Grainger Share Discussion Threads

[igoe104] 20/11/2023 19:32

Hampshire-based Bargate Homes and parent company VIVID have acquired a 15.3-acre site in Waterlooville, Hampshire from Grainger PLC.

With outline planning consent in place for up to 200 homes, the scheme will be part of Grainger’s wider Berewood Garden Village masterplan which is delivering a total of 2,550 homes and local amenities.

[igoe104] 15/11/2023 12:38

Very good to see the GRI have already got 2/3 of the lettings taken in the new build in Derby..

[igoe104] 14/11/2023 14:45

Nice rise today, let's hope the momentum continues..

[dogwalker] 02/11/2023 11:12

The anticipation of no more bank rate rises? Property values propped up meaning less chance of property devaluation in the next results?

[viscount1] 02/11/2023 10:48

Grainger up 6.5% on no news? What is going on?

[igoe104] 07/10/2023 08:39

Grainger, the largest listed rental landlord in the UK, is upping rents in ‘one of the strongest occupational markets we have seen’.

[igoe104] 05/10/2023 06:19

Very good update, with 8% rental growth and record occupancy..

[igoe104] 21/9/2023 10:43

Added another 5k today. Taken me over 20k investment in GRI. Should be a sound long-term investment, the demand for properties isn't going away..

[igoe104] 12/9/2023 15:39

I've visited the newly built Derby site, very impressive build. Should be a big jump in earnings over the next 18 months. And the debt is capped at a low rate for the next several years.

[steve3sandal1] 15/8/2023 18:00

The share price is all about interest rates. I have a view that they can't officially go much higher and will be lower in 12 months. BOE and Rishi talking them down. Agree the dividend needs to be higher but there is a REIT in plan and Net Rental Income is on a good trend. I'm not giving up.

[giltedge1] 20/7/2023 15:48

Visited a site in Sheffield on 19/07, quite impressed, modern units, fully occupied, large common area, free tea/coffee, meeting room, communal balconies each floor, roof top terrace, pets allowed, concierge services. Pity my visit was after rise. Financials aside run a good business model.

[viscount1] 04/7/2023 07:37

GRI yield will have to go up when it converts to a REIT.

[giltedge1] 04/7/2023 07:12

PRS had a good write up in IC, should also apply to GRI. GRI better in respect of more South East orientation, I think lowish yield puts off some investors, but making good strides in improving portfolio(selling old & building new energy efficient homes) & great locations. Joint venture with TFL right next to stations. I think yield will improve next few years as well.

[viscount1] 30/5/2023 10:41

Rents increasing rapidly in UK:

This makes sense based on private landlords withdrawing due to tax, regulation and mortgage rates, as well as housing shortages due to underbuilding. Good story for BTR like Grainger; hopefully they can pump up their prices quickly and cash in.

[hindsight] 15/5/2023 15:42

Yes but market will price in value at end of fix
I do hold and think value is fair here

[viscount1] 15/5/2023 13:47

They have hedged interest rates with IRS.

[hindsight] 15/5/2023 13:17

When the loans reset to say 5% (10 year gilt 4% plus credit spread), then from memory the 30m interest goes to 50m. Rental income 80m so need 25% rent rises to cover interest rate shift. Then have the debate what is a fair rental % return ie divi. Maybe can argue it can be lower than base rate if getting inflation growth on assets

[viscount1] 14/5/2023 20:18

The IC comment on leverage made no sense to me, so I went to double-check. GRI has loans of 1.5B, all long term with near zero rate risk. Set that against 3.3B of hard assets. That is not a bad "leverage" position for a property business.

These analysts are morons.

[giltedge1] 14/5/2023 19:37

IC comment. The final bull point for Grainger is demand. Residential rents are increasing at their fastest pace on record thanks to a shortage of available homes. This is a big part of the reason why analyst Oxford Economics predicts that residential property will far outperform all commercial property segments in the coming years – on both valuation and rent increases. 

So, while Grainger is heavily leveraged, it is building into a property sector with demonstrable demand and a strong potential for valuation increase. No small feat at a time when many property companies are struggling. Buy

[viscount1] 12/5/2023 09:41

Also keep hoping they might get bought out by one of the new entrants trying to come into the market, e.g. Lloyds or some Americans.

[giltedge1] 12/5/2023 09:27

Good update almost full occupancy & swapping older assured tenancy houses for modern new build complexes, Easier to manage & energy efficient. Mostly London & SE based in which shortage of good quality flats. JV with TFL great building near underground. Low yield now but can see increasing to 5% next few years. Only negative high admin charges.

[viscount1] 11/5/2023 10:50

Seems like pretty good half year-results today. Net rental income is up nicely, indicating both good cost control and above-average rent rises that are also above average wage inflation.

Important to look through the noise from the property portfolio disposals and revaluations.

Debt and balance sheet look very solid with lots of room to grow. I am a long-term fan of the build to rent sector in the UK given the way government mismanagement of housing policy is forcing small landlords out and also constricting new houses to buy.

I listened to a little of the earnings call: this company always comes across to me as being very professionally managed.