Boston Pizza Income Fund(Symbol-BPF.UN)

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Justise
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

Post by Justise »

Nortel'd wrote:My question is ...How will the automatic securities purchase plan ("ASPP") to allow for the repurchase of BPF.UN Fund units under a Normal Course Issuer Bid affect the price of this stock once all fund units have been repurchased for cancellation?

Am I right to think the price of this stock will drop once the BPF Fund issues the press release announcing all 1,442,522 Fund units have been repurchased for cancellation.

This Normal Course Issuer Bid permits the Fund to repurchase for cancellation up to 1,442,522 Fund units. In accordance with the rules of the TSX, the maximum number of units that can be purchased on a daily basis by the Fund is 7,174 units, subject to the block purchase exception.

As at March 18, 2013, the Fund had not purchased any Fund units under its current Normal Course Issuer Bid.

On March 18, 2013 BPF.UN closed at $20.72 per unit and today it closed at $22.15.


Not only BPF had finished the purchase back of shares in the 3rd occasion, BPF announced the new round (4th) round of NCIB as per below:

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 12, 2013) - Boston Pizza Royalties Income Fund (the "Fund") (TSX:BPF.UN) announced today that it has received Toronto Stock Exchange ("TSX") approval of a Notice of Intention to Make a Normal Course Issuer Bid through the facilities of the TSX and other Canadian marketplaces from September 16, 2013 to no later than September 15, 2014. The Normal Course Issuer Bid will permit the Fund to repurchase for cancellation up to 1,393,078 units, being approximately 9.3% of the Fund's issued and outstanding units (as at September 6, 2013) and approximately 10.0% of its public float, currently comprised of 13,930,780 units. The Fund has 15,029,544 units issued and outstanding as at September 6, 2013. The average daily trading volume of the Fund's units for the period between March 1, 2013 and August 31, 2013 was 16,680 units. In accordance with the rules of the TSX, the maximum number of units that can be purchased on a daily basis by the Fund is 4,170 units, subject to the block purchase exception.
The board of trustees of the Fund believes that, from time to time, market conditions provide opportunities for the Fund to acquire units at attractive prices and that the purchases are an appropriate use of funds that will enhance unitholder value.
The Fund intends to finance purchases under the Normal Course Issuer Bid by drawing on the Fund's $56 million credit facilities established on July 19, 2012 by a subsidiary of the Fund, Boston Pizza Royalties Limited Partnership, with a Canadian Chartered Bank. Full particulars of the Fund's credit facilities, including applicable interest rates, security, guarantees and other terms and conditions are contained within the amended and restated credit agreement governing the credit facilities, a copy of which is available on www.sedar.com.
The Fund previously established Normal Course Issuer Bids in 2008, 2009 and 2012, pursuant to which it was permitted to repurchase for cancellation up to approximately 3.0 million units through the facilities of the TSX. Under the Normal Course Issuer Bid established by the Fund in 2012 and that expired on August 31, 2013, the Fund acquired 541,100 units at an average price of $22.74 per unit. Under all three prior Normal Course Issuer Bids established by the Fund, the Fund acquired approximately 3.0 million units at an average price of $12.37 per unit. The Fund paid the market price at the time of acquisition for units purchased through the facilities of the TSX and all units acquired under the Prior NCIBs were cancelled.
The trustees of the Fund approved the contents of this news release.



In the past 3 rounds of share buyback, Those 3 million share buybacks (20% of current issued shares) using cheap bank loans amount to 'investment' with current yield of annual dividend of $1.224 divided by average purchased price of $12.37 giving 10.11% yield. The net gain is $7.11% if borrowed fund is at prime. Those share buybacks amount to net 1.42% accretive additional gain in dividend per share. If those shares are not cancelled, then there is more than $10 per share of capital gain in the buyback investment.

