Despite significant headwinds caused by the COVID-19 pandemic, Grit Real Estate Income Group (Grit)’s diverse portfolio has proved resilient, with rent collection rates of 91.4% and a slight recovery in property valuations. Buoyed by the performance of its offices (the group’s largest sector exposure), corporate accommodation and industrial portfolios, plus its consistently strong rent receipts, the group has reinstated its dividend (after suspending it at the height of the pandemic), albeit at a lower level. The quality nature of its hospitality tenants and positive governmentbacked financial support have mitigated the impact on its holdings in the hospitality sector, while sales and purchases of properties have brought its retail exposure down significantly. A consolidation of its corporate structure, which has seen it move corporate domicile from Mauritius to Guernsey, a step up to the Premium listing segment of the London Stock Exchange and conversion to a sterling quotation could facilitate Grit’s inclusion in the FTSE indices and improve liquidity in its shares.
17 Feb 2021
On the path to recovery
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On the path to recovery
Grit Real Estate Income Group Limited (GR1T:LON) | 20.5 0 0.0% | Mkt Cap: 101.4m
- Published:
17 Feb 2021 -
Author:
James Carthew | Matthew Read | Richard Williams -
Pages:
17
Despite significant headwinds caused by the COVID-19 pandemic, Grit Real Estate Income Group (Grit)’s diverse portfolio has proved resilient, with rent collection rates of 91.4% and a slight recovery in property valuations. Buoyed by the performance of its offices (the group’s largest sector exposure), corporate accommodation and industrial portfolios, plus its consistently strong rent receipts, the group has reinstated its dividend (after suspending it at the height of the pandemic), albeit at a lower level. The quality nature of its hospitality tenants and positive governmentbacked financial support have mitigated the impact on its holdings in the hospitality sector, while sales and purchases of properties have brought its retail exposure down significantly. A consolidation of its corporate structure, which has seen it move corporate domicile from Mauritius to Guernsey, a step up to the Premium listing segment of the London Stock Exchange and conversion to a sterling quotation could facilitate Grit’s inclusion in the FTSE indices and improve liquidity in its shares.