No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Grainger said on Monday that it remained on track to deliver 35% earnings growth between FY25 and FY29 after reporting strong rental demand, high occupancy and continued progress across its build-to-rent pipeline.
In a pre-close trading update for the 11 months to the end of August, the UK's largest listed provider of private rental homes said occupancy in its BTR portfolio remained above 96%, while like-for-like rental growth stood at 3%, broadly unchanged from 2.9% at the half-year stage and in line with guidance.
Customer demand remained "strong" following the introduction of the Renters' Rights Act in May, with Grainger averaging around 1,400 enquiries a week.
The company also said leasing velocity and occupancy had remained stable, with no increase in customers serving notice or challenging rents.
Grainger reiterated that its three committed BTR schemes would drive 35% earnings growth from FY25 to FY29, despite fully absorbing the impact of higher interest rates. Around £120m of investment remains across the committed pipeline.
The group also plans to reduce net debt by £300m to £350m by the end of FY29 and accelerate disposals from a £850m pool of non-core assets. It has already removed £2.4m of central costs this year and is targeting a further £2m of savings during FY27.
Chief executive Helen Gordon said: "It's been another strong year of operational performance for Grainger. Demand for our rental homes remains strong with rental growth continuing in line with expectations and occupancy remaining high."
Grainger also secured planning permission for a 425-home scheme at Cambridge North, its first investment in the city, while its secured pipeline currently covers 2,044 homes across seven sites.
The stock was 1.4% higher at 170.4p by 1323 BST.
See the latest RNS on Investegate.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.