Residential-for-rent developer and manager Watkin Jones has confirmed in today’s trading statement a strong operational performance in the second half of the year to 30 September 2022, with investor demand for rental assets remaining strong and good visibility going into FY23E. However, the group said it had encountered some pricing and margin softness as its institutional investors faced increased funding costs. We have reduced our estimates for FY22E and FY23E but remain confident in the longer-term prospects, driven by strong demand from tenants, which has boosted rents.