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UK: Grainger plc, the UK’s largest residential REIT, has reported a strong performance for the 12 months ended 30 September 2025.
Chief executive Helen Gordon said: “It is my pleasure to once again report that we have delivered an excellent performance and another year of strong earnings growth. Our focus on delivering great homes and great service to our customers and excellent risk-adjusted returns for shareholders has meant we have delivered an increase in earnings of +12 per cent, an increase in net rental income of +12 per cent and a +10 per cent increase in dividend, our 20th consecutive period of increasing our dividend, which has seen us distribute circa £345 million to shareholders over the past 10 years. In the last seven years we have delivered like-
for-like rental growth on average of 4.1 per cent per annum. Customer affordability remains resilient and customer satisfaction levels remain sector-beating and put us on par with leading global consumer brands.”
“Pre-tax EPRA earnings will continue to grow. We continue to target £60 million (8.1p per share) by FY26 and £72 million (9.7pps) by FY29 in line with guidance, even after assuming we absorb higher interest rates over this period. This growth will come from the delivery of our £343 million Committed Pipeline of which only c.£130 million of capital expenditure is remaining. This year, after the successful transformation of Grainger into the UK’s leading listed build-to-rent business, we converted to a Real Estate Investment Trust (REIT), which will enhance shareholder returns and supports our enduring strategy,” she added.
“We have certainty and clarity over the regulatory landscape for our market with the Renters’ Rights Act, which aligns to our business model and rejects any form of rent control. Our asset class is characterised by strong fundamentals and is low-risk. Both residential rents and capital values have outperformed commercial real estate for the past twenty years. Residential rents, on average, outperform inflation. The net asset value of our portfolio has proven resilient again this period, backed up by disposals, and over the past five years despite increased interest rates the net asset value of our portfolio has increased +5.0 per cent.”
“We have a clear focus on delivering returns for shareholders. Our approach to capital allocation prioritises the delivery of our Committed Pipeline and delivery of our earnings growth guidance to FY29, whilst also focusing on driving cost efficiencies and deleveraging by between c.£300 million to £350 million with a Net Debt to EBITDA target of c.8x and LTV of c.30 per cent. We believe this is eminently deliverable when considering we generate c.£200 million+ of cashflow each year from operating activities and sales proceeds. We are committed to continuing to deliver progressive dividend growth for years ahead. It has been another excellent performance for Grainger and the outlook for the business is bright as we continue to deliver sector-leading earnings growth despite macro-economic headwinds,” said Gordon.
Highlights
- +12% growth delivered in Net Rental Income to £123.6m (FY24: £110.1m)
- +12% increase in EPRA Earnings to £53.7m (FY24: £48.0m) and in EPRA EPS to 7.3pps (FY24: 6.5pps)
- Dividend increased +10% to 8.31p per share (FY24: 7.55p per share)
- Strong occupancy of 98.1% in BTR portfolio (FY24: 97.4%)
- EBITDA margin expansion continues to 55.5% (FY24: 54.0%)
- +3.6% like-for-like rental growth3 in our portfolio (Mar-25: 4.4%)
- +3.4% like-for-like rental growth in BTR Portfolio
