Listed North East landlord Grainger has hailed continuing momentum and record letting levels in an update to shareholders.
The Newcastle business, which has a firm focus on the build to rent market, has 9,737 operational rental homes and a further 5,406 build-to-rent homes in its £1.4bn secured pipeline. In a trading update for the eight months to May 31, it said it has 7.1% total like-for-like rental growth, up from 6.8% in half year results announced last month, and 98.7% occupancy as of the end of May, up from 98.5%.
The firm said its sales performance remains resilient, with vacant sales volumes ahead of this time last year and robust sales pricing on average 1.8% below September’s vacant possession values. The update comes ahead of a Capital Markets Event being held today at Enigma Square, in Milton Keynes.
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The event will focus on Grainger’s investment in Milton Keynes, how it is de-risking development delivery and how it is harnessing data and customer insights “to drive a robust and strong operational performance”.
Helen Gordon, chief executive of Grainger, said: “Momentum in the business is continuing as we move into the peak summer lettings season and the launch of seven new schemes in the remainder of 2023. Occupancy remains at record levels at over 98% and like-for-like rental growth across our national portfolio is continuing to build whilst remaining mindful of overall customer affordability levels”.
In May Ms Gordon said the company was gearing up for a huge growth spurt on the back of its continued strong performance which saw half-year rental income grow by 12% to top £48m.
Before the year is out, new schemes will be up and running in key areas including Newbury, Derby, Nottingham and London - although it is proving trickier to secure schemes in the North East. However, Ms Gordon said that Newcastle, where it has its head office at Gallowgate, remains an important centre where quality rental accommodation is a draw for young professionals.
