Grainger expects debt reduction


Grainger’s disposal programme will lead to it reporting a reduction in its overall level of debt when it announces its interim results next month.



The residential landlord said this morning that it expected completed sales from its UK and German portfolios for the first six months of the 2012 financial year to be head of the corresponding period in 2011.



The group added that the market value of its UK portfolio was likely to have increased at the March 2012 half year, with the market value of the German portfolio expected to be marginally ahead of year-end valuations. 



It said: “We anticipate both rental income and fee income to have grown, predominantly due to our portfolio acquisitions of HI Tricomm and the GenInvest portfolio and the growth in our partnership arrangements respectively.



“As we have been net sellers of property in the past six months, our stated intention to reduce our overall level of debt will begin to be evident.”



However, Grainger warned that profits may be below those achieved in the first half of 2011, when it said that pre-tax profit had been “materially enhanced: by the partial reversal of mark to market movements on its long term financial derivatives and by gains on acquisitions. It said these benefits would not be repeated in the six months to March 2012.