annual report 2004 heading.
Grainger Trust plc Print this page View as a PDF Email someone a link to this page Send feedback

The facts

Over the last five years our gross assets have increased from £0.4bn to £1.5bn

Over the last five years our share price has grown by 362%, the FTSE 250 by 10%

The vacant possession value of our most expensive residential property is £1.5m; the cheapest £15,000

We own a total of 12,041 residential units with vacant possession value of £1.9bn; these units have cost us £0.9bn

Two-thirds of our portfolio is valued between £100,000 and £250,000

Group operations are defined by the following:

Performance criteria

Bulk of income comes from trading activities and realisation of reversionary surpluses, so alternatives to yield based valuation measures also presented.

Focus is therefore on profit before tax, earnings per share and net asset value.

Use of NAV, diluted NAV and Grainger NAV which takes account of long-term reversionary surplus in our core portfolios.

At individual project level, performance criteria such as cash generation, internal rate of return, profitability and strategic positioning used.

Risk review

Major risk relates to state of housing market, linked to interest rates and general economic environment.

Risk minimised by:

  • Portfolio is geographically widespread, reduces cluster risk
  • Portfolio spread across property types and values, reducing exposure to highly fluctuating top-end properties
  • Relatively low average value where demand is consistent and strong
  • Regulated properties are unmodernised on vacancy so demand tends to be high

Long-term view taken and financial stability enables short-term price fluctuations to be withstood.

Business review

All activities characterised by cash generation, high trading margins and willingness to take long-term view.

Regulated tenancy market diminishing, but we maintain position by active purchasing.

Review new and expanding business opportunities – life tenancies, European investment, development and trading, asset and property management.

At plc level, key criteria is total shareholder return.

*profit on ordinary activities before interest and taxation and excluding administration expenses

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