Grainger Delivers Strong Rental Income Growth, Occupancy Remains High

Grainger PLC (LON: GRI), the UK’s largest listed provider of private rental homes, released a post-close trading update on October 9, 2025, showcasing a robust performance for the twelve months ending September 2025.

The company reported high occupancy rates and solid like-for-like rental growth, demonstrating resilience amid the current economic climate.

Occupancy within Grainger’s Build to Rent (BTR) portfolio remained elevated at 98.1%, surpassing expectations. Like-for-like rental growth stood at 3.6%, with BTR properties experiencing 3.4% growth and regulated tenancies achieving 6.6% growth.

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These figures highlight the continued demand for Grainger’s high-quality rental homes in desirable locations.

Grainger strategically recycled capital through disposals, generating approximately £169 million. This included £82.4 million from PRS disposals and £86.4 million from regulated tenancies and other non-core disposals.

These sales were executed in line with valuations, indicating strong investor appetite for quality residential assets. The company is redeploying these proceeds into its committed pipeline of higher-yielding BTR assets.

The company completed three new build-to-rent schemes during the year, adding 357 new homes to its portfolio. These developments, including Windlass Apartments and The Kimmeridge, leased up quickly, exceeding underwriting assumptions. Grainger’s total pipeline of £1.3 billion is expected to add approximately 4,565 new homes and £70 million in additional net rental income.

Grainger expects to deliver 50% earnings growth from FY24 to FY29, supported by its market-leading operational capabilities and the fundamental supply-demand imbalance in the UK housing market.

The ‘Committed’ element of their pipeline will add 1,180 homes and will deliver 25% EPRA Earnings growth from FY24 to FY26 to £60m. The company’s transition to a REIT structure is expected to enhance shareholder returns.

Helen Gordon, Chief Executive of Grainger, said: “Grainger has delivered another year of strong rental income growth, demonstrating the resilience of our business model despite the current economic environment.”