Ground Rents Income Fund PLC Dividend announcement and Company update (7021K)
April 24 2020 - 1:00AM
UK Regulatory
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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END
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