7th Oct 2024 09:13
(Alliance News) - Grainger PLC on Monday said it was in a "strong position" to deliver increased earnings ahead of its full-year results, as like-for-like rental growth and new builds enhance its portfolio.
The Newcastle upon Tyne-based residential landlord said total like-for-like rental growth for the year ended September 30 was 6.3%, compared to 7.7% last year, and reported its portfolio was "fully let" at the end of September, with occupancy at 97%.
The company will announce its full-year results on November 21.
Grainger completed four new build-to-rent schemes during the year, totalling 978 new homes, whilst its acquisition of a build-to-rent asset from M&G Real Estate PLC grew its portfolio to 1,113 homes in total.
The company is set to become a real estate investment trust, or REIT, next year, which it calls "a major milestone for the business".
Chief Executive Helen Gordon said: "Grainger has delivered double digit rental income growth this year in line with expectations, with strong like-for-like rental growth at 6.3% and whilst we expect rental growth to ameliorate somewhat, we still expect levels to be above the long term historic average for financial 2025. This growth is supported by our rapidly growing portfolio, with over 1,100 new homes added to our portfolio this year and a pipeline which will double our rental income when compared with financial 2023."
"Rental growth in financial 2025 will be underpinned by continuing high levels of wage growth throughout the UK and particularly in our target customer demographics and geographical locations. Affordability remains healthy and customer satisfaction scores remain high, demonstrating the sustainability of our rental income growth going forward.
"As we enter a new financial year, we are in a strong position to deliver further growth, benefitting from our market-leading, scalable operating platform."
Shares in Grainger were down 0.2% at 244.50 pence each in London on Monday morning.
By Emily Parsons, Alliance News reporter
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