Listed landlord Grainger Plc says it is continuing to grow despite the challenges of lockdown, which is delaying occupancy in its private rented sector portfolio.
The Newcastle company, the 海角视频’s largest LSE provider of private rental homes, issued a trading update for the first four months of its financial year to January 31 2021, outlining strong rental growth, strong sales performance and solid progress on its pipeline of developments.
Grainger – which holds its AGM later today – said it saw total like-for-like rental growth of 2.4%, with private rented sector (PRS) like-for-lifke rental growth of 1.8%. Rent collection on time also remains high at 98%, while rent arrears are low at 1.9%.
Occupancy on its PRS portfolio remains at 90%, in line with levels at the end of the last financial year, but the anticipated recovery has been delayed due to new lockdown restrictions.
Meanwhile it said its sales performance remains positive across all regions, adding that it continues to have a strong forward-looking sales pipeline which is on track to deliver a strong sales performance for the year.
Grainger has secured planning permission for Montford Place, its second scheme within Connected Living London, which will serve up 139 homes and 29,000sqft of light industrial workspace, and it has also completed forward-funding the Millwright Places project in Bristol, which it acquired for £63m and will deliver 231 new homes.
Other schemes moving forward include Guildford Station scheme, where enabling works have started for 98 PRS homes with Solum Regeneration, and at The Filaments in Manchester, which has been launched and getting good levels of interest, with eight of the 376 homes being pre-let.
Chief executive Helen Gordon said: “I am pleased to report that Grainger continues to perform well despite the ongoing challenges posed by lockdown restrictions.
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“Our mid-market price point, coupled with our market-leading operational platform, are proving invaluable during these testing times, with rent collection at 98%.
“Our regional investment strategy has held us in good stead.
“While we have seen a delay in the anticipated recovery of occupancy in our PRS portfolio, particularly in London, due to the new restrictions imposed since the Christmas period, we are seeing strong levels of new enquiries among prospective PRS customers, albeit with the majority of interest focused on move-in dates in the Spring, pointing to a strong lettings market when restrictions are lifted.
“Our PRS pipeline activity remains broadly on track, and leasing of our scheme in Milton Keynes has gone well, in line with underwriting. The for-sale housing market continues to be buoyant. Our sales performance of ex-regulated tenancy properties has been notably strong, with high volumes ahead of valuations.”