Grainger’s (GRI) robust rent collection during the past two months sets the private-rental sector specialist apart from the majority of UK-listed landlords. The group received 95 per cent of rent due in March and 94 per cent the following month and rent deferral plans agreed with less than 1 per cent of tenants. However, lease renewals outpaced higher-rate new lets.
Net rental growth across the PRS portfolio - which now accounts for 60 per cent of the group total - was 3.4 per cent on a like-for-like basis and 4.4 per cent for the regulated tenancy portfolio. The group continued to dispose of vacant assets from the latter, albeit at a lower level than the prior year, and achieved sales 1 per cent ahead of the value at the end of September. Sales continued to go under offer and exchange during lockdown, said chief executive Helen Gordon.
Work has resumed on nine PRS developments, with time spent off-site to implement social distancing practices delaying some completions by “two months at the extreme”, said Ms Gordon. Once completed, these schemes should increase the portfolio’s passing rent from £74m to £131m.
Analysts at Panmure Gordon forecast adjusted NAV of 302p a share at the end of September, rising to 317p the same time the following year.
| GRAINGER (GRI) | ||||
| ORD PRICE: | 248p | MARKET VALUE: | £ 1.67bn | |
| TOUCH: | 248-248.6p | 12-MONTH HIGH: | 342p | LOW: 190p |
| DIVIDEND YIELD: | 2.1% | TRADING PROP: | £702m | |
| DISCOUNT TO NAV: | 16% | |||
| INVESTMENT PROP: | £1.7bn | NET DEBT: | 69% | |
| Half-year to 31 Mar | Net asset value (p)* | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 301 | 54.3 | 9.0 | 1.73 |
| 2020 | 297 | 49.6 | 6.4 | 1.83 |
| % change | -1 | -9 | -29 | +6 |
| Ex-div: | 28 May | |||
| Payment: | 03 Jul | |||
| *EPRA NAV | ||||
