FoggyIsle.XYZ | Market's view on Grainger plc

There is a discussion on Grainger’s current debt of 1.4bn at 3.3%, which is set to reset in 2028/29, but the benefit of a few years at 8.4% rental growth is acknowledged.
Stock watchers are optimistic about Grainger’s performance due to a strong 8.4% like-for-like rental growth and potential from chronic housebuilding shortages.
Positive remarks about Grainger’s recent trading statement indicate general approval of company’s performance.
There’s a focus on the implications of Grainger becoming a Real Estate Investment Trust (REIT), particularly how this will require them to distribute over 90% of rental profits, significantly higher than the current rate.
Enquiries are being made about the expected dividend payout after Grainger transitions to REIT status.
A broker upgrade from Berenberg has initiated coverage of Grainger with a ‘buy’ rating and a price target of 305 pence.
Mention of a small acquisition by Grainger, though details are minimal.
Stock watchers note that despite growth in housing stock, dividend growth is slow and not significantly pushing up Net Asset Value (NAV).
Positive feedback on Grainger’s financial results, highlighting great cashflows and a 9.2% increase in like-for-like new lets, reflecting strong pricing power.
News of a joint venture with Network Rail and good company direction is shared.
Grainger has sold a 15.3-acre site in Waterlooville, Hampshire to Bargate Homes and VIVID for a development of up to 200 homes as part of the Berewood Garden Village masterplan.
There’s excitement about high occupancy and early lettings in new developments, such as the one in Derby being significantly pre-let.
Stock watchers discuss the broader real estate market dynamics, noting that properties’ values are currently supported, reducing the risk of valuation decline in upcoming results.
Observations made on operational sites, such as one in Sheffield, show modern amenities and full occupancy, indicating a solid business model from an operational perspective.
There’s a general consensus that the expected yield for Grainger will increase post its conversion to a REIT.