Grainger plc Share News (GRI)

Residential property firm Grainger reported a return to full year profit and is confident the residential market will provide good medium term opportunities. The residential landlord posted pre-tax profit of £26.1m in the year ended 30 September 2011 compared with a loss of £20.8m the same time a year earlier. Gross net asset value per share rose 8.2% to 216p from 200p the year before. Group revenue increased to £296.2m from £244.5m before. Net rental income climbed to £49.1m from £40.8m previously. Broker Northland Capital Partners professed itself "impressed by the group's strategic approach to the difficulties of the last three years and its recent response to the opportunities for valuation uplifts that a stronger rental market represents.""The organic strengthening of its market position in residential rental and the ability to deploy cash into its key residential property opportunities offers a better return profile for the coming year," the broker argued. "Indeed, we would argue it has a visible and quantifiable three year programme that should secure more rapid growth than has been experienced in the last three years," it added. "Its strong position in London and the south east is also a positive for investors and we will be following the progress of the group with great interest over the coming period," the broker concluded.The market response to an update from property company London & Stamford (L&S) was negative, as it went the opposite way to Grainger, falling into the red.Net asset value per share fell to 118.3p for the six months ended 30 September 2011 from 120.7p a year ago. The company posted a loss before tax of £3.42m compared to the previous year's £23.20m profit.Peel Hunt remains a fan of the shares, however. "Property yields are stable and increased +£9m on the London residential side, but were hindered by exceptions: namely the recognition of transaction costs from Carter Lane, St Paul's and a-£12m provision for voids in two distribution units, which we believe will be quickly reversed," the broker said. "Our basic case for L&S remains a rapidly rising dividend prospect, combined with very marked portfolio changes, albeit these were deferred outside the half-year reported," Peel Hunt explained.The broker rates the shares a "buy" and has a price target of 140p.FTSE 250 - RisersThomas Cook Group (TCG) 15.06p +35.43%Mothercare (MTC) 147.80p +13.60%Supergroup (SGP) 480.00p +10.29%Dixons Retail (DXNS) 10.13p +8.23%Kenmare Resources (KMR) 33.56p +7.29%Phoenix Group Holdings (DI) (PHNX) 535.00p +7.00%Cable & Wireless Worldwide (CW.) 15.14p +6.62%Kesa Electricals (KESA) 84.95p +5.92%Grainger (GRI) 92.45p +5.06%Chemring Group (CHG) 409.60p +4.25%FTSE 250 - FallersCOLT Group SA (COLT) 86.00p -6.01%PZ Cussons (PZC) 334.10p -4.81%Anglo Pacific Group (APF) 267.80p -4.36%Heritage Oil (HOIL) 162.70p -4.29%London & Stamford Property Ltd. (LSP) 114.20p -3.79%Pennon Group (PNN) 672.50p -3.52%KCOM Group (KCOM) 70.70p -3.28%Cape (CIU) 296.10p -3.27%Rathbone Brothers (RAT) 1,024.00p -2.57%Oxford Instruments (OXIG) 917.50p -2.39%--jh