Ground Rents Income Fund PLC Dividend announcement and Company update (7021K)

TIDMGRIO

RNS Number : 7021K

Ground Rents Income Fund PLC

24 April 2020

For release 24 April 2020

Ground Rents Income Fund plc ("GRIO" or the "Company")

DIVIDEND ANNOUNCEMENT AND COMPANY UPDATE

Ground Rents Income Fund plc, the Real Estate Investment Trust that invests in long-dated UK ground rents, announces its dividend and provides a Company update in light of the COVID-19 pandemic.

DIVIDEND PAYMENT

The Company announces an interim PID dividend of GBP1.0 million or 0.99 pence per share for the period 1 January 2020 to 31 March 2020. The dividend payment will be made on 29 May 2020 to shareholders on the register as at 11 May 2020. The ex-dividend date will be 7 May 2020.

The dividend level has not changed over the quarter and reflects the ground rent income generated by the portfolio. Although ground rent arrears are currently in line with the same period during 2019, future dividends will be reviewed in light of COVID-19 and any related impact on net income.

VALUATION

As a result of COVID-19 and related market uncertainty, the Company's independent valuer, Savills, have informed the Company that their valuation as at 31 March 2020 includes an industry standard statement highlighting Material Valuation Uncertainty.

Subject to this statement, as at 31 March 2020, the Company's portfolio was valued at GBP122.6 million which represents a fall in value of GBP300,000 or 0.2% compared to 30 September 2019. This valuation will be used for the purposes of calculating the Company's net asset value ('NAV') in its interim results. The movement in the NAV of the Company will also be impacted by leverage together with expenses relating to Beetham Tower in Manchester and other activity.

BALANCE SHEET

The Company has a stable balance sheet with a consolidated net loan to value ratio of 11.4%. Following a refinancing in January 2020 the Company has a single loan facility with Santander totalling GBP25 million which comprises a term loan of GBP12.5 million and a revolving credit facility ('RCF') of GBP12.5 million. The total interest rate when drawn is 2.64% and GBP9.5 million is currently undrawn on the RCF which provides important operational flexibility.

BEST-IN-CLASS MANAGEMENT

The Board and Manager are committed to providing best-in-class residential asset management and administering the portfolio in a socially responsible way. As an example, we are working with our property managers to ensure enhanced health and safety and other procedures in response to COVID-19. We are also closely monitoring service charge budgets and arrears to ensure resources are efficiently allocated as part of delivering value for tenants.

HALF YEAR RESULTS

The Company expects to announce its half year results for the six month period ending 31 March 2020 in July 2020.

Contacts:

Schroder Real Estate Investment Management Limited

James Agar / Matthew Riley

020 7658 6000

N+1 Singer (Broker)

James Maxwell / Ben Farrow

020 7496 3000

Appleby Securities (Channel Islands) Limited (Sponsor)

Andrew Weaver

01534 888 777

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April 24, 2020 02:00 ET (06:00 GMT)