Grainger PLC on Thursday celebrated the new UK government’s rejection of rent controls, as it proposed a higher dividend on the back of rental growth and a surge in profit.

The Newcastle upon Tyne-based residential landlord said net rental income rose 14% to £110.1 million in the financial year that ended September 30 from £96.5 million a year ago.

Pretax profit jumped 48% to £40.6 million from £27.4 million.

Chief Executive Officer Helen Gordon said: ‘We have been pleased to see the new Labour government’s public rejection of rent controls and the acknowledgement that such controls would hurt supply and investment. On the contrary, it has been pleasing to see the government’s commitment to increase housing supply and investment. Plans to raise standards in the rental sector plays to Grainger’s strengths as a leading landlord with a best-in-class operating platform and a responsible approach to housing provision.’

Grainger proposed a final dividend of 5.01 pence per share, up from 4.37p a year ago, increasing its total payout by 14% to 7.55 pence per share from 6.65p.

EPRA earnings rose 21% to £48.0 million from £39.8 million.

Looking ahead, the company expects EPRA earnings to reach £60 million by financial year 2026, a second upgrade from its previous guidance.

CEO Gordon said: ‘The market opportunity for the UK build-to-rent sector is considerable with demand for renting growing and the shortage of rental supply worsening, and with its proven track record, Grainger is best placed to help alleviate this through continued investment and housing delivery, accelerating our growth for years to come.’

Grainger shares rose 2.3% to 227.00 pence each on Thursday morning in London.

Copyright 2024 Alliance News Ltd. All Rights Reserved.