REG - Grainger PLC - Trading Update

GraingerAnnouncement

05/10/2023 07:00

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RNS Number : 6979O  Grainger PLC  05 October 2023

5 October 2023

Grainger plc

("Grainger", the "Group", or the "Company")

 

POST-CLOSE TRADING UPDATE

 

Another year of record delivery:

Acceleration in rental growth and sales

·      Five new schemes completed

·      Like-for-like PRS rental growth 8.0%

·      Record occupancy 98.6% (PRS)

·      £194m of sales, including,

·      £70m of vacant regulated sales

 

Grainger plc, the UK's largest listed provider of private rental homes with an
operational portfolio of c.10,000 rental homes and a further c.6,000
build-to-rent homes in the pipeline, today provides a post-close trading
update for the twelve months to the end of September 2023. The Company will
announce its full year financial results on 22 November 2023.

Helen Gordon, Chief Executive of Grainger, said:

 

"Our strong performance in delivering rental growth has continued through the
remainder of our financial year. The team continue to deliver exceptional
operational performance across all areas of the business and particularly in
the completion and lease up of our new schemes. Sales remain robust,
valuations continue to demonstrate resilience, and our balance sheet remains
strong. We continue to successfully execute on our growth plans which will see
our post tax EPRA earnings double in the next three years.

"This year is another year of record delivery of new homes for Grainger. We
are due to complete over 1,600 new build-to-rent homes in 2023, driving a
further step change in EPRA earnings and bringing our total operational
portfolio to over 10,000 homes.

"We are delivering these new homes into one of the strongest occupational
markets we have seen. Current leasing at our newly-opened schemes is exceeding
underwriting and we continue to drive a step up in rental income across our
national portfolio. However, we remain mindful of protecting our customers'
rental affordability and, therefore, continue to ensure that rental growth
across our portfolio moves broadly in line with wage inflation.

"Our strong operational performance is coupled with a strong balance sheet,
positioning us well in the current market. We have fixed the cost of our debt
in the mid 3%'s for the next five years. Our asset recycling programme
continues at an elevated level in line with our previously reported plans."

Our market-leading operational platform is a competitive differentiator and continues to deliver significant value:

 

 ·      Like-for-like rental growth continues to build:
 o  Total like-for-like rental growth:                                          7.7%   (HY23: 6.8%)
 o  PRS like-for-like rental growth:                                            8.0%   (HY23: 6.9%)
 § New Lets:                                                                    9.2%   (HY23: 8.2%)
 § Renewals:                                                                    7.2%   (HY23: 6.1%)
 o  Regulated tenancy like-for-like rental growth:                              5.9%   (HY23: 5.8%)
 ·      Occupancy in our stabilised PRS portfolio remains at record-high
 levels
 o  Spot occupancy at the end of September:                                     98.6%  (HY23: 98.5%)

·      Vacant sales from our Regulated Tenancy Portfolio are performing
well, with prices achieved within c.2% of September 2022 valuations.

 

-ENDS-
 

For further information:

Grainger plc

Helen Gordon / Rob Hudson / Kurt Mueller

London Office Tel: +44 (0) 20 7940 9500

 

Camarco (Financial PR adviser)

Ginny Pulbrook / Geoffrey Pelham-Lane Tel: +44 (0) 20 3757 4992/4985

 

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