024 to unitholders of the Fund ("Unitholders") of record on May 21, 2024.

VANCOUVER, BC, May 10, 2024 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the first quarter period from January 1, 2024 to March 31, 2024 (the "Period").  A copy of this press release, the unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") of the Fund and BPI are available at www.sedarplus.ca and www.bpincomefund.com.  The Fund will host a conference call to discuss the results on May 10, 2024 at 8:30 am Pacific Time (11:30 am Eastern Time).  The call can be accessed by dialling 1-844-763-8274 or [phone].  A replay will be available until June 10, 2024 by dialling 1-855-669-9658 or [phone] and entering the access code: 0804 followed by the # sign.  The replay will also be available at www.bpincomefund.com.  Capitalized terms used in this press release that are not otherwise defined have the meanings ascribed to them in the Fund's MD&A for the Period.

"The first quarter of 2024 presented macroeconomic challenges for the full-service restaurant industry", stated Jordan Holm, BPI's President.  "The prevailing economic conditions, characterized by high interest rates and inflationary pressures have influenced consumer behavior, impacting discretionary spending and leading to a cautious approach towards dining out.  Despite these obstacles, we had solid Franchise Sales in the first quarter underscoring the resilience of our business.  We remain pleased with the dedication demonstrated by our franchisees and their restaurant teams."

PERIOD RESULTS

SRS, a key driver of distribution growth for Unitholders, was negative 1.0% for the Period compared to positive 25.7% reported in the first quarter of 2023.  SRS for the Period was principally due to macroeconomic challenges faced by the full-service industry, partially offset by menu price increases.  The COVID-19 restrictions that existed during the first quarter of 2022 were a significant factor in the positive SRS reported in the first quarter of 2023.

Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $222.0 million for the Period compared to $224.2 million for the same period one year ago.  The $2.2 million decrease in Franchise Sales for the Period was primarily due to negative SRS.

The Fund's net and comprehensive income was $8.5 million for the Period compared to $6.7 million for the first quarter of 2023.  The $1.8 million increase in the Fund's net and comprehensive income for the Period compared to the first quarter of 2023 was primarily due to a $2.4 million increase in fair value gain, partially offset by a $0.4 million increase in deferred income tax expense, a $0.1 million decrease in Royalty⁶ and Distribution Income⁷ and a $0.1 million increase in interest expense on Class B Unit liability.

The Fund's cash flows generated from operating activities was $9.1 million for the Period compared to $9.2 million in the first quarter of 2023.  The decrease of $0.1 million was primarily due to an increase in income taxes paid of $0.2 million and a decrease in Royalty and Distribution Income of $0.1 million, partially offset by an increase in working capital of $0.2 million.

The Fund generated Distributable Cash of $7.3 million for the Period compared to $7.2 million for the first quarter of 2023.  The increase in Distributable Cash of $0.1 million or 1.8% was primarily due to SIFT Tax on Units adjustment of $0.2 million and lower interest paid on debt of $0.1 million, partially offset by decreased cash flows generated from operating activities of $0.1 million.

The Fund generated Distributable Cash per Unit of $0.344 for the Period compared to $0.334 for the same period one year ago.  The increase in Distributable Cash per Unit of $0.010 or 3.0% was primarily attributable to the increase in Distributable Cash outlined above and fewer Units outstanding compared to the same period in 2023 due to the Fund's normal course issuer bid.

The Fund's Payout Ratio for the Period was 96.8% compared to 91.6% in the first quarter of 2023.  The increase in the Fund's Payout Ratio for the Period was due to distributions paid increasing by $0.5 million or 7.6%, partially offset by Distributable Cash increasing by $0.1 million or 1.8%.  Payout Ratio is calculated by dividing the amount of distributions paid during the applicable period by the Distributable Cash for that period.  The Fund's Payout Ratio is typically higher in the first and fourth quarters compared to the second and third quarters since Boston Pizza restaurants generally experience higher Franchise Sales levels during the summer months when restaurants open their patios and benefit from increased tourist traffic.  On a trailing 12-month basis, the Fund's Payout Ratio was 89.9% as at March 31, 2024.

DISTRIBUTIONS

During the Period, the Fund declared distributions on the Units in the aggregate amount of $4.8 million or $0.226 per Unit.  During the first quarter of 2023, the Fund declared distributions on the Units in the aggregate amount of $4.4 million or $0.204 per Unit.  During the Period, the Fund paid distributions on the Units in the aggregate amount of $7.1 million or $0.333 per Unit.  During the first quarter of 2023, the Fund paid distributions on the Units in the aggregate amount of $6.6 million or $0.306 per Unit.  The amount of distributions declared during the Period increased by $0.4 million or $0.022 per Unit due to the monthly distribution rate increasing from $0.102 per Unit to $0.107 per Unit commencing with the March 2023 distribution and increasing again from $0.107 per Unit to $0.113 per Unit commencing with the January 2024 distribution (collectively, the "2023-2024 Distribution Increases").  Distributions paid during the Period increased by $0.5 million or $0.027 per Unit due to the 2023-2024 Distribution Increases.

