Grainger : Full Year Results

21 November 2024

Grainger plc

Preliminary full year financial results

for the twelve months ended 30 September 2024

Excellent performance

Accelerating growth

Further upgrade to EPRA earnings guidance

• Net Rental Income up +14%
• Total dividend per share up +14%
• EPRA Earnings up +21%
• Expanded portfolio by 1,236 new homes
• Like-for-likePRS rental growth up +6.3%
• EPRA NTA resilient at 298pps
• High customer satisfaction

Grainger plc, the UK's largest listed residential landlord and leader in the build-to-rent sector, today announces an excellent performance for the 12 months ended 30 September 2024. Grainger has a £3.4bn operational portfolio of 11,069 private rental homes and a £1.4bn build-to-rent pipeline comprising 4,730 new homes.

Helen Gordon, Chief Executive, said:

"It is my pleasure to report an excellent performance and another year of accelerated growth for Grainger.

"Building on last year's record, we have delivered another strong year of growth, adding 1,236 new homes to our expanding nationwide portfolio. We added four new communities to our existing clusters in Birmingham, Bristol, London, and Manchester. Building on our national footprint of carefully selected locations, we now have meaningful scale in many cities across the country providing good quality rental homes into areas of high demand. We also opened our first scheme in Cardiff, The Copper Works.

"These new homes together with like-for-like rental growth of 6.3% have meant we have once again delivered double digit net rental income growth at 14% ahead of last year's 12% growth whilst continuing to provide quality homes and communities. For our shareholders this also means a 14% growth in our dividend. We increased EPRA Earnings 21% in the year.

"Customer affordability remains strong at 28%, below the national average of over 34%, and Grainger's customer satisfaction is higher than ever. 9 in 10 customers tell us that they "really like" their Grainger home.

"This coming year is the last financial year before Grainger converts to a REIT, a major milestone in our transformation to becoming the leader in the UK's build-to-rent (BTR) sector. Since setting out our strategy in 2016, we have invested £2.5bn into delivering new BTR homes, and at the same time delivered value by divesting £2bn from non-core businesses and assets. Over this period, we have more than tripled the net rental income for the business. In the last year alone, we have disposed of £274m of non-core assets, recycling £270m of this capital into higher yielding, new, high-quality, energy-efficient BTR homes.

"The delivery of our committed pipeline has the potential to increase EPRA Earnings by another 50% over the medium term, whilst in the near term we expect EPRA Earnings to reach £60m by FY26, a second upgrade from our previous guidance. In addition, we anticipate our EBITDA margin to increase substantially from 54% today to over 60% by FY29.

"We have been pleased to see the new Labour Government's public rejection of rent controls and the acknowledgement that such controls would hurt supply and investment. On the contrary, it has been pleasing to see the Government's commitment to increase housing supply and investment. Plans to raise standards in the rental sector plays to Grainger's strengths as a leading landlord with a best-in-class operating platform and a responsible approach to housing provision.

"The market opportunity for the UK build-to-rent sector is considerable with demand for renting growing and the shortage of rental supply worsening, and with its proven track record, Grainger is best placed to help alleviate this through continued investment and housing delivery, accelerating our growth for years to come."

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Highlights

• +14% growth delivered in Net Rental Income1 to £110.1m (FY23: £96.5m)
• +21% growth delivered in EPRA Earnings to £48.0m (FY23: £39.8m)
• Dividend up +14% to 7.55p per share (FY23: 6.65p per share)
• Adjusted Earnings2 down (6)% to £91.6m (FY23: £97.6m) as guided due to our reducing regulated tenancy portfolio and therefore reduced contribution from sales profits
• +6.3% like-for-like rental growth3 in our portfolio (FY23: 7.7%)

1. +6.3% like-for-like rental growth in our BTR/PRS Portfolio
2. • +5.6% on new lets (FY23: 9.2%)
   • +6.8% on renewals (FY23: 7.2%)

