| Item | 2016 result (£m) | % rise |
|---|---|---|
| Adjusted earnings | 37.4 | 69 |
| Net rental income | 53.1 | 15 |
| Profit before tax | 84.2 | 64 |
Grainger has posted a 69% rise in adjusted earnings to £37.4m in its first full year since focusing on the private rented sector.
The company, which set out its PRS-led strategy in January, reported a 15% rise in net rental income to £53.1m and a rise in profits before tax of 64% to £84.2m.
Grainger invested £389m of a planned £850m into PRS, with a further £347m in the pipeline.
The company has also been disposing of non-core assets, including its German businesses, which has reduced net debt by £451m and LTVs to 35.9% from 45.5% last year.
Total return for the period was 10.6%, up from 10% last year.
Helen Gordon, chief executive of Grainger, said: “FY16 has been a transformational year, with progress made in delivering the private rented sector growth strategy we set out in January.
“The PRS opportunity is compelling. With capacity to invest and a repositioned business, we are well placed to improve our income and shareholder returns.”
Earlier this week, it agreed to forward fund 194 homes in Bristol for £47.5m.
From August: Revamped Grainger cuts execs
From July: Grainger and APG create UK’s largest resi rental REIT
From January: Grainger set to channel £850m into PRS assets
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