Slide 1: Outstanding performance; Accelerating growth
Outstanding performance; Accelerating growth Half Year Financial Results 6 months to the end of March 2025 15 May 2025
Slide 2: Agenda
Originate Invest Operate Agenda 1. Highlights Helen Gordon Chief Executive 2. Financial results Rob Hudson Chief Financial Officer 3. Grainger driving shareholder value Helen Gordon Chief Executive 4. Summary and Q&A Helen Gordon Chief Executive 5. Appendix Grainger Plc | www.graingerplc.co.uk 2
Slide 3: Delivering shareholder value
Originate Invest Operate Delivering shareholder value Accelerating earnings growth 50% EPRA Earnings growth by FY29 Outstanding Structurally Accelerating performance supported growth demand Portfolio expansion Growing population and Sector leading operational accelerating earnings rental demand plat
Slide 4: Outstanding financial performance
Originate Invest Operate Outstanding financial performance +15% +4.4% +23% +12% Robust valuations growth in like-for-like EPRA dividend net rental rental Earnings growth 300pps income growth growth net tangible assets (NTA), up +1% Grainger Plc | www.graingerplc.co.uk 4
Slide 5: Operational excellence
Originate Invest Operate Operational excellence 96% 25% 62% 28% fully let efficient strong healthy occupancy gross-to-net customer customer retention affordability Grainger Plc | www.graingerplc.co.uk 5
Slide 6: Strong levels of BTR investment activity
Originate Invest Operate Strong levels of BTR investment activity £6bn forecast Total UK BTR investment volumes for 2025 Continued strong demand for BTR: 6 attractive asset class, yields stable, and 5 Q1 Q2 Q3 Q4 growing rents supporting valuations £ billions 4 3 More than £1.1 billion invested in t
Slide 7: Significant growth from pipeline to come
Originate Invest Operate Significant growth from pipeline to come OPERATIONAL PORTFOLIO* BTR PIPELINE 11,029 homes, £3.5bn 4,565 homes, £1.3bn Regulated Build to Rent Portfolio** Planning/ Tenancies Committed Secured £598m £2,862m £413m £541m Legals £370m 1,340 homes 9,689 homes 1,180 homes 2,044 ho
Slide 8: Accelerating earnings and returns
Originate Invest Operate Accelerating earnings and returns Disposals to fund investment pipeline Proven ability to Attractive income accretion via recycle capital £1.1bn of disposals of low-yielding, non-core assets funding the BTR £549m pipeline of disposals Existing over the last Headroom 2.5 year
Slide 9: Consistent delivery, momentum continuing
Originate Invest Operate Consistent delivery, momentum continuing Growth in net rental income EPRA Earnings growth delivered Operational leverage delivered SRTONG TRACK RECORD +15% 9-yr CAGR EBITDA margin expansion 2015 to today 52% 53% 52% 53% 54% 51% £18m £14m 47% £15m £12m 43% £40m £48m £28m 34%
Slide 10: Financial Results
2. Financial Results Windlass Apartments, Tottenham Hale Rob Hudson Chief Financial Officer 10
Slide 11: Excellent results
Originate Invest Operate Excellent results Continuing our accelerated growth trajectory Like-for-Like Rental Growth Total Net Rental Income EPRA Earnings +4.4% +15% +23% (190)bps HY25: £61.3m HY25: £30.2m FY24: 6.3% HY24: £53.2m HY24: £24.5m Adjusted Earnings Dividend per share EPRA NTA per share +1
Slide 12: Continued strong earnings growth
Originate Invest Operate Continued strong earnings growth EPRA Earnings up 23% Net rental income up 15% in HY25, HY25 HY24 Change delivering continued acceleration Net rental income £61.3m £53.2m +15% Total LfL rental growth strong at 4.4% Mortgage income (CHARM) £2.1m £2.3m (FY24: 6.3%) Management
Slide 13: 15% net rental income growth
Originate Invest Operate 15% net rental income growth Driven by strong lease up of new openings Strong lettings £10.3m performance continues, Total LfL 4.4% with LfL contributing £0.9m BTR/PRS LfL 4.2% £61.3m New lets 3.1% Renewals 4.9% BTR investment delivered £(3.1)m Regulated 7.0% £10.3m of net r
