Grainger (LON:GRI) Posts Earnings Results

Grainger (LON:GRI) announced its earnings results on Thursday. The company reported GBX 4.20 EPS for the quarter, Digital Look Earnings reports. The company had revenue of £113.70 million during the quarter. Grainger had a return on equity of 10.25% and a net margin of 77.24%.

Here are the key takeaways from Grainger’s conference call:

• Grainger reaffirmed full-year guidance for EPRA earnings of GBP 60 million in FY2026, up 12%, and still expects GBP 72 million by FY2029, despite higher interest rates and macro uncertainty.
• Half-year operating performance remained strong, with rental income up 7.8%–8%, like-for-like rental growth of 3.1%, occupancy at 96%, and EPRA earnings up 4%.
• The company emphasized a major deleveraging plan, targeting a GBP 300 million–GBP 350 million reduction in net debt by FY2029, helped by GBP 850 million of non-core assets available for disposal.
• Grainger said its committed pipeline of 775 homes will deliver about GBP 40 million of net rent and drive future growth, with only GBP 120 million left to spend to complete it.
• Management noted EPRA NTA fell 2.7% to GBP 2.90 per share due to valuation pressure, but argued that rental growth has helped cushion the impact from higher yields and that the balance sheet has been de-risked through refinancing.

Grainger Price Performance

Shares of GRI stock opened at GBX 152.65 on Friday. The stock has a market cap of £1.13 billion, a price-to-earnings ratio of 5.59, a PEG ratio of 1.51 and a beta of 1.11. The business’s fifty day moving average is GBX 167.26 and its 200 day moving average is GBX 180.93. Grainger has a twelve month low of GBX 118.30 and a twelve month high of GBX 230. The company has a quick ratio of 0.87, a current ratio of 2.71 and a debt-to-equity ratio of 78.26.

Analyst Ratings Changes

GRI has been the subject of a number of recent analyst reports. Citigroup decreased their target price on Grainger from GBX 298 to GBX 253 and set a “buy” rating for the company in a report on Thursday, April 2nd. Deutsche Bank Aktiengesellschaft decreased their target price on Grainger from GBX 336 to GBX 238 and set a “buy” rating for the company in a report on Friday. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 285 price target on shares of Grainger in a research note on Thursday. Finally, Jefferies Financial Group reduced their price target on Grainger from GBX 232 to GBX 210 and set a “buy” rating on the stock in a research note on Friday. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of GBX 237.20.

Grainger News Roundup

Here are the key news stories impacting Grainger this week:

• Positive Sentiment: Grainger reported first-half earnings of GBX 4.20 per share on revenue of £113.7 million, with high net margin and solid return on equity, suggesting the business remains fundamentally strong.
• Positive Sentiment: Management said rental demand continues to rise and described the outlook as “excellent,” with the new Renters’ Rights Act potentially supporting structural changes in the sector. Article Title
• Positive Sentiment: Berenberg reaffirmed its Buy rating and kept a GBX 285 price target, signaling continued confidence in Grainger’s longer-term prospects.
• Neutral Sentiment: Grainger issued a clarification on the DRIP election deadline for its 2026 interim dividend, an administrative update that is unlikely to materially affect the shares. Article Title
• Negative Sentiment: Deutsche Bank lowered its price target on Grainger to GBX 238 from GBX 336, which may have weighed on sentiment despite maintaining a Buy rating.
• Negative Sentiment: Jefferies also cut its target to GBX 210 from GBX 232, adding to the impression that analysts see less upside near term even as they remain constructive.

About Grainger

Founded in Newcastle upon Tyne in 1912, Grainger plc, a FTSE 250 business, is the UK’s largest listed residential landlord, a Real Estate Investment Trust (REIT) and a leader in the fast-growing build-to-rent sector, providing c.11,000 rental homes to over 25,000 customers. With a pipeline of secured build-to-rent development projects totalling c.4,300 homes and £1.3bn, Grainger is creating thousands more rental homes by investing in cities across the UK.

Grainger works in partnership with a large number of public sector organisations to deliver new homes to local communities, including Transport for London, Network Rail, the Ministry of Defence, Lewisham Borough Council and the Local Pensions Partnership.

The Grainger team is dedicated to the common purpose of Renting Homes, Enriching Lives, backed by a set of core values.