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Grainger remains strong amid 'resilient' rental market
6th Apr 2020 09:22
(Sharecast News) - Residential landlord Grainger said it remained in a strong financial position in a "resilient residential rental market" despite the Covid-19 crisis as people deferred house moves.
However, Grainger on Monday cautioned that leasing activity was expected to slow due to Covid-19 related disruptions, but noted that churn in existing customers was also likely to slow as people deferred moves until later in the year.
The FTSE 250-listed group said occupancy levels were over 97%, while March's rent collection rate of 95% was in line with historic trends. Sales were also said to have remained "robust" to the end of March.
Grainger highlighted that its investment in technology was enabling it to continue to serve customers remotely, including on-going leasing activity.
Chief executive Helen Gordon said: "Grainger is well placed to operate through an extended period of uncertainty. Our successful equity raise in February 2020 puts us in a strong position and our balance sheet is robust, with our LTV at a six-year low.
"We have significant cash reserves and available committed facilities that mean we can continue to make the right decisions for the business in these uncertain times from a position of financial strength."
As of 0920 BST, Grainger shares were up 3.15% at 249.20p.
However, Grainger on Monday cautioned that leasing activity was expected to slow due to Covid-19 related disruptions, but noted that churn in existing customers was also likely to slow as people deferred moves until later in the year.
The FTSE 250-listed group said occupancy levels were over 97%, while March's rent collection rate of 95% was in line with historic trends. Sales were also said to have remained "robust" to the end of March.
Grainger highlighted that its investment in technology was enabling it to continue to serve customers remotely, including on-going leasing activity.
Chief executive Helen Gordon said: "Grainger is well placed to operate through an extended period of uncertainty. Our successful equity raise in February 2020 puts us in a strong position and our balance sheet is robust, with our LTV at a six-year low.
"We have significant cash reserves and available committed facilities that mean we can continue to make the right decisions for the business in these uncertain times from a position of financial strength."
As of 0920 BST, Grainger shares were up 3.15% at 249.20p.