Slide 14: NTA: Further valuation growth
Originate Invest Operate NTA: Further valuation growth NTA at 300pps, up +1% from FY24 Overall Portfolio valuation up 9p 4p 0.8% Operational BTR/PRS portfolio (5)p valuation growth of 1.0% driven (6)p by: ERV growth of 1.7% Yields broadly flat Regulated tenancy portfolio valuation movement resilient
Slide 15: Net debt broadly flat
Originate Invest Operate Net debt broadly flat Self-funded growth with investment offset by disposals Net debt broadly flat in H1 FY25, reflecting investment Operating cash inflow matched by disposals £95m £37m £1,475m Operating cash inflow £1,453m £(90)m* £31m £(79)m** £16m increased to £95m, £64m
Slide 16: Strong, secure and de-risked balance sheet
Originate Invest Operate Strong, secure and de-risked balance sheet Protection against rising rates, reducing LTV to preserve strong earnings momentum Continuing balance sheet strength HY25 Cost of debt fixed in mid 3%s (97% hedged with a Net debt £1,475m hedge maturity of c.3 ½ years) Loan to value
Slide 17: Under 6 months to REIT conversion
Originate Invest Operate Under 6 months to REIT conversion A significant landmark in the transition of our business REIT structure well suited to our strategy Preparations complete Residential the perfect fit for the REIT Delivery Conversion set for early September structure given its resilient grow
Slide 18: Transformative growth in NRI and earnings
Originate Invest Operate Transformative growth in NRI and earnings Pipeline set to grow our net rental income to £193m Committed pipeline to Committed pipeline £413m Secured £541m Planning / Legals £370m deliver £43m of additional net rent (from FY24) +£16m £193m Full pipeline will deliver +£24m £17
Slide 19: 50% earnings growth from committed pipeline
Originate Invest Operate 50% earnings growth from committed pipeline Substantial growth in medium term after full rebasing to higher rates On track to deliver FY26 EPRA Earnings guidance of £60m Further growth Medium term EPRA Earnings set for substantial potential growth with potential for c.50% in
Slide 20: Transformative growth trajectory
Originate Invest Operate Transformative growth trajectory Net rental income growth of 15% driven by lease up of new schemes and continued strong rental growth EPRA Earnings up 23% demonstrating the operational leverage and compounding growth in our business model Strong balance sheet, fully funded p
Slide 21: Grainger driving shareholder value
3. Grainger driving shareholder value Helen Gordon Chief Executive 21
Slide 22: Grainger's shareholder value creation model
Originate Invest Operate Grainger’s shareholder value creation model 1 Structural Market Tailwinds PRS / BTR 2 Inflation+ Rental Growth 3 Scaleable Operating Platform 4 Accelerating EBITDA margin 5 Substantial Pipeline Growth Grainger’s Regs Reversionary Growth Funding Surplus Engine Strong balance
Slide 23: Growth in rental demand continues strongly
Originate Invest Operate Growth in rental demand continues strongly Rental demand to grow by 20% by 2031 Rental demand to grow by 20% by 2031 Cumulative increase in number of PRS households 1,400 UK population continuing to grow Thousands 900 +20% Rental demand growth strongest in 400 Grainger’s cor
Slide 24: Supply remains constrained
Originate Invest Operate Supply remains constrained Weakening outlook for overall housing supply UK faces a severe undersupply of housing Housing units granted planning permission, England 350,000 4.3m homes shortfall* 300,000 250,000 Weak outlook as planning permissions fall 200,000 150,000 In Q1 2
Slide 25: Residential a strong & attractive asset class
