Grainger Investors - GRI

Grainger Investors - GRI

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Stock Name Stock Symbol Market Stock Type
Grainger Plc GRI London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 300.60 01:00:00
Open Price Low Price High Price Close Price Previous Close
300.60
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Industry Sector
REAL ESTATE INVESTMENT & SERVICES

Top Investor Posts

DateSubject
23/7/2021
10:54
tomps2: PIWORLD interview with Paul Jourdan, Amati Global Investors mentions Grainger (GRI) at 20m33s see here: Video: Https://www.piworld.co.uk/education-videos/piworld-interview-with-paul-jourdan-markets-macro-opportunities/ Podcast: Https://www.podbean.com/ew/pb-rfuq2-1097a74
03/1/2020
15:45
paleje: IC have them as one of their Tips of the Week. IC Tip: Buy at 302p Tip style GROWTH Risk rating MEDIUM Timescale LONG TERM Bull points Rental income growing Rising demand for rented homes Takeover potential Shares trade below forecast NAV Bear points Exposure to UK housing market Slim dividend yield By Emma Powell Grainger (GRI) reached a pivotal moment in its evolution into private rental developer and landlord at the end of last year. The value of its private rental assets surpassed that of its portfolio of regulated tenancy homes following 2018’s £396m acquisition of the remaining 75 per cent stake in GRIP real estate investment trust that it did not already own. That means the group is forecast to earn more money from rental income than lumpier trading profits, which are generated from development work and selling vacated regulated-tenancy homes. This is particularly pertinent against the backdrop of weakening sales transaction volumes. GRI:LSE Grainger PLC 1mth Today change -0.50% Price (GBP) 312.42 The affordability challenges of buying a home have driven demand for private rented sector (PRS) homes, which accounted for 20.6 per cent of UK households in 2019, according to research by the Office for National Statistics, up from 13 per cent in 2007. That figure is forecast by estate agency Knight Frank to rise to 22 per cent by 2023. High demand for Grainger’s PRS assets is evident in an occupancy rate of 97.5 per cent as of the end of September. That – coupled with rent reviews on its regulated tenancies – helped boost rental income on a like-for-like basis by 3.6 per cent. The rate of underlying rental growth for the PRS portfolio accelerated to 3.4 per cent last year, up from 3 per cent in 2018. Grainger’s PRS portfolio consists of 5,597 homes, representing 58 per cent of the total asset base. This is expected to grow to 76 per cent if all 9,104 homes in the pipeline are built. The group aims to secure rental income at gross yields on cost of between 6 and 7.5 per cent on that pipeline. Around 1,000 of these homes are expected to be delivered in 2020, which would add £6m in annual rental income. A joint venture with Transport for London, established last year, could result in the group providing an additional 3,000 homes – and gaining £24m in annual rental income – by 2025. In total, the pipeline has the potential to lift net rent by 141 per cent to £169m at an estimated development cost of £2bn. Deriving a greater proportion of income from rent, rather than from selling homes, should also feed through to greater dividend payments, given management has pledged to pay out 50 per cent of net rental income to shareholders each year. Analysts at Panmure Gordon forecast an annual dividend of 8.2p a share by 2022, 58 per cent higher than last year and representing a 2.7 per cent yield. This is based on net rental income reaching around £100m that year, against trading profits of £67m. That shift should also increase the security of dividend payments, although the company will still have exposure to the fortunes of the UK residential housing market. Profits from property disposals were down 17 per cent last year, although management said that was due to a lower vacancy rate, with the time it took for properties to sell stable at 111 days. The final ‘development for sale’ contract was completed last year, and Grainger will now focus on developing investment assets to retain for the long term. These assets are typically built by third-party developers and forward-funded by Grainger, which makes building less capital intensive. In an environment where interest rates show no sign of being raised in the near term, institutional investors searching for yield have flocked to the UK’s private rented sector, seeing opportunity in the chronic lack of rental housing stock. By the end of June 143,000 homes were completed or in planning, according to research by Savills, up from just 15,000 in the pipeline at the start of 2013. Given Grainger’s existing PRS management platform and expertise, that could make the group a potential takeover target for a large global institutional investor. The sector has already grabbed the attention of CBRE, the world’s largest real estate services group, after it entered the PRS market in July by agreeing the £267m takeover of Telford Homes, a housebuilder that had shifted its focus from building homes for private sale to constructing rental developments for large investors. https://www.investorschronicle.co.uk/tips-ideas/2020/01/02/tap-into-grainger-s-rental-growth-opportunity/
