Ground Rents Regulatory News (GRIO)

Ground Rents Income Fund plc (the "Company")

First interim dividend

for the quarter ending 31 December 2022

In the Trading Update and Shareholder Consultation announcement published on 22 December 2022, the Company highlighted the increasing frictional costs relating to building safety and legacy legal issues being managed across the portfolio. Whilst these costs are mitigated by growing underlying rental income, and the potential for future cost recovery from third parties, the Board is reviewing the optimum dividend policy in conjunction with the shareholder consultation relating to the Continuation Vote.

Whilst this consultation is ongoing, and as an interim measure, this quarter the Company will pay a dividend based on estimated cash earnings during the current financial year to 30 September 2023. Adopting this approach, this quarter's dividend has been adjusted to 0.5 pence per share ("pps"). This compares with 0.75 pps over the quarter to 30 September 2022, and reflects a yield of 4.5% on the share price of 44.5 pps as at 27 February 2023.

Future dividends may therefore be subject to further adjustments, having regard to future sustainable earnings, shareholder feedback during the ongoing consultation, and REIT conditions.

The Company therefore declares an interim PID dividend of 0.5 pence per share for the period from 1 October 2022 to 31 December 2022, payable on 31 March 2023 to shareholders on the register on 10 March 2023.

Further details on the future dividend policy and the results of the consultation will be provided to shareholders later this quarter. This will also include an update on the timetable for the audited year end accounts to 30 September 2022, for which Companies House and TISE have granted an extension to 30 June 2023.

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