FTSE 250 firm report strong trading performance and pipeline of £188m
Companies: Grainger plc
Grainger Plc, the UK’s largest listed residential landlord, gave a strong trading update this morning, revealing robust lettings and sustained rental growth in the ten months to 31 July 2016. The results show a modest 3.4% growth in EPS in FY16, after declining 23% FY14-FY15.
The FTSE 250 company saw strong performance in sales pipeline, growing it to £188m (+9% vs 2015 like for like). Its dividend is expected to rise to 4p per share, up +40% year-on-year, giving a yield of 1.8% (1.3% FY15).
PRS Portfolio & EU Referendum
CEO Helen Gordon, commented:
"In our private rented sector (PRS) portfolio, we are seeing good rental growth and demand for our high quality, well managed rental homes. We continue to see strong levels of trading from our regulated tenancy portfolio, with high interest among home buyers, steady transactional activity and robust pricing.”
On the impact of Brexit (or lack thereof), she said:
"We have not seen any material impact on our business following the EU Referendum, although we are monitoring the situation closely. With a strong balance sheet and low financial gearing, we are well positioned to take advantage of new potential PRS investment opportunities following the EU Referendum.”
N+1 Singer covered the results this morning, saying the group was making good progress towards its strategic goals of increased PRS (Private Rental Sector) investment and cost savings. On Grainger’s valuation, Singers note said:
“We continue to believe that Grainger should trade at a small premium to NNNAV given the opportunity in the PRS pipeline.”