Ground Rents Income Fund PLC · LSE:GRIO
Ground Rents Income Fund — FY2025 Earnings Presentation
31 slides from Ground Rents Income Fund's earnings presentation, January 2026
Slide 1: Ground Rents Income Fund PLC (GRIO) Full year results to 30 September 2025
January 2026 GROUND RENTS INCOME FUND PLC (GRIO) Full year results to 30 September 2025 Marketing material. Chris Leek Investment Manager
Slide 2: Overview and Financial Results
OVERVIEW AND FINANCIAL RESULTS
Slide 3: Executive Summary
Executive Summary Implementing clear strategy but in face of headwinds Leasehold Ongoing Material Uncertainty* as Government pursues further leasehold reform; legal action ongoing with peers. reform and Building safety remains a key focus – 22 assets now require remediation (Sept 24: 23), most costs
Slide 4: Results to 30 September 2025
Results to 30 September 2025 Key metrics 30 September 2024 30 September 2025 Year ended Comment (audited) (audited) Loss of rent from disposals partially offset by a 5.4% increase Ground rent income £5,323,810 £5,211,877 in contracted rent on a like-for-like basis. Ancillary income £784,370 £721,545
Slide 5: Leasehold Reform and Building Safety
LEASEHOLD REFORM AND BUILDING SAFETY
Slide 6: Residential leasehold reform
Residential leasehold reform Advocate for reform that fairly balances the interests of responsible landlords and leaseholders Legislative change Activity – The Government’s leasehold reform agenda started in 2017, aiming – We support the aim to empower homeowners but believe parts to limit new groun
Slide 7: Building safety reform
Building safety reform Complex and changing legislative landscape Complex legislation – The Building Safety Act 2022 (‘BSA’)1 is the most significant regulatory reform to the UK’s built environment in almost 40 years, aiming to increase accountability and improve building standards – The Grenfell To
Slide 8: Building safety reform: mitigating risks across the portfolio
Building safety reform Mitigating risks across the portfolio % of Portfolio Value Remediation, as of Number of Assets (30 Sept 24) 30 Sept 24 MEST / NMEST / Total Over the year the number of assets impacted by building safety MEST / NMEST / Total remediation requirements reduced from 23 to 22, and t
Slide 9: Strategy
STRATEGY
Slide 10: Asset sales
Asset sales Optimise value, repay debt and improve portfolio liquidity Recent sales Future sales – In the year and since, the Company sold assets – Further disposals are in for a total of £10.0m (£0.4m since year-end) progress, together with asset – Sales completed marginally ahead of the management
Slide 11: Financing
Financing Maintain a robust balance sheet whilst minimising expenses to maximise free cash Pre refinance, Latest year- Post – In Dec 2025, the Company refinanced its Santander loan end, refinance, 30-Sep-24 30-Sep-25 5-Jan-26 facility, including extending the facility to Jan 2028 and reducing the ma
Slide 12: Portfolio valuation as at September 2025
Portfolio valuation as at 30 September 2025 Optimise value, repay debt and improve portfolio liquidity 30-Sept- 30-Sept- 31-Mar- 30-Sept- 23 24 251 25 Ground rent roll (£m) 5.2 5.3 5.0 5.1 Savills, in discussion with peers and the RICS, continues to adopt a Material Valuation Uncertainty Clause ('MU
Slide 13: Recap of strategy
Recap of strategy Recap of strategic priorities set out when the Investment Policy was approved Strategy Objectives Risks – Continue implementing the Investment 1. Sell assets where possible to optimise net – The Act remains a concern, evidenced by Policy, strongly supported by shareholders realisat
Slide 14: Ongoing execution of Investment Policy
Ongoing execution of Investment Policy Focus on reducing legislative risk, improving portfolio liquidity and disposals Summary – £10.0m of asset sales during and post-year, marginally above the 30 Sept 2024 valuation – Disposals and reduced cash have enabled a reduction in the bank loan from £19.5m
Slide 15: Summary
SUMMARY
Slide 16: Implementing the strategy but in face of headwinds
Implementing the strategy but in face of headwinds Objectives The Company continues to satisfactorily manage the challenges 1. Sell assets where possible to optimise net presented by leasehold reform and building safety realisation value of the Company's investments, whilst repaying debt and We cont
Slide 17: Appendices
APPENDICES
