Grainger plc has announced an interim dividend of 2.94p (March 2025: 2.85p) per share, all of which will be paid as a Property Income Distribution (PID), which will return £21.7m (March 2025: £21.0m) to shareholders. In the six months ended 31 March 2026, the final dividend for the year ended 30 September 2025 which amounted to £40.4m has been paid.
Other financial highlights include:
Strong rental growth & high occupancy
Increased net rental income by +7.8% to £66.1m (HY25: £61.3m)
Delivered +3.1% total like-for-like rental growth (FY25: +3.6%) with BTR rental growth +2.9% (new lets +2.0% and renewals +3.3%), whilst regulated tenancy rental growth was +5.9%
Strong demand; achieved high occupancy at 95.9% (FY25: 98.0%)
Customer affordability remains healthy, marginally improving to a rent-to-income ratio of 27%
Strong earnings growth continues
EPRA Earnings increased to £31.4m (HY25: £30.2m)
Interim dividend increased +3% to 2.94p per share (HY25: 2.85pps)
On track to deliver targeted earnings growth from our committed pipeline to £60m (8.1pps) by FY26 and £72m (9.7pps) by FY29
Following outward yield shift and subsequent modest valuation decline, IFRS loss before tax of £(14.6)m
Strong balance sheet
EPRA NTA of 290p, after modest yield expansion reflecting macro sentiment (FY25: 298p)
Extended £540m core banking facilities to 2033 at lower margins, resulting in a reduction of finance costs of c.£1m per annum and a weighted average facility maturity including extension options of 4.6 years
Highly cash generative with c.£200m+ operating cashflow per annum
Deleveraging plan supported by disposals programme with LTV forecast to reduce over time to c.30% by FY29 and a Net debt to EBITDA ratio of c.8x
Ability to absorb higher interest rates and continue to deliver strong earnings growth
Excellent earnings outlook, driving short, medium and long-term value creation
A clear capital allocation strategy, with a focus on delivering our remaining onsite committed pipeline and deleveraging by £300-350m by FY29, which will grow earnings by 35% by FY29. Future capital allocation considerations will include share buy backs, acquisitions of stabilised assets or committing to new developments, with a strong focus on whichever is most accretive to shareholder returns at the appropriate time
Strong like-for-like rental growth expected to continue, supported by wage inflation, expecting between 3.0-3.5% for the full year
Sector-leading operating platform will drive further efficiencies to deliver EBITDA margin expansion from 56% in FY25 to 60% by FY29
Continuing strong year-on-year compounding earnings growth
