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Grainger PLC on Thursday reported a sharp rise in profit, lifted by stronger rental income, stable portfolio values, and a one-off tax credit from its conversion to a real estate investment trust. The Newcastle-upon-Tyne, England-based residential landlord said pretax profit more than doubled to £102.6 million in the financial year that ended September 30 from £40.6 million the year earlier. Attributable profit rose to £202.6 million from £31.2 million, helped by a £123.6 million tax credit linked to REIT conversion. Diluted earnings per share surged to 27.3 pence from 4.2p in financial 2024. Grainger said net rental income increased 12% to £123.6 million, supported by high portfolio occupancy of 98%. Like-for-like rental growth for the year was 3.6%, easing from 6.3% a year earlier. EPRA earnings were £53.7 million, up 12%, with EPRA net tangible assets per share steady at 298 pence. Grainger declared a final dividend of 5.46p, taking the full-year payout to 8.31p per share, up 10% from 7.55p. Net debt stood at £1.46 billion on September 30, little changed from £1.45 billion a year earlier. Grainger said it continues to target significant deleveraging, aiming to cut net debt by £300 million to £350 million by 2029. Chief Executive Helen Gordon said Grainger remains ‘excellent in its earnings growth’. Customer affordability ‘remains resilient’, and the outlook for financial 2026 rental growth is in line with the company’s long-term average of 3.0% to 3.5%. Grainger reaffirmed guidance for EPRA earnings of £60 million in financial 2026 and £72 million in financial 2029, up from £53.7 million in the recent year. The company noted a ‘positive outlook’, supported by stable regulation under the Renters’ Rights Act in the UK. Shares in Grainger were down 3.0% at 183.00 pence in London on Thursday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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