Originate Invest Operate Residential a strong & attractive asset class Grainger’s rental growth closely related to wage growth Highly attractive, inflation+ asset class Grainger rental growth compared to UK wage growth 10 4.5% portfolio yield* v 1.4% index-linked 10yr UK Gilt ONS Regular Pay 8.1% 8
Slide 26: Strong rental growth outlook
Originate Invest Operate Strong rental growth outlook Grainger’s core demographic is between 20 and 44 years old Well positioned to outperform on rental growth Proportion of residents by age in Grainger's PRS portfolio Grainger has strong customer demographics, 40% 89% 35% with wages growing faster
Slide 27: Carefully selected investment locations
Originate Invest Operate Carefully selected investment locations A research-led investment approach to capital allocation High demand / supply High demand / supply Cities Strategy fundamentals and low fundamentals and growth potential high growth potential London Rigorous analysis of key investment
Slide 28: Cluster Strategy driving performance
Originate Invest Operate Cluster Strategy driving performance Efficient gross to net maintained at 25.0% YORKSHIRE 1,024 NORTH EAST Newcastle 343 Leeds & Sheffield Operational 1,024 Operational 343 NORTH WEST Manchester & Liverpool 1,874 SOUTH EAST Incl. Milton Keynes 2,553 Operational 1,874 Operati
Slide 29: Excellent customer experience
Originate Invest Operate Excellent customer experience Grainger’s Customer Net Promoter Score compares favourably to Leveraging data, technology and AI consumer brands to drive customer experience Good Favourable Excellent Sector leading operational platform Upgraded App with enhanced functionality
Slide 30: A positive regulatory and political backdrop
Originate Invest Operate A positive regulatory and political backdrop Change: High quality homes and leading Government focused on supply-side Increasing operating platform stimulus, specifically housing supply rental standards Systems, processes and people Government supports the BTR sector Change:
Slide 31: Multiple routes for continued growth
Originate Invest Operate Multiple routes for continued growth Stabilised Asset repositioning Development Strategic joint acquisitions opportunities ventures & Land adjacent to existing schemes: partnerships The Astley, Manchester 3 Central London Guildford: 179 homes TFL, London assets (zones 1 & 2)
Slide 32: Grainger's shareholder value creation model
Originate Invest Operate Grainger’s shareholder value creation model 1 Structural Market Tailwinds PRS / BTR 2 Inflation+ Rental Growth 50% Earnings growth by FY29 3 Scaleable Operating Platform 4 Accelerating EBITDA margin 8%+ TAR with low 5 Substantial Pipeline Growth volatility Shareholder value
Slide 33: Q&A
Originate Invest Operate Q&A Grainger Plc | www.graingerplc.co.uk 33
Slide 34: Appendix
Originate Invest Operate Appendix Contents Market value balance sheet Page 35 1. Financial information EPRA Earnings Page 36 EPRA NTA Page 37 EPRA NRV, NTA, NDV Page 38 Debt facilities Page 39 Total accounting return Page 40 Portfolio overview Page 41 2. Portfolio information Portfolio summary Page
Slide 35: Market value balance sheet
Originate Invest Operate Market value balance sheet Market value balance sheet (£m) HY25 FY24 Residential – BTR/PRS 2,788 2,708 Residential – regulated tenancies 545 591 Residential – mortgages (CHARM) 53 57 Forward Funded – BTR work in progress 260 266 Development work in progress 85 84 Investment
Slide 36: EPRA Earnings
Originate Invest Operate EPRA Earnings HY25 HY24 Adjusted EPRA Adjusted EPRA £m Adjustments Adjustments Earnings Earnings Earnings Earnings Net rental income 61.3 - 61.3 53.2 - 53.2 Profit from sales 19.9 (19.9) - 19.9 (19.9) - Mortgage income (CHARM) 2.1 - 2.1 2.3 - 2.3 Management fees 4.7 - 4.7 3.