On February 13, 2024, the trustees of the Fund declared a distribution for the period of January 1, 2024 to January 31, 2024 of $0.113 per Unit, which was paid on February 29, 2024 to Unitholders of record on February 21, 2024.  This was an increase of $0.006 per Unit, or 5.6%, from the previous monthly distribution rate of $0.107 per Unit.  On an annualized basis, the new monthly distribution rate equates to $1.356 per Unit compared to $1.284 per Unit for the previously monthly distribution rate.

On May 9, 2024, the trustees of the Fund declared a distribution for the period of April 1, 2024 to April 30, 2024 of $0.113 per Unit, which will be payable on May 31, 2024 to Unitholders of record on May 21, 2024.  Including the April 2024 distribution, which will be paid on May 31, 2024, the Fund will have paid out total distributions of $432.4 million or $26.47 per Unit, which includes 256 monthly distributions and two special distributions.

FINANCIAL SUMMARY

The tables below set out selected information from the Fund's unaudited condensed consolidated interim financial statements together with other data and should be read in conjunction with the unaudited condensed consolidated interim financial statements and MD&A of the Fund for the three-month periods ended March 31, 2024 and March 31, 2023, and the Fund's audited annual consolidated financial statements for the year-ended December 31, 2023.

For the periods ended March 31				Q1 2024	Q1 2023
(in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool				372	377
Franchise Sales reported by restaurants in the Royalty Pool				222,032	224,201
Royalty income				8,881	8,968
Distribution Income				2,919	2,949
Total revenue				11,800	11,917
Administrative expenses				(436)	(391)
Interest expense on debt and financing fees				(828)	(850)
Interest expense on Class B Unit liability				(729)	(632)
Interest income				66	68
Profit before fair value gain (loss) and income taxes				9,873	10,112
Fair value gain (loss) on investment in BP Canada LP				2,128	(218)
Fair value (loss) gain on Class B Unit liability				(948)	97
Fair value gain (loss) on Swaps				188	(892)
Current and deferred income tax expense				(2,774)	(2,430)
Net and comprehensive income				8,467	6,669
Basic earnings per Unit				0.40	0.31
Diluted earnings per Unit				0.37	0.24
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities				9,100	9,220
BPI Class B Unit entitlement^8				(1,072)	(1,038)
Interest paid on debt				(808)	(914)
Current income tax expense				(2,365)	(2,390)
Current income tax paid				2,462	2,311
Distributable Cash				7,317	7,189
Distributions paid				7,086	6,585
Payout Ratio				96.8 %	91.6 %
Distributable Cash per Unit				0.344	0.334
Distributions paid per Unit				0.333	0.306
Other
Same Restaurant Sales				(1.0 %)	25.7 %
Number of restaurants opened				1	0
Number of restaurants closed				3	1
			Mar 31, 2024		Dec 31, 2023
Total assets				415,517	413,055
Total liabilities				132,973	134,169

SUMMARY OF QUARTERLY RESULTS

	Q1 2024	Q4 2023	Q3 2023	Q2 2023
(in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool	372	377	377	377
Franchise Sales reported by restaurants in the Royalty Pool	222,032	227,665	240,139	233,650
Royalty income	8,881	9,106	9,606	9,346
Distribution Income	2,919	2,992	3,155	3,071
Total revenue	11,800	12,098	12,761	12,417
Administrative expenses	(436)	(347)	(350)	(401)
Interest expense on debt and financing fees	(828)	(839)	(838)	(843)
Interest expense on Class B Unit liability	(729)	(1,321)	(1,055)	(982)
Interest income	66	57	72	79
Profit before fair value gain (loss) and income taxes	9,873	9,648	10,590	10,270
Fair value gain (loss) on investment in BP Canada LP	2,128	928	(7,857)	8,511
Fair value (loss) gain on Class B Unit liability	(948)	(414)	3,501	(3,792)
Fair value gain (loss) on Swaps	188	(2,250)	333	1,373
Current and deferred income tax expense	(2,774)	(2,695)	(1,673)	(3,576)
Net and comprehensive income	8,467	5,217	4,894	12,786
Basic earnings per Unit	0.40	0.25	0.23	0.59
Diluted earnings per Unit	0.37	0.24	0.06	0.59
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities	9,100	9,288	9,659	9,759
BPI Class B Unit entitlement	(1,072)	(1,081)	(740)	(1,006)
Interest paid on debt	(808)	(817)	(825)	(848)
Current income tax expense	(2,365)	(2,445)	(2,603)	(2,511)
Current income tax paid	2,462	2,424	2,770	2,456
Distributable Cash	7,317	7,369	8,261	7,850
Distributions paid	7,086	6,830	6,848	6,909
Payout Ratio	96.8 %	92.7 %	82.9 %	88.0 %
Distributable Cash per Unit	0.344	0.346	0.387	0.365
Distributions paid per Unit	0.333	0.321	0.321	0.321
Other
Same Restaurant Sales	(1.0 %)	0.6 %	5.3 %	6.6 %
Number of restaurants opened	1	1	0	0
Number of restaurants closed	3	4	0	1

