20 March 2026

Ground Rents Income Fund plc

("GRIO" or the "Company")

TWO STUDENT GROUND RENT DISPOSALS

Ground Rents Income Fund plc announces that it has sold freehold ground rent interests in Manchester and Southampton ('the Assets') for a combined price of £4.58 million.

The price represents a 0.6% discount to the independent valuation of £4.68m, and reflects a net initial yield of 5.3% (valuation as at 30 September 2025). The Assets are operated by Vita Group ('Vita') as purpose built student accommodation on behalf of the long leaseholders. The interests are being acquired by an unrelated third party. The disposals are in line with the Company's strategy to sell assets where possible with the aim of optimising returns for shareholders.

The Assets were acquired from Vita in 2014 for £4.04 million. The Southampton asset formed part of a six asset headlease restructure in 2019 which generated an apportioned receipt of £249,000. The title structure of the Assets is expected to mitigate aspects of the Government's residential leasehold reform agenda. Further information in relation to proposed leasehold reform is set out in the Company's update dated 27 January 2026 (the 'Leasehold Reform Update').

The Assets formed part of the security for the Company's loan from Santander UK plc ('Santander').  The loan was refinanced on improved terms in December 2025 and requires net proceeds from charged asset disposals to be used to repay the facility. The outstanding loan has therefore reduced from £8.2 million to £3.9 million. Based on the latest independent portfolio valuation (as at 30 September 2025), the value of the remaining assets charged to Santander is £22.0 million. Following repayment, the bank Loan to Value ('LTV') will be approximately 18%, compared with a covenant ratio of 45%.

Based on a current SONIA rate of 3.7%, the loan's total interest rate is 6.2%, with an Interest Cover Ratio ('ICR') of approximately 8.25x, compared with an ICR covenant ratio of 1.75x. 

The consolidated group gross LTV is expected to be approximately 7.6%. Therefore, the Company is considering whether current cash reserves of £5.2 million could be utilised to make further loan repayments, while having regard to working capital of the Company.

The Company expects all covenants to remain in compliance, including on the basis of the initial high-level assessment of the Government's proposed cap on residential ground rents described in the Leasehold Reform Update. (Please note that the assessment within the Leasehold Reform Update is for illustrative purposes only).

Further disposals are progressing. The Company will provide an update on its independent portfolio valuation (as at 31 March 2026) in due course.  An update on the Company's strategy will be included in the unaudited half year results for the six months ended 31 March 2026, expected to be published in June 2026.

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation ('MAR') which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018; as amended. Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

Enquiries:

Schroder Real Estate Investment Management Limited

Chris Leek

020 7658 6000

Singer Capital Markets (Financial Adviser & Broker)

James Maxwell / Sam Butcher (Investment Banking)

Sam Greatrex (Sales)

020 7496 3000

Appleby Securities (Channel Islands) Limited (Sponsor)

Andrew Weaver / Michael Davies

01534 888 777

FTI Consulting

Richard Gotla / Oliver Parsons

0203 727 1000

JTC (UK) Limited (Company Secretary)

Ruth Wright

+44 207 409 0181