30/5/2017
08:59
shauney2: Crystal Amber have gone below 3% From citywire UK activist investor Richard Bernstein reduced his holding in the UK’s largest listed residential landlord Grainger (GRI), which recently reported a 39% jump in earnings growth, benefiting from record levels of renting. Bernstein and co-manager Jonathan Marsh reduced their stake to below 3% of the business. The company’s share price is up 19.5% over the last six months. The shares are held in their £214.5 million Crystal Amber fund. Grainger recorded a 13% rise in pre-tax profits in the six months to 31 March to £41.2 million, from £36.6 million year-on-year. In its half-year results, CEO Helen Gordon said the company is expecting to complete a new private rental sector building every two months over the next year and has secured £439 million from a total £850 million target set for 2020. She added: ‘Our strategy to grow rents and simplify and focus the business puts Grainger in a strong position to deliver further sustainable income led growth.’
25/9/2015
10:41
shauney2: Share price looking very firm. An interesting take on Grainger from activist investors Crystal Amber who hold a 3.45 stake. "Grainger was established in 1912 and is the UK's largest listed residential property owner and manager. Its traditional reversionary business is based predominantly on regulated tenancies, which provide substantial, high quality, predictable and resilient cash flows. Its portfolio of 7,400 reversionary assets has a carrying value of GBP1.5 billion. Properties revert vacant to Grainger after an average of ten years. As these properties become vacant, Grainger estimates that they will generate a surplus of GBP500 million, equivalent to 120p a share. This embedded value is the difference between today's market value compared to the vacant possession value at today's prices. It does not reflect any future benefit from house price inflation. This portfolio is expected to generate GBP120 million of gross cash each year until 2030. Grainger also owns 8,400 properties as part of its market rented portfolio valued in excess of GBP1.1 billion. The cash generated by the reversionary business is recycled into Private Rented Sector (PRS) residential developments. Grainger is the UK market leader in equity release schemes principally for retired home owners. It also owns 3,000 homes directly and 3,000 homes indirectly via a joint venture in Germany. Trading results for the six months to 31 March showed a 3.8 per cent advance in the value of its UK residential assets, compared to 1.9 per cent for the Halifax and Nationwide indices. Grainger acquired or exchanged contracts for GBP 87 million of properties to add to its reversionary portfolio; purchased a new build to rent scheme in Canning Town, London; achieved planning consent for build to rent projects at two further sites; and completed another scheme in Barking, which is now fully let. The company expects to complete around 1,070 market rented units over the next two years. We believe that Grainger's portfolio, providing visibility of cash realisations through to 2030, represents an attractive asset for an insurance company seeking to match this asset profile against long- term future liabilities. Despite a recent reduction in the average cost of debt from 5.1 per cent to 4.6 per cent on Grainger's GBP1.1 billion of debt, we believe that in the current interest rate environment, there remains further scope to secure better terms for shareholders. We also believe that annual administrative expenses of GBP35 million are excessive. This equates to an administrative expense ratio of 3 per cent on GBP1.2 billion of net assets, which is substantially higher than its peer group. Since first investing in June 2015, we have engaged with the chairman, the outgoing executive team and other senior participants in the property sector. We believe that our comments about the need to reduce both operating and finance costs together with a tighter, more focused strategic direction have been well received. In August 2015, the company announced that it would explore the disposal of its German assets. The Fund regards this as a helpful first step to refocus and simplify the company's structure. The company also confirmed that the new CEO would arrive earlier than previously announced and that the Finance Director would retire" The German assets were previously valued at £300 million.That could have grown since.