SUMMARY OF QUARTERLY RESULTS (continued)

	Q1 2023	Q4 2022	Q3 2022	Q2 2022
(in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool	377	383	383	383
Franchise Sales reported by restaurants in the Royalty Pool	224,201	227,163	229,848	219,384
Royalty income	8,968	9,087	9,194	8,775
Distribution Income	2,949	2,988	3,027	2,895
Total revenue	11,917	12,075	12,221	11,670
Administrative expenses	(391)	(369)	(334)	(349)
Interest expense on debt and financing fees	(850)	(812)	(886)	(977)
Interest expense on Class B Unit liability	(632)	(1,557)	(835)	(733)
Interest income	68	61	31	10
Profit before fair value (loss) gain and income taxes	10,112	9,398	10,197	9,621
Fair value (loss) gain on investment in BP Canada LP	(218)	(1,146)	2,183	(14,622)
Fair value gain (loss) on Class B Unit liability	97	510	(972)	6,515
Fair value (loss) gain on Swaps	(892)	106	572	1,337
Current and deferred income tax expense	(2,430)	(2,462)	(2,478)	(1,075)
Net and comprehensive income	6,669	6,406	9,502	1,776
Basic earnings per Unit	0.31	0.30	0.44	0.08
Diluted earnings (loss) per Unit	0.24	0.26	0.41	(0.20)
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities	9,220	8,919	9,667	9,118
BPI Class B Unit entitlement	(1,038)	(1,044)	(1,083)	(888)
Interest paid on debt	(914)	(799)	(939)	(954)
Principal repayments on debt	-	-	-	(1,000)
Current income tax expense	(2,390)	(2,422)	(2,438)	(2,285)
Current income tax paid	2,311	2,585	2,270	2,185
Distributable Cash	7,189	7,239	7,477	6,176
Distributions paid	6,585	8,329	6,133	5,488
Payout Ratio	91.6 %	115.1 %	82.0 %	88.9 %
Distributable Cash per Unit	0.334	0.336	0.347	0.287
Distributions paid per Unit	0.306	0.387	0.285	0.255
Other
Same Restaurant Sales	25.7 %	24.5 %	8.4 %	64.9 %
Number of restaurants opened	0	0	0	0
Number of restaurants closed	1	3	1	0

SHORT-TERM OUTLOOK

The two principal factors that affect SRS are changes in guest traffic and changes in average guest cheque.  BPI's and BP Canada LP's strategies to drive higher guest traffic include attracting a wide variety of guests into the restaurant, sports bar and take-out and delivery parts of each location, offering a compelling value proposition to guests and leveraging a larger marketing budget versus the previous year along with a revised calendar of national and local store promotions.  Increased average cheque levels are expected to be achieved through a combination of menu mix changes and increases to menu prices.

The success of BPI, BP Canada LP and Boston Pizza Restaurants, and the amount of Franchise Sales, Royalty, Distribution Income and Distributable Cash available for distribution to Unitholders, are dependent upon many economic factors, including impacts of inflation, increases in interest rates, rising input costs, unemployment rates, consumer confidence, recession, supply chain disruption, labour availability and other globally disruptive events.  Despite the current state of economic uncertainty, Boston Pizza Restaurants have been able to generate solid Franchise Sales and offer affordable dining options, both on and off-premise, for guests in economically uncertain times.  As demonstrated during COVID-19, BPI, BP Canada LP and Boston Pizza Restaurants have the ability to adapt to changes in operating environments and economic conditions.  However, with supply chain challenges, rising interest rates, increasing input costs and labour shortages impacting most of the restaurant industry, together with widespread focus on sustainability and climate-related issues, BPI's management remains cautious.  The focus of BPI's management is to adapt the business to successfully mitigate these challenges and maintain positive sales levels in 2024.

