I thought REIT conversion was this year, I must have misread a previous article.
Let's see what Labour proposes on Rent reforms. |
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. |
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?! |
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. |
"London housebuilder Berkeley to become a landlord as sales languish" |
Well chaps I'm invested! Watching for a long time, hoping the REIT conversion will be positive, and an incoming Red Chancellor will need private sector help to boost rentals, then interest rates being supportive.However, any readers should note it took years for Vistry to make a small profit.Anyone thoughts of good Labour Government investment areas... apart from moving to Monaco! |
Institutions continue to invest in UK buy to let:
I keep hoping that one of them will buy out Grainger. |
after watching the presentation slightly perplexed at the market reaction. Management seems confident, story seems strong, interest rate risk is 5 years away and post REIT conversion so there's a lot of optionality here. I think the CFO missed the correlation that high interest rates likely to correlate with higher inflation so if sustained for 5 years would be correlated to higher rent increases during this period. |
GRI results webcast with Q@A. |
That's fair |
The MDR hit is an one-off to current portfolio value, but applies to all future acquisitions and developments unless the Tories bring back the relief |
From the recent chancellor's budget, the removal of multiple dwellings relief (MDR) knocked -8p off the NAV.
Likely to reversed as both PBSA and BtR developers are urging the Govt to support the sector.
Sources close to Jeremy Hunt have suggested the Govt is willing to bring back the MDR to support the sector. |
The market does not like something in the results or the presentation. Down 4%. |
Presentation at 9 for those who are interested... |
Excellent update, and more good news to come as they add more homes to the pipeline... |
Topped up in the hope of good results tomorrow.
Their rental growth has been strong and the economics of renting should have been in their favour over the last few months with both high wage and rent increases. |
Issue here was and still is the cost of 1.4bn debt at 3.3% that will reset in 2028/29. But few years of 8.4% will help |
8.4% like-for-like rental growth is very good indeed. My investment thesis for Grainger is that they can take advantage of chronic housebuilding shortages and it finally looks like they can do so. |
Good trading statement... |
Not the percentage, but if they become a REIT they will have to distribute 90%+ of rental profits. So much higher than the current rate. |
Has anyone seen anything or done any work on the expected dividend Grainger will be paying post move to REIT status please? |
Broker upgrade.
Berenberg starts Grainger with 'buy' - price target 305 pence |
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