6th Jul 2020 13:32
(Alliance News) - Ground Rents Income Fund PLC on Friday said it swung to an interim profit, in spite of a slight fall in net asset value and the value of its portfolio.
The trust posted a pretax profit of GBP757,226 for the six months to the end of March, compared to a loss of GBP1.4 million the year before, mainly due to a narrowed loss on the revaluation of investment properties to GBP358,545 from GBP2.6 million.
Ground Rents's portfolio value as at March 31 dipped to GBP122.6 million from GBP122.9 million at the end of September, leading to a lower net asset value of 110.1 pence per share from 111.3p.
However, revenue grew by 15% to GBP3.1 million from GBP2.7 million the prior year.
Ground Rents declared an interim dividend of 1.98 pence per share, up from 1.96p the year before.
"Whilst the outlook for the UK real estate market in light of the Covid-19 pandemic is uncertain, the company has a diversified portfolio of assets with defensive income characteristics and a strong balance sheet with low gearing. The granular, diversified, defensive nature of the portfolio, will assist in delivering the unchanged, long-term, strategic objectives," said Chair Malcolm Naish.
"The near-term outlook for the company will be influenced by the conclusion of the ongoing reviews by Government, the Law Commission and the Competition and Markets Authority. The board and manager support reform which addresses historically imbalanced practices and delivers a rational, simplified and transparent leasehold market for all consumers and differentiated and attractive returns to shareholders," Naish added.
Shares in Ground Rents Income Fund were up 0.4% at 82.10 pence on Monday in London.
By Dayo Laniyan; [email protected]
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