Grainger's profit rises as it secures £389m of investment

Grainger’s full-year profits rose as it secured £389m of investment and sold non-core businesses as part of its growth strategy.

The residential landlord secured £389m-worth of investment out of a target for £850m, it disposed of non-core development land for £8m and sold a Czech joint-venture for £10.7m, improved its capital structure and reduced costs.

A further £347m is in the planning or legal process for investment in the private rented sector.

For the year ended 30 September, pre-tax profit increased by 64% to £84.2m, when compared to last year, while net rental income rose by 15% to £37.4m, due to the company acquiring tenanted rental homes that gives immediate income.

Adjusted earnings climbed 69% to £53.1m and its return on shareholder equity edged higher from 10% to 10.6%, while the company declared a dividend of 4.5p, up 64% from last year.

Net debt narrowed by 33% to £764m and net property operating costs reduced to 28% from 31%.

Average like-for-like private rental sector growth accelerated from 3.4% to 3.6%.

The EPRA triple asset net value increased by 9% to 287p and EPRA net asset value gained 7%, before adjustments, or 3% to 330p.

Chief executive Helen Gordon said: "The private rented sector growth opportunity is very compelling. With capacity to invest and a repositioned business, we are well placed to significantly improve our income and shareholder returns as we achieve our strategic objectives.

"The new financial year started well, we have secured new investments, further developed our private rented sector pipeline and the benefits are starting to come through from the actions taken to reduce costs. I am confident in our future prospects and Grainger's new, simpler and more focused structure which has strengthened our business and competitive position."

Shares in Grainger were up 0.13% to 225.60p at 0809 GMT.