06/7/2015
19:46
coby4: Just goes to show they don't actually understand what the portfolio is comprised of. The reversionary element they want to get their hands on is there because the majority of the properties are occupied by protected tenants with security of tenure, Without vacant possession that can't be taken advantage of. Share price is lower than it should be though. I doubt they are going to lose too much sleep over a 3% stake. There are investors with much higher stakes
23/11/2014
10:21
riddlerone: Not in this one yet but i do have a stake in SGM.This is a really interesting read and very relevant to GRI http://online.wsj.com/articles/u-k-s-multifamily-housing-sector-challenges-professional-investors-1416417446
14/8/2014
09:51
jonwig: Some investors in Mountview Estates [MTVW] have suggested it is window-dressing for a possible sale. The only quoted company which might fit is GRI. If interested, see my post today re MTVW's AGM yesterday: http://uk.advfn.com/cmn/fbb/thread.php3?id=18565246
07/12/2011
09:27
panachegrp: Interesting...might be worth filling our pockets ! U.K. REIT Law Changes May Trigger Takeovers From Overseas (1) 2011-12-06 17:02:01.704 GMT (Updates with tax experts' reactions starting in sixth paragraph.) By Simon Packard Dec. 6 (Bloomberg) -- U.K. real estate investment trusts will be more vulnerable to takeover by investors from outside of Britain under rules proposed today for the tax-exempt companies. The changes "will allow more cross-border M&A activity," said Phil Nicklin, head of accounting firm Deloitte LLP's unit specializing in REITs. "Investment banks are already talking to me about this." The U.K. Treasury proposed the draft law today that would allow British units of overseas companies to qualify for REIT tax exemptions by loosening regulations on ownership and stock- exchange listings. The rules would also abolish a charge to become a REIT equal to 2 percent of a company's net asset value. U.K. properties or companies would be eligible for REIT status if their owners' shares trade on overseas exchanges as well as the Alternative Investment Market and the exchange in London run by Plus Markets Group Plc, the Treasury said today. The rules would adjust the criteria for qualifying as a REIT and change the rules on how and when taxes are collected. "The changes will make REITs more cost-effective and easier to operate," said Rosalind Rowe, a partner at PricewaterhouseCoopers LLP. The changes may also "open up the market to a new group of investors, potentially including pension schemes and insurance companies." New REITs As many as 40 new REITs will be spawned by the modifications announced today, Nicklin estimated. The U.K. currently has 23 with a market value of about 20 billion pounds. Most new REITs would be conversions of funds now based in low-tax offshore jurisdictions such as Jersey, said Mike Prew, a Jefferies & Co. analyst. The funds would seek REIT status to avoid additional costs created by a European Union directive that will tighten regulation and supervision, he said. REITs in the U.K. avoid corporation or capital gains taxes in return for paying investors 90 percent of the income generated by their property. The changes proposed, the most sweeping to rules first introduced in 2007, will likely be adopted when lawmakers vote on the next fiscal year budget by the second quarter of 2012. New Rules The new rules may help the creation of residential REITs as the government seeks to attract investment into private rented accommodation, said Marion Cane, an executive director at Ernst & Young LLP's tax advisory arm for real estate, hospitality and construction. No U.K. residential REITs currently exist. In March, the government lowered the tax cost of acquiring groups of properties by changing the way it calculates the stamp duty, which is a property-transfer tax. That change, combined with the rules being proposed today, "will help residential REITs, particularly as they build up a portfolio," Ernst & Young's Cane said. London & Stamford Property Plc, a REIT that owns a stake in one of the U.K.'s largest malls, said last month that it may set up a separate residential REIT as it acquires housing assets. Helical Bar Plc, which isn't a REIT, may consider creating one for the residential properties that it's developing, Chief Executive Officer Mike Slade said in an interview. "Further changes are still needed to encourage residential and social housing REITs," said Nicklin at Deloitte. They need to be able to trade real estate, which is something that current rules preclude, he said. The rules wouldn't allow for the creation of private REITs, according to the Treasury. Closely held real estate companies can qualify for the tax exemptions if they seek to sell shares on a London exchange within three years. Current rules require REITs to have 25 percent of their shares widely held by investors. Pension funds, insurance companies, sovereign-wealth funds and mutual funds will be exempted from the rule, the Treasury said today. Charities, banks and REITs domiciled outside the U.K. wouldn't qualify for the exemption. The Treasury has asked for responses to the proposals by Feb. 12.
20/4/2011
09:28
gdasinv2: Wednesday 20 April, 2011 Eatonfield Group plc Working Capital Funding Update RNS Number : 2481F Eatonfield Group plc 20 April 2011  20 April 2011 Eatonfield Group plc ("Eatonfield" or "the Group") Working capital funding update On 31 March 2011, the board of Eatonfield announced that the Group had sufficient working capital funding through to mid April 2011. On 11 April 2011, the board announced details of the proposed exchange of contracts for the sale of the Welsh sites and the proposed revised facilities with Royal Bank of Scotland plc ("RBS") to include a new £0.25 million working capital facility. The board is of the view that formal agreement of these matters is now imminent. Eatonfield continues to defer payment of amounts due to certain of its senior lenders and trade creditors. On the basis that (i) the relevant lenders and trade creditors do not demand payment in the short-term and that Eatonfield continues to receive their support; and (ii) the proposed exchange of contracts for the sale of the Welsh sites takes place imminently, which will in turn provide the Group with access to the new £0.25 million RBS working capital facility, the board now expects that the Group's existing financial resources will provide it with sufficient working capital funding until early May 2011. The board confirms that all of the Group's existing bank facilities remain available at the date of this announcement. The Group has now also commenced presentations to potential investors, with a view to raising further equity to fund Eatonfield to the point where its contract housebuilding operation is forecast to start generating net positive cash flow later this year. The board is seeking to conclude this fundraising by early May 2011. For further information please contact: Eatonfield Group plc Tel: +44 (0)1829 261 910 Brian Corfe (Executive Chairman) Rob Lloyd (Group Chief Executive) Duncan Syers (Group Finance Director) Evolution Securities Limited Tel: +44 (0)113 243 1619 Joanne Lake/Peter Steel Optiva Securities Limited Tel: +44 (0)203 137 1904 Jeremy King Threadneedle Communications Tel: +44 (0)207 653 9850 Graham Herring/John Coles
11/8/2010
14:14
bb123: Any viewson on these results today?  11 August 2010 Grainger plc Interim Management Statement Grainger plc ("Grainger", the "Company" or the "Group"), the UK's largest quoted residential property owner today presents its interim management statement covering its activities during the four month period to 31 July 2010. Highlights · A further £49.4m of residential sales completed, taking total sales in the ten months to 31 July to £128.4m. In addition a further £26.4m of sales are in solicitors' hands or have contracts exchanged, giving a total sales pipeline of £154.8m. · Re-entry into residential acquisition market with £67.6m in our acquisitions pipeline. · Acquisition of Sovereign Reversions plc ('Sovereign') completed. The Company is in ongoing discussions with Moorfield regarding the creation of a new joint venture which would own the Sovereign portfolio. Commenting on the results to the end of July, Andrew Cunningham, Chief Executive of Grainger said: "We continue to make strong progress in growing and strengthening the Company and its market leading position. Our portfolio is continuing to prove to be resilient and we are trading well, despite price growth in the general housing market slowing in the last few months reflecting the economic uncertainty. Furthermore we have also taken advantage of market conditions to make well-priced acquisitions which we anticipate will produce good levels of return for our investors in the future." Market Review As we predicted at the time of our interim results in May, house price growth in the residential market has slowed over the early summer months. Nevertheless, our portfolio is resilient and we continue to sell well. We recognise the fragility of the market and are reflecting that by acquiring assets that we believe will deliver good levels of long term returns to the Company. Consequently, we are focussing on residential acquisitions which display some or all of the following characteristics: - good prospects of long term capital appreciation - high levels of reversionary potential - development or refurbishment potential - produce attractive yields Residential Trading Together with sales in solicitors' hands or with contracts exchanged, our total sales pipeline to the end of July 2010 amounts to £154.8m: · In the ten month period to 31 July 2010 we sold 593 vacant units