Grainger unveils fall in half-year profits

British property group Grainger posted a fall in half-year pre-tax profit, reflecting higher transaction related charges.

Profit before tax for the six months to March 31st came to £11m, down from £15.1m the previous year.

The drop in profit came despite a 6.6% rise in triple net asset value (NAV) per share to 167p, outperforming the broader UK housing market.

Gross NAV per share was up 0.6% to 224p.

"The market value of our properties, supported by the evidence of NAV enhancing sales, has once again outperformed the general market indices," Chairman Robin Broadhurst said.

"We continue to make progress in reducing group debt to our target of £1bn by the end of 2013."

The company recommended a dividend increase of 5.5% to 0.58p per ordinary share.

Since the year end the company has created new strategic alliances with APG, Heitman and Dorrington, comprising a combined total of £661m of assets.

Broadhurst said the alliances reinforce the company's position as a partner of choice in the residential market.

"Furthermore, these transactions underpin our objective to improve shareholders' return on capital, through successfully growing our business, whilst at the same time reducing net debt, thereby positioning Grainger for long term, sustainable growth."

Shares fell 0.91% to 153p at 12:09 Thursday.

RD