Newcastle-based Grainger plc, the UK’s largest listed residential landlord, said on Thursday its profit before tax increased 7% to £54.3 million and net rental income soared 33% to £29.1 million in the six months to March 31.
Interim dividend per share increased 10% to 1.73p.
However, revenue fell 20% to £107 million as Grainger sold off fewer properties.
Grainger CEO Helen Gordon said in a statement: “I am pleased to report a period of strong performance, in which we delivered +33% growth in net rental income, supported by like-for-like rental growth up +3.7%, and a +7% increase in profit before tax.
“We continue to successfully execute our strategy to invest in high quality new rental homes for the mid-market across the UK in target cities, with an operational portfolio of over 8,400 rental homes and a further c.8,200 new homes in our pipeline.
“Our strategy is designed to enhance shareholder returns by delivering a step change in our net rental income and thereby support strong dividend growth.
“Following the successful acquisition of GRIP in December, a PRS portfolio of c.1,700 rental homes in London, we have achieved a significant increase in net rental income.
“The integration of GRIP is ahead of plan and is beginning to deliver strong results.
“This major acquisition along with our pipeline of PRS development projects will see our net rental income more than double over the coming years, delivering strong future dividend growth.
“Our leading position in the private rented sector (PRS) was bolstered by our selection by Transport for London as their PRS partner to develop over 3,000 new homes across an initial number of seed sites in London.
“In addition to the TfL sites, our PRS investment pipeline will deliver over 5,200 new homes, of which £760m is secured and committed with a further £465m in the planning or legals stages.
“Our recently completed development, Clippers Quay in Greater Manchester, has seen strong lettings performance since its launch in November 2018.
“The first phase of 135 apartments was fully let in 4.5 months, with rents achieved +6.3% above ERV and a customer rating of 4.9 stars out of five.”