REG - Grainger PLC - Post-Close Trading Update

GraingerAnnouncement

Thu 07:00

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RNS Number : 6413C  Grainger PLC  09 October 2025

9 October 2025

Grainger plc

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

POST-CLOSE TRADING UPDATE

Strong performance delivers sustainable income growth

·      Occupancy high at 98.1%

·      Good like-for-like rental growth at 3.6%

·      Disposals generated c.£169m at prices in line with valuations

·      On track to deliver 50% Earnings 1  (#_ftn1) growth from FY24 to
FY29

 

Grainger plc, the UK's largest listed provider of private rental homes and
leader in the Build to Rent (BTR) sector, providing over 11,000 rental homes,
today provides an update on trading for the twelve months to the end of
September 2025. The Company will announce its full year financial results for
the year ending 30 September 2025 on 20 November 2025.

Helen Gordon, Chief Executive of Grainger, said:

"Grainger has delivered another year of strong rental income growth,
demonstrating the resilience of our business model despite the current
economic environment. Our like-for-like rental growth of 3.6% is in line with
guidance and remains above the long-term average, supported by our
high-quality portfolio and market-leading operational platform. Our newly
completed developments are leasing up well ahead of expectations and
underwriting.

"Our portfolio continues to perform exceptionally well with occupancy at 98.1%
ahead of expectations. This performance reflects the strength of our operating
platform and inhouse leasing capability, our portfolio of high quality,
mid-market homes in great locations and the structural imbalance between
supply and demand in the UK rental market. This strong occupancy underpins the
security of our income and provides a solid foundation for sustainable growth.

"We have strategically recycled capital through our disposal programme,
generating c.£169m. This includes £82.4m from PRS disposals, sold in line
with valuations, demonstrating the strong investor appetite for high-quality
residential assets, and £86.4m from regulated tenancies and other non-core
disposals, also at prices in line with valuations. This strong sales
performance continues and we enter our new financial year with a strong sales
pipeline, including c.£25m of sales exchanged in the first week. Sales
proceeds are being efficiently redeployed into our Committed Pipeline of
higher-yielding BTR assets.

"Our asset class and its performance is largely detached from much of the
macro economic headwinds facing the UK as evidenced by our strong operational
performance.

"The Government's continued commitment to stimulating housing investment and
improving standards in the rental sector aligns perfectly with our strategy
and existing high standards. We will continue to work closely with
policymakers, demonstrating how BTR forms part of the solution to the UK
housing crisis.

"As we enter our next financial year as a REIT, we are excited about the
enhanced shareholder returns this will deliver. This transition represents the
culmination of our strategic transformation into the UK's leading Build to
Rent operator.

"Looking ahead, we remain confident in our ability to deliver sustainable
income growth over the short, medium and long term and we reiterate our
guidance of 50% earnings growth from FY24 to FY29, delivered by our
market-leading operational capabilities and supported by the fundamental
supply-demand imbalance in the UK housing market."

 

 

 

Strong rental performance continues, with a focus on driving occupancy

 
 
 Sept25              Mar25 (HY25)

·      Occupancy in our BTR portfolio remains high (spot):
98.1%               96.0%

·      Total like-for-like rental growth:
                  3.6%                4.4%

o  BTR (PRS) like-for-like rental growth:
3.4%                 4.2%

o  Regulated tenancy like-for-like rental growth:
6.6%                 7.0%

Strategic capital recycling enhances returns

Our asset recycling programme has generated c.£169m in FY25, comprising:

·      £82.4m from PRS disposals, sold in line with valuations,
demonstrating strong liquidity and investor demand for high-quality
residential assets

·      £86.4m from regulated tenancies and other non-core, low yielding
assets in line with valuations

These proceeds are being redeployed into our committed pipeline, which offers
significantly higher yields and long-term income growth potential.

Portfolio growth and operational excellence delivering earnings growth

Three new build-to-rent schemes were completed during the year, adding 357 new
homes to our portfolio. Our operational platform continues to deliver
exceptional lease-up performance, well ahead of underwriting assumptions in
both velocity of leasing and rents achieved:

·      Windlass Apartments (Phase 2) Tottenham Hale, London (65 homes):
fully let in 9 months

·      The Kimmeridge, Oxford (150 homes): fully let in under 7 months

·      Seraphina Apartments, Fortunes Dock, Canning Town, London (132
homes): 80% let since launching at the beginning of September

Our total pipeline of £1.3bn of investment into new BTR developments gives us
the opportunity to add around 4,565 new homes to our portfolio and an
estimated £70m additional net rental income on top of £110m passing net
rental incomes as at March 2025.

The 'Committed' element of our pipeline will add 1,180 homes and will deliver
25% EPRA Earnings growth from FY24 to FY26 to £60m and 50% growth to FY29.
This demonstrates the operational leverage in our business.

We continue to drive operational efficiencies leveraging our CONNECT
technology platform, with EBITDA margins growing from 54% to at least 60% as
we scale the business and supporting our strong earnings growth trajectory.

Supportive regulatory environment

The Government's housing policy continues to focus on increasing supply and
improving standards in the rental sector, which aligns with our strategy and
existing high standards. Our proactive engagement with policymakers ensures we
remain well-positioned to benefit from regulatory developments.

Positive outlook

Grainger is well-positioned to continue delivering sustainable income growth
and attractive, risk-adjusted total returns for shareholders, supported by:

·      Sustainable rental growth underpinned by growing demand for and
persistent undersupply of rental homes; a low risk, low volatility asset class

·      Our market-leading operating platform

·      Future earnings growth driven by the delivery of our committed
pipeline

·      Efficient capital recycling enhancing returns

·      Enhanced shareholder returns following REIT conversion in
September 2025

-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

 1  (#_ftnref1) EPRA Earnings (pre-tax)

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