Trading Statement

14 January 2013

Ground Rents Income Fund plc

Trading Update

GRIF is 50% invested

Ground Rents Income Fund plc (GRIF), a listed real estate investment trust (REIT) investing in UK ground rents, is pleased to announce that the company is now 50% invested following its IPO in August 2012.

Highlights:

·; GRIF now 50% invested, ahead of schedule

·; Recent additions to the portfolio including several landmark new-build developments such as Clapham One in South West London and One Park West in the heart of Liverpool city centre

·; Maiden interim dividend declared of 0.35 pence per share payable on 25 January 2013

·; Strong pipeline of future investment opportunities

·; Board anticipates further capital raise in 2013

The Clapham One scheme, acquired for approximately £1m, is a mixed-use development, consisting of a striking new public library, a state-of-the-art medical centre and 155 stylish one and two bed apartments on two sites. The scheme, located on Clapham High Street, has received a number of awards including most recently, 'Best Apartment Building' at the 2012 Sunday Times British Homes Awards.

One Park West, acquired for £2.7m, is a 17-storey building in central Liverpool, designed by world renowned Argentinian architect, César Pelli. It is part of Liverpool ONE, a £920m redevelopment of Liverpool's city centre, by the Duke of Westminster's Grosvenor Group. One Park West consists of 326 apartments, offices, restaurants, cafés and parking.

Malcolm Naish, Chairman of GRIF comments: "It is good to be able to report that the Fund is on course to meet the objectives set at launch, notwithstanding the continued challenges of the economic environment. The recent purchases are attractive additions to an already strong and diversified portfolio. We were also pleased to announce GRIF will be paying its first dividend in January."

James Agar, Investment Director of Braemar Estates, Adviser to the Company adds: "The Company has been successful in acquiring assets which fit the profile of providing investors with long-term, secure income with a quasi inflation hedging. We are particularly pleased to have completed the One Park West and Clapham One deals with Grosvenor and Cathedral Group respectively, both of these assets are large scale, flagship schemes which highlight our ability to source deals within a tightly held and relationship driven space.

We have also identified an excellent pipeline of opportunities for completion in the first quarter of 2013, which we anticipate will see GRIF outperforming the 12 month investment timescale that was set at launch."

The Board anticipates a further capital raise in 2013, aimed at taking the market capitalisation to £100m which will have a positive effect on returns as the TER falls to below 1%.

The investment objective of GRIF is to acquire a portfolio of freeholds and head leases, offering the potential for income generation from ground rents, that is both secure and hedged against inflation, with the potential for capital growth from active asset management.

Contacts:

Website: www.groundrentsincomefund.com