Half Yearly Report

20 May 2015

Ground Rents Income Fund plc

("GRIF" or the "Company")

HALF YEAR RESULTS

For the six months ended 31 March 2015

Ground Rents Income Fund plc (LSE: GRIO), a listed real estate investment trust (REIT) investing in UK ground rents, announces its half year results for the six months ended 31 March 2015. 

Highlights

· Portfolio value of £94.6 million (30 September 2014: £67.3 million)

· Net assets of £98.8 million (30 September 2014: £88.2 million), following equity issue raising £8.8 million (net) and revaluation gain during the period of £1.8 million.

· NAV per ordinary share of 106.3 pence (30 September 2014: 104.3 pence)

· Revenue of £2.0 million (H1 2014: £1.5 million)

· Profit before tax of £3.4 million (H1 2014: £1.8 million), including £1.8 million revaluation gain (H1 2014: £1.9 million)

· Basic earnings per share of 3.87 pence (H1 2014: 3.73 pence)

· Diluted earnings per share of 3.86 pence (H1 2014: 3.86 pence)

· Two interim dividends paid of 0.847 pence per share for period to 31 December 2014 and 0.874 pence per share for the period to 31 March 2015.

· £25.5 million invested during the period

Malcolm Naish, Chairman of GRIF, said:

"The focus of the directors remains on completion of all the acquisitions for which GRIF has exchanged contracts or holds options."

James Agar, Investment Director of Brooks Macdonald Funds, Investment Adviser to GRIF, added: "The UK is expected to move into a period of deflation in 2015, albeit the consensus is that this will be a short-term position. GRIF offers investors protection within this turbulent environment, as within our portfolio the income is upwards only.

"We believe interest rates look set to stay low for longer, with gilt and bond yields following a similar trend. The income premium for ground rents over these comparable instruments continues to look attractive, given ground rents' stable and secure income streams, which we feel, will underpin the market over the next year."

A copy of the Half Year Consolidated Financial Report, for the six months ended 31 March 2015, can be accessed in the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6638N_-2015-5-19.pdf 

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