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Ground Rents Income Fund PLC (GRIO) Fair Value & Analysis

Real Estate · GB · Market cap 16.3M GBX

GR Ground Rents Income Fund PLC GRIO · LSE
Price£0.1700
Fair Value£0.4200
Upside+147.1%
Quality59/100
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Mixed Growth
Thin margins · 0.0% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/12)
Narrow moat 35/100
Evidence: Medium Range £0.3100 – £0.5400 Share as image

Fair value as of: Jul 14, 2026

From 5 valuation models · updated 27 days ago

Fair value updated Jul 14, 2026, revised from £0.4190 to £0.4200 (+0.2%) since Jun 26, 2026. Share price +2.9% over the past month.

A solid business, screening 147% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£0.3100). The market is more pessimistic than our downside scenario.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

£0.6879 £0.1603 Fair Value £0.4200 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range £0.1603 – £0.6879 · fair‑value band £0.3100 – £0.5400 · the £0.1700 price screens below the £0.4200 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Ground Rents Income Fund PLC (GRIO) currently trades at £0.1700, while our model-based Fair Value estimate is £0.4200, implying the stock looks roughly 147.1% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Ground Rents Income Fund PLC generated revenue of £6.0M at a net margin of -72.5%. Revenue declined 14.3% year over year. It earns a return on equity of -8.0%. Net debt stands at £3.9M. Fundamentals as of Jul 14, 2026

Our scenario range runs from £0.3100 (bear case) to £0.5400 (bull case); at £0.1700, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Real Estate peers we cover trades at -22% fair-value upside, at 147%, GRIO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Rev-Margin DCF £0.0200 £0.1000 74
EV/EBIT £0.1900 £0.3100 £0.4200 53
NCAV (Graham) £0.2700 £0.3700 £0.5500 50
All 5 models by family
DCF Models
5Y Revenue Exit £0.0200 £0.1200 39
Multiples
EV/EBIT £0.1900 £0.3100 £0.4200 53
EV/Revenue £0.0400 £0.1200 £0.2000 43
Asset-Based
NCAV (Graham) £0.2700 £0.3700 £0.5500 50
Growth DCF
Rev-Margin DCF £0.0200 £0.1000 74

Widest divergence: Asset-Based (£0.3700) versus DCF Models (£0.0200). Highest evidence: Rev-Margin DCF (74).

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Key figures & financial health

Revenue (TTM) 6.0M GBX
Revenue growth (YoY) -14.3%
Net margin -72.5%
Return on equity -8.0%
Free cash flow 427K GBX FY2025
Operating margin 48.6%
More key figures
EPS (TTM) £-0.0500
EPS growth (YoY) +8.6%
Net debt 3.9M GBX FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 56 · Market factors (momentum, volatility) 36

Profitability 3
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 59
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ground Rents Income Fund PLC is a closed-ended real estate investment trust, listed on The International Stock Exchange and traded on the SETSqx platform of the London Stock Exchange.

Full company description

Ground Rents Income Fund PLC is a closed-ended real estate investment trust, listed on The International Stock Exchange and traded on the SETSqx platform of the London Stock Exchange. Schroder Real Estate Investment Management Limited (the Manager) was appointed as the Company Alternative Investment Fund Manager in May 2019 to support the Company Board with the headwinds related to building safety and leasehold reform. In 2023, the Board and Manager carried out an extensive shareholder consultation on proposals to change the Continuation Vote mechanism included in the Articles dating from 2012, as well as proposed changes to the Investment Policy. These proposals received strong support from shareholders and resulted in a new Continuation Resolution and Investment Policy. The new Investment Policy adopts a strategy of realising the Company assets in a controlled, orderly and timely manner for shareholders, whilst continuing to deliver best-in-class residential asset management including fairness, transparency, and affordability for leaseholders. In November 2023 the previous Government published a consultation on restricting existing residential ground rents payable, without compensation to freeholders (the Consultation). This represented a significant shift in the Government approach to leasehold reform and led the Company independent valuer, Savills, in conjunction with other valuers and the Royal Institution of Chartered Surveyors, to adopt a Material Valuation Uncertainty Clause (MUC) across the entire residential ground rent market. Ground Rents Income Fund PLC was incorporated in 2012 in United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ground Rents Income Fund PLC reported revenue of £6.0M in FY2025 versus −£129K in FY2021. Reported net income was −£4.3M in FY2025.

Growth Quality 34/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£6.0M
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.3%
Revenue
FY21 −£129K
FY22 −£6.2M
FY23 £1.2M
FY24 −£27.0M
FY25 £6.0M
Net income
FY21 £1.2M
FY22 −£7.5M
FY23 −£1.1M
FY24 −£29.7M
FY25 −£4.3M

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Cite: Fair Value Calculator (2026). "Ground Rents Income Fund PLC Fair Value". https://www.fairvalue-calculator.com/stock/GRIO

Peer Group

REIT - Diversified · 165 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside +147% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 20% · Below median
Revenue growth -13% · Bottom 25%
Debt / equity 0.37× · Lower than median

Valuation Multiples vs REIT - Diversified median · lower = cheaper

P/B 0.42× · Cheaper than 75% of peers
P/S (TTM) 3.95× · Cheaper than median
P/FCF 51.4× · Pricier than 75% of peers
EV/EBITDA 18.3× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 13
FUTURE 0 · sector 13
PAST 0 · sector 20
HEALTH 82 · sector 72
DIVIDEND 0 · sector 97

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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10 more REIT - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

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Fibra Uno FUNO11 31.10 MXN 63.56 MXN +104%
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The GPT Group GPT A$4.89 A$3.49 -29%
Mirvac Group MGR A$1.70 A$0.5700 -66%
KLCC Property Holdings 5235SS 8.85 MYR 6.91 MYR -22%
CRRUN CRRUN C$17.65 C$17.89 +1%

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Frequently asked questions

Is Ground Rents Income Fund PLC (GRIO) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of £0.4200 versus a price of £0.1700, about +147% (undervalued).
What is the fair value of GRIO?
Our model-based fair value for Ground Rents Income Fund PLC is £0.4200 (as of Jul 14, 2026), built from audited fundamentals. The current price is £0.1700.
What is the quality score of GRIO?
Ground Rents Income Fund PLC has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ground Rents Income Fund PLC (GRIO)?
Ground Rents Income Fund PLC reported trailing-twelve-month revenue of about £6.0M (latest available figure, as of Jul 14, 2026).
What is the net profit margin of GRIO?
The net profit margin of Ground Rents Income Fund PLC is about -72.5%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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