Ground Rents Income Fund (GRIO) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 1.82%
• Average Volume (3M): 10.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 4
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 95,667,625
• 10 Day Avg. Volume: 8,794
• 30 Day Avg. Volume: 10,060
• PEG Ratio: <0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.37
• 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 has a mixed outlook with significant financial stability from a strong balance sheet but faces profitability challenges and inconsistent cash flow growth. The bearish technical analysis reflects weak market sentiment. Valuation is moderately appealing due to the dividend yield, but corporate events introduce strategic uncertainty, dampening stock attractiveness.

Ground Rents Income Fund Business Overview & Revenue Model

Company Description

Ground Rents Income Fund (GRIO) is a UK-based real estate investment trust that primarily focuses on investing in residential and commercial freehold ground rents. The company's portfolio consists of long-term, inflation-linked assets that provide a steady income stream. GRIO targets a diversified range of property sectors, including residential, commercial, and mixed-use developments, offering a relatively low-risk investment opportunity for its shareholders.

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: 27.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Negative

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 27 is below the 20-day moving average (MA) of 27.16, below the 50-day MA of 28.31, and above the 200-day MA of 26.79, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 29.35 is Positive, neither overbought nor oversold. The STOCH value of 89.45 is Negative, 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	£9.04B	14.90	5.18%	4.40%	-9.88%	―
SREI	68 Neutral	£253.36M	83.06	1.05%	6.53%	―	―
BLND	68 Neutral	£3.95B	21.71	3.17%	5.62%	-30.83%	―
Sector *	60 Neutral	$2.82B	10.41	0.43%	8531.49%	6.00%	-17.35%
HMSO	60 Neutral	£1.27B	―	-2.09%	5.79%	6.08%	―
GRIO	48 Neutral		―		1.82%	―	―
LAND	47 Neutral	£4.39B	41.63	6.13%	6.63%	-1.73%	―

Ground Rents Income Fund Corporate Events

Ground Rents Income Fund Reports Valuation Decline Amid Leasehold Reform Challenges

Ground Rents Income Fund plc reported a decrease in its unaudited independent portfolio valuation to £56.8 million as of March 31, 2025, reflecting a 10.1% reduction over six months due to building safety and leasehold reform uncertainties. The company has completed or exchanged contracts for property disposals totaling £9.2 million, primarily to repay debt, and is pursuing a Judicial Review of the Leasehold and Freehold Reform Act 2024, which it believes unfairly impacts landlords. The ongoing legal proceedings and government consultations on leasehold reform could significantly affect the company’s operations and market positioning.

Spark’s Take on GB:GRIO Stock

According to Spark, TipRanks’ AI Analyst, GB:GRIO is a Neutral.

Ground Rents Income Fund PLC has a mixed outlook. The strong balance sheet is offset by profitability challenges and inconsistent cash flow growth. Technical analysis indicates a bearish trend, while the moderate dividend yield offers some valuation appeal. Recent corporate events add strategic uncertainty, further impacting the stock’s attractiveness.

To see Spark’s full report on GB:GRIO stock, click here.

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.