Grainger Plc looking forward to a successful year.

Grainger Plc looking forward to a successful year.

Grainger plc is possibly the UK’s largest listed specialist residential landlord and owns, acquires and trades regulated and market-let tenanted properties. Established in 1912 they now own over 20,000 properties and also manage 4,000 properties through co-investment vehicles.  The results demonstrate that despite the tough trading conditions three are profits to be made in residential property.
The Group have released preliminary results today for the year ending 30th September 2010. 
– Operating profit up 19.5% to £94.2m (30 September 2009: £78.8m) before valuation movements and non recurring items 
– Gross NAV per share up 3.1% to 200p (30 September 2009: 194p); Grainger NAV 180p (30 September 2009: 177p)
– Adjusted profit before tax £18.8m prior to £39.6m charge for mark to market on financial derivatives (30 September 2009: loss of £131.3m, prior to charge of £38.7m)
– Loss before tax of £20.8m after mark to market adjustment of £39.6m (30 September 2009: £170.0m loss)
– Sales of vacant residential property from the UK residential and retirement solutions portfolios of £110m (30 September 2009: £109m) at improved margins of 43.3% (30 September 2009: 35.5%) 
– Total combined sales therefore resulting in an improvement in overall residential trading profits to £58m from £47m at 30 September 2009, at improved margins of 38.5% compared to 27.8% (30 September 2009)
– Valuation of the UK residential portfolio (assisted by its London and South East bias) shows a year on year increase in vacant possession values of 4.8% compared to increases of 2.6% and 3.1% in the Halifax and Nationwide indices respectively
– Final dividend of 1.20p per share bringing the total dividend for the year to 1.70p
Robin Broadhurst, Chairman of Grainger Plc has commented:
“In light of the on-going challenge of the current economic climate, we remain cautious about the prospects for general growth in residential values over the next two years.  Nevertheless the Company has repeatedly demonstrated that because of its carefully selected and highly reversionary portfolio and the application of its extensive asset management skills, it can out-perform the sector and we expect to continue this trend in 2011”.
Robin Broadhurst is said to be “looking forward to a successful year”.

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