The debt is capped until the end of 2028, by then the interest rates will probably be less than 3%,, I don't see a issue about debt.
Interest rates are predicted to fall to 3.5% to 3.75 by year end anyway. Don't know why a certain poster on this forum talking about GRI having to pay 6% on the dedt...
Where does he get the 6% from, when clearly going forward interest rates are dropping, starting on 6th Feb well possibly.... |
(BLOOMBERG) London Rents Rise at Slowest Pace Since 2021, Rightmove Says
• London rent inflation has slowed to its weakest in three years, with average advertised rent rising 0.1% to £2,695 per month in the fourth quarter.
• Outside of London, rents fell for the first time since 2019, marking a "key milestone" in the cooling of the rental market.
• The supply of rental properties is increasing, with a 13% year-on-year rise in available properties, helping to ease the pressure on tenants.
BLOOMBERG expects landlords such as Grainger Plc to feel the pain both in their financial and operational performance |
Regarding rental growth, I actually think GRI took their foot of the gas there and could have raised rents faster based on their latest occupancy rates. |
Credit spreads are low not high right now in the UK. |
As i said before the main concern for me is the ~50% gearing and when it resets from 3.2%. A reset to say 6% will cost 1.5bn x 2.8% = 42m
Think they should start reversing growth, selling assets which will prove NAV along with buying back
Agree on a coming slowdown, long rates plus wider credit spreads simply arent sustainable by the economy |
The main potential area of concern I have is on occupancy, with data last week showing UK private sector jobs being cut at rates seen previously in recessions. |
The above was made clear before the GE.
That could change under a future administration.
The keys for GRI are occupancy, rental growth and cost of capital.
I will have a look at their Guilford development this week if I have time, traffic dreadful around the area atm with the A3 widening works ongoing. |
https://www.landlordzone.co.uk/news/housing-minister-says-rent-controls-would-damage-landlords-and-tenants?1cf275b2_page=110 |
no don't tell what to do. rachel from accounts will put rent controls and GRI will go to 1p |
Agreed. But no rent controls I don't think - just the continued move to ousting small and medium sized landlords and shifting the power to institutional landlords like Grainger. |
communist Labour will launch radical rent controls so Grainger is seemingly finished
Short this Labour ponzi scam with both fists |
I am holder of GRI, but this part is nonsense:
"With government support for the private rental market ..."
The Tories were intent on destroying the private rental market and Labour has continued doing so. The reason I hold GRI is despite the government not because of it. |
Progressive Equity Research has initiated coverage on Grainger plc, offering UK investors insights into the company as it reaches a critical point in its strategy to focus on build-to-rent properties. With government support for the private rental market and the planned conversion to a REIT, Grainger is well-positioned to attract investors seeking scalable income and capital growth opportunities.
Grainger: AA rating - 0.85 Price to Book - forcasted revenue increase this year 24%.
Interesting - onto my watchlist. |
It will be interesting to see at what discount PRSR is taken out |
Progressive Equity Research have recently taken over PI World (who you may have heard of). |
I made the mistake of iniating a position in these in October.
I see Progressive Equity Research of whom I have never heard have issued today a 14 page note on GRI which I need to read. |
I can only imagine the falling share price and rising Gilt yields are opposite sides of the same coin. Refinancing risk in a few years probably less of a handle on the current malaise. I can’t see too much downside from 220p so hopefully a well timed addition. Principals are on something like buy one get one free monthly SAYE scheme so perhaps needs to be 110p to get their wallets open. I’ll give them another 12 months to get to fully developed and occupied, REIT, and a significant leap in dividend. If that doesn’t work perhaps we’re wasting our time. |
Added, but unimpressed by s lack of BOD buying. |
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. |
GRI talked about in this IC podcast. |
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 |
The conference call is worth a listen, |
Very impressive presentation this morning. Converting to a reit next October should give holders a yield of between 5.5% and 6%. |
Very encouraging update from GRI and a big uplift in the dividend..
This current market is absolutely pathetic.. |
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