Grainger Plc · LSE:GRI
Grainger — Shareholder Meeting (February 2024)
14 slides from Grainger's shareholder meeting presentation, Feb 7, 2024
Slide 1: An outstanding year of record delivery with an excellent outlook
An outstanding year of record delivery Change with an excellent photo outlook AGM 7 February 2024 Covering FY23 Financial Year
Slide 2: Strong performance and outlook
Strong performance and outlook Originate Invest Operate Excellent operational Strong Confident performance balance sheet outlook 1,640 +12% +43 305 pps New homes in 2023, Net rental income NPS (+26%) NTA (-4%) £17m net rent once stabilised +8.0% 63.2% 36.8% £43m PRS L4L rental Retention LTV Future i
Slide 3: Proven track record of successful execution
Proven track record of successful execution Originate Invest Operate Grainger continues to deliver year in and year out Strong and consistent growth in recurring net rent Delivery of 2016 strategy to focus on PRS Net rental income Portfolio composition CAGR +13% £44m £40m £64m £74m £86m £97m £71m £3
Slide 4: A year of record delivery
A year of record delivery Originate Invest Operate EPRA earnings growth accelerating as pipeline converts OPERATIONAL PORTFOLIO* PRS (BTR) PIPELINE 5,634 homes, £1.6bn 10,208 homes, £3.3bn £760m £2,500m £721m £541m £316m Regulated Committed Planning/ PRS Portfolio** Secured*** Tenancies 2,609 homes
Slide 5: Passing net rent and earnings progression
Passing net rent and earnings progression Originate Invest Operate Transformative growth in NRI and doubling of earnings Planning / Legals Committed pipeline £721m Secured ** £541m £316m £167m +£15m £182m +2.1x +£23m £144m +£8m +£5m +1.7x +£13m +£17m^ £96m £101m £86m FY22 FY22 FY22 reported reported
Slide 6: ESG reporting and financial integration
ESG reporting and financial integration Originate Invest Operate Data-driven approach to ESG 91% PRS portfolio Enhanced measurement and reporting Highlights from the year with EPC ratings A-C Scope 3 baseline measured and independently verified 90% -4% Renewable electricity Reduction in Grainger Lon
Slide 7: Positive market outlook
Positive market outlook Originate Invest Operate Strong demand continues with supply constrained Growing demand Reducing supply Growing number of renters PRS undersupply worsening with Economic migration small private landlords exiting and Delayed housing purchases the number of HMO’s reducing Stron
Slide 8: Focused customer affordability
Focused customer affordability Originate Invest Operate Grainger focused on young professional demographic Grainger’s customers are paying affordable rents Proportion of residents by age in Grainger’s PRS portfolio Proportion of household income spent on rent (%), England 37 33% 36 28% 27% 35 Graing
Slide 9: Supportive political landscape
Supportive political landscape Originate Invest Operate Rent controls ruled out by both parties “I want to be clear: This “I don’t think under Keir’s Government does not leadership, rent control has support rent controls.” ever been our policy.” Conservative Housing Minister, Labour’s Shadow Chancel
Slide 10: Established scale in key cities
Established scale in key cities Originate Invest Operate £721m committed pipeline Cluster Strategy ▪ Drives operational efficiencies and enables leveraging our brand nationally Investment (since 2016) ▪ Investment now delivering ▪ 22 operational BTR assets ▪ 11 cities & 3 towns ▪ 7 schemes deliverin
Slide 11: New openings
New openings Originate Invest Operate Completed The Mint, Guildford The Condor, Derby Completed and Completed and launched Jul ‘23, launched Aug ‘23, 98 BTR homes 259 BTR homes Nautilus Apartments, London Weavers Yard, Newbury (additional phases) Completed and Phased completions, launched Sep ‘23, 2
Slide 12: New openings continued
New openings continued Originate Invest Operate Launched Completing ‘23 The Tilt Works, Sheffield The Barnum, Nottingham Completed and Completed and launched Sep ‘23, launched Oct ‘23, 284 BTR homes 348 BTR homes Copper Works, Cardiff Completing late ‘23 307 BTR homes 7 new assets 1,640 new BTR home
Slide 13: Why Grainger
Why Grainger Originate Invest Operate Doubling earnings in the next 3 years 1 Post tax EPRA earnings to double from FY22 £43m of net rent growth from the fully-funded, committed pipeline locked-in 2 Strong balance sheet Finance costs fixed in the mid 3% for the next 5 years 3 Resilient valuations St
Slide 14: Thank you Q&A
Thank you Q&A The Barnum, Nottingham