REG - Ground Rents Inc Fnd - Annual Financial Report and Notice of Meeting

Ground Rents Income FundAnnouncement

11/12/2025 07:00

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RNS Number : 1031L  Ground Rents Income Fund PLC  11 December 2025

11 December 2025

 

Ground Rents Income Fund plc

("GRIO" or the "Company")

 

FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

 

Ground Rents Income Fund plc announces its audited full year results for the
year ended 30 September 2025 ('the Year'). The Company's Annual Report and
Accounts for the Year are being published in hard copy format and are also
available at the following link: https://schro.link/grioar25
(https://schro.link/grioar25) , or on the Company's website
www.groundrentsincomefund.com
(https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/ground-rents-income-fund-plc/)
.

 

 Key highlights:

 

 ·             Portfolio valuation of £56.2 million, representing a like-for-like reduction
               (net of disposals) of £5.6 million, or 9.0%, over the year (30 September
               2024: £71.5 million, or £61.8 million on a like-for-like basis).
 ·             Net Asset Value ('NAV') of £52.2 million or 54.5 pence per share ('pps') (30
               September 2024: £56.5 million or 59.0 pps). Dividends remain withheld due to
               the continuing Disclaimer of Opinion within the Auditor's report.
 ·             £10.0 million asset sales completed within the Year and post year-end,
               marginally above the valuation at the start of the year
               (30 September 2024). These disposals and a decision to hold less cash,
               have enabled a reduction of the outstanding bank loan from £19.5 million to
               £8.2 million.
 ·             Loan facility refinanced post year-end, extending maturity to January 2028 and
               reducing the margin from 2.75% to 2.50% over the SONIA rate, with no early
               repayment penalties. Disposals continue to be optimised.
 ·             Earnings before revaluation loss were £1.6 million, stable year-on-year, with
               elevated costs offset by savings in financing and operations.
 ·             Judicial Review of the Leasehold and Freehold Reform Act 2024 dismissed by the
               High Court; the Company and its peers have lodged a formal application seeking
               permission to appeal, with a decision on the application expected in early
               2026.
 ·             Further reduction in the number of properties with ongoing building safety
               remediation requirements from 23 to 22, following the completion of five
               projects and the identification of new or additional requirements at four
               others. Additional due diligence is underway across the remaining in-scope
               assets to ensure appropriate assurance. Related costs continue to be
               substantially met by original developers and the Government, including nine
               properties where works are underway.
 ·             As previously announced, Board succession is in progress, with Barry
               Gilbertson's planned retirement as Chair effective today, with Non-Executive
               Director, Judith MacKenzie, assuming the Chair position. Non-Executive
               Directors Bill Holland and Katherine Innes Ker will stand for re-election at
               the Annual General Meeting in March 2026, but have today confirmed their
               intention to stand down from their positions on the Board once replacement
               Non-Executive Directors have been appointed. An independent search consultant
               has been appointed to identify suitable candidates.

 

Barry Gilbertson, the Company's outgoing Chair, commented:

 

"Over the past five years, the Company has faced strong headwinds relating
to leasehold reform, building and fire safety reform and unresolved Government
interventions. These challenges together have created sustained market
uncertainty. Despite the difficulties caused by the uncertainty, we have made
good progress, as demonstrated by today's results, in delivering the optimum
realisation strategy, twice formally approved by our shareholders. We have
achieved further disposals marginally above valuation in a difficult market
and now have a more robust balance sheet for the year ahead. As I retire from
the Board, I wish to record my sincere thanks to all Directors - past and
present - to Schroders as Manager and to our professional advisers for their
commitment and professionalism throughout my tenure. I also extend my
gratitude to those shareholders who have supported me (and thereby the
Company) over these past years."

 

Judith MacKenzie, the Company's newly appointed Chair, commented:

 

"I am delighted to succeed Barry as Chair who, alongside Bill,
Katherine, and the Schroders team, have made continued progress delivering the
shareholder-approved strategy.  As clearly set out within these results, the
Company still faces significant legislative and regulatory headwinds, and
there is much work still to do. I therefore look forward to working with my
current and future co-directors, as well as the Manager, to review how returns
can be further optimised, including whether Board and Manager remuneration can
be even more closely aligned with delivery of the strategy."

 

Chris Leek, Fund Manager at Schroders (the Manager), commented:

 

"We thank Barry for his considerable contribution as outgoing Chair and
look forward to working with Judith. Under Barry's strong leadership,
the Company has successfully navigated a challenging period with a high
standard of expertise, professionalism and focus. Schroders remains committed
to delivering the agreed realisation strategy, optimising returns for
shareholders, and maintaining best-in-class residential asset management for
leaseholders."

 

Enquiries:

 

Schroder Real Estate Investment Management Limited

Chris Leek

020 7658 6000

 

Singer Capital Markets (Financial Adviser & Broker)

James Maxwell / Sam Butcher (Investment Banking)

Sam Greatrex (Sales)

020 7496 3000

 

Appleby Securities (Channel Islands) Limited (Sponsor)

Andrew Weaver / Michael Davies

01534 888 777

 

FTI Consulting

Richard Gotla / Oliver Parsons

0203 727 1000

 

JTC (UK) Limited (Company Secretary)

Ruth Wright

+44 207 409 0181

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