Grainger reports strong 98% occupancy as growth aligns with guidance

Published 09/10/2025, 08:02
© Reuters.

Investing.com -- Grainger Plc (LON:GRI) on Thursday reported robust operational metrics in its trading update ahead of its full-year 2025 results due November 20, with portfolio occupancy reaching 98.1%, up from 96% reported at the March half-year mark.

The residential landlord delivered total like-for-like growth of 3.6%, compared to 4.4% previously, which aligns with the company’s medium-term guidance of 3%-3.5% for the sector.

Asset recycling generated £169 million in FY25, with £82.4 million coming from private rented sector (PRS) disposals sold in line with valuations. This demonstrates strong liquidity and investor demand for high-quality residential assets.

An additional £86.4 million came from regulated tenancies and other non-core, low-yielding assets, also sold in line with valuations, with proceeds set to be redeployed into Grainger’s committed pipeline.

The company maintains a total pipeline of £1.3 billion for investment into new build-to-rent developments, which aims to add approximately 4,565 new homes and an estimated £70 million in additional net rental income.

The ’Committed’ portion of this pipeline will add 1,180 homes and is expected to deliver 25% EPRA Earnings growth from FY24 to FY26, reaching £60 million, with 50% growth projected by FY29.

Grainger’s EBITDA margin is forecast to grow from 54% to 60% as the company builds scale.

CEO Helen Gordon stated: "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 in-house 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."

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