Originating, investing and operating PRS
We aim to deliver superior shareholder returns that are long-term and resilient by investing in the UK private rented sector (PRS) (also referred to as multifamily housing). We are directly investing in the best assets in the best locations using in-house proprietary research, leveraging our leading operational platform which delivers market outperformance.
Our unique portfolio of regulated tenancies is an important part of our business, which provide reliable income and will generate significant capital from sales as the portfolio unwinds for years to come, which we are reinvesting into our growing PRS portfolio.
Why Grainger
OUR STRATEGY
Our strategy has three focus areas (1) to grow rents, (2) simplify the business and (3) build on our experience as a leading, responsible residential landlord.
Our dividend policy is to distribute the equivalent of 50% of our net rental income to shareholders. Our growth strategy is designed to deliver significant growth in dividend and net asset values over the coming years.
Why PRS
Our integrated business model
We are a fully integrated business. We originate our assets through design and development. We invest in the assets directly. And we operate our assets ourselves, with our market leading operational platform, powered by our technology solution, CONNECT.
A significant market opportunity
The UK private rented sector is a growing asset class, set for significant growth in demand and underpinned by long-term structural drivers. Rental households in the UK are estimated to grow 20% in the 10 years to 2031, representing 5.6m households, of which only 2.5% are purpose-built rental homes (‘build-to-rent’). The rental market is going through a period of significant change with a drive for greater professionalisation, which we are perfectly aligned with.
capital allocation and investment pipeline
Our in-house research team identify locations with the greatest rental demand and greatest growth prospects. We target these locations and allocate our capital in a disciplined manner in line with our discerning investment criteria.
We have a £1.3bn investment pipeline which will deliver over 4,300 new private rental homes over the coming years. This pipeline is expected to double our net rental income when the schemes are completed, fully leased and stabilised.