July 22, 2009 / 3:23 PM / 9 years ago

Priszm Income Fund Q2 profit falls, cuts distribution; shrs tank

* Q2 profit falls 36 pct

* Cuts monthly distribution to C$0.01/unit

* Shares fall 41 pct

July 22 (Reuters) - Canada’s Priszm Income Fund QSR_u.TO posted a 36 percent fall in quarterly profit and cut its monthly distribution, sending its shares down 41 percent to a lifetime low.

The company cut its monthly distribution to 1 Canadian cent per unit for July, in a bid to preserve capital and bolster its balance sheet in advance of its long-term loan maturity in 2011.

It paid a distribution of 5 Canadian cents per unit for June.

For the second quarter, the company’s net income fell to C$1.8 million ($1.6 million) from C$2.8 million last year.

Priszm Income Fund holds about 60 percent interest in Prism Limited Partnership, which owns and operates more than 400 quick service restaurants across Canada, including KFC, Taco Bell and Pizza Hut.

Restaurant sales fell 2 percent to C$105.8 million for the quarter, the company said.

Shares of the company were trading down 69 Canadian cents at C$1.28 Wednesday morning on the Toronto Stock Exchange. ($1=1.107 Canadian Dollar) (Reporting by Koustav Samanta in Bangalore; Editing by Anne Pallivathuckal)

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