23rd Aug 2021 11:52
Ground Rents Income Fund PLC - invests in portfolio of long-dated ground rents from freeholds and head leases in the UK - Declares third interim dividend of of 0.99 pence per share, covering the three months from April to June, but notes previous announcement that it will reduce its annual dividend to 3.00p, meaning the next quarterly payout will be 0.75p.
At this level, the dividend will be fully covered by recurring earnings for the financial year ending September 2022, Ground Rents says, taking into consideration a provision for increased costs of building safety and external management. Following the fatal fire that consumed the Grenfell Tower in west London in 2017, landlords have had to replace flammable cladding.
Ground Rents says it expect to adopt a progressive dividend policy as rent reviews increase ground rents received. Ground rent income currently totals GBP4.9 million per year, the company says, with 47% of this income subject to price reviews in the next five years and a total of 72% in the next 10.
Current stock price: 75.10p
Year-to-date change: up 2.5%
By Tom Waite; [email protected]
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