Grainger 1H26 Conf. call: Robust fundamentals intact; disposal led deleveraging and buyback in focus

Research evidence excerpt

Grainger 1H26 Conf. call: Robust fundamentals intact; disposal led deleveraging and buyback in focus

C A Z E N O V E Europe Equity Research

14 May 2026

Grainger Overweight

GRI.L, GRI LN

1H26 Conf. call: Robust fundamentals intact; disposal Price (13 May 26):155p

led deleveraging and buyback in focus Price Target (Dec-27):265p

We present our key takeaways from today’s conference call. European Property

Neil Green, CFA AC

• CEO: Earnings are on a clear compounding trajectory, with guidance implying (44-20) 7134-4478

~12% growth this year and ~35% growth by FY29, even after higher financing neil.d.green@jpmorgan.com

costs. Performance is underpinned by high occupancy, strong customer J.P. Morgan Securities plc

affordability, and a committed development pipeline in an under-supplied Vanessa M Guy

market. Operationally, rental income grew ~7.8% with like‑for‑like growth of (44-20) 7742-4521

~3.1% and earnings up ~4%. vanessa.guy@jpmorgan.com

J.P. Morgan Securities plc

• Net asset value declined modestly, primarily due to valuation movements, Krishna Sathwik Beechu

with rental growth partially offset by outward yield shifts reflecting macro (91-22) 6157 5847

sentiment. The core portfolio saw slight valuation pressure despite positive krishna.s.beechu@jpmchase.com

rental trends, while the regulated portfolio continued to see marginal valuation J.P. Morgan India Private Limited

uplift.

• Disposals remains a key funding lever: Over £2bn has been recycled since

strategy inception, including £700m since 2022, with £82m completed or

exchanged year‑to‑date despite earlier market delays. Disposal activity

partially offset rental gains, with full-year rental growth expected to remain in

the ~3–3.5% range.

• The near-term pipeline of ~775 homes requires only ~£120m to complete