Grainger reports strong rental growth
Grainger has reported a healthy rise in rental income but profit from sales was down in its latest full-year results.
The group, which is on track to complete its conversion to a REIT in October 2025, said net rental income rose by 14% to £110.1m in the 12 months ended 30 September, up from £96.5m last year.
However, adjusted earnings decreased by 6% to £91.6m from £97.6m as sales profit was lower than in prior years.
Grainger has reported a healthy rise in rental income but profit from sales was down in its latest full-year results.
The group, which is on track to complete its conversion to a REIT in October 2025, said net rental income rose by 14% to £110.1m in the 12 months ended 30 September, up from £96.5m last year.
However, adjusted earnings decreased by 6% to £91.6m from £97.6m as sales profit was lower than in prior years.
Other adjustments included hedge ineffectiveness of £6.6m and a £5m fire safety provision payment.
On a like-for-like basis, rental income grew by 6.3%, compared to 7.7% in 2023.
Occupancy in its BTR and PRS portfolio stands at 97.4%.
The company said it had continued to shrink its regulated tenancies portfolio in line with its strategy.
In the past 12 months it disposed of non-core assets, generating £274m of gross revenue, reinvesting the proceeds into “higher-yielding, modern, purpose-built, energy efficient, attractive homes”.
During the year it acquired two development sites: one in Cardiff with potential for up to 405 BTR homes, and a site in Sheffield with the potential for up to 193 BTR homes.
Chief executive Helen Gordon said: “Building on last year’s record, we have delivered another strong year of growth, adding 1,236 new homes to our expanding nationwide portfolio. We added four new communities to our existing clusters in Birmingham, Bristol, London, and Manchester.
“We have been pleased to see the new Labour government’s public rejection of rent controls and the acknowledgement that such controls would hurt supply and investment. On the contrary, it has been pleasing to see the government’s commitment to increase housing supply and investment. Plans to raise standards in the rental sector plays to Grainger’s strengths as a leading landlord with a best-in-class operating platform and a responsible approach to housing provision.
“The market opportunity for the UK build-to-rent sector is considerable with demand for renting growing and the shortage of rental supply worsening, and with its proven track record, Grainger is best placed to help alleviate this through continued investment and housing delivery, accelerating our growth for years to come.”
Photo courtesy of Camarco
