Grainger plc provides an update on trading for the eleven months to the end of August 2022, ahead of its financial year end on 30 September 2022. The company will announce detailed annual financial results on 17 November 2022. Grainger has a c.£3.1bn operational portfolio of c.10,000 homes and a £2.4bn pipeline of a further c.10,000 Build to Rent homes.
“Momentum in the business is continuing to accelerate and our mid-market strategy and in-house scalable operating platform has delivered strong performance. Occupancy remains at record levels at over 98%. At the same time, like-for-like rental growth across our national portfolio is continuing to build over the second half of our financial year.
“Despite the buoyant rental market, we are very mindful of the financial challenges facing many individuals. We are therefore taking a responsible approach to rental increases, ensuring affordability for our customers remains a central consideration and balancing rent increases with retention.”Helen Gordon, Chief Executive, Grainger
Grainger’s reports that its operating platform is delivering results, with like-for-like rental growth continuing. Total like-for-like rental growth YTD is 4.5% and PRS like-for-like rental growth YTD is 4.5%.
New Lets YTD is 5.4%, renewals YTD is 3.9%, regulated tenancy like-for-like rental growth YTD is 4.4%, PRS like-for-like rental growth in the five months to August is 5.3% and prospective customer enquiries remain at record levels. Occupancy in Grainger’s PRS portfolio also remains at record-high levels, with spot occupancy at the end of August at 98.2%.
“We are also supporting customers where we can with their other costs by continuing to invest in the energy efficiency of our portfolio, with nearly 90% of our PRS portfolio offering the highest energy ratings (A-C), providing substantial savings to our customers.
“In our newer properties, we are also providing free broadband and complimentary gyms, and we are providing practical advice and support to over 20,000 customers on how they can reduce their energy usage and costs, and other bills. In addition to supporting our customers, we have provided financial support to all our colleagues, excluding our senior executive team, through an additional £1000 cost of living payment.”Helen Gordon, Chief Executive, Grainger
In June 2022, Grainger further expanded its Build to Rent portfolio in line with its city-cluster strategy, with the £128m forward-fund acquisition of a 468 home Build to Rent scheme at Redcliff Quarter in Bristol, expected to complete in 2025. This will bring Grainger’s total investment in the city to nearly 900 homes, including 94 new affordable homes via its in-house affordable housing arm, Grainger Trust.