Residential property investor Grainger Trust’s tenanted business has helped boost pretax profits 33% to £22.4m in the half-year to March.
“We are taking full advantage of our expertise as residential traders and managers, together with our local knowledge, to deliver returns,” said chief executive Rupert Dickinson.
Trading profits from the residential division rose nearly 20% to £15.8m on the back of strong sales, while net rental income fell by 4% to £4.5m. Group rental income improved slightly, to £10.9m from £10.8m.
Dickinson admitted that the market had slowed, but said Grainger was less affected because of its wide geographic spread and relatively low vacant possession value – £108,000 on average. “There’s a lot of demand for unmodernised properties – it’s the Changing Rooms effect”, said Dickinson, noting that the sales had exceeded VP value by 6.5%.
The company sold 382 properties for £36m, generating a 20% rise in trading profits to £15.8m. It also acquired 592 properties for £45m.
Grainger’s Bromley Property Holdings joint venture also contributed £4m to profit. The rationalisation of the BPT portfolio, held by the jv, is almost complete.
Net asset value per share declined by 2% to £17, but the portfolio was not revalued.
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Share indices |
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2002/2003 |
Real Estate share index |
All-Share index |
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High |
2288.26 (5 July) |
2275.16 (1 July) |
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Low |
1662.20 (14 Mar) |
1593.34 (12 Mar) |
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As at 24 Jun |
2066.59 |
1982.34 |
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