Grainger reports year of record delivery
A further 400-plus homes will be completed this calendar year, said the Newcastle-headquartered build-to-rent specialist, adding to 1,200 already built.
Net rental income across the company is up by 12%, and like-for-like PRS rental growth up 8%. Total dividend per share is up 11%, while adjusted earnings are up 4%.
Grainger now has a £3.3bn operational portfolio of 10,208 private rental homes and a £1.6bn, 5,634-home build-to-rent pipeline. Occupancy stands at 98.6% across the portfolio.
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Addressing shareholders today, chief executive Helen Gordon said: “It is with great pleasure that I can report an outstanding year of record delivery and a strong performance for Grainger, growing net rental income strongly and enabling us to increase our dividend to our shareholders by 11%, while improving the rental experience for our growing number of customers.
“We are now delivering our pipeline at pace and are set to deliver market-leading earnings growth, a culmination of years of planning and implementation since setting out the Company strategy in 2016.”
The year has seen a key landmark passed, Gordon said: “This year, we have exceeded more than £100m of annual net rental income on a passing basis, which is more than three times what it was at the start of the strategy. We now own and operate more than 10,000 rental homes nationally and this is set to grow significantly over the coming years. Our PRS portfolio now represents 77% of our operational portfolio by value.”
In the next three years she said, post-tax earnings from operational activities will double compared to the 2022 figure as a fully-funded committed pipeline is delivered.
Gordon said the strength of the company’s position has allowed it to withstand economic headwinds:
“Despite the macro-economic turbulence which marked the beginning of our financial year, the Grainger business has performed exceptionally well. This performance has been delivered by our market-leading operating platform, robust balance sheet and disciplined approach to capital allocation.
“Our property valuations held up well, underpinned by strong rental growth. Our capital discipline puts us in a strong position from a balance sheet perspective too, with our cost of debt fixed in the mid 3% for the next five years, enabling us to deliver on our committed pipeline and continue our growth trajectory.”
A highlight of the period reported include a partnership announced with Network Rail and bloc group to forward-fund and acquire BTR schemes on sites adjacent to major rail hubs, while the group also acquired a scheme from Waterside Places, the joint venture between Muse and the Canal & River Trust.