LONDON (ShareCast) - (ShareCast News) - Residential landlord group Grainger generated strong sales and kept a lid on costs in the second half of the year, leading to much improved full year profits, though triple net asset value is flat.
Adjusted earnings are expected to approach £70m for the year to 30 September, compared to £53.1m last year.

Like-for-like rents have grown 3.7% for the eleven months to the end of August, with the private rented sector portfolio growing 3.2% and the regulated tenancy portfolio up 4.4%.

Sales of vacant properties was roughly 2% ahead, while residential sales have been "robust" thanks to development activity and strategic land sites.

Grainger's strategy to increase its focus on UK PRS saw its secured investment pipeline surge from £389m at the end of the last September to £517m, around 60% of the £850m target for 2020 announced almost two years ago.

An £80m acquisition on Gore Street in Salford is soon to be complete, taking it to 70%, with a £341m further of schemes in the planning or legal stages that could enable it to meet the target.

A further £469m of potential schemes are under consideration.

Chief executive Helen Gordon said it was a year of "significant strategic progress", with the increased PRS investments and improved operational platform.

"We expect to deliver another period of strong financial performance at our full year results in November, and our in-house capability to originate, invest in and operate UK rental homes provides a strong platform for future growth."

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