Grainger reports jump in rental income

The UK’s largest listed residential landlord said net rental income in the six months to 31 March rose 12% to £48.0m, with underlying rental growth of 6.8%. Occupancy as at the end of March was 98.5%.

Adjusted earnings were 2% higher at £47.1m, although pre-tax profits tumbled 94% to £5.7m following a 1.3% valuation decline. In the first half of 2022, the valuation rose 2.3%. EPRA net tangible assets per share eased 2% to 310p.

Grainger said: "Growing rental demand and constrained supply continue to move in our favour, particularly due to our mid-market pricing, energy efficient properties and value-add services to our customers."

It added that with net rental income strongly linked to wage inflation, it had benefited from the "high inflationary environment".

Helen Gordon, chief executive, said: "Our balance sheet is in a strong position, with a low cost of debt fixed for six years, enabling us to deliver on our committed investment pipeline with returns protected.

"With positive expectations for the occupational market and rental growth, resilience in valuations back by strong active investor demand, and an institutional landlord-friendly investment landscape, the outlook for Grainger remains strong."

As at 0915 BST, shares in the FTSE 250 stock were ahead 1% at 258.4p.