• 1. +6.6% like-for-like rental growth in our Regulated Tenancy Portfolio (FY23: 5.9%)
• Occupancy of 97.4% in our BTR/PRS portfolio
• Strong sales performance of £274m, driven by an increase in asset recycling
• EPRA NTA robust at 298pps (FY23: 305pps), slightly ahead of FY23 excluding the 8p impact of tax changes (MDR), with a return to valuation growth in the second half
• Strong balance sheet and funding position, debt costs fixed in mid 3%'s for the next four years
• During the year we acquired two sites for direct development opportunities expanding on our existing target cluster locations:
• 1. Cardiff - potential for up to 405 additional new BTR homes, building on our existing asset, The Copper Works (307 homes)

• 1. Sheffield - potential for up to 193 additional new BTR homes, building on our two existing assets in Sheffield (521 homes)
• Customer affordability remains robust at 28% of gross household income
• Customer satisfaction remains high, with our Customer Net Promoter Score increasing again year-on-year, placing Grainger ahead of leading consumer brands, including Coca-Cola and Google
• Rental growth for the year ahead is expected to remain above the long-term historical average of 3-3.5%, as well as above our underwriting assumptions
• Grainger is well placed to deliver a sustainable Total Accounting Return of 8%, reflecting conservative assumptions including stable yields and the low-risk nature of our asset class

Financial Highlights
Income returns	FY24	FY23	Change
Rental growth (like-for-like)	6.3%	7.7%	-141bps
PRS rental growth (like-for-like)	6.3%	8.0%	-167bps
PRS like-for-like (new lets)	5.6%	9.2%	-362bps
PRS like-for-like (renewals)	6.8%	7.2%	-45bps
Regulated tenancy rental growth (like-for-like, annualised)	6.6%	5.9%	+74bps
Net rental income (Note 5)	£110.1m	£96.5m	+14%
Adjusted earnings (Note 2)	£91.6m	£97.6m	(6)%
EPRA Earnings (Note 3)4	£48.0m	£39.8m	+21%
IFRS Profit before tax (Note 2)	£40.6m	£27.4m	+48%
Earnings per share (diluted, after tax) (Note 9)	4.2p	3.5p	+20%
Dividend per share (Note 10)5	7.55p	6.65p	+14%
			2

Capital returns	FY24	FY23	Change
Total Property Return6	1.9%	0.4%	+153bps
Total Accounting Return (NTA Basis) (Note 3)	0.3%	(1.8)%	+207bps
EPRA NTA per share (Note 3)	298p	305p	(2)%
Net debt	£1,453m	£1,416m	+3%
Group LTV	38.2%	36.8%	+135bps
Cost of debt (average)	3.2%	3.3%	-13bps
Reversionary surplus	£147m	£213m	(31)%

Build-to-rent investment pipeline	Investment		Homes
Committed	£481m	1,330
Secured	£541m	2,009
Planning/ Legals	£379m	1,391
Total investment value	£1.4bn		4,730
ESG benchmark performance
FTSE4Good			since 2010
ISS ESG			Prime Rating
MSCI ESG			'AA'
Sustainalytics ESG Risk Rating			Low Risk
EPRA Sustainability Best Practice Reporting			Gold Award
CDP (formerly the Carbon Disclosure Project)			'B' Rating
Workforce Disclosure Initiative		98%
GRESB Public Disclosure			'A' Rating
National Equality Standard		Accredited in FY24
Future reporting dates
2025
AGM & Trading update			5 February
Half year results			15 May
Trading update			September
Full year results			20 November

