Grainger (GRI) Q4 2025 TU earnings summary

Executive summary

• Achieved strong rental income growth with like-for-like rental growth of 3.6% for the year ended September 2025, in line with guidance and above the long-term average.

• Maintained high occupancy at 98.1%, exceeding expectations and reflecting robust demand and operational strength.

• Completed three new build-to-rent schemes, adding 357 homes, with lease-up performance ahead of underwriting assumptions.

• Transitioned to REIT status in September 2025, expected to enhance shareholder returns.

Financial highlights

• Generated approximately £169m from asset disposals, with £82.4m from PRS and £86.4m from regulated tenancies and non-core assets, all at prices in line with valuations.

• EBITDA margins increased from 54% to at least 60% as operational scale improved.

• Passing net rental income as of March 2025 was £110m, with an estimated £70m additional net rental income from the development pipeline.

Outlook and guidance

• Reiterated guidance of 50% earnings growth from FY24 to FY29, with 25% EPRA Earnings growth from FY24 to FY26.

• Positive outlook supported by strong demand, persistent undersupply, and a robust development pipeline.

• Enhanced shareholder returns anticipated following REIT conversion.