Grainger (GRI) H1 2026 earnings summary

Executive summary

• Delivered strong half-year financial performance with net rental income up 7.8% year-over-year, EPRA earnings up 4.0%, and dividend per share up 3.0%.

• High occupancy maintained at 95.9%–96% and robust customer retention support resilient earnings growth.

• Guidance targets £60m EPRA earnings for FY26 (12% uplift) and £72m by FY29 (35% increase), with disciplined capital allocation and deleveraging as priorities.

• Committed pipeline and asset recycling underpin future growth and debt reduction.

• IFRS loss before tax of £14.6m reflects modest portfolio valuation decline amid macroeconomic uncertainty.

Financial highlights

• Net rental income rose to £66.1m (+7.8% year-over-year); like-for-like rental growth at 3.1%.

• EPRA earnings reached £31.4m (+4.0% year-over-year); dividend per share increased to 2.94p (+3.0%).

• EPRA NTA per share at 290p, down 2.7%–3% due to sector sentiment and outward yield movement.

• Net debt increased to £1.5bn–£1,524m; LTV at 40.2%.

• Operating cash inflow strong at £85m for the half, targeting ~£200m for the full year.

Outlook and guidance

• On track to deliver £60m EPRA earnings for FY26 and £72m by FY29.

• Like-for-like rental growth expected at 3.0%–3.5% for the full year, supported by wage inflation.

• Deleveraging plan targets £300–350m net debt reduction by FY29, aiming for LTV around 30% and net debt/EBITDA of ~8x.

• EBITDA margin expected to expand to over 60% by FY29.

• Share buybacks considered only after deleveraging and pipeline completion.