Grainger reports another year of record delivery

Grainger provides a post-close trading update, reporting another year of record delivery and acceleration in rental growth and sales.

Grainger's Nautilus Apartments Build to Rent development, part of the Fortunes Dock scheme | BTR News
Grainger's Nautilus Apartments Build to Rent development, part of the Fortunes Dock scheme.

Grainger plc provides a post-close trading update for the twelve months to the end of September 2023. The company reports accelerated rental growth and sales, with total like-for-like rental growth at 7.7% compared to 6.8% at HY2023.

Grainger’s operational platform continues to deliver significant value, with like-for-like PRS rental growth at 8.0% compared to 6.9% at HY2023, with new lets at 9.2% and renewals at 7.2%. The company reports record occupancy of 98.6% in its stabilised PRS portfolio. Regulated tenancy like-for-like rental growth was 5.9% compared to 5.8% at HY2023.

“Our strong performance in delivering rental growth has continued through the remainder of our financial year. The team continue to deliver exceptional operational performance across all areas of the business and particularly in the completion and lease up of our new schemes. Sales remain robust, valuations continue to demonstrate resilience, and our balance sheet remains strong. We continue to successfully execute on our growth plans which will see our post tax EPRA earnings double in the next three years.

“This year is another year of record delivery of new homes for Grainger. We are due to complete over 1,600 new Build to Rent homes in 2023, driving a further step change in EPRA earnings and bringing our total operational portfolio to over 10,000 homes.

“We are delivering these new homes into one of the strongest occupational markets we have seen. Current leasing at our newly opened schemes is exceeding underwriting and we continue to drive a step up in rental income across our national portfolio. However, we remain mindful of protecting our customers’ rental affordability and, therefore, continue to ensure that rental growth across our portfolio moves broadly in line with wage inflation.

“Our strong operational performance is coupled with a strong balance sheet, positioning us well in the current market. We have fixed the cost of our debt in the mid 3%’s for the next five years. Our asset recycling programme continues at an elevated level in line with our previously reported plans.” Helen Gordon, Chief Executive, Grainger

Helen Gordon, Chief Executive, Grainger

The Company will announce its full year financial results on 22 November 2023.