Grainger has returned to profit on the back of a robust performance in the year to the end of September.
The UK’s largest listed residential landlord announced a profit before tax of £26.1m, compared with a loss of £20.8m last year.
Its gross net asset value rose 8.2% to 216p, while its triple net asset value per share performed slightly better rising 9.7% to 153p.
Total sales were £223m over the year, ahead of £173m last year, with a substantial pipeline of £59m sales already this year, 5.3% ahead of September values.
Development profit was significantly up from last year at £15.1m, with profits driven predominantly by the sale of two central London assets.
Profit from its fund management and residential investments business was up 33% to £3.6m in 2010.
Grainger’s £1.4bn UK portfolio rose 3.8% in value, ahead of Nationwide and Halifax, as it has shifted its portfolio focus to London and the South East.
Net rental income in this portfolio increased significantly to £38.4m from £28.5m assisted by the purchase of the HI Tricomm and balance of Grainger GenInvest.
The portfolio generated sales of £88.5m, producing a profit of £37.8m.
Its £422m German portfolio did not fare as well dipping -0.4%, as it continues with a programme of capital recycling selling €24.3m of assets generating €1.1m profit in 2011.
During the period it secured £1.2bn of new debt taking the average maturity of the group’s drawn debt to 5.9 years. However, its cost of debt – which reflects an LTV ratio of around 61% – has increased and now stands at 5.8% adding around £12m to its interest bill.
It declared a final dividend of 1.3p a share – an increase of 8.3%.
bridget.o’connell@estatesgazette.com
