CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

UK property firm Grainger (GRI) sees full-year profit soar

By Jenni Reid

12:47, 18 November 2021

Millet Place in partnership with the LPP
Residential landlord Grainger saw profits up 53% in the full-year to October 2021 – Photo: Grainger annual report

British residential property business Grainger (GRI) reported annual profit rose by more than half in results published Thursday.

The FTSE 250 firm – which is the UK’s largest listed residential landlord with over 9,000 properties – saw profit before tax up 53% to £152.1m in the full-year to 30 September, and adjusted earnings up 2% to £83.5m.

Net rental income fell 4% to £70.6m, but passing net rental income – the income currently receivable on a property – rose 9% to £80.9m.

The firm said the PRS portfolio has returned to pre-pandemic occupancy of 95% as of today.

Grainger proposed a final dividend of 3.32p per share, taking its total dividend for the year to 5.15p per share – 6% lower than 5.47p in the full-year 2020.

Shares are trading higher, up 1.22% to 316p at 14:35 UTC.

Pandemic resilience

Grainger chief executive Helen Gordon said it was a “robust performance” and that the company was entering the “next phase of dynamic growth”.

“Our well-established growth strategy has continued unabated with our delivery of more than 1,300 new operational PRS homes and four new acquisitions totalling £299m of investment.”

The new PRS homes were 91.5% let at end October.

Gordon said the UK private rented sector remained attractive to investors, particularly build-to-rents, and that it had proved resilient during the pandemic.

TSLA

242.91 Price
+0.830% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.09

ALT

7.31 Price
+39.490% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.05

GME

14.88 Price
-2.000% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.13

NVDA

458.63 Price
-1.640% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.16

That was despite a reported decline in London and other city rental prices during the pandemic.

Grainger today said the difference between the performance of our London and regional portfolios had been relatively minor, with a slightly earlier recovery in occupancy in the regions but London demand coming back strongly in August and September.

What is your sentiment on GRI?

2.679
Bullish
or
Bearish
Vote to see Traders sentiment!

Outlook

The company said occupancy had recovered to stabilised levels and it would look to deliver rental and valuation growth in the year ahead.

“Looking to Grainger's future, we plan to increase our growth momentum and build upon our £3.1bn operational portfolio of 9,727 rental homes.

“Our £1.9bn [private rented sector] pipeline will more than double our net rental income. This growth will enable us to further enhance shareholder returns. The scalable platform we have developed delivers a compounding effect on earnings growth as we increase our top line rental income, which we expect to increase 2.5 times from our pipeline.”

Portfolio valuation rose 4.5% to £142m, supported by strong lease up performance of the new PRS assets.

The secured pipeline totals £996m, or 3,987 homes.

Grainger has no debt maturities until November 2022. Net debt stood at £1,042m, up 1% year over year. Cash and cash equivalents were £317.6m, down from £369.1m.

Read more: UK’s Grainger acquires a 401-home London development

Markets in this article

GRI
Grainger
2.679 USD
0.028 +1.070%
GRI
Grainger
2.679 USD
0.028 +1.070%
GRI
Grainger
2.679 USD
0.028 +1.070%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading