Grainger eyes growth as it increases net rental income

Grainger has announced an increase in its earnings and net rental income as it eyes 30% growth over the next couple of years.

The build-to-rent giant, which is the largest listed residential landlord in the UK, reported EPRA earnings growth (a measure of underlying growth used by investment companies) of £53.7m for the year to 30 September, up 12% on the £48m reported for the same period last year.

Grainger, which registered as Real Estate Investment Trust in September to boost tax efficiency and attract investment, is “confident” it can increase its EPRA earnings to £60m in 2026 and £72m in 2027.

The group’s overall net rental income increased by 12% to £123.6m. It said: “The strong £13.5m increase was driven by a combination of strong delivery of pipeline scheme launches which contributed £17.7m along with another year of rental growth reflecting strong demand for our product.”

However as previously indicated, Grainger’s like-for-like rental average was 3.6%, down from 6.3% last year but in line with its long run average.

>>See also: Briefing: How private landlord giant Grainger is preparing to ride the build-to-rent wave

The landlord has over the past few years shifted towards the Build-to-Rent market, selling off equity release portfolios and its German rental business. 

Grainger posted occupancy of 98.1% in its build-to-rent portfolio up from 97.4% year-on-year.

Helen Gordon, chief executive of Grainger, said: “We have certainty and clarity over the regulatory landscape for our market with the Renters’ Rights Act, which aligns to our business model and rejects any form of rent control.”

The developer previously said it completed three new BTR schemes in the year, adding 357 units to its portfolio. It said it has a total pipeline worth £1.3bn which gives it the opportunity to add 4,565 to its portfolio.