Grainger sees solid start to year as demand for rental homes rises

(Sharecast News) - Rental homes provider Grainger said on Wednesday that trading had remained robust in the four months ended 31 January, with rental growth and occupancy continuing to perform well.

Grainger reported total likeforlike rental growth of 3.1% yeartodate, including 2.8% across its private rented sector portfolio and 6.2% in regulated tenancies. It also said occupancy in its PRS portfolio remained high at 96% as of 31 January.

Looking ahead, the FTSE 250-listed firm said market conditions remained structurally supportive, with demand for rental homes continuing to rise and the supply gap widening as smaller private landlords face increasing pressures and newbuild delivery slows.

Grainger added that its committed development pipeline was set to drive significant earnings growth, with further upside potential from its wider pipeline, supported by the planned disposal of noncore, lowyielding assets that were expected to release around �500m of surplus capital for reinvestment.

Chief executive Helen Gordon said: "We continue to see strong demand for our product, with our latest London BTR scheme, Seraphina, being fully let in less than four months.

"Our outlook is strong and positive, with market-leading earnings growth to come and a proven ability to deliver sustainable rental growth and high occupancy, driven by our leading operational platform. We are confident of the future."

Reporting by Iain Gilbert at Sharecast.com