Newcastle-based listed landlord Grainger Plc has reported a strong financial performance for the first half of the 2026 financial year, with rising revenues and earnings despite ongoing market uncertainty. The company, which owns and operates more than 11,000 properties across the UK including The Forge near Newcastle Quayside, posted half-year results showing robust rental income growth, high occupancy levels, and sustained demand.
Financial Highlights
Net rental income increased by 7.8% to £66.1 million in the six months to March 31, 2026. Build-to-rent (BTR) rental income grew by 2.9%, while regulated tenancy rental income rose by 5.9%. Occupancy remained high at 95.9%, slightly down from the 98% recorded for the full year 2025, but still reflecting strong demand. These are the first results Grainger has reported as a Real Estate Investment Trust (REIT), with profits measured as EPRA (European Public Real Estate Association) Earnings. EPRA Earnings increased to £31.4 million, up from £30.2 million in the comparable period last year. The interim dividend was raised by 3% to 2.94 pence per share. Grainger also achieved £2 million in annual cost savings through restructuring and other initiatives, offsetting wage inflation.
Market Position and Outlook
Grainger highlighted that there are 5.6 million households in the UK rental market, with the build-to-rent sector representing only 2.6% of that market, indicating significant growth potential. The company noted that its customer base is diverse across employment sectors, with nearly three-quarters aged between 25 and 44. A self-imposed student cap of 10% remains in place to distinguish its communities from student accommodation.
Chief Executive Helen Gordon welcomed the newly enforced Renters' Rights Act, stating it strikes a balance between tenant and landlord rights. She said: "Grainger continues to deliver a strong performance, despite operating in a time of global and market uncertainty. We continue to build a resilient, high quality income stream. Occupancy remains high, rental income continues to grow along with our portfolio, and like-for-like rental growth continues in line with expectations, underpinned by wage inflation."
Gordon added that Grainger is on track to deliver its target of £60 million EPRA Earnings for the full financial year, a 12% increase from FY25, and £72 million by FY29, a 35% increase. She noted that the Renters' Rights Act is contributing to structural changes in the sector, with smaller private landlords exiting and larger professional landlords gaining market share. "Housing is a needs-based asset class. Everyone will always need a place to live. Grainger’s rental income is underpinned by wage inflation, with a diversified, growing customer base and targeted asset clusters in the UK’s biggest cities," she said.
The company remains focused on financial discipline and capital allocation to deliver shareholder value, including reducing net debt through a disposals programme to offset higher interest rates. Gordon concluded: "As the UK’s only listed, scaled, pure‑play build‑to‑rent platform, we continue to benefit from a structurally undersupplied rental market and long‑duration, inflation‑linked income. The outlook for Grainger is excellent."
