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Grainger PLC on Thursday reported a fall in its interim profit on net valuation loss, despite net rental income jumping by 12%.
The Newcastle Upon Tyne, England-based residential property developer and landlord reported net rental income of £48.0 million for the six months ended on March 31, up 12% from £42.8 million the year before.
Pretax profit, however, declined by 94% to £5.7 million from £98.8 million, as earnings per share dropped to 0.6 pence from 10.2p the year before.
Profit from sales dropped by 20% to £25.2 million from £31.6 million.
Grainger booked a net valuation loss on investment property of £40.2 million, compared to a gain of £59.3 million a year before.
The company noted 98.5% occupancy in its PRS portfolio at the end of March, compared to 98.1% a year earlier.
Chief Executive Helen Gordon said: ‘We continue to deliver strong consistent performance across the business. For the first half of our financial year, we have delivered an increase in net rental income of 12%, supporting a 10% increase in our dividend. Rental growth momentum has continued to accelerate which has broadly offset yield movements and the net asset value of our portfolio was resilient.’
Grainger declared a total dividend of 2.28 pence each for financial 2023, up 10% from 2.09p a year prior.
Looking ahead, the company said it remains on track to deliver seven new schemes, totalling 1,640 new rental homes.
Shares were up 0.9% at 258.40 pence each on Thursday morning in London.
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