What is distributable cash and how is it calculated?
Distributable cash is a common term used by income funds to describe the amount of cash that is available to meet distribution obligations of the Fund. Pizza Pizza Royalty Income Fund is a top-line royalty fund and not exposed to operating activities or capital expenditures requirements of PPL or the Pizza Pizza restaurants. Our Fund receives a 6% royalty on system sales of Pizza Pizza restaurants and a 9% rolyalty on system sales of Pizza 73 restaurants then pays interest and administrative expenses, before distributions are made to Unitholders.
