Final Results

RNS Number : 7815Y

Ground Rents Income Fund PLC

04 December 2014

 



4 December 2014

Ground Rents Income Fund plc

("GRIF" or the "Company)

FULL YEAR RESULTS

For the twelve months to 30 September 2014

Ground Rents Income Fund plc (LSE: GRIO), a listed real estate investment trust (REIT) investing in UK ground rents, announces its full year results for the twelve months to 30 September 2014. 

Highlights

·     Portfolio value of £67million (30 September 2013: £44 million)

·     Net assets of £88.2 million (30 September 2013: £48.0 million)

·     NAV per ordinary share of 104.3 pence (30 September 2013: 97.2 pence)

·     Profit before tax of £4.70 million (17 months to 30 September 2013: £1.1 million)

·     Basic earnings per share of 7.58 pence (17 months to 30 September 2013: 2.29 pence)

·     Diluted earnings per share of 5.97 pence (17 months to 30 September 2013: 2.24 pence)

·     Dividends paid of 3.8 pence per share, a gross yield of 3.8%. (17 months to 30 September 2013: 2.8 pence; 2.8%). Convertible preference shares paid a fixed dividend of 2% per annum until conversion into ordinary shares on 24 May 2014   

·     Of £84.8 million (net) of equity raised, £64.3 million has been invested in ground rents (30 September 2013: £43.7 million)

·     Since 30 September 2014, the Company has invested or contracted to invest a further £5.2 million

Chairman Malcolm Naish said:

"The market for ground rents has been very strong during the year, with more purchasers entering the market and some substantial portfolios changing hands. Unlike mainstream commercial property markets, data on the ground rents market can be difficult to obtain. However, the data which we do have shows that transactions for large, institutional-type portfolios are occurring at yields which have not been seen before and are more closely aligned to index-linked gilt rates.

"The Company has seen the benefit of this in terms of capital value appreciation, but the corollary is that it has become increasingly difficult to find new investments for prices at which GRIF could achieve its target dividend yield."

James Agar, Investment Director of Brooks Macdonald Funds, Investment Adviser to GRIF, said:

"It has been a strong year for GRIF, as shown by the underlying performance of the NAV. We have put together a portfolio with market-leading exposure to index-linked income, which was a key factor in many investors' decision to back the Company at both its IPO and its subsequent preference share issue.

"We expect the REIT will be fully invested within the next three months. This will remove the cash drag from the dividend performance.

"Once fully invested, we expect to have a portfolio with more than 70% of its income directly linked to inflation, including a number of short-review-cycle assets that help to reduce the income stream's lag to inflation."

A copy of the Annual Report and financial Statements, for the twelve months to 30 September 2014, can be accessed in the link below:

http://www.rns-pdf.londonstockexchange.com/rns/7815Y_-2014-12-3.pdf

FOR FURTHER INFORMATION CONTACT:

Brooks Macdonald Funds: Simon Wombwell / James Agar	[phone]
N+1 Singer (Broker): James Maxwell / Gillian Martin	[phone]
Tavistock (Media): James Whitmore	[phone]
Appleby Securities (Channel Islands) Limited (Sponsor): Kate Storey	[phone]

 

END

 

 

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