Ground Rents Income Fund (GRIO) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 1.75%
• Average Volume (3M): 70.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 4
• Sector: Real Estate
• Sector Strength: 79
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 95,667,625
• 10 Day Avg. Volume: 10,342
• 30 Day Avg. Volume: 70,111
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.59
• Price to Cash Flow (P/CF): 12.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Ground Rents Income Fund PLC's stock score is primarily driven by mixed financial performance and weak technical indicators. While the balance sheet is stable, profitability issues and inconsistent cash flow growth pose challenges. Technical analysis signals are unfavorable, with bearish trends and oversold conditions. Valuation is uncertain, with no P/E ratio and a modest dividend yield. Corporate events add some strategic uncertainty.

Ground Rents Income Fund Business Overview & Revenue Model

Company Description

Ground Rents Income Fund PLC is a real estate investment trust externally managed by Braemar Estates (Residential) Ltd, Asset Management Arm. The firm invest in long dated United Kingdom ground rents. It 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, and the potential for capital growth from active asset management. Ground Rents Income Fund PLC was launched in August, 2012 and is based in England, United Kingdom.

How the Company Makes Money

Ground Rents Income Fund makes money through the collection of ground rent payments from leaseholders of properties within its portfolio. These rents are typically inflation-linked, providing a reliable and predictable income stream that can increase over time. The company's revenue model focuses on acquiring high-quality ground rent assets with strong covenants, ensuring consistent cash flow. Additionally, GRIO may benefit from lease extensions and enfranchisement premiums, which occur when leaseholders opt to extend their lease or purchase the freehold of their property. These transactions can provide significant additional revenue opportunities beyond regular ground rent collections.

Ground Rents Income Fund Financial Statement Overview

Summary

The company exhibits a mixed financial performance. The balance sheet shows financial stability with a strong equity position and no debt, but the income statement highlights profitability issues with negative revenue and net income. Cash flow generation is adequate but inconsistent, suggesting operational challenges.

Income Statement

The company's income statement shows significant volatility, with negative revenue and net income in the latest period. Gross profit margin is also negative, indicating challenges in maintaining profitability. However, there is a positive EBIT in the latest year, suggesting some operational efficiencies.

Balance Sheet

The balance sheet reflects a solid equity position with no debt in the latest year, improving the debt-to-equity ratio to a favorable level. The equity ratio is strong, indicating good financial stability. However, the decline in total assets over time is a concern.

Cash Flow

The cash flow statement highlights moderate operational cash flow relative to net income, suggesting reasonable cash generation. Free cash flow is positive, indicating good cash management, but growth is inconsistent over the periods analyzed.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
5.81M	-26.96M	1.16M	-6.17M	-129.28K	4.21M
	Gross Profit
5.81M	-26.96M	1.16M	-7.04M	-1.12M	4.21M
	EBIT
2.61M	57.97M	-1.12M	-6.97M	1.19M	-1.59M
	EBITDA
-26.65M	0.00	-4.08M	-18.91M	0.00	-1.09M
	Net Income Common Stockholders
-24.04M	-29.71M	-1.12M	-7.52M	1.19M	-1.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.46M	5.53M	1.60M	1.91M	1.09M	2.44M
	Total Assets
114.83M	79.59M	110.45M	112.24M	122.34M	128.49M
	Total Debt
20.79M	0.00	20.85M	20.73M	19.11M	18.99M
	Net Debt
19.33M	-5.53M	-1.60M	18.82M	18.02M	16.56M
	Total Liabilities
24.61M	23.10M	24.25M	23.71M	22.63M	25.93M
	Stockholders Equity
90.22M	56.49M	86.20M	88.52M	99.71M	102.56M
Cash Flow		Free Cash Flow
1.21M	2.08M	735.37K	2.95M	2.27M	2.14M
	Operating Cash Flow
1.21M	2.08M	735.37K	2.95M	2.27M	2.14M
	Investing Cash Flow
3.71M	3.56M	149.85K	42.80K	419.47K	-1.50M
	Financing Cash Flow
0.00	-1.72M	-1.20M	-2.17M	-4.04M	-4.34M

Ground Rents Income Fund Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GRIO, the sentiment is Negative. The current price of 28.5 is below the 20-day moving average (MA) of 29.20, below the 50-day MA of 31.16, and above the 200-day MA of 27.07, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 19.14 is Positive, neither overbought nor oversold. The STOCH value of 64.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GRIO.

