Grainger PLC stock soars on robust earnings forecast

Published 05/02/2025, 11:18
© Reuters.

Investing.com -- Shares of Grainger PLC (LSE:GRI) surged by 4% following the company’s trading update, which highlighted a strong earnings forecast. The UK-based property rental firm expects a 50% growth in the medium term, driven by the delivery of its Build-to-Rent (BTR) pipeline.

The announcement also detailed robust rental growth and high occupancy rates, which have contributed to the positive market response.

Grainger PLC reported that occupancy remains high at 96%, as of January 31, and total net rental income has increased by 15%, with like-for-like (lfl) rental growth at 4.7%. The company’s in-house operational platform, "CONNECT," has been credited with allowing central costs to remain flat while the number of operational units increases, further bolstering investor confidence.

The company’s regulated tenancy portfolio has continued to generate strong sales, providing a reliable source of capital for continued growth and accelerating earnings. Grainger PLC has managed to achieve average sales prices that are 0.5% ahead of valuations, indicating a robust pricing environment.

Helen Gordon, CEO of Grainger PLC, stated, "Grainger continues to perform strongly, delivering 15% growth in total net rental income on the same period last year, and up from 14% growth reported at FY24." This performance underscores the company’s successful strategy and operational efficiency.

Analysts have taken note of Grainger PLC’s promising outlook, with Jefferies commenting on the earnings forecast as ’strong’.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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