Grainger becomes a REIT after nine-year strategic shift

The UK’s largest listed residential landlord, Grainger, has officially become a Real Estate Investment Trust (REIT), a change supported by its shareholders.

Glasshouse Square

This achievement marks the end of Grainger's nine-year journey to become a company focused solely on build-to-rent (BTR) properties. They now manage approximately 11,000 rental homes valued at £3.5 bn (€4.0 bn), serving over 25,000 customers.
Grainger's conversion to a REIT was helped by a program of selling off less profitable, non-essential assets. Over the last decade, they have sold about £1.8 bn (€2.1 bn) worth of these assets and invested over £2.9 bn (€3.3 bn) into approximately 10,000 higher-yielding BTR homes. This strategy has allowed Grainger to grow and develop its projects while moving to a REIT structure, which supports long-term growth and better returns for shareholders.
The new REIT status strengthens Grainger's leadership in the BTR sector. It also allows all types of investors, including individual retail investors, to invest directly in UK housing. Becoming a REIT makes Grainger a more tax-efficient investment, removing the double taxation that previously affected the company and its shareholders.
Helen Gordon, Chief Executive of Grainger, commented: "This conversion enhances our ability to deliver sustainable returns to shareholders while continuing to provide high-quality rental homes for our customers. With our fully funded pipeline of 4,565 new homes valued at £1.3 bn (€1.5 bn) and our forecast of 50% EPRA earnings growth by FY29, Grainger is well-positioned for continued success as a REIT. We look forward to the opportunities this new status brings for our shareholders, customers, and the wider BTR sector."
Grainger is experiencing high demand for its properties, with over 96% occupancy and rental growth exceeding the long-term average. The company predicts a 25% growth in EPRA Earnings by 2026 (from its 2024 financial year) and a 50% growth by 2029. 
Grainger will release a trading update in early October, after its financial year ends on September 30th.