Grainger (GRI) H2 2025 earnings summary

Executive summary

• Achieved 12% growth in net rental income and EPRA earnings year-over-year, with like-for-like rental growth of 3.6%.

• Dividend per share increased by 10% to GBP 0.83 (8.3p), reflecting strong financial performance.

• Achieved REIT status in September, now the UK's leading residential REIT, with a scalable operational platform and expected GBP 15m tax savings in FY26.

• Maintained high occupancy at 98.1% and strong customer retention, underpinned by a sector-leading operational platform.

• Portfolio optimization through sales of non-core assets, recycling GBP 1.9 billion since strategy inception.

Financial highlights

• Net rental income rose to GBP 123.6m in FY25 from GBP 110.1m in FY24 (+12%).

• EPRA earnings increased to GBP 53.7m (7.3p per share), up 12% year-over-year.

• Adjusted earnings remained stable at GBP 91.0m.

• EPRA NTA per share held steady at 298p.

• Operating cashflow was strong at GBP 205m.

Outlook and guidance

• Targeting EPRA earnings of GBP 60m in FY26 and GBP 72m by FY29, a 50% increase from FY24.

• Rental growth forecasted to continue at 3%-3.5% annually.

• Dividend policy to distribute at least 80% of EPRA earnings, with mid-single-digit growth expected.

• Plan to reduce net debt by GBP 300-350 million by FY29, supported by strong operating cashflows and disposals.

• EBITDA margin expected to exceed 60% by FY29.