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London-focused residential property developer Telford Homes booked a 13% fall in annual profit and held its dividend steady after its margins shrunk.
Pre-tax profit for the year through March fell to £40.1m, down from £46.0m on-year.
The company said the fall was due to an increased proportion of lower-margin build-to-rent developments within total revenue.
Revenue for the year had risen 12% to £354.3m.
The company declared a final dividend of 8.5p share, maintaining the total dividend for the year at 17.0p.
Telford Homes said its development pipeline had jumped to 4,900 homes, up from 4,000 at the same time last year, with a total expected gross development value of £1.59bn, up from £1.31bn.
Profit expectations for the 2020 financial year remained unchanged, the company added.
'Our business model is increasingly focused on build to rent housing and the reduced risk and lower capital requirements it brings,' chief executive Jon Di-Stefano said.
'Despite some challenges, our performance in the year to 31 March 2019 represents a great achievement for Telford Homes with revenue at an all-time high due primarily to an increased proportion of build to rent contracts.'
'Over the last three years we have made substantial progress against our objective to increase our output of build to rent homes to meet demand from institutional investors and to deliver high quality rental properties in the capital.'
'There remains a long-term structural imbalance between housing supply and housing need in London.'
'Our recently announced partnerships with Invesco and M&G signal our reputation as a trusted build to rent partner, and as such are a significant step as we continue to develop our profile at the forefront of this burgeoning sector.'