It should be noted therefore, that any share buyback by any stock using borrowed money the dividend yields have to be appreciably more than the interest cost of fund to be accretive, otherwise it is a negative accretive disinvestment other than to support share price.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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BPF.UN has Q2 2013 SSSG of 3.6% and H1 2013 SSSG of 3.4% and being the 2nd highest and highest SSSG respectively among all the restaurant royalties and are also much better those of Tim Hortons and McDonalds.

There is one dividend increase this year and my prediction is there will also have a dividend increase next year of around 4 %.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Continue from XIU Bleeding Assets.

I mentioned 10 year cycle for the 4 sectors.

First,

Using TMX charting for 10 years total using split and dividend as on Christmas Eve:

SRV.UN 482%
AW.UN 413%
BPF.UN 348%
KEG.UN 261%
PZA 220%

Average for the 5 restaurant royalties 345% more than 3 times better than XIU 109%.

Definitely even much better as compare to :

SU 93%
COS 45%

Pitz, O&G, metals, materials are commodities but restaurant business is not and that is why Warrant Buffett bought Dairy Queen and Fairfax Financial bought EAT.UN which is not its cup of tea so to speak.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Just to update on the Q3 2014 restaurant royalties SSSG for Canadian operation:

KEG.UN 7%
AW.UN 5.7%
SRV.UN 3.4%
BPF.UN 3.1%
PZA 0.8%

To explain the mechanics of why SRV.UN having the least capital gain but beat the other 4 in 10 years total returns is that SRV.UN is the smallest and therefore the least liquid but had and has the highest yield(currently around 8.9%) and when reinvesting the higher dividend is buying much more shares of its stock and therefore compounding on a 'double-double basis. The same logic applies as compare to XIU.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Justise wrote:Continue from XIU Bleeding Assets.

I mentioned 10 year cycle for the 4 sectors.

First,

Using TMX charting for 10 years total using split and dividend as on Christmas Eve:

SRV.UN 482%
AW.UN 413%
BPF.UN 348%
KEG.UN 261%
PZA 220%

Average for the 5 restaurant royalties 345% more than 3 times better than XIU 109%.

Definitely even much better as compare to :

SU 93%
COS 45%

Pitz, O&G, metals, materials are commodities but restaurant business is not and that is why Warrant Buffett bought Dairy Queen and Fairfax Financial bought EAT.UN which is not its cup of tea so to speak.
Adding here that getting paid dividends monthly. makes a not insignificant difference to investors be those needing money or even more impact with dividends reinvested as compare to most others in general and XIU in particular.

Disclosure: I owned BPF.UN, SRV.UN, AW.UN, the top 3 performers.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Justise wrote:Adding here that getting paid dividends monthly. makes a not insignificant difference to investors be those needing money or even more impact with dividends reinvested as compare to most others in general and XIU in particular.
As mentioned elsewhere, completely disagree.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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adrian2 wrote:
Justise wrote:Adding here that getting paid dividends monthly. makes a not insignificant difference to investors be those needing money or even more impact with dividends reinvested as compare to most others in general and XIU in particular.
As mentioned elsewhere, completely disagree.

Dividends paid monthly is definitely much better than those paid quarterly for those who need money to pay their bills and more so for credit card bills. Don't forget, the big cohort of baby boomers are retiring and therefore have no salary income to spend. Therefore, investment income is important. Dividends are reported mostly so much per year, say $1.20 i.e. $0.30 quarterly or $0.10/month. There is no question that it is definitely better to received dividends $0.10 monthly as compare to receiving $0.30 quarterly.

Mathematically, for a 10 year compounding, there will be a pretty significant advantage gain in monthly dividends as compare to quarterly dividends. For those using DRIP the difference will be even more pronounced for those stocks will DRIP. For smart investors, the trading cost will not come into play for people like you Adrain2 and many others using slight leverage to their advantage when the cost of fund is only about half the dividends received monthly. After all, the restaurant royalties are very stable compare to most others after the income tax issue is over.

