Grainger (LSE:GRI) reiterated its target of delivering 35% earnings growth between FY25 and FY29 after reporting portfolio occupancy above 96% for the 11 months to the end of August 2026.
The private rental housing provider reported like-for-like Build to Rent rental growth of 3%, in line with its guidance, alongside continued demand across its portfolio.
Grainger said leasing at recently launched developments, including Glasshouse Square in Bristol, was running ahead of its underwriting assumptions.
The company also said it has adapted its operations to the new Renters’ Rights Act and has not recorded an increase in tenant departures or rent challenges following the changes.
Grainger’s earnings growth target is supported by three committed Build to Rent developments and its wider secured development pipeline. The company has received planning permission for a 425-home development at Cambridge North.
Alongside its development programme, Grainger is pursuing an accelerated disposal programme covering approximately £850 million of non-core assets.
The group is targeting a £300 million to £350 million reduction in net debt by FY29 and is also seeking additional cost savings. These measures are intended to offset the impact of higher interest costs as the company works towards its FY29 earnings target.
More about Grainger
Grainger plc is a U.K.-listed provider of private rental housing and operates in the Build to Rent sector. Its portfolio comprises more than 11,000 rental homes.
The company develops and manages rental communities and works with infrastructure and transport organisations, including Network Rail and Transport for London, on developments in urban locations.
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