The trustees of the Fund will continue to closely monitor the Fund's available cash balances given the uncertain economic outlook and industry challenges.

Forward Looking Information

Certain information in this press release constitutes "forward-looking information" that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, Boston Pizza Holdings Trust, Boston Pizza Royalties Limited Partnership, Boston Pizza Holdings Limited Partnership, Boston Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, BP Canada LP, Boston Pizza Canada Holdings Inc., Boston Pizza Canada Holdings Partnership, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Fund or its trustees expect or anticipate will or may occur in the future, including such things as, Boston Pizza restaurants generally experiencing higher Franchise Sales levels during the summer months when restaurants open their patios and benefit from increased tourist traffic, BPI and BP Canada LP's ability to implement strategies driving higher guest traffic and increased average cheque levels, continued impact of supply chain challenges, high interest rates and increasing input costs, the success of BPI, BP Canada LP and Boston Pizza restaurants, and the amount of Franchise Sales, Royalty, Distribution Income and Distributable Cash available for distribution to Unitholders, being dependent upon many economic factors, including impacts of inflation, increases in interest rates, rising input costs, unemployment rates, consumer confidence, recession, supply chain disruption, labour availability and other globally disruptive events, continued ability to offer affordable dining options, Boston Pizza restaurants having the ability to adapt to changes in operating environments and economic conditions, BPI's management remaining cautious, the focus of BPI's management being to adapt the business to successfully mitigate challenges and maintain positive sales levels in 2024, and the trustees of the Fund continuing to closely monitor the Fund's available cash balances given the uncertain economic outlook and industry challenges, and other such matters are forward-looking information.  When used in this press release, forward-looking information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan", "should", "continue" and other similar terminology.  The material factors and assumptions used to develop the forward-looking information contained in this press release include the following: the Fund maintaining the same distribution policy, expectations related to future general economic conditions, expectations related to guest traffic and average guest cheques, and expectations that the Fund's Payout Ratio is typically higher in the first and fourth quarter, Boston Pizza restaurants maintaining operational excellence.  Risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking information contained herein, relate to (among others): competition, demographic trends, consumer preferences and discretionary spending patterns, business and economic conditions, interest rates and inflationary pressures, legislation and regulation, reliance on operating revenues, accounting policies and practices, the results of operations and financial condition of BPI, BP Canada LP and the Fund, pandemics and national health crises, in particular COVID-19, extreme weather events, as well as those factors discussed under the heading "Risks and Uncertainties" in the most recent Annual Information Form of the Fund.  This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release.  Except as required by law, neither the Fund nor BPI assumes any obligation to update previously disclosed forward-looking information.  For a complete list of the risks associated with forward-looking information and the Fund's business, please refer to the "Risks and Uncertainties" and "Note Regarding Forward-Looking Information" sections included in the most recent Annual Information Form of the Fund available at www.sedarplus.ca and www.bpincomefund.com.

The trustees of the Fund have approved the contents of this news release.

® Boston Pizza Royalties Limited Partnership. All Boston Pizza registered Canadian trademarks and unregistered Canadian trademarks containing the words "Boston", "BP", and/or "Pizza" are trademarks owned by the Boston Pizza Royalties Limited Partnership and licensed by the Boston Pizza Royalties Limited Partnership to Boston Pizza International Inc. BP 60^th Anniversary design is a trademark of Boston Pizza Royalties Limited Partnership, used under license.

© Boston Pizza International Inc. 2024.

