Grainger plc Regulatory News (GRI)

12 April 2012

Grainger plc

Trading Update

Grainger plc ("Grainger" or the "Company" or the "Group"), the UK's largest quoted residential property owner, today provides a trading update in advance of its interim results for the six months to 31 March 2012 which will be announced on 17 May 2012.

For the six month period to 31 March 2012, we expect completed sales both from our UK portfolios (UK residential, retirement solutions and development) and our German portfolio to be ahead of the corresponding period in 2011. Sales on vacancy in our wholly owned UK portfolios have been made at values in excess of September 2011 vacant possession values, whilst disposals of non-core assets in Germany, made in accordance with our stated strategy, have been in line with last reported book values.

The market value of our UK portfolios is expected to have increased at the March 2012 half year compared to the September 2011 year end, with the market value of the German portfolio expected to be marginally ahead of year-end valuations.

We anticipate both rental income and fee income to have grown, predominantly due to our portfolio acquisitions of HI Tricomm and the GenInvest portfolio and the growth in our partnership arrangements respectively.

As we have been net sellers of property in the past six months, our stated intention to reduce our overall level of debt will begin to be evident.

Profit before tax for the corresponding six month period to 31 March 2011 was materially enhanced by the partial reversal of mark to market movements on our long term financial derivatives and by gains on acquisitions made in that period. These benefits to the income statement will not be repeated in the first half of 2012.

The Company introduced regular Trading Updates in 2004 before the introduction of Interim Management Statements ("IMS"). Following the Company's introduction of half yearly portfolio valuations in April 2011 and given the detail produced in each IMS, management believes it is no longer appropriate to issue Trading Updates after today.

The Company will provide detailed information on its progress at the time of its interim results announcement in May.

-ENDS-