Slide 37: EPRA NTA
Originate Invest Operate EPRA NTA HY25 FY24 IFRS Adj to market IFRS Adj to market EPRA NTA EPRA NTA statutory value, tax, statutory value, tax, £m balance balance balance derivatives, balance derivatives, sheet sheet sheet intangibles sheet intangibles Investment property 3,102.1 - 3,102.1 3,028.3 -
Slide 38: EPRA NRV, EPRA NTA and EPRA NDV
Originate Invest Operate EPRA NRV, EPRA NTA and EPRA NDV HY25 FY24 EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV £m IFRS Equity attributable to shareholders 1,913.2 1,913.2 1,913.2 1,893.7 1,893.7 1,893.7 Diluted NAV 1,913.2 1,913.2 1,913.2 1,893.7 1,893.7 1,893.7 Include: Revaluation of oth
Slide 39: Debt facilities
Originate Invest Operate Debt facilities Balance sheet, funding and hedging: strong, secured and de-risked Facility* Lender Size Drawn Maturity Core Facilities: Corporate Bond Listed £350m £350m Apr 2028 Corporate Bond Listed £350m £350m Jul 2030 Revolving Credit Facility HSBC, NatWest, Barclays £39
Slide 40: Total accounting return
Originate Invest Operate Total accounting return Sustainable low risk 8% TAR, underpinned by: 8.0% Extremely resilient income return, underpinned by low volatility residential income and efficient operating platform 4.5% capital return Resilient rental growth driven Assuming 3.5% valuation growth, a
Slide 41: Portfolio overview
Originate Invest Operate Portfolio overview Regulated tenancies BTR/PRS Customer has the right to live in the property for life Leases with typical duration of 1-3 years Sub-market rent set by Valuation Office Agency Market rents Upon vacancy Grainger sells the property Returns based on Returns comp
Slide 42: Portfolio summary
Originate Invest Operate Portfolio summary Market value Net Rent Units £m £m Net yield* Residential – BTR/PRS 9,535 2,788 113 4.5% Residential – regulated tenancies** 1,040 545 10 2.0% Residential – mortgages (CHARM) 300 53 n/a n/a Forward Funded – BTR work in progress - 260 - - Development work in
Slide 43: Valuation Summary
Originate Invest Operate Valuation Summary H1 Valuation Movement Capital Value Homes £m £m % BTR/PRS Portfolio London & SE 3,897 1,341 13 1.0% Regions 5,638 1,447 16 1.1% Total BTR/PRS 9,535 2,788 29 1.0% Regulated tenancy portfolio London & SE 707 469 0 0.1% Regions 333 76 2 2.2% Total regulated te
Slide 44: Portfolio movements
Originate Invest Operate Portfolio movements Sep 24 Additions Disposals Transfers Valuation Mar 25 £m £m £m £m £m £m BTR/PRS London & SE 1,277 13 (27) 65 13 1,341 Regions 1,431 4 (4) 0 16 1,447 Total BTR/PRS 2,708 17 (31) 65 29 2,788 Regulated tenancies London & SE 512 1 (44) - 0 469 Regions 79 0 (5
Slide 45: Portfolio geographical breakdown
Originate Invest Operate Portfolio geographical breakdown BTR/PRS & Regulated tenancies (HY25) BTR/PRS Regulated tenancies Region Units Market Change Net Units Market Change Net value vs FY24 yield* value vs FY24 yield* £m £m London & SE 3,897 1,341 1.0% 4.3% 707 469 0.1% 1.9% South West 740 303 0.3
Slide 46: PRS portfolio
Originate Invest Operate PRS portfolio Top 20 assets by Rent (ERV) Unit mix # Asset City Postcode Units Studio / 1 bed 2 bed 3 bed Area Sq ft** 1 Clippers Quay Manchester M50 3AF 510 162 290 58 371,622 2 The Filaments Manchester M3 5PF 376 98 235 43* 246,416 3 The Silver Yard Birmingham B4 6GF 375 1
Slide 47: Portfolio expansion in FY25
Originate Invest Operate Portfolio expansion in FY25 Adding c.800 new homes, delivering c.£13m of additional net rental income Windlass (Ph.2), Tottenham Hale, London The Kimmeridge, Botley, Oxford Forward Purchase Forward Fund 65 homes 150 homes Launched Oct’24 Launched Feb’25 NRI: c.£1.3m NRI: c.£
Slide 48: Committed pipeline schedule
Originate Invest Operate Committed pipeline schedule No. Targeted Est. Grainger Spend to Gross yield Committed Projects units launch Status investment date target** Forward funding / acquisition Seraphina Apartments, Fortunes Dock, London 132 Mid FY25 On site £56m £56m c.5.5% Glasshouse Square, Redc
Slide 49: Secured pipeline schedule
Originate Invest Operate Secured pipeline schedule Est. Grainger Spend to Gross yield Secured Projects No. units Targeted launch Status investment date target** Direct Development Waterloo, London 215 TBC Consent granted £130m* £15m c.5.0% Exmouth Junction, Exeter 230 TBC Acquired £60m £12m c.6.25%
Slide 50: Sustainability initiatives
Originate Invest Operate Sustainability initiatives SBTi has approved Grainger's decarbonisation Good progress towards SBTi target delivery: targets and confirmed alignment to a 1.5 degree reduction pathway 95% BTR/PRS portfolio with EPC ratings A-C Net zero asset plans in place Ongoing refurbishmen
Slide 51: Future reporting dates
Originate Invest Operate Future reporting dates 2025 Trading update September Full year results 20 November Grainger Plc | www.graingerplc.co.uk 51