Ground Rents Income Fund has posted a 5.1% decline in NAV to 105.7p per share in the year ending September, with its ongoing Beetham Tower cladding dispute racking up £1.5m in legal costs during the period.
A £2.9m provision has been made for prospective remedial costs relating to Beetham Tower.
The landlord recorded a £1.6m loss for the financial year, up from an equivalent of a £2.3m loss in 2019.
It collected 91% of rents owed during the year to September, staying broadly static on 90% in the previous year.
Malcolm Naish, chairman of the board, said: “There continues to be strong demand in other parts of the real estate market for investments offering similar annuity-style cash flows, which has continued during the pandemic and which we expect to endure.
“However, the company is operating in a challenging environment and the outlook will principally be influenced by resolution of the litigation at Beetham Tower and the outcome of leasehold reform.
“The board and manager continue to support leasehold reform which achieves a better balance between the interests of ground rent investors and leaseholders, and we are both advocates for a fair and transparent leasehold system which takes account of all stakeholders and supports the appropriate value of the group’s portfolio.”
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