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Grainger accelerates rental shift in bid to cut tax bill

The listed residential developer has posted a healthy set of results as it expands its rental business and eyes Reit status
Grainger accelerates rental shift in bid to cut tax bill
  • Rental income up 23 per cent
  • Company puts forward £9mn to cladding fund

Grainger (GRI) stands alone in the world of listed real estate. The residential developer is not a housebuilder, but it’s also not a Reit (real estate investment trust) – at least not yet. Having doubled its pre-tax profit in its latest set of half-year results, it has also more than doubled its tax bill from £10mn to £23mn. As such, the company is thinking about the tax saving it could make if it achieved Reit status.

Chief financial officer Robert Hudson says Grainger hopes to reach that goal “in the next three years”. To do that, the company needs to get to a position where 75 per cent of its income comes from rental property.

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