Ground Rents Income Fund has posted a 7.3% increase in NAV per share on the back of a strong market.
Profits at the REIT quadrupled to £4.7m in the 12 months to 30 September, up from £1.1m a year ago.
Chairman Malcolm Naish said: “The market for ground rents has been very strong during the year, with more purchasers entering the market and some substantial portfolios changing hands.
“The company has seen the benefit of this in terms of capital value appreciation, but the corollary is that it has become increasingly difficult to find new investments for prices at which GRIF could achieve its target dividend yield [4.4%].”
The fund, whose portfolio was valued at £67m at the end of September, expects to be fully invested in the next three months.
Dividends for the year total 3.8p per share, up from 2.8p last time.