I am predicting dividend increase for most restaurant royalties later this year and one may be potentially taken over by Cara, Fairfax Financial or others.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Justise wrote:Mathematically, for a 10 year compounding, there will be a pretty significant advantage gain in monthly dividends as compare to quarterly dividends. For those using DRIP the difference will be even more pronounced for those stocks will DRIP. For smart investors, the trading cost will not come into play for people like you Adrain2 and many others using slight leverage to their advantage when the cost of fund is only about half the dividends received monthly. After all, the restaurant royalties are very stable compare to most others after the income tax issue is over.
I disagree as well. It is administratively costly for an organization to distribute dividends monthly and/or to DRIP dividends, and just as compounding monthly might be advantageous to the investor, it is counterproductive to the organization who could otherwise collect investment income of its own for that intervening period. IOW, for all we know, if the organization went to quarterly distributions, that dividend might be able to be 32 cents quarterly instead of 10 cents monthly at no net difference in profit to the organization.

The point being - there is no free lunch and there is no way for you (or any of us) to know if the investor is advantaged or disadvantaged with montly vs quarterly distributions. It is a red herring.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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No to monthly distributions. My transaction spreadsheet is approaching 10,000 rows. Too many monthly distributions. :(
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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"and just as compounding monthly might be advantageous to the investor"

AltaRed, thank you for acknowledging the fact as we, here, are all investors, and also in a way mathematics can not lie.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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DenisD wrote:No to monthly distributions. My transaction spreadsheet is approaching 10,000 rows. Too many monthly distributions. :(
I kind of like monthly income. BMOIL does the accounting. No need for spreadsheet ;)
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Justise wrote:Mathematically, for a 10 year compounding, there will be a pretty significant advantage gain in monthly dividends as compare to quarterly dividends.
Not always. Doesn't it depend on when you purchase the investment?
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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DenisD wrote:
Justise wrote:Mathematically, for a 10 year compounding, there will be a pretty significant advantage gain in monthly dividends as compare to quarterly dividends.
Not always. Doesn't it depend on when you purchase the investment?
In an increasing market, yes while in a decreasing market of dividend cuts, no.

But that is not the real issue. Justise doesn't understand that what might appear advantageous to a shareholder is equally opposite for the company. There is no net impact in compounding monthly vs quarterly dividends. IOW, it is perceived that a 10 cent dividend every month is better than 30 cents every quarter because the shareholder gets 'time value of money' sooner and can re-invest it. But the company has to do the opposite. It has to make cash available every month rather than hold it for quarterly distributions... thereby earning money on that cash in the meantime, and possibly paying out that additional cash for a 31 or 32 cent dividend rather than a 30 cent dividend, or failing that having re-invested more into the business for higher capital appreciation and higher return on equity.

There is no way for any of us to know what the company would have done with the time value of cash in their hands, but it is equally unknown to assert the shareholder does better with monthly dividends than quarterly dividends.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

Post by DenisD »

I'm just looking at the "mathematics". If you buy in the 3rd month of the quarter, you get more money sooner to reinvest. 30¢ instead of 10¢. Next quarter, same thing. And so on.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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That too :)
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

Post by Webber22 »

There was news about lower cheese prices.
"Dairy commission drops prices as concerns rise about EU trade deal"
http://www.cbc.ca/news/canada/windsor/d ... -1.2912577
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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A small step in the right direction. I will only be satisfied when the Dairy Commission becomes extinct.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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AltaRed wrote:
DenisD wrote:
Justise wrote:Mathematically, for a 10 year compounding, there will be a pretty significant advantage gain in monthly dividends as compare to quarterly dividends.
Not always. Doesn't it depend on when you purchase the investment?
In an increasing market, yes while in a decreasing market of dividend cuts, no.

But that is not the real issue. Justise doesn't understand that what might appear advantageous to a shareholder is equally opposite for the company. There is no net impact in compounding monthly vs quarterly dividends. IOW, it is perceived that a 10 cent dividend every month is better than 30 cents every quarter because the shareholder gets 'time value of money' sooner and can re-invest it. But the company has to do the opposite. It has to make cash available every month rather than hold it for quarterly distributions... thereby earning money on that cash in the meantime, and possibly paying out that additional cash for a 31 or 32 cent dividend rather than a 30 cent dividend, or failing that having re-invested more into the business for higher capital appreciation and higher return on equity.

