Trudeau has announced a rent subsidy for small businesses paying 75% of the rent for businesses that are shut down or where revenue is down at least 70%. This applies to monthly rent payments up to $50,000.
This could benefit many businesses and landlords.
Beneficiaries among companies on our list, that come to mind include the Melcor REIT and Melcor Developments and RioCan.
Canadian Western Bank might also benefit as some businesses (particularly in the business where it lends to certain franchisees) are assisted and have less financial pressure.
It may help some Boston Pizza locations stay in business. Royalties would not immediately be affected at all but if it prevents some locations from permanently closing, that will be beneficial.
AutoCanada rents many of its locations. It may qualify because the individual dealerships are structured as corporations and may be under the $50,000 monthly rent level in some cases.
Restaurant Brands would be benefited at the individual franchise level which and some of that benefit would flow to the parent company since, as I understand it, they are landlords to many Tim Hortons locations.
My thinking is that the above companies would benefit but I note that the stocks have not reacted. I added to my RioCan position on the news because it looks like good value and I like the broad diversification across Canada.