LONDON (ShareCast) - (Sharecast News) - Ground Rents Income Fund issued its unaudited half year results for the six months ended 31 March on Wednesday, reporting a portfolio value of £135.1m - down slightly from £139.1m six months earlier.
The real estate investment trust said net assets stood at £120.5m, down from £127.4m, with its net asset value per ordinary share falling to 124.58p from 131.72p as at 30 September last year.

Revenue for the period was £2.6m, compared to £2.5m in the first half of last year, while its loss before tax was £5m, swinging from a first half profit of £8m 12 months ago.

The board said that included a £6.6m revaluation loss, which compared to a gain of £6.3m last year.

Basic losses per share were 5.18p, compared to earnings of 8.52p, with diluted losses per share of 5.14p swinging from earnings of 8.27p.

Two interim dividends were paid, of 0.98p per share for the period to 31 December, and another 0.98p pence per share for the period to 31 March.

A total of £2.6m was invested during the period, the board confirmed.

"While the group continues to provide secure, upward-reviewing income from a large diversified portfolio, we believe current trading in the group's shares and the subsequent price discount to net asset value is largely based on investor sentiment towards the ground rent sector, given the government's proposed leasehold reforms," said James Agar, investment director of Ground Rent's investment adviser Brooks Macdonald Funds.

"We welcome the government's aims to reform and simplify many aspects of property legislation as we believe that a system is needed that delivers a more equitable, transparent and better service for homeowners.

"Ground rent reviews, as well as additional revenues generated by our active asset management of the portfolio, has enabled the group to continue to deliver its target of at least maintaining the annual dividend per ordinary share, while working towards full dividend coverage in the next four years."

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