Grainger (GRI) Trading update summary

Operational performance and rental demand

• Rental demand and leasing performance remain strong, with occupancy above 96% and like-for-like BTR rental growth at 3%, matching guidance.

• Leasing at Glasshouse Square in Bristol exceeded expectations, with 83% of homes let or under offer within nine months of launch.

• The Renters' Rights Act implementation did not impact rental demand or occupancy, and no increase in tenant departures or rent challenges was observed.

Capital allocation and cost control

• A clear capital allocation plan includes delivering three BTR schemes with £120m investment, targeting 35% earnings growth from FY25 to FY29.

• Accelerated disposals of approximately £850m in non-core assets and a plan to reduce net debt by £300-350m by FY29 are underway.

• Central overheads were reduced by £2.4m this year, with a further £2m in savings targeted for FY27, totaling 12% of the cost base.

Development pipeline and growth outlook

• Three committed BTR schemes are progressing on schedule, expected to drive 35% EPRA earnings growth from FY25 to FY29.

• Secured pipeline includes planning consent for 2,044 homes across seven sites, with efforts to increase unit numbers underway.

• Planning permission was secured for a 425-home scheme in Cambridge, and a new application was submitted for 252 homes in Nottingham.