Developer Watkin Jones has highlighted the “increasing importance” to its business of the build-to-rent sector, which now accounts for a third of its revenue.
BTR brought in £59.1m of revenue in the half year to 31 March, up from £17.9m a year ago, when it accounted for 22% of group revenue. Profit from the BTR division was £12.4m, up by 88%.
During the six months, Watkin Jones bought a site in Belfast for 780 apartments and has since acquired a 524-flat site in Edinburgh. The company said it was “actively progressing” other acquisitions. Its total pipeline stands at 5,008 flats.
Watkin Jones chief executive Richard Simpson had expected the BTR division to grow in significance. Announcing full-year results in January – when BTR accounted for 26% of revenue versus 63% from student housing – Simpson told EG the split would likely reverse, describing BTR as “really coming of age”.
The BTR division helped to offset revenue and profit falls in the company’s student accommodation unit, leaving groupwide revenue down by 3.9% at £178.4m and pretax profit down 3.3% at £25.8m.
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