Grainger plc (LSE:GRI) reported a robust trading performance for the four months to the end of January 2026, with total like-for-like rental growth of 3.1%. Growth in the private rented sector reached 2.8%, while regulated tenancies increased by 6.2%, reflecting continued strength across the portfolio. Occupancy within Grainger’s stabilised PRS assets remained high at 96%, supported by resilient demand in key urban markets.
The company highlighted strong operational progress within its build-to-rent portfolio, noting that its new London asset, Seraphina, was fully let in under four months. During the period, Grainger also completed its third Bristol development, Glasshouse Square, and began construction on a second project in Guildford in partnership with Network Rail. In addition, the group expanded its committed pipeline through the acquisition of a 195-home BTR scheme in Chiswick via its joint venture with Transport for London’s property arm, further improving visibility on future earnings.
Management pointed to a supportive structural backdrop for the rental market, driven by smaller private landlords exiting the sector and a slowdown in new housing supply. Against this backdrop, Grainger plans to recycle around £0.5 billion of surplus capital from disposals of non-core, low-yielding assets into higher-growth rental opportunities. The company said this strategy underpins expectations of meaningful future earnings growth and reinforces its positioning within the UK’s rental housing market.
Grainger’s overall outlook reflects a mixed financial picture, with strong profitability offset by declining revenue and cash flow trends. Technical indicators currently suggest bearish momentum in the share price, although this is counterbalanced by an attractive valuation and constructive messaging from recent earnings updates. Strategic growth initiatives, including expansion of the BTR platform and progress toward REIT conversion, remain key long-term positives.
More about Grainger plc
Grainger plc is the UK’s largest listed provider of private rental homes, operating across the build-to-rent and private rented sectors. The company focuses on delivering professionally managed rental housing in major UK cities, aiming to generate sustainable long-term rental growth while helping to address structural shortages in housing supply.
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