L&Q has missed targets for operating margin and interest cover but says short-term balance sheet pressure is “acceptable” in order to invest more in existing homes and support long-term outcomes.

The 106,000-home landlord, in its annual financial statement, reported an overall operating margin of 17%, down 24% year-on-year and below its target of 21%. Similarly, its social housing lettings operating margin was 28%, below its target of 30% but higher than its G15 peers. The group’s EBITDA-MRI interest cover - which measures interest to earnings - was also below its 150% target at 143%.