Ground Rents Income Fund Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGRO	71 Outperform	£8.89B	14.70	5.18%	4.46%	-9.88%	―
SREI	68 Neutral	£223.28M	73.63	1.05%	7.36%	―	―
BLND	65 Neutral	£3.59B	19.75	3.17%	6.34%	-30.83%	―
Sector *	61 Neutral	$4.43B	16.13	-3.23%	11.37%	6.25%	-21.19%
LAND	54 Neutral	£4.00B	37.90	1.61%	7.42%	-1.73%	―
HMSO	50 Neutral	£1.14B	―	-2.09%	6.57%	6.08%	―
GRIO	46 Neutral		―		1.75%	―	―

Ground Rents Income Fund Corporate Events

Ground Rents Income Fund Ends Offer Period as Victoria Property Withdraws Interest

Ground Rents Income Fund plc has announced that Victoria Property will not be making a firm offer for the company, concluding the offer period as per the City Code on Takeovers and Mergers. The company remains committed to its strategic plan, which was reaffirmed by shareholders in November 2024, indicating a continued focus on its existing operational goals and stability for stakeholders.

Ground Rents Income Fund PLC Passes All Resolutions at AGM

Ground Rents Income Fund PLC successfully held its Annual General Meeting on 13 February 2025, where all proposed resolutions were passed. Key resolutions included the re-election of directors, appointment of auditors, and renewal of authorities related to share allotment and purchase, reflecting shareholder confidence and strategic positioning for future operations.

Ground Rents Income Fund Receives Fifth Offer from Victoria Property

Ground Rents Income Fund plc has received a fifth non-binding cash offer from Victoria Property Holdings Limited, proposing to acquire all shares at 40.0 pence per share. The Board considers this offer undervalued, though it has provided Victoria Property access for due diligence in hopes of receiving an improved proposal before the extended deadline of 25 February 2025.

Ground Rents Income Fund Advances Risk Reduction and Legal Actions Amid Market Challenges

Ground Rents Income Fund PLC has made significant progress in reducing risk and enhancing portfolio liquidity amid uncertainties in leasehold reform and building safety legislation. The company completed disposals amounting to £11.6 million, primarily to repay debt, and is pursuing legal action against the government regarding the Leasehold and Freehold Reform Act 2024. Additionally, they are addressing building safety defects, with ongoing efforts to resolve issues in affected properties. These developments are influencing the company’s assessment of potential acquisition offers from Victoria Property Holdings Limited.

Ground Rents Income Fund Rejects Fourth Acquisition Proposal from Victoria Property

Ground Rents Income Fund plc has received a fourth proposal from Victoria Property Holdings Limited to acquire its entire share capital at an increased price of 37.5 pence per share. Despite the offer being 10.3% higher than the previous proposal, GRIO’s board has rejected it, citing that it materially undervalues the company. The board also declined Victoria Property’s request for an extension to the PUSU deadline and access to additional due diligence, indicating that sufficient information is already available for a fair proposal. The situation leaves uncertainty about any future firm offer, with stakeholders awaiting further developments.

Gracefavour Limited Increases Stake in Ground Rents Income Fund

Ground Rents Income Fund PLC has announced a change in its voting rights, with Gracefavour Limited increasing its holdings to 11.06%. This acquisition indicates a strategic move by the shareholder, reflecting confidence in the company’s future prospects and potentially influencing its governance. The change might impact investor perceptions and the company’s decision-making process, highlighting the importance of maintaining shareholder relationships.

Ground Rents Income Fund Reports Valuation Decline Amid Regulatory Challenges

Ground Rents Income Fund announced a significant decrease in its portfolio valuation and net asset value for the fiscal year ending September 30, 2024, largely due to ongoing leasehold reform and building safety challenges which have negatively impacted market sentiment. Despite these challenges, the company has made progress in executing its investment policy with shareholder support, including asset sales and debt refinancing, while rejecting a takeover offer from Victoria Property Holdings that undervalued the company.

Ground Rents Income Fund Sees Shift in Voting Rights

The Ground Rents Income Fund PLC has experienced a change in its shareholder voting rights, with MIGO Opportunities Trust PLC increasing its stake from 3.9146% to 4.3641% as of January 10, 2025. This change in voting rights may impact the company’s decision-making processes and future strategic directions, reflecting a slight shift in power dynamics among its stakeholders.

Ground Rents Income Fund Rejects Undervalued Offer from Victoria Property

Ground Rents Income Fund plc has received several unsolicited non-binding indicative cash offers from Victoria Property Holdings Limited, which were all rejected by the board for undervaluing the company. The latest offer, priced at 34 pence per share, represents a 50.9% discount to the company’s NAV, leading the board to advise shareholders to take no action while they seek further feedback and continue executing their asset realization strategy.