for a consideration of £90.1m at a sales margin of 42.6%. The equivalent figures to the end of July 2009 were 625 units for £86m at a margin of 35.5%. The improvement in margins reflects the overall increase in prices we have achieved. These sales have been made at values approximately 6.9% above our September 2009 vacant possession values, a period in which the average of the Halifax and Nationwide indices has increased by 3%. · In addition to these sales of vacant units we have also made investment sales (sales with a tenant in place) of £7.3m and one-off sales, primarily of agricultural property, of £31.0m at values 14.3% above last September's valuations. The total sales pipeline of £154.8m to the end of July 2010 is lower than last year's equivalent figure of £180m as we have taken the strategic decision to reduce significantly our investment sales programme in the second half of the year. We have increased the number of properties which we refurbish prior to sale and estimate that this activity has produced incremental profit of c £1.4m. This strong sales performance reflects the ongoing resilience of our trading portfolios, even in uncertain economic conditions. We continue to see good acquisition opportunities and by the end of July we had completed, exchanged or placed in solicitors' hands some £67.6m of residential property acquisitions. Home Reversion In addition to the purchases noted above, we have now completed the acquisition of Sovereign Reversions plc for a consideration of £34.6m (at £2.02 per share, compared to a Sovereign Board net asset value estimate at 31 October 2009 of £2.517 per share). An independent valuation of the market value of Sovereign's property portfolio at 30 April 2010 amounted to £69.3m. As previously announced, Grainger is in discussions with Moorfield, a UK-based real estate investor and fund manager, with a view to establishing a joint venture between Grainger and Moorfield Real Estate Fund II such that Moorfield would become a funding partner in respect of the Sovereign acquisition. We anticipate updating the market on the outcome of these discussions shortly. Fund management and investments The portfolio in G:res 1, the market rented fund under our management, was valued at 30 June 2010 and showed an increase in vacant possession values of 3.8% since December 2009. Net asset value per share has improved from 64p to 67p, an increase of 4.7%. In light of growing investor interest in the market rented sector, we are currently investigating options to increase the size of the fund. The controlled liquidation of the Schroders Residential Property Unit Trust nears completion with only £0.1m of assets remaining to be sold. Development Division Activity in this division remains focussed on progressing the planning on various schemes, in particular our site at Newlands near West Waterlooville in Hampshire. Sales activity has been largely restricted to our site at Hornsey Road in North London where we have now successfully completed all the sales from the second phase, selling 33 units for £9.2m. We have also sold two further units which were previously let for £0.5m. Germany Unlike the UK where our activities are focussed more towards trading, our German business is primarily rental based, which complements the Groups' varied return profiles. Gross rents to end July amounted to £25.4m, representing a yield of 6.8%, on valuation. Debt At 31 July 2010, Group net debt was £1,303m (31 March 2010: £1,308m) and committed undrawn facilities and cash amounted to £285m (31 March 2010: £300m). The estimated loan to value on our core lending syndicate (based on September 2009 asset values) amounted to 54.4%. Outlook Although the level of general house price growth we saw in late 2009 and early 2010 has begun to slow, our portfolio continues to perform well. This is due to its low average value per property, its geographic diversity and the unrefurbished condition of many of the units we sell which provide attractive development opportunities for a potential purchaser. We continue to identify attractive acquisition opportunities and our financial capacity and management expertise will enable us to take advantage of those that we believe will deliver long term shareholder value. For further information: Grainger plc Financial Dynamics Andrew Cunningham/Dave Butler Stephanie Highett/Dido Laurimore Tel: +44 (0) 20 7795 4700 Tel: +44 (0) 20 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange END IMSPMMFTMBTBBJM
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