Grainger maintains dividend, sees stronger rental market

Grainger maintained its dividend as the residential landlord reported an increase in profit and predicted a strengthening rental market.

Pre-tax profit for the six months to the end of March rose 1% to £50.3m from a year earlier as net rental income fell 6% to £34.7m. Adjusted earnings rose 11% to £37.5m, driven by a 30% increase in sales profits.

Grainger collected 98% of rent due during the period and rental growth halved to 1.7% from a year earlier. The company said it expected a strong rental market in the second half if the UK’s vaccination and economic reopening plans stay on course.

Based on the company’s performance and outlook Grainger kept its interim dividend unchanged from a year earlier at 1.83p a share.

Helen Gordon, Grainger’s chief executive, said: "We have delivered a strong performance over the past six months despite the impact of Covid-19. There is positive market evidence, including the +86% rise in lettings enquiries we have generated since the beginning of the year, which suggests a strong lettings market to come as we enter the peak summer period and all remaining lockdown restrictions are lifted.

"This provides us with increasing confidence for an improved performance for the second half of the year subject to the UK economy reopening as currently expected."

Grainger shares fell 2% to 289.20p at 0816 BST.