Grainger Share Discussion Threads

[viscount1] 23/11/2024 12:52

I have held Grainger shares for several years. I had a look at the report and accounts today.

Every time I look into the company I am impressed. It seems very well run, has good cashflows, manageable debt and it operates in a market (build-to-rent) that is growing as small landlords are pushed out by government policy and taxes.

In 2024 they seem to have excellent topline growth, and they have a healthy pipeline. I like the way they think strategically about their investment locations. I was hoping for better like-for-like rental growth (6.3%). I think they could raise rents faster. Cashflows look good and more than enough for the debt.

It should be a great place to be, but the share performance has been pretty dire. I keep hoping it will get bought out by an investment company trying to buy its way into the sector. Some consolidation is likely given the large number of small players and numerous investment companies trying to enter the market.

[igoe104] 22/11/2024 13:45

GRI talked about in this IC podcast.

[pyufak] 21/11/2024 14:32

the presentation I like - waiting for the investor call recording to go live. I liked the slide on LTV management and shows they are planning for an eventuality where interest rates don't fall as much as expected - which is one of the major risks they face in 4-5 years... looks the same class act I've bought into and will continue to hold. I'm under water but 5.5-6% for UK residential after costs... I can't do better myself and very happy to let the pros keep doing their thing. Will watch the presentation tonight

[essentialinvestor] 21/11/2024 14:11

The conference call is worth a listen,

[igoe104] 21/11/2024 13:18

Very impressive presentation this morning. Converting to a reit next October should give holders a yield of between 5.5% and 6%.

[igoe104] 21/11/2024 07:45

Very encouraging update from GRI and a big uplift in the dividend..

This current market is absolutely pathetic..

[essentialinvestor] 15/11/2024 14:52

Unless I'm misreading this, their vacancy rate at The Mint, Guildford is over 15% currently.

Worth watching their overall rate when they update.

[viscount1] 13/11/2024 15:42

Topped up at 220p.

[hindsight] 13/11/2024 15:25

UK assets that cant move, about as popular as radioactive waste at present

[steve3sandal1] 13/11/2024 14:40

I'd have to sell something, not really the Grandchildren. I'm guessing gilts are pressuring stuff like GRI especially the impatient waiting for a decent yield. Something else. They are in my SIPP which means they were part of a long term IHT mitigation strategy until Rachel squished that. So not inclined to do anything that will be taxed above my risk reward strategy....good share price at 220p on the chart but I'm thinking what's the point.

[panache1] 13/11/2024 12:15

Are you still topping up at 220 ?

[essentialinvestor] 13/11/2024 08:30

Grainger's closest development to me, The Mint, in Guildford, now with 15 current available units on a development total of 91.

That is current availability, I've not included another apartment available from next year.

[essentialinvestor] 02/11/2024 17:23

Appreciate the view.

[hindsight] 01/11/2024 18:37

EI im a holder from much higher up, yield now approaching the return get from BTL of 3.5%. Keep debating averaging down but main concern is its UK and trying to avoid increasing exposure to the Liebour Starmer state
Cant see how escape the real uk black hole of zilch growth and demographics

[essentialinvestor] 27/10/2024 12:09

Steve, much appreciated.

[steve3sandal] 26/10/2024 18:41

I would add that at 220p I’d be selling the Grandchildren to raise funds to top up.

[steve3sandal] 26/10/2024 18:40

I’m of the view that occupancy is likely to be NO VACANCIES, rent above inflation, and this time next year the portfolio will be substantially developed out. Lower interest rates would help the asset class and refi costs further out. Conversion to REIT possibly Oct 25 should see a higher dividend which might drive a higher share price I certainly hope so. Eventually the natural holder here possibly a pension fund/institutional and not less than at EPRA NAV. Firm holder but definitely have the long suffering badge. I did buy between 114p and 310p over the past 13 years.

[essentialinvestor] 26/10/2024 15:32

Anyone with a current view?..

Looks a fair medium term risk/reward opportunity, or am I overlooking some potential negatives..

Any views appreciated.

[igoe104] 07/10/2024 06:31

Excellent trading update and GRI should prosper under the new government's rent reforms...

[essentialinvestor] 22/9/2024 12:42

I thought REIT conversion was this year, I must have misread a previous article.

Let's see what Labour proposes on Rent reforms.

[steve3sandal1] 19/9/2024 13:07

Tick tock and maybe not yet ticked. The discount to NAV reflects property sector, refinance rate risk, and the dividend yield is low so I'm guessing these contribute to the share price malaise. But in 12m the portfolio income should stabilise much higher and REIT conversion should pop the yield so probably just have to be patient. Ahead of REIT conversion it would not surprise me if substantial third parties might look at taking this portfolio over. There's a property management and software business hidden in here too. Holder.

[freedomexpress747] 19/9/2024 12:41

Reit conversion Oct 2025 according to Google. Well managed business. Small landlords withdrawing, so professional operations should thrive... Interest rates slowly coming down.Nice long term income generator.Why so flat?Have I missed anything?!

[igoe104] 24/7/2024 06:31

Grainger plc, the UK's largest listed residential landlord with a c.£3.4bn operational portfolio of c.11,153 rental homes and a £1.5bn pipeline of a further c.5,000 purpose-built rental homes, today announces the £31m acquisition of a 135-home stabilised, fully occupied build-to-rent scheme within its Manchester cluster from M&G Real Estate.

 

The Astley is centrally located in Manchester's Northern Quarter and adds to Grainger's existing cluster of c.1,700 rental homes in the region, including Clippers Quay at Salford Quays and The Filaments near Spinningfields.

 

Today's £31m acquisition was supported by Grainger's ongoing accelerated Asset Recycling Programme. The company successfully disposed of an older PRS asset of 80-homes in London for c.£27m, enabling the business to recycle its capital into The Astley, a higher yielding, build to rent asset within one of its strategic cluster locations.