Grainger Shares Climb After Trading Update Reaffirms 35% Earnings Growth Target

Shares in Grainger plc (LON: GRI), the UK’s largest listed build-to-rent (BTR) landlord, rose over 3% on Monday to around 245.5p after the company issued a confident trading update for the 11 months to the end of August, reaffirming its guidance to grow earnings by 35% between FY25 and FY29.

The group, which manages more than 11,000 rental homes, reported occupancy above 96% and like-for-like BTR rental growth of 3%, broadly stable with the 2.9% recorded at the half-year stage.

Demand remained robust, with roughly 1,400 customer enquiries a week, and management said it had seen no uptick in tenants serving notice or challenging rents since the Renters’ Rights Act came into force in May.

Chief Executive Helen Gordon highlighted progress across the development pipeline, including new planning permission for a 425-home scheme in Cambridge secured with Network Rail, Grainger’s first investment in that target city. Leasing at its recently launched Bristol scheme, Glasshouse Square, is running ahead of expectations, with 83% of homes let or under offer.

Grainger also detailed its capital allocation plan: completing its £120m committed pipeline, accelerating disposals from a c.£850m pool of non-core assets, and cutting net debt by £300-350m by FY29 to offset higher finance costs. Central costs are being trimmed further, targeting 12% total reductions to the cost base by FY27.

Gordon added that the political backdrop had “cleared considerably,” citing continuity at the Housing ministry and renewed government opposition to rent controls, further supporting investor sentiment.