1st Dec 2016 14:19
LONDON (Alliance News) - Ground Rents Income Fund PLC on Thursday said its net asset value, profit and dividend all increased in the financial year to the end of September after the "buoyant" market for ground rents led to large lifts in value.
The real estate investment trust focused on UK ground rents - sums paid by owners of property to the owner of the land that the building sits on - said the market has been on a positive trend over the past 24 months.
The value of the portfolio at the end of September was GBP125.7 million, increasing from GBP104.2 million at the end of September 2015. Net assets rose to GBP123.1 million from GBP106.2 million, while the net asset value per share was 15.3% at 131.83 pence from 114.28 pence.
Pretax profit in the year amounted to GBP20.2 million, including a GBP16.6 million gain from lifts in the value of its portfolio, compared to the profit of GBP12.4 million last year that included a GBP9.2 million valuation gain.
The dividend for the year was 3.959 pence, reflecting a gross yield of 3.96%, improving from last year when the dividend was 3.538 pence with a yield of 3.57%.
"The consolidated accounts are released during a period of relative stability in the UK commercial property market since the EU referendum result, helped not least by foreign investors attracted by the fall in sterling against the dollar," said James Agar, investment director of Brooks Macdonald Funds, the investment manager to Ground Rents.
"Our investment strategy is focused on achieving stable, long-term performance by investing in long-dated ground rents, which have historically not suffered the same peaks and troughs as the economy and the wider property market," he added.
Ground Rents shares were down 1.1% to 135.0 pence per share on Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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