Grainger PLC on Thursday said profit surged in in its recent financial year, as ‘record’ rental income growth was driven by higher occupancy.

The Newcastle Upon Tyne, England-based residential property developer and landlord recorded a 96% jump in pretax profit to £298.6 million in the 12 months that ended September 30 from £152.1 million the year before. Grainger said the profit improvement included a £81.2 million valuation uplift from one-off transfers from a trading property to an investment property in the year.

Rental income from Grainger’s portfolio of 9,669 homes increased by 22% to £86.3 million from £70.6 million, representing ‘record’ growth of 22%. Like-for-like rental rate growth was 4.7%, accelerating from 1.0% the year before.

Throughout the year, rent collection averaged 98% and occupancy held above 90%.

EPRA net tangible assets increased 6.7% to 317 pence from 297p last year due to an uplift in valuations.

However, the company’s net debt increased by 21% to £1.26 billion from £1.04 billion year-on-year.

Chief Executive Helen Gordon said: ‘Our £953 million committed pipeline of 3,658 new build-to-rent homes is locked-in, fully-funded and de-risked with fixed construction costs, providing visibility on earnings growth for the next four years.’

Grainger declared a 5.97p per share dividend, up 16% from 5.15p last year.

Grainger’s shares were up 1.1% to 239.40p on Thursday morning in London.

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