FINANCE: Grainger, the UK’s largest listed residential landlord, has posted a 20% jump in NAV per share for the past year as its portfolio significantly outperformed the wider housing market.
The total value of Grainger’s portfolio rose by 14.6% to £2.3bn in the year to 30 September, well ahead of the 9.5% increase in the average of the Halifax and Nationwide price indices. Two-thirds of its assets were in London or the South East.
It also enjoyed strong rental growth, with like-for-like rents up by 9.1% on new lets and 4.2% on renewals.
Pretax profits at the group were up 26% to £81m, with sales’ receipts boosted by rising house prices.
As at 31 October, Grainger’s sales pipeline totalled £77m. The projects were expected to deliver £35m of profit, with UK vacant sales values 1.9% above September 2014 valuations.
The company’s development pipeline was valued at £107m.
Since the year-end it has signed a new partnership agreement with Sigma Capital, giving Grainger the exclusive option to acquire sites from Sigma’s build-to-rent developments outside London.
Grainger’s net debt rose to £1bn from £959m in 2013. Some £275m of corporate bonds were issued to diversify funding.
A final dividend of 1.89p was declared, taking the full-year payout to 2.5p, up by 22.6%.
In the boardroom, Ian Coull will replace chairman Robin Broadhurst, who will step down early next year.
Chief executive Andrew Cunningham said: “Notwithstanding some evidence of moderating of house price inflation and transaction volumes, our own assets are continuing to command good prices due to their defensive qualities, notably their price points, location and nature. For the first time in recent years, we have seen growth in the values of our assets across every region of the UK over the period.”
