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Yes, agreed , did a quick calculation and share price would drop by 9% purely on the dilution that is about to take place. So shares are not down at all today on that basis. Any drops or rises from now on are down to other factors.
I think the drop today is because it has gone ex-rights
Shame this is getting hit but ready to buy back after brexit commotion as previously stated in September.
Those of us that held Grainger in 2008 will remember the bumpy ride following the property crash. This has had a good run and I am taking some profit over the coming months with a view to seeing where this is sitting post brexit. Grainger are much stronger now but the markets could hammer this if property prices continue to drop. They are very South East based never really expanded into Germany. Sure there is a counter argument with pound dropping etc but cash could be king post March 2019.
Property investor Grainger PLC acquired a 261 home build-to-rent scheme in Buckinghamshire for GBP63.0 million from Peveril Securities Ltd. Grainger has conditionally agreed to buy the project in Milton Keynes which will be developed into a 261 home private rented sector site. The scheme has planning consent but the deal depends on the completion of a new YMCA building adjacent to the site. This will be part of the first phase of the wider development of the area. THe YMCA building is expected to complete in the third quarter of 2019.
Grainger said it expects the home to be completed by the second half of 2021. On completion, it expects the investment to have a yield on cost of 6.3%.
Rate this as a BUY following the results announcement on 01/12.
§ Net rental income up 15% to £37.4m (FY15: £32.4m);
§ Adjusted earnings* (recurring profit) up 69% to £53.1m (FY15: £31.5m);
§ Dividend per share up 64% to 4.5p** (FY15: 2.75p);
§ Profit before tax up 64% to £84.2m (FY15: £51.4m);
§ EPRA NNNAV growth of 9% to 287p (FY15: 263p);
§ Net debt reduced by 33% to £764m (FY15: £1,138m);
§ Loan to value reduced to 35.9% (FY15: 45.5%);
§ Cost of debt ahead of plan at 3.9% at the period end (FY15: 4.6%); and
§ Total return (return on shareholder equity) of 10.6% (FY15: 10.0%).
Ahead of FY16 earnings
The Co. have been quite positive of late, stating good rental growth has continued, our sales performance has remained strong.
Co. expect to report modest growth in market value of our property assets in second half of year and expect to report high single digit year-on-year growth in NNNAV for full year.
In terms of price action we are at the mean value area on the daily chart but on the 1HR chart we are currently above value. A good result will surly push price into a new distribution area at the 230 level but the 226.26 level could provide some resistance.
On the downside the key support will be at the value are of 220.30 and the low of 214.42
Grainger plc ("Grainger", the "Company" or the "Group"), the UK's largest listed residential property owner and manager, today provides a trading update covering its activities for the ten months to 31 July 2015.
Trading highlights for the period include:
· Strong sales performance across Reversionary business
· Exceptional market response to first Build to Rent scheme, Abbeville Apartments in Barking, London
· 929 tenanted PRS units have been acquired since the start of the year
Commenting, Andrew Cunningham, Chief Executive of Grainger, said:
"In addition to the excellent trading performance over the period, we continue to simplify the Group's operations and accelerate the growth of our PRS business. Today we can announce that, to increase our focus on the UK market, we have appointed investment bank, Lazard, to advise on the disposal of our wholly owned residential property assets in Germany.
"Our focus on accelerating the growth of our UK PRS business is going well, with recent acquisitions bringing our total managed PRS portfolio in the UK to over 3,400 units, and with a pipeline of over 2,000 units. And last week we were pleased to achieve a significant refinancing package for our syndicated bank debt, reducing our cost of debt and extending maturities."
Strong trading results
- Sales of vacant properties achieved prices on average 8.3% above September 2014 vacant possession value at margins of 51.2% (31 July 2014: prices achieved at 12.7% above September 2013 vacant possession value with margins of 48.6%).
- Sales pipeline of vacant reversionary assets - £213.8m of sales completed, exchanged or in solicitors' hands (31 July 2014: £228.1m).
Bidders stalk the U.K.’s top landlord Grainger in ‘£1 billion takeover’ after investment group Crystal Amber takes 3% stake: Grainger, Britain’s largest market-listed landlord, is being circled by potential bidders considering a £1 billion-plus takeover
Property firm Grainger achieves sales growth despite electioneering building: Property management firm Grainger said despite the good start to the year, the company expects the months leading up to the election to result in a softer market on home sales as uncertainty weighs on market sentiment.
On the same day MTVW put out their statement clear that buying there is money better spent than here at the moment. Just holding a few here whilst buying at every opportunity with MTVW.
Gut instinct says avoid
Unsure about this....
1.1b debt and interest coverage ratio less than 1....however its had considerable debt for a while and didn't stop sp increasing from £1 level.
Will post later....but I do like Midas picks and they tend to recommend wellso will analyse and post here.
Don't like 2 year chart at all.....if 200p resistance isn't regained I see further moves down
How does your FA show its " cheapness"?
I just saw it now on Midas....they say trading statement on thursday could ease worries.
They also say drop overdone so worth watching I guess.
Having said that the 12math chart 50,100,200 Ma look good support at 190-200
Bit early for property stocks revival imho
Recd in Midas share tips today.....trading statement on the Thursday?
Brokers still positive on Grainger and they continue to perform. Question will the general dampening of housing market keep them down around 200-230p. Wellesley project now fully through planning for 3850 new homes. Mentioned on another board that I bailed most of my stock and took a good profit some months ago. But still watching this with an eye on buying opportunities on general market sentiment. Their core business is renting solutions around London which is doing well and maybe the building side is keeping Grainger down even though Wellesley is a great project. Maybe it is a little too philanthropic for general building but I think Grainger pride themselves on leaving a legacy, just hope market is a little sympathetic to the cause! Reputation does matter but a profit is a profit and I got a little over excited a few months ago and realised it was time to buy similar companies like MTVW with a better balance sheet. Keeping the faith just with smaller amounts.
Could make 250p by close of play. Money flowing into Grainger. I am in danger of believing my own predictions at present. Thought growth would be steady this year but this share is flying.
Loads happening at Grainger. Deals being done and even the board has trimmed down. The main players in this company are good accountants and running a tight ship with lots of exciting deals being announced. Guess for year end 310p based on fact that they are leading the way in development solutions, have loads in the pipeline and accounts are very much under control. Cannot see anything stopping them this year. I am now buying again from a hold.
To me this looks like further cost cutting but with an eye on the cost of borrowing in future. I suspect like many companies they suspect the terms of future loans could be up and hence have sent a message to their lenders that there are alternative sources of money. Suspect time will show this to be a good move. Hopefully they have their eye on something.
Really pleased to see Grainger have got their debt under £1bn well ahead of schedule and by some margin. The house has very much been put in order this year and I would hope the continued rise of South East property prices will provide them with steady growth over the next 12 months. I will be holding, expecting slightly steadier growth this year. Much depends on finding some more exciting projects like Aldershot and the continued trimming of debt. Be interesting to see where the management see things heading as this company really have their finger on the pulse when it comes to the rental market. I like having a guess where the price is going but holding off to the markets digest Grainger.