Grainger Plc (LSE:GRI) reported a strong set of full-year results on Thursday, posting a 12% rise in net rental income to £123.6 million for FY25, up from £110.1 million the year before.
EPRA earnings also climbed 12% to £53.7 million, with EPRA earnings per share increasing to 7.3p from 6.5p in FY24. The company lifted its dividend by 10% to 8.31p—its 20th consecutive year of dividend growth. Over the past decade, Grainger has returned around £345 million to shareholders.
Operational metrics strengthened across the board. Occupancy improved to 98.1%, compared with 97.4% last year, while EBITDA margin expanded to 55.5% from 54.0%, supported by efficiencies and scale benefits. Like-for-like rental growth reached 3.6%, easing from 4.4% in the first half. Net asset value held steady at 298p after £169 million of disposals of lower-yielding assets at close to book value.
Grainger maintains a solid balance sheet, with borrowing costs fixed in the mid-3% range through FY29. The company plans to reduce leverage by £300–£350 million by FY29, targeting net debt-to-EBITDA of 8x and loan-to-value of 30%.
Looking to FY26, management expects rental growth to return to its long-run average of 3–3.5%.
Chief Executive Helen Gordon said: “Our focus on delivering great homes and great service to our customers and excellent risk-adjusted returns for shareholders has meant we have delivered an increase in earnings of +12%, an increase in net rental income of +12% and a +10% increase in dividend.”
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