Ground Rents Income Fund PLC Unaudited Net Asset Value at 31 March 2017 (8000H)

TIDMGRIO

RNS Number : 8000H

Ground Rents Income Fund PLC

12 June 2017

Ground Rents Income Fund plc

(the "Company")

Unaudited Net Asset Value at 31 March 2017

Ground Rents Income Fund plc (LSE: GRIO), a listed real estate investment trust (REIT) investing in UK ground rents, announces its unaudited Net Asset Value ("NAV") for the six months ended 31 March 2017 ("H1 2017").

Highlights:

   --     Net asset value per ordinary share of 138.35 pence as at 31 March 2017 
   --     Diluted net asset value per ordinary share of 135.31 pence as at 31 March 2017

The unaudited net asset value ("NAV") per share of the Company as at 31 March 2017 was 138.35 pence. This represents an increase of 4.94% over the audited net asset value of 131.83 pence per share at 30 September 2016.

The increase in the net asset value has been driven by the uplift in the independent portfolio valuation by Savills Advisory Services Limited as at 31 March 2017.

Breakdown of NAV movement

A breakdown of the change to the unaudited NAV per share calculated under IFRS over the period from 1 October 2016 to 31 March 2017 is set out below:

 
 Net assets per audited statutory             GBP123.1m 
  accounts as at 30 September 2016 
 
 Profit for the period 1 October                GBP1.7m 
  2016 to 31 March 2017 (H1 2017) 
 
 Revaluation gain less costs of acquisition     GBP6.2m 
 
 Dividends paid during H1 2017                (GBP1.8m) 
 
 Net assets as at 31 March 2017               GBP129.2m

The net asset values and diluted net asset values are calculated under International Financial Reporting Standards ("IFRS") and are unaudited. The NAV per share is calculated using 93,402,011 ordinary shares of 50 pence each, being the number in issue on 31 March 2017. The diluted NAV per share is calculated using 8,028,362 warrants, being the number in issue on 31 March 2017.

Directors' View

The Directors are mindful of the recent media attention on the ground rents market, specifically doubling ground rent assets. In respect of the Company's portfolio of doubling ground rents (18% of the portfolio capital value), the Directors believe that the valuation may now be lower, based on recent market sentiment, by approximately GBP5.5-GBP6.0m.

Were this to be applied to the reported NAV, the NAV would reduce as follows:

-- Net asset value per ordinary share of approximately 132 pence as at the date of this announcement

-- Diluted net asset value per ordinary share of approximately 130 pence as at the date of this announcement

Which would represent an increase of 0.12% over the audited net asset value of 131.83 pence per share at 30 September 2016.

Although the Directors feel it is right to share this information with the market, it must be stated that these figures are purely estimation and the fair value of the portfolio has not been adjusted. The next valuation date is 30 September 2017.

The unaudited interim accounts of the Company to 31 March 2017 will be published in due course.

Contacts:

 
 Ground Rents Income Fund 
  plc 
                                   020 7499 
 Simon Wombwell (Director)          6424 
 
 Brooks Macdonald Funds Limited 
                                   020 7659 
 James Agar (Director)              3454 
 
 N+1 Singer (Broker) 
                                   020 7496 
 James Maxwell / Liz Yong           3000 
 
 Tavistock (Media) 
                                   020 7920 
 Jeremy Carey / James Whitmore      3150 
 
 Appleby Securities (Channel 
  Islands) Limited 
 Kate Storey / Danielle Machon     01481 755600

This announcement is released by Ground Rents Income Fund plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing information relating to the NAV described herein, and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Simon Wombwell, Director.

END OF ANNOUNCEMENT

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 12, 2017 05:30 ET (09:30 GMT)

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