7th Aug 2019 14:53
(Alliance News) - Real estate investment trust Ground Rents Income Fund PLC said on Wednesday that it will hold its dividend policy following a strategy and policy review.
The company decided to maintain its 3.96 pence per share annual dividend, but said the level will be kept "under review on a periodic basis".
Ground Rents said its investment manager is engaging with the UK Ministry of Housing, Communities & Local Government about a review of the leasehold sector. The review could see the ban on the sale of leasehold houses as well as the restriction of ground rents on apartments to zero.
The company said that it has a "limited exposure to leasehold homes which generate 11% of total ground rent income", potentially mitigating any negative impacts from the reform.
Ground Rents said: "The board believes the investment objective and policy remains differentiated and relevant. While the government review of the residential leasehold sector is ongoing, the company is assessing other complementary assets that generate long-term, secure and inflation-protected income."
In the announcement Wednesday, the company revealed that Bill Holland will replace departing board member Simon Wombwell as chair of the audit committee.
Holland, whose appointment is effective from September, was formerly a partner of KPMG Audit PLC's real estate practice.
Shares in the company were down 0.7% at 77.49 pence each in London on Wednesday afternoon.
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