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(Alliance News) - Grainger PLC on Wednesday said it delivered rental growth of 3.2% and sales prices ahead of valuations in the past four months on a "strong" operational platform.
The Newcastle, England-based residential property developer achieved 97% occupancy in its private rented sector portfolio in the first four months of its financial year to the end of January.
The company's private rented sector portfolio represents around 75% of its total net rental income. Its regulated tenancy portfolio makes up the remainder.
The private rented sector portfolio recorded like-for-like rental growth of 3.0% in the period. This was in line with Grainger's expectations of returning to the long-term trend of 3% to 3.5% this year.
Grainger's total like-for-like rental growth was 3.2% in the period.
The property developer's rent collection also remained strong at 98%.
Its pipeline stood at GBP1.9 billion at the end of January, which it expects to lead to net rental income more than doubling over the medium term.
Grainger's launches for financial 2021 continue to lease up ahead of expectations and underwriting.
Furthermore, four new assets will be launched this year, containing 1,174 new rental homes.
The company's sales performance from its regulated tendency portfolio also remains strong across all regions with acceleration in London. It is recycling these assets into the private rented sector portfolio pipeline.
The sales prices achieved so far remain ahead of valuations between 1% to 2%, it said.
Altogether, it attributed its performance to its "strong" operational platform.
"We have delivered a strong performance for the start of our financial year. We have achieved occupancy in our private rented sector portfolio of 97%, an improvement since the year-end. Rental growth is strengthening further at 3.2%, having remained positive throughout the pandemic," Chief Executive Helen Gordon said.
Shares were up 3.3% at 296.13 pence each on Wednesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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