Grainger (LSE:GRI) is on track to deliver EPRA earnings of £60m for the year to 31 March, a 12% increase on FY25, and £72m by FY29, a 35% rise, after a strong first half to 31 March.
Net rental income for the six months ended 31 March rose 7.8% to £66.1m and EPRA Earnings increased 4.0% to £31.4m versus the prior half. IFRS loss before tax was £14.6m after a modest outward yield shift and a 1.1% portfolio valuation decline, leaving EPRA net tangible assets at 290p (HY25: 298p).
Like‑for‑like rental growth was 3.1% (BTR +2.9%, regulated tenancies +5.9%), occupancy was 95.9%, customer retention 61% and rent‑to‑income improved to 27%.
Grainger extended £540m of core banking facilities to 2033 at lower margins, expects c.£200m+ operating cashflow per annum, and is running a disposals programme (c.£850m of non‑core assets remaining) to deliver £300‑350m of deleveraging by FY29 and reduce LTV to c.30% and net debt/EBITDA to c.8x.
The interim dividend was increased 3% to 2.94p per share, the group's 21st consecutive period of dividend growth.
Grainger expects full‑year like‑for‑like rental growth of 3.0-3.5% and targets EBITDA margin expansion to c.60% by FY29, and it will provide a trading update in September 2026 and full year results on 19 November.
