REG - Grainger PLC - Successful conversion to REIT status

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RNS Number : 3015Y  Grainger PLC  08 September 2025

8 September 2025

Grainger plc

("Grainger" or the "Company")

 

GRAINGER ANNOUNCES SUCCESSFUL CONVERSION TO REIT STATUS

A SIGNIFICANT MILESTONE IN GRAINGER'S TRANSFORMATION

 

Grainger plc ("Grainger" or "the Company"), the UK's largest listed
residential landlord, is pleased to announce its successful conversion to Real
Estate Investment Trust ("REIT") status, effective immediately. This follows
from strong shareholder support at the Company's recent General Meeting to
update its articles of association in line with today's REIT conversion.

 

This milestone represents the culmination of Grainger's nine-year strategic
transformation into a 'pure-play' Build to Rent ("BTR") business, with a
portfolio of c.11,000 rental homes, valued at £3.5bn, and with over 25,000
customers. The conversion reflects the Company's successful transformation
from a complex and diverse residential trading business into the UK's leading
BTR residential investment business.

 

Helen Gordon, Chief Executive of Grainger, commented:

 

"Our successful conversion to REIT status marks a significant milestone in
Grainger's strategic transformation. Over the past nine years, we have
fundamentally reshaped our business to become the UK's leading Build to Rent
provider. This conversion enhances our ability to deliver sustainable returns
to shareholders while continuing to provide high-quality rental homes for our
customers."

 

"With our fully funded pipeline of 4,565 new homes valued at £1.3 billion and
our forecast of 50% EPRA earnings growth by FY29, Grainger is well-positioned
for continued success as a REIT. We look forward to the opportunities this new
status brings for our shareholders, customers, and the wider Build to Rent
sector."

 

The REIT conversion has been supported by Grainger's successful Accelerated
Asset Recycling Programme, which has involved disposing of low-yielding,
non-core assets. Over the past 10 years, Grainger has disposed of c.£1.8bn of
non-core, low-yielding assets and invested more than c.£2.9bn into c.10,000
higher yielding BTR homes. This strategic approach has enabled Grainger to
continue growing and delivering its pipeline whilst transitioning into a REIT
structure which supports long-term growth and enhances shareholder returns.

 

The new REIT status solidifies Grainger's position as a leader in the BTR
sector and enables investors of all types, including private, retail
investors, to participate directly in UK housing with a trusted, profitable,
and forward-looking publicly listed market leader with certainty of dividend
income. Grainger as a REIT provides an opportunity for individuals seeking an
alternative to direct investment in buy-to-let properties to gain exposure to
the same market without the management responsibility through a tax-efficient
vehicle.

 

Converting to REIT status positions Grainger as a more tax‑efficient
investment vehicle, eliminating effective double taxation for the business and
its shareholders. The move unlocks meaningful shareholder value through
improved returns, strengthens the company's ability to continue to grow its
dividend, and allows the business to continue to enhance its operational
platform - driving customer satisfaction, long term customer retention, and
sustained growth in shareholder returns.

 

Demand for Grainger's properties remains strong with occupancy over 96% and
rental growth remaining above long term average. Grainger has a clear
trajectory for future profitability, forecasting 25% EPRA Earnings growth by
2026 from FY24 and 50% EPRA Earnings growth by FY29. The Company's fully
funded pipeline of 4,565 new homes, valued at £1.3 billion, offers a roadmap
for steady, high-quality growth.

 

Grainger will issue a trading update in early October following the close of
its financial year end on 30 September, and the Company will report it's full
year financial results on 20 November.

-ENDS-

For further information, please contact:

 

Investor relations

Kurt Mueller, Grainger plc:
 
+44 (0) 20 7940 9500

 

Media

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

 

About Grainger

Grainger plc is the UK's largest listed residential landlord and a market
leader in the UK private rented sector. Grainger is focused on growing its
private rented sector portfolio through its market leading build-to-rent
investment and operational platform. Grainger has a national portfolio of over
11,000 rental homes, with a further c.4,500 build-to-rent homes in its £1.3bn
pipeline.

 

 

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