Grainger delivers 'another year of strong rental income growth'

(Sharecast News) - Residential property business Grainger said on Thursday it had delivered a strong full-year performance, with occupancy at 98.1% and like-for-like rental growth of 3.6%. Grainger generated £169m from disposals, in line with valuations, including £82.4m from PRS assets and £86.4m from regulated tenancies, and also completed three build-to-rent schemes, adding 357 homes to its portfolio.

The FTSE 250-listed firm said its £1.3bn development pipeline was expected to deliver around 4,565 new homes and generate £70m in net rental income, on top of the £110m reported in March.

Grainger added that its committed pipeline was forecast to drive 25% EPRA earnings growth to £60m by FY26, and 50% growth by FY29.

Chief executive Helen Gordon said: "Grainger has delivered another year of strong rental income growth, demonstrating the resilience of our business model despite the current economic environment.

"Looking ahead, we remain confident in our ability to deliver sustainable income growth over the short, medium and long term, and we reiterate our guidance of 50% earnings growth from FY24 to FY29, delivered by our market-leading operational capabilities and supported by the fundamental supply-demand imbalance in the UK housing market."

As of 0850 BST, Grainger shares were up 2.55% at 192.80p.





Reporting by Iain Gilbert at Sharecast.com