Ground Rents Income Fund has published its results for the year to 30 September
Schroders' Ground Rents Income Fund has called an Emergency General Meeting after "significant challenges... largely out of its control" caused consecutive hefty drops in the value of its portfolio.
Schroders’ Ground Rents Income Fund has published its results for the year 30 September 2023.
The real estate investment trust (REIT), which was first incorporated in 2012 and specialises in freehold ground rents saw the valuation of its portfolio drop by £2.9m or 2.7 per cent to £106.1m in the year ended 30 September 2023.
Barry Gilbertson, the trust’s chair, said: “The company continues to face significant challenges that are largely outside of its control, with the ongoing management of complex building safety projects relating to assets developed by third parties, and uncertainty relating to leasehold reform.
“Despite these headwinds, we continue to make progress in important areas, including loan refinancing, disposals, and securing very strong shareholder support for our new investment policy.”
Correction: A previous version of the article said Ground Rents had paid £16.3m to remedy cladding faults. The figure was incorrect. Ground Rents initially booked a charge of £9.1m for building remediation costs, which was later lowered to £7.2m.
