20th May 2015 09:26
LONDON (Alliance News) - Ground Rents Income Fund PLC, a real estate investment trust, Wednesday reported higher first-half pretax profit and said its net asset value per share improved over the six months.
In a statement, the company said it made a GBP3.3 million pretax profit in the six months ended March 31, compared with GBP1.9 million in the corresponding period of the prior year, bolstered by higher revenue and lower administrative expenses, as well as a bigger net revaluation gain on investment properties. Net asset value per share increased to 106.3 pence from 104.3p six months previously.
"The UK is expected to move into a period of deflation in 2015, albeit the consensus is that this will be a short-term position. GRIF offers investors protection within this turbulent environment, as within our portfolio the income is upwards only," James Agar, investment director, Brooks Macdonald Funds, investment advisor to the real estate investment trust, said in a statement.
"We believe interest rates look set to stay low for longer, with gilt and bond yields following a similar trend. The income premium for ground rents over these comparable instruments continues to look attractive, given ground rents' stable and secure income streams, which we feel, will underpin the market over the next year," Agar said.
Ground Rents shares were untraded on Wednesday. The stock last traded at 112.50p.
By Samuel Agini; [email protected]; @samuelagini
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