There is no way for any of us to know what the company would have done with the time value of cash in their hands, but it is equally unknown to assert the shareholder does better with monthly dividends than quarterly dividends.
I am surprised that you could not understand the English which I think Adrain2 got it and so is Pitz. Go back to what Adrain2 wrote:


Justise wrote:
Adding here that getting paid dividends monthly. makes a not insignificant difference to investors be those needing money or even more impact with dividends reinvested as compare to most others in general and XIU in particular.


Pitz and I was exchanging/comparing restaurant royalties in general and BPF in particular to XIU for the past 10 years' performance.
Read again.

BPF reported Q4/2014 results ending Dec 31, 2014 with SSSG of 5.3% and total dividend payout of $15.22. With its stock price trading at around $22, a CG of $12 + $15.22 dividends = $27.22 gain over about 12 years for initial
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Continuing where I left uncompleted.

IBPF reported Q4/2014 results ending Dec 31, 2014 with SSSG of 5.3% and total dividend payout of $15.22. With its stock price trading at around $22, a CG of $12 + $15.22 dividends = $27.22 gain over about 12 years for initial PO of $10 gives average total return of 22.7% per year UNCOMPOUNED.

With dividends reinvested gives 10 year total return of 314% vs 111% for XIU.

As of yesterday Feb 17 2015, total 10 year returns are:

SRV.UN 485%
AW.UN 463%
BPF.UN 314%
KEG.UN 280%
PZA 253%

Average for the above restaurant royalties 358% vs 111% for XIU

So far reported Q4 2014 results with SSSG:
AW.UN 7.9%
BPF.UN 5.3%

Beating much publised Tim Hortons 4.1%.

Restaurant royalties have been flying with flying colours but under the radars of the mostly experts mistaken them as commodities. These are cash cows whereas some of the other stocks are 'mad cows'
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Updating reports with Q4/2014 SSSG for restaurant royalties:

AW.UN 7.9%
BPF.UN 5.3%
KEG.UN 4.3%

All 3 reported so far have respectable SSSG beating

Tim Hortons 4.1%

Restaurant royalties will most likely have very good performance this year and next.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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Updating Q4/2014 SSSG for restaurant royalties:

AW.UN 7.9%
BPF.UN 5.3%
KEG.UN 4.3%
SRV.UN 3.6%
PZA 2.0%

showing continue growth and most probably will do much better in 2015.

As a group and individually they continue to outperform XIU in yields and 10 year total returns by huge margins.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

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http://www.marketwired.com/press-releas ... 229705.htm

7%+ drop today. Looking at adding to existing position. Have a bid in at 52 week low. Addition of new franchises should increase revenue long term. Pay out ratio is typically high for this stock but it has moved down after similar run ups. Only concern is greater market wide pullback in the future. Thoughts?

Cheers

London
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

Post by gibor »

Londoncalling wrote: 11 Aug 2017 00:43 http://www.marketwired.com/press-releas ... 229705.htm

7%+ drop today. Looking at adding to existing position. Have a bid in at 52 week low. Addition of new franchises should increase revenue long term. Pay out ratio is typically high for this stock but it has moved down after similar run ups. Only concern is greater market wide pullback in the future. Thoughts?

Cheers

London
In the same position :)... sitting on the fence...want to add , but scared
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

Post by AltaRed »

This one is saturated out West. Restaurants in virtually every town that is bigger than a whistle stop. Have no idea its status further east.
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Re: Boston Pizza Income Fund(Symbol-BPF.UN)

Post by gibor »

AltaRed wrote: 11 Aug 2017 09:51 This one is saturated out West. Restaurants in virtually every town that is bigger than a whistle stop. Have no idea its status further east.
There are many of them in GTA too. I was expecting better results from them considering that Leafs and Raptors played in playoffs
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