1. Refer to Note 5 for net rental income calculation.
2. Refer to Note 2 for profit before tax and adjusted earnings reconciliation.
3. Rental growth is the average increase in rent charged across our portfolio on a like-for-like basis.
4. EPRA Earnings is a measure of recurring earnings from core operational activities which the Company uses in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). For more details please see page 171-172 of the Annual Report and Accounts
5. Dividends - Subject to approval at the AGM, the final dividend of 5.01p per share (gross) amounting to £37.0m will be paid on 21 February 2025 to Shareholders on the register at the close of business on 17 January 2025. Shareholders will again be offered the option to participate in a dividend reinvestment plan and the last day for election is 31 January 2025. An interim dividend of 2.54p per share amounting to a total of £18.8m was paid to Shareholders on 5 July 2024 - refer also to Note 10.
6. Total Property Return (TPR) represents the change in gross asset value, net of capital expenditure incurred, plus net income, expressed as a percentage of gross asset value.

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Results presentation

Grainger will be holding a presentation of the results at 09.00am(UK time) today, 21 November 2024, which can be accessed via webcast and a telephone dial-in facility (details below), which will be followed by a live Q&A session for sell side analysts and shareholders.

Webcast details:

To view the webcast, please go to the following URL link. Registration is required.

https://brrmedia.news/GRI_FY_24

The webcast will be available for six months from the date of the presentation.

Conference call details:

Call: [phone]

Confirmation Code: Quote Grainger Full Year Resultswhen prompted by the operator

A copy of the presentation slides will also be available to download on Grainger's website (http://corporate.graingerplc.co.uk/) from 08:30am (UK time).

Annual Report & Accounts

We are today also publishing our 2024 Annual Report & Accounts on our website, including the ESEF (tagged) version, (https://corporate.graingerplc.co.uk/investors/investor-downloads) and we will also be submitting the both versions to the National Storage Mechanism and they will shortly be available for inspection at: data.fca.org.uk/#/nsm/nationalstoragemechanism.

We will be publishing our Notice of Annual General Meeting in December 2024, and we will also submit this to the National Storage Mechanism to make it available for inspection. A further announcement will be made at this time.

For further information, please contact:
Investor relations
Kurt Mueller, Grainger plc:	+44 (0)	20 7940 9500
Media
Ginny Pulbrook / Geoffrey Pelham-Lane, Camarco:	+44 (0)	20 3757 4992 / 4985

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Forward-looking statements disclaimer

This announcement may contain certain statements that are forward-looking statements. They appear in a number of places throughout this announcement and include statements regarding Grainger plc's intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. By their nature, these statements involve risks and uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this announcement and, unless otherwise required by applicable law, Grainger plc undertakes no obligation to update or revise these forward-looking statements. Nothing in this announcement should be construed as a profit forecast. Grainger plc and its Directors accept no liability to third parties in respect of this announcement save as would arise under English law.

Information about the management of the Principal Risks and Uncertainties facing Grainger plc is set out within the Annual Report and Accounts 2024. Any forward-looking statements in this announcement speak only at the date of this announcement and Grainger plc undertakes no obligation to update publicly or review any forward-looking statement to reflect new information or events, circumstances or developments after the date of this announcement.

Nature of announcement

This announcement is for information purposes only and no reliance may be placed upon it. No representative or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this announcement. Past performance of securities in Grainger plc cannot be relied upon as a guide to the future performance of such securities. This announcement does not constitute an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of Grainger plc.

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Chief Executive's Statement

Substantial opportunity to accelerate growth

It is my pleasure to report another year of continuing accelerated growth for your Company and a very strong growth outlook.

Building on last year's record delivery of new homes, we have had another year of strong delivery, adding 1,236 new homes to our expanding portfolio.

We added four new communities to our existing clusters in Birmingham, Bristol, London, and Manchester, and building on our national footprint of carefully selected locations, we are now building meaningful scale in these cities. One of these was the acquisition of an existing BTR asset, The Astley, demonstrating the potential of stabilised acquisitions as a route to growth. We also opened our first scheme in Wales in Cardiff.

These new homes together with like-for-like rental growth of 6.3% have meant we have once again delivered double digit income growth at 14%, ahead of last year's 12% growth. For