Grainger earnings up by almost 25%
The chief executive of Grainger said the company is on track to meet its goal of doubling in size in the coming years, as the UK’s largest listed residential landlord posted a near-quarter jump in earnings.
Helen Gordon (pictured) described the FTSE 250 group’s results for the six months to 31 March as “a particularly strong performance”. Adjusted earnings rose by 23% year-on-year to £46.3m, driven by a 23% lift in net rental income to £42.8m. Rental growth was 3.5% across the portfolio.
“The market has strengthened swiftly over the past six months and we have successfully capitalised on this opportunity,” Gordon said. “We are delivering on our growth plans, which will see us double in size in the coming years, providing exceptional earnings growth and attractive high single-digit total returns to shareholders.
The chief executive of Grainger said the company is on track to meet its goal of doubling in size in the coming years, as the UK’s largest listed residential landlord posted a near-quarter jump in earnings.
Helen Gordon (pictured) described the FTSE 250 group’s results for the six months to 31 March as “a particularly strong performance”. Adjusted earnings rose by 23% year-on-year to £46.3m, driven by a 23% lift in net rental income to £42.8m. Rental growth was 3.5% across the portfolio.
“The market has strengthened swiftly over the past six months and we have successfully capitalised on this opportunity,” Gordon said. “We are delivering on our growth plans, which will see us double in size in the coming years, providing exceptional earnings growth and attractive high single-digit total returns to shareholders.
“The UK rental market continues to have a hugely attractive outlook with significant demand, rental growth, yield compression, and structural drivers that favour the professional, large-scale landlord.”
Grainger expects to deliver 1,174 new rental homes this year, and 1,741 next year. Over the past six months the company launched two schemes comprising 448 new homes – the Pin Yard in Leeds and Weavers Yard in Newbury. During the rest of the year it expects to deliver Gilders Yard in Birmingham, Enigma Square in Milton Keynes and the Copper Works in Cardiff.
Its £2.2bn PRS portfolio represents 71% of the portfolio by value, and the company anticipates hitting what it called “an important milestone” of 10,000 operational rental homes during the second half of this year.
Gordon acknowledged the problems caused by inflation and a rising cost of living, but said Grainger is “well prepared” for the challenges.
“With a resilient customer base, high quality energy efficient homes, fixed debt costs, fixed delivery costs across the majority of our secured pipeline and limited direct exposure to other inflationary pressures, we are confident in the outlook for our business,” she added.
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Image © Grainger
