UK's Grainger H1 net rental income rises 7.8%

Grainger

14/05/2026 07:13

Overview

UK residential landlord's H1 net rental income grew 7.8% yr/yr, driven by portfolio expansion

EPRA earnings for H1 rose 4% yr/yr, occupancy remained high at 95.9%

Company posted IFRS loss before tax due to portfolio valuation decline; dividend per share up 3%

Outlook

Grainger maintains FY26 EPRA earnings guidance of £60m, up 12% from FY25

Company expects FY26 like-for-like rental growth between 3.0% and 3.5%

Grainger plans to reduce net debt by £300-350m by FY29, targeting LTV of c.30%

Result Drivers

PORTFOLIO EXPANSION - Net rental income growth was driven by lease-up of new pipeline schemes and portfolio expansion

RENTAL GROWTH & HIGH OCCUPANCY - Like-for-like rental growth of 3.1% and high occupancy at 95.9% contributed to income gains

COST CONTROL - Flat overheads and cost savings supported earnings growth

Company press release: ID:nRSN2324Ea

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Rental Income
GBP 66.1 mln
H1 Net Debt
GBP 1.52 bln
H1 Pretax Profit
-GBP 14.6 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

Wall Street's median 12-month price target for Grainger PLC is GBp232.00, about 49.5% above its May 13 closing price of GBp155.20

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)