Business
Half year results for six months ended 31 March 16
Half year results for six months ended 31 March 16.
About this update from Grainger Plc
[{"type":"text","content":"\n \nRNS Number : 6694Y Grainger PLC 19 May 2016 \n \n\n19 May 2016\nGrainger plc \n(\"Grainger\", the \"Group\" or the \"Company\")\nHalf year results for the six months ended 31 March 2016\nStrong performance during a transformational period \nand significant progress against strategic targets\n \n \nHelen Gordon, CEO of Grainger, the UK's largest listed residential landlord, comments:\n \n\"Grainger has performed strongly in the first six months of the year. Good progress has been made against our key strategic targets of growing rental income, simplifying and focusing the business and improving operational performance.\n \n\"In the past six months we have secured £268m of investment into the private rented sector, nearly a third of our £850m target, with a further £398m in advanced stages. We have identified cost savings that will reduce our overheads by almost a quarter and will be realised fully in our next financial year. The board is pleased to announce our new dividend policy which is aligned to growing net rental income and will materially increase distributions to our shareholders.\" \n \n \nHighlights\n \nStrong financial performance\n \n§ Net rental income up 13% to £18.0m.\n§ Recurring profit up 13% to £25.4m.\n§ EPRA NNNAV growth of 8% to 283p per share.\n \nSignificant strategic progress\n \n§ Private rented sector (PRS) pipeline ahead of plan, with £268m of our £850m investment target secured.\n§ Operating cost savings of 24%, £8.6m, identified and to be fully realised in FY17.\n§ New dividend policy linked to net rental income, 1.45p interim dividend and an expected full year dividend of around 4p, representing c.50% growth from FY15. \n \nGrowing rents - increased performance and investment\n \n§ Rental increases for private rented sector (PRS) assets averaged 5.4% on new lets (excluding refurbishments) and 3.1% on renewals in the six months ended 31 March 2016. Regulated tenancy increases, where biennial rent reviews have been completed, averaged 3.7%.\n \n§ The secured PRS pipeline of £268m includes the refocus of our development schemes where appropriate to PRS and benefits from £41m invested in tenanted units and the £99m forward funding agreement for Clippers Quay, a build to rent PRS development in Salford. \n \n&...