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Up until the start of summer, Grainger shares were having quite the time of it. Opening at £2.88, the stock had, after a first quarter wobble, climbed to an 11 year peak of £3.23 by mid-June, lifted in part by May’s well-received half year results.

Yet since then, the UK’s largest listed residential landlord has seen basically all of that growth unravel.

By the end of October – a month that admittedly wasn’t kind to anyone – the landlord had returned to the lows struck in early March, finding itself dipping under £2.70. Grainger shares now sit at a current trading price of £2.85.

A healthy update

During that decline, Grainger actually posted a healthy update at the end of September.

With CEO Helen Gordon celebrating the firm’s ‘significant success’, the company announced year-to-date overall like-for-like rental growth of 4%, against the 3.7% seen at the same point in 2017.

In its private rental sector division like-for-likes rose 3.1%, with its secured PRS investment pipeline now at £817 million and ‘on track to deliver a step change’ in the firm’s net rental income and dividend ‘as the pipeline stabilises’.

What can we expect from the Grainger results?

As for Wednesday’s results, the focus may actually more be on the forecasts for the upcoming financial year. Back in September, Grainger said that a number of its schemes would start to become income producing during that period, including 1300 units set for delivery across its schemes in Manchester, Bristol, Birmingham, Sheffield and Milton Keynes, so any word on what that’ll mean financially will be welcome.

Investors will also want to see similar pre-tax profit growth to that which was posted during May’s interim results, a 23% increase to £50.6 million.

Grainger shares have a consensus rating of ‘Buy’ alongside an average target price of £3.35.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

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Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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