Grainger Reports Strong Build-to-Rent Performance

Grainger plc, the UK’s largest listed provider of private rental homes, has delivered another year of robust rental growth and high occupancy in its Build-to-Rent (BTR) portfolio.

• Occupancy remains very high at 98.1%, up from 96% in March 2025.
• Like-for-like rental growth reached 3.6%, driven by mid-market BTR assets.
• Disposals generated around £169m, allowing Grainger to recycle capital into higher-yielding BTR developments.
• New developments added 357 homes this year, including fully let schemes in Tottenham Hale, Oxford, and Canning Town.

Grainger’s £1.3bn committed pipeline will deliver an estimated 4,565 new homes and around £70m additional net rental income, underpinning the company’s guidance for 50% earnings growth from FY24 to FY29.

CEO Helen Gordon said:  “Our strong operational platform, high-quality portfolio, and the structural imbalance between supply and demand in the UK rental market underpin sustainable income growth and long-term shareholder returns.”

The company highlights efficient capital recycling and operational technology as key drivers, while noting that government policies supporting housing supply and rental standards align closely with Grainger’s strategy.

Takeaways:

• Rental growth is steady, inflation-linked, but below levels seen in student accommodation (e.g., Unite Group).
• The company continues to highlight undersupply in the UK rental market, reinforcing the BTR opportunity.
• Portfolio recycling demonstrates a disciplined approach to selling underperforming assets and reinvesting in higher-yielding homes.
• Grainger’s position as a REIT supports enhanced shareholder returns and growth.