Grainger has announced a 13% rise in pretax profit in its half-year results as it streamlines its business and continues investing in assets.
In results for the six months ended 31 March 2017, its profit increased to £42.2m from £36.6m, while its net rental income rose by 11%.
The company’s NAV was up by 3%, or 8pps, to 295p.
Grainger has secured £462m of private rented sector assets and £402m in planning/legal out of a £850m target set for 2020.
It has reduced overheads to £13.4m, a 17% reduction from the prior year, and said it is on track to deliver a £27.5m overhead target by the end of the year.
Grainger has refinanced a £100m debt facility and agreed a two-year extension to 2022 for £450m of its syndicated bank facility, at unchanged margins, with extension options for a further two years.
Its net debt is £791m and loan-to-value ratio is at 36%.
Chief executive Helen Gordon said: “We expect this momentum to continue and have good visibility on additional investment opportunities to meet our overall target. We are making good progress delivering our pipeline, and on average we are completing a new PRS building every two months over the next two years.
“Grainger is a focused, simpler and more efficient business. We have made changes to the way we operate in order to enhance returns, through reducing costs, simplifying processes and improving the scalability of our operating platform.
“The private rented sector growth opportunity is compelling with strong investment fundamentals. Our strategy to grow rents and simplify and focus the business puts Grainger in a strong position to deliver further sustainable income led growth.”
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