Private landlord titan Grainger’s profits surge by 96 per cent due to strong rental demand
The UK’s largest listed residential landlord Grainger reported a huge boom in profit before tax of 96 per cent off the back of soaring demand.
The company’s books looked healthy for the financial year with net rental income up 22 per cent and record occupancy 98 per cent levels.
This comes as millions of people struggle with the cost of living crisis and a squeeze on their savings, forcing many would-be home-buyers to rent instead.
Grainger reported a 12 per cent growth in adjusted earnings to £93.5m for the year while its profit before tax almost doubled from last year to £298.6m from £152.1m in 2021.
The firm, which is the UK’s largest residential landlord with a £3.2bn portfolio of 9,669 homes, currently has a quarter of privately rented UK households on its books, equating to 5m.
Despite economic turbulence globally which has driven up costs for construction and in supply chains, chief executive Helen Gordon promised the firm had a” £953m committed pipeline of 3,658 new build-to-rent homes is locked-in, fully-funded and de-risked with fixed construction costs, providing visibility on earnings growth for the next four years.”
“On top of this we have the option to proceed with a further £241m of 769 homes in our secured pipeline and we have £599m in our planning and legal pipeline, comprising 2,411 homes. In total, our build-to-rent pipeline stands at £1.8bn and 6,838 new homes.”
“Whilst we are mindful of the wider macro-economic environment, we are well positioned for the challenges ahead and our market benefits from positive long-term structural trends.
“Demand for renting continues to grow, supply remains constrained as many small landlords exit the rental market, and we benefit from a resilient customer base”