Shares in Grainger (GRI) jumped over 4 per cent after the UK's largest private landlord delivered an upbeat trading statement for the four months to 31 January. Sales jumped from £64.6m for the same period a year earlier to £149.3m, mainly as a result selling a home reversion portfolio for £88m. Crucially, Grainger will retain management of the portfolio, which will provide further fee income.
Underlying rental rates remained strong on the regulated-tenancy portfolio, rising around 3.4 per cent on renewals and 6.7 per cent on new lets, although gross rental income was down from £27.3m to £19.3m as expected, following the disposal of £348m of assets last year into joint-venture or associate vehicles. Fee income slipped from £4.6m to £3.8m, but this was largely the result of project completions during the period. In fact, the latest home reversion portfolio sale is expected to generate around £600,000 fee income on an annualised basis. On the development side, planning permission has been secured on three projects in Kensington, Hammersmith and Hampshire.