Grainger increases 2013 interim dividend by 6.5%

DividendMax Ltd.

Grainger increases 2013 interim dividend by 6.5%

Strong overall performance

Strong rise in net asset value: Triple net asset value rose 38p (24%) to 195p per share (2012: 157p) and gross NAV by 19p (9%) to 242p per share (2012: 223p)

Pre-tax profit increased significantly to £64.3m (2012: loss of £1.7m)

Net debt reduced by £235m to £959m with consolidated LTV falling to 48% (2012: 55%)

Continued market outperformance

Market values of our residential UK portfolios grew by 8.3% (2012: 3.9%) compared to a 5.6% average increase for the combined Nationwide and Halifax house price indices

Margins on sales of vacant properties increased to 44.9% (2012: 39.6%)

Sales of vacant properties made at an average of 7.9% above September 2012 vacant possession value (2012: 6.1%), supporting valuations


Final dividend of 1.46p per ordinary share (2012: 1.37p) making a total dividend for the year 2.04p per ordinary share (2012: 1.92p), an increase of 6.25%, resuming a progressive dividend policy while maintaining capacity for accretive reinvestment in the business

Strong income streams

Receipts from sales of assets were £352.9m (2012: £258.4m) including sales of tenanted properties

Net rents were £48.5m (2012: £62.8m), reducing as expected as assets were injected into co-investment structures during the year

Fees from co-invested and co-managed vehicles and other income increased by 17% to £12.9m (2012: £11.0m)

The contribution from our investment in joint ventures and associates, comprising our share of recurring profit plus our share of revaluation surpluses, amounted to £15.4m (2012: £3.5m)

Robin Broadhurst, Chairman of Grainger plc, commented:

"The first year of our second century has seen strong increases in asset values and reduced debt. Grainger continues to be uniquely placed to take a leading role in a dynamic residential sector which is likely to become increasingly institutional.  We are progressing opportunities in the private rented sector and our first build-to-rent scheme at London Road, Barking is already under construction. In addition, we have also been successful in creating new, and reinforcing existing, strategic alliances with high quality partners, such as APG and Heitman. These arrangements enhance our returns and endorse the value of our in-house expertise and operational platforms in the UK and Germany.

We have positioned the business both to take advantage of the positive changes in the owner occupied market (through our reversionary portfolio) and the private rented market sector (through our market rental portfolio)."

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