Notes – Non-GAAP, Specified Financial Measures and Other Information

1. "Franchise Sales" is the basis upon which Royalty and Distribution Income are payable, and means the gross revenue: (i) of the corporate Boston Pizza restaurants in Canada owned by BPI that are in the Royalty Pool; and (ii) reported to BP Canada LP by franchised Boston Pizza restaurants in Canada that are in the Royalty Pool, without audit or other form of independent assurance, and in the case of both (i) and (ii), after deducting revenue from the sale of liquor, beer, wine and revenue from BP Canada LP approved national promotions and discounts and excluding applicable sales and similar taxes. Nevertheless, BP Canada LP periodically conducts audits of the Franchise Sales reported to it by its franchisees, and the Franchise Sales reported herein include results from sales audits of earlier periods. Franchise Sales is reported on a quarterly basis in the Fund's financial statements, however, the financial statements do not report it on a monthly basis. Therefore, when disclosed on a monthly basis herein, this is a supplementary financial measure under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure ("NI 52‑112").  The Fund believes that Franchise Sales for this month provides useful information to investors regarding recent performance of Boston Pizza.
2. "Same Restaurant Sales" or "SRS" is a supplementary financial measure under NI 52-112 and therefore may not be comparable to similar measures presented by other issuers.  BPI defines SRS as the change in Franchise Sales of Boston Pizza restaurants as compared to the Franchise Sales for the same period in the previous year (where restaurants were open for a minimum of 24 months).  BPI believes that SRS provides investors meaningful information regarding the performance of Boston Pizza restaurants.
3. "Distributable Cash" is a non-GAAP financial measure under NI 52-112.  Distributable Cash is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers.  The Fund defines Distributable Cash to be, in respect of any particular period, the Fund's cash flows generated from operating activities for that period (being the most comparable financial measure in the Fund's primary financial statements) minus (a) BPI's entitlement in respect of its Class B Units in respect of the period (see note 8 below), minus (b) interest paid on debt during the period, minus (c) principal repayments on debt that are contractually required to be made during the period, minus (d) the current income tax expense in respect of the period, plus (e) current income tax paid during the period (the sum of (d) and (e) being "SIFT Tax on Units").  Management believes that Distributable Cash provides investors with useful information about the amount of cash the Fund has generated and has available for distribution on the Units in respect of any period.  The tables in the "Financial Highlights" section of this press release provide a reconciliation from this non-GAAP financial measure to cash flows generated from operating activities, which is the most directly comparable IFRS measure.  Current income tax expense in respect of any period is prepared using reasonable and supportable assumptions (including that the base rate of SIFT Tax will not increase throughout the calendar year and that certain expenses of the Fund will continue to be deductible for income tax purposes), all of which reflect the Fund's planned courses of action given management's judgment about the most probable set of economic conditions.  There is a risk that the federal government of Canada could increase the base rate of SIFT Tax or that applicable taxation authorities could assess the Fund on the basis that certain expenses of the Fund are not deductible.  Investors are cautioned that if either of these possibilities occurs, then the actual results for this component of Distributable Cash may vary, perhaps materially, from the amounts used in the reconciliation.
4. "Distributable Cash per Unit" is a non-GAAP ratio under NI 52-112.  Distributable Cash per Unit is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers.  The Fund defines Distributable Cash per Unit for any period as the Distributable Cash generated in that period divided by the weighted average number of Units outstanding during that period.  Management believes that Distributable Cash per Unit provides investors with useful information regarding the amount of cash per Unit that the Fund has generated and has available for distribution in respect of any period.
5. "Payout Ratio" is a non-GAAP ratio under NI 52-112.  Payout Ratio is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers.  The Fund defines Payout Ratio for any period as the aggregate distributions paid by the Fund during that period divided by the Distributable Cash generated in that period.  Management believes that Payout Ratio provides investors with useful information regarding the extent to which the Fund distributes cash generated on Units.
6. Boston Pizza Royalties Limited Partnership ("Royalties LP") licenses BPI the right to use various Boston Pizza trademarks in return for BPI paying Boston Pizza Royalties Limited Partnership a royalty equal to 4% of Franchise Sales of Boston Pizza restaurants (the "Royalty") in the Fund's royalty pool (the "Royalty Pool").
7. "Distribution Income" is income received indirectly by the Fund on Class 1 LP Units and Class 2 LP Units of BP Canada LP.  See the "Overview – Purpose of the Fund / Sources of Revenue" section of the Fund's MD&A for the Period for more details.
8. "BPI Class B Unit entitlement" is a supplementary financial measure under NI 52-112 and therefore may not be comparable to similar measures presented by other issuers.  The BPI Class B Unit entitlement is the interest expense on Class B Units in respect of a period plus management's estimate of how much cash BPI would be entitled to receive pursuant to the limited partnership agreement governing Royalties LP (a copy of which is available on www.sedarplus.ca) on its Class B Units if Royalties LP fully distributed any residual cash generated in respect of that period after the Fund pays interest on debt, principal repayments on debt and SIFT Tax on Units in respect of that period.  Management believes that the BPI Class B Unit entitlement is an important component in calculating Distributable Cash since it represents the amount of residual cash generated that BPI would be entitled to receive and therefore would not be available for distribution to Unitholders.  Management prepares such estimate using reasonable and supportable assumptions that reflect the Fund's planned courses of action given management's judgment about the most probable set of economic conditions.

SOURCE Boston Pizza Royalties Income Fund

Michael Harbinson, Chief Financial Officer, Tel: [phone], E-mail: [email protected], www.bpincomefund.com