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.
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