Grainger FY rental income grows despite Covid-19

Residential landlord Grainger said on Thursday that net rental income had grown in the year ended 30 September despite the uncertainty created by the ongoing Covid-19 pandemic.

Grainger said net rental income was up 16% year-on-year at £73.6m, while like-for-like rental growth increased 3% and the group collected 97% of rents on time.

Pre-tax profits contracted 16% to £110.8m and diluted earnings per share slipped 28% to 14.2p.

The FTSE 250-listed firm added that vacant sales had delivered £65.9m of revenues and £35.2m in profits, with sales prices being achieved 2% ahead of previous valuations, while the group's asset recycling programme added £67.1m in revenues and £26.8m in profits.

Grainger also reported continued growth in dividend payments, proposing a total full-year dividend of 5.47p per share, up 5% on 2019.

Net debt was slimmed 6% to £1.03m.

Chief executive Helen Gordon said: "This year has emphasised the importance of a good home like never before, and Grainger's unrelenting focus on providing good quality, safe homes with great customer service, has proved as relevant as ever during these challenging times.

"In the first half of the financial year we successfully raised equity for our growth plans followed by a bond issue in the summer, and we enter our new financial year in a position of both financial and operational strength which will enable us to continue to deliver good quality, safe homes to a growing number of customers, as well as long term, attractive returns to shareholders."

As of 0825 GMT, Grainger shares were up 0.33% at 302.80p.