Build-to-rent giant Grainger ‘on track’ to hit earnings target for year

Grainger has reported a 7.8% increase in its net rental income for the six months to 31 March.

The build-to rent giant, which is the largest private landlord in the UK, in an unaudited today said it is on track to hit its earnings target for the full year.

It is targeting a 12% increase in its EPRA earnings target - a measure of underlying growth used by investment companies – to £60m and has achieved a 4% rise in the first half.

Grainger, which has a portfolio of more than 11,000 homes, styles itself as a “pure-play” build-to-rent operator after selling off other PRS stock over the past few years. The firm last year converted into a Real Estate Investment Trust, a move it said will save it £15m in corporation tax in its first year and help it to attract investment from a larger pool of investors.

Helen Gordon, chief executive of Grainger, said: “Grainger continues to deliver compounding earnings growth, with strong EBITDA margin expansion continuing. We are again increasing our dividend for the period, the 21st consecutive period of dividend growth.”

She said the Renters Right Act, which came into force earlier this month, is “contributing to structural changes in the sector with smaller, private landlords exiting, and larger scale, professional landlords gaining market share.”