The owner of residential premises Granger sees that profits grew by 120% with the growth of rental income due to rising investment property values

  • The largest landlord in the UK showed that profits rose to 75.6 million pounds
  • The Newcastle company has benefited from strong demand for their homes
  • Occupancy rate in the private leased portfolio sector rose to a record 98%

Grainger’s earnings more than doubled due to significant growth in rental income and a rapid rise in investment property valuations.

The UK’s largest homeowner showed that profit for the six months to the end of March rose to £ 75.6 million from £ 34.3 million in the same period last year.

Profitability was the largest increase due to a significant increase in the net valuation of investment assets, which rose sharply by 49 million pounds compared to the same period last year to 59.3 million pounds.

High demand: Grainger’s private rental sector (PRS) occupancy rate is around £ 2.2 billion, up to a record 98 per cent before the pandemic

However, the Newcastle-based company has also benefited from strong demand for its homes in both London and regional areas, including new real estate.

This has raised occupancy rates in the private leased sectors by £ 2.2 billion, more than 70 per cent of the group’s portfolio value, above pre-pandemic levels to a record 98 per cent.

Combined with a 3.5 percent increase in the average rent levied on tenants, it helped increase net rental income by 23 percent to £ 42.8 million.

Total revenue also rose by about a quarter to £ 126.6 million, despite the fact that home sales fell by about two-thirds to 187 properties mainly due to falling real estate deals.

Grainger chief executive Helen Gordon said there was considerable interest among Britons in renting property, despite record high housing costs in the UK real estate sector, which is suffering from an acute shortage of new homes and a worsening cost of living crisis.

She added: “Grainger is a strong market leader with a scalable national operating platform, a fully funded secure pipeline and a fully integrated business model.

Future: Grainger currently has a fully funded secure pipeline of about 4,000 homes with an investment value in excess of £ 1 billion, which is projected to double its net rental income

Future: Grainger currently has a fully funded secure pipeline of about 4,000 homes with an investment value in excess of £ 1 billion, which is projected to double its net rental income

“We are well prepared for the economic challenges facing the UK today, due to rising inflation and rising cost of living.

“With a stable customer base, quality energy-efficient homes, fixed debt costs, fixed shipping costs on most of our safe pipelines and limited direct exposure to other inflationary pressures, we are confident in the prospects of our business.”

Grainger currently has a fully funded secure pipeline of about 4,000 homes with an investment value in excess of £ 1 billion, which is projected to double its net rental income once they become fully functional.

This financial year, the company FTSE 250 expects to bring to market another 1,174 properties, and next year – more than 1,700.

The firm added that it has a strong position to capture higher market share from the exit of small landlords, many of whom are leaving the sector due to tightening regulation and fiscal challenges.

But Edison Group CEO Andy Murphy warned that Granger “will face significant disruptions caused by macroeconomic pressures, such as the protracted conflict in Ukraine and rising inflation, leading to a cost-of-living crisis that will affect the property sector.”

shares Granger in the middle of the day on Thursday rose 2.2 percent to 287.2 pence, meaning its value has fallen more than 10 percent over the past six months.

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