Slide 18: Portfolio summary
Portfolio summary Overview of the portfolio as at 30 September 2025 – Portfolio to capture above target Detailed review type Ground rent roll % of ground Portfolio valuation Portfolio valuation inflation (see fan chart, Slide 28) with (£000) rent total (£m) (%) 71% of ground rent reviews inflation-
Slide 19: Portfolio summary
Portfolio summary Overview of the portfolio as at 30 September 2025 – 344 years Weighted Average Years to next review Ground rent Asset location Portfolio ground Portfolio valuation Unexpired Lease Term, with shortest income (%) rent roll (%) (%) term remaining of 79 years 0–5 41.3 North West 33.9 3
Slide 20: NAV movement for the year ended September 2025
NAV movement for the year ended 30 September 2025 NAV total return of -7.6% – While there was a modest improvement in the like-for-like value over the second half of the year (31 March 2025: £56.8 million, or £55.7 million on a like-for-like basis), the overall decrease in the 12-month period result
Slide 21: Balance sheet (1/2)
Balance sheet (1/2) Portfolio valuation negatively impacted by headwinds and sector wide MUC 30 Sept 2025 31 Mar 2025 30 Sept 2024 As at £m £m £m Investment properties 56.2 81.5 71.5 Cash 4.3 6.4 5.5 Net payables -1.0 -0.5 -1.0 Debt -8.2 -21 -19.5 Net Asset Value 52.2 66.4 56.5 NAV (pps) 54.5p 69.4p
Slide 22: Balance sheet (2/2)
Balance sheet (2/2) The Company remains fully compliant with loan covenants – In Dec 2025, the Company refinanced its Santander loan facility, with the key terms as follows: • An £8.235 million facility with an extension in the loan term from 10 July 2026 to 10 January 2028 • A margin reduction of 2
Slide 23: Statement of Comprehensive Income
Statement of Comprehensive Income 30-Sep-25 30-Sep-24 Year ended £m £m Ground rent income 5.2 5.3 Other income 0.7 1.0 Profit on sale of investment properties 0.0 0.1 Operating Income 6.0 6.4 Professional fees (1.7) (1.1) Director costs (fees and insurance) (0.2) (0.3) Schroders management fee (1.0)
Slide 24: Discrete yearly performance (1/2)
Discrete yearly performance (1/2) Ground Rents Income Fund Plc Discrete Yearly Performance (%) Q3 2024–Q3 2025 Q3 2023–Q3 2024 Q3 2022–Q3 2023 Q3 2021–Q3 2022 Q3 2020–Q3 2021 Share price1 4.0 -32.6 -25.7 -32.3 -9.0 Shareholder Total Return2 4.0 -32.6 -23.7 -29.0 -3.8 NAV Total Return3 -7.6 -34.5 -1.
Slide 25: Discrete yearly performance (2/2)
Discrete yearly performance (2/2) Ground Rents Income Fund Plc Risk Considerations (continued): • Concentration risk: The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of t
Slide 26: Enfranchisement reform
Enfranchisement reform Assessing the potential impact on GRIO’s portfolio Portfolio (as at 30 September 2025) Ground rent (%) Valuation (%) This analysis, supported by Rightmove data, is specifically in relation to the Act provision to cap the treatment of residential Unlikely to be fully in scope o
Slide 27: Building Safety Reform and impact on the Company
Building Safety Reform and impact on the Company Overview of provisions set out in the Building Safety Act 2022 (‘BSA’) Developer no longer in existence Type of building in portfolio* Pledged Developer Developer and other ‘Polluters’ still in existence (‘orphaned property’) Not relevant building 1.
Slide 28: Ground Rents Income Fund Plc
Ground Rents Income Fund Plc Inflation-linked income Illustrative ground rent revenue – inflation sensitivity Listed in August 2012 and Schroders appointed as Investment Background Manager in May 2019 to support the GRIO Board with the complex challenges relating to building safety and leaseholder r
Slide 29: Ground Rents Income Fund Plc team
Ground Rents Income Fund Plc team GRIO team supported by Schroders Group and Non-Executive Board Non-executive Board Schroders Group Schroder Real Estate Direct Investment Committee Chaired by Nick Montgomery Judith MacKenzie Bill Holland Katherine Innes Ker UK Direct Investment Team Chair Non-Execu
Slide 30: Important Information
Important Information Marketing Material This information is a marketing communication. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. We recommend you seek financial advice from an Independent Adviser before
Slide 31: Thank You
THANK YOU Schroder Real Estate Investment Management Limited 1 London Wall Place London EC2Y 5AU schroders.com
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