Is SIR Royalty (SRV.UN) halal?
SIR Royalty Income Fund (TSX: SRV.UN) gets a FAIL: its 6% royalty is charged on food-and-beverage revenue of bar-and-grill restaurants - alcohol sales sit inside the royalty base - and its 7.5% SIR Loan interest income is about 24% of total income, roughly five times the ~5% ceiling.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — FAILED (alcohol in the royalty base)
SIR Royalty Income Fund (TSX: SRV.UN) is a limited-purpose trust that earns royalty income of 6% of Pooled Revenue from SIR Corp. restaurants plus interest income from the SIR Loan. The Royalty Pool (52 restaurants at January 1, 2026) is built around bar-centric concepts: 35 Jack Astor's Bar and Grill locations, 14 Scaddabush Italian Kitchen & Bar locations, The Loose Moose Tap + Grill, REDS Square One, and Edna + Vita - with a new Freida's Beverage Kitchen concept being rolled into renovated Jack Astor's locations. Pooled Revenue is defined as food and beverage revenue from these restaurants: beverage sales - including alcohol served at the bars - are inside the royalty base, not carved out. Q2 2026 Pooled Revenue was C$77.5M and the Fund's royalty income was C$4.65M, every dollar of it a 6% cut of restaurant revenue that includes alcohol. Because the entire royalty stream is tied to gross sales that include alcohol, the Fund fails the business-activity gate. Facts only, no fatwa.
Gate two: the ratios — interest income fails, debt passes, all moot
The interest-income gate fails on its own. The Fund holds the SIR Loan: C$40,000,000 at 7.5% per annum, due October 12, 2044, collateralized by substantially all of SIR Corp.'s Canadian assets. Interest of C$750,000 per quarter - C$3.0M for full-year 2025 - is recognized as interest income. Against the Fund's 2025 total income of C$12.6M (C$11.1M equity income from the SIR Royalty Limited Partnership plus C$1.5M change in the SIR Loan's estimated fair value), C$3.0M of interest income is about 24% - roughly five times the ~5% ceiling. The debt gate passes: the Fund's Q1 2026 interim balance sheet shows no long-term or third-party debt - only accounts payable, amounts due to related parties, and deferred income taxes (about C$5.4M total). Both ratio findings are moot given the business-gate FAIL; all figures are recomputed from the cited filings. Market capitalization is about C$120M (September 2026 - about C$14.33-14.75 per unit on 8,375,567 units outstanding).
What other screeners say
No public Zoya, Musaffa or ShariaPortfolio coverage was found for SIR Royalty (SRV.UN) as of September 2026: web searches surfaced no public Zoya page for the ticker, no Musaffa public page, and ShariaPortfolio publishes no public per-stock screening pages for it. The FAIL recorded here rests on the Fund's own disclosures.
The bottom line
SIR Royalty Income Fund (SRV.UN) is a FAIL. The business gate fails: the Fund earns a 6% royalty on Pooled Revenue - food and beverage revenue - of SIR Corp.'s bar-and-grill restaurants (Jack Astor's Bar and Grill, Scaddabush Italian Kitchen & Bar, The Loose Moose Tap + Grill, Freida's Beverage Kitchen), so alcohol sales sit inside the royalty base. The interest-income gate also fails independently: the C$40M SIR Loan at 7.5% generates about C$3.0M/year of interest income, about 24% of the Fund's 2025 total income of C$12.6M - roughly five times the ~5% ceiling. The debt gate passes (the Fund itself carries no long-term or third-party debt) but is moot. No public Zoya, Musaffa or ShariaPortfolio rating was found for this ticker as of September 2026. As with every screener here, this is a rules-based screening of published figures, not a religious ruling - consult a qualified scholar for personal guidance.
Sources
- SIR Royalty Income Fund Q2 2026 results (Pooled Revenue, royalty income, Royalty Pool composition, bar concepts)
- SIR Royalty Income Fund Q1 2026 interim financial statements (SIR Loan C$40M at 7.5%, C$750k/quarter interest recognized, no long-term debt on the Fund's balance sheet)
- SRV.UN price, units outstanding, market cap, September 2026 (MarketBeat)
- SRV.UN quote, market cap, units outstanding, September 2026 (TMX Money)
Frequently asked questions
Is SIR Royalty Income Fund halal?
Based on this screener AAOIFI-style checks, SIR Royalty Income Fund fails: the business gate fails because the Fund earns a 6% royalty on the food-and-beverage revenue of SIR Corp. bar-and-grill restaurants (Jack Astor's Bar and Grill, Scaddabush Italian Kitchen & Bar, The Loose Moose Tap + Grill, Freida's Beverage Kitchen), so alcohol sales sit inside the royalty base. The interest-income gate also fails: 7.5% interest on the C$40M SIR Loan is about C$3.0M/year, roughly 24% of the Fund's total income vs the ~5% ceiling. This is a screening result, not investment advice or a religious ruling.
Does SIR Royalty earn money from alcohol?
Yes, structurally: the Fund's royalty income is 6% of Pooled Revenue, which the Fund defines as food and beverage revenue from the Royalty Pool restaurants - beverage sales are included in the royalty base, not carved out. The pool is built around bar-centric concepts: 35 Jack Astor's Bar and Grill locations, 14 Scaddabush Italian Kitchen & Bar locations, The Loose Moose Tap + Grill, and the new Freida's Beverage Kitchen concept.
What is SIR Royalty interest income to revenue ratio?
About 24%: the SIR Loan of C$40M bears interest at 7.5% per annum (due October 12, 2044), so about C$750,000 per quarter - C$3.0M for 2025 - was recognized as interest income. Against the Fund's 2025 total income of C$12.6M (C$11.1M equity income from the Partnership plus C$1.5M change in the SIR Loan's fair value), that is about 24% - roughly five times the ~5% ceiling.
How much debt does SIR Royalty Income Fund have?
None at the Fund level: the Fund's Q1 2026 interim balance sheet shows no long-term or third-party debt - liabilities are only accounts payable, amounts due to related parties, and deferred income taxes (about C$5.4M total). The debt gate passes, but is moot given the business-gate FAIL. (SIR Corp., the private operating company, separately carries bank debt - that is not the Fund's balance sheet.)
Do Zoya, Musaffa, or ShariaPortfolio rate SIR Royalty?
No public coverage was found as of September 2026: web searches surfaced no public Zoya page for the ticker, no Musaffa public page, and ShariaPortfolio publishes no public per-stock screening pages for it. The FAIL recorded here rests on the Fund's own disclosures.