Grainger (GRI) H1 2025 earnings summary

Executive summary

• Delivered strong half-year results with 15% net rental income growth, 23% EPRA earnings growth, and a 12% dividend increase, supported by high occupancy and robust demand.

• Achieved record earnings growth, high occupancy at 96%, and robust shareholder returns, with a clear path to further expansion and REIT conversion in early September expected to generate significant tax savings.

• IFRS profit before tax was £74.0m, reversing a £31.2m loss in HY24, and diluted EPS reached 7.5p versus (3.0)p.

Financial highlights

• Net rental income grew 15% year-over-year to £61.3m, driven by portfolio expansion and 4.4% like-for-like rental growth.

• EPRA earnings increased 23% year-over-year to £30.2m; adjusted earnings up 13% to £50.1m.

• Dividend per share rose 12% to 2.85p; EPRA NTA per share up 1% to 300p.

• Operational cash flows exceeded £200m annually; net debt stable at £1.475bn, LTV at 38.5%.

Outlook and guidance

• On track to deliver 25% EPRA earnings growth by FY2026 and 50% by FY2029 from committed pipeline, with FY26 EPRA earnings guidance of £60m.

• Net rents expected to rise from £153m to £193m as pipeline completes.

• Dividend policy to shift post-REIT, distributing at least 80% of EPRA earnings.

• Medium-term total return target of at least 8%, with stable yields and low volatility.