GRIF annual pre-tax profit surges

Real estate investment trust Ground Rents Income Fund (GRIF) said its asset value and pre-tax profit rose in the year to the end of September.

In the 12 months to 30 September, the London-listed company posted a 9.5% year-on-year increase in net asset value per ordinary shares to 114.2p, while profit before tax, which included a £9.19m valuation gain more than doubled to £12.5m.

"We have seen pricing move up significantly with RPI reviewable rents being in demand particularly,” said group chairman Malcolm Naish.

“The traditional 25 year reviews with rents doubling have also seen a significant yield shift from around 6% in March 2012 to around 4% today.

"We feel the prospects for GRIF are positive. The trend of increasing market values coupled with a growing income each year, it is hoped, will have the intended effect of a growing net asset value."

GRIF shares were down 0.87% to 114.50p at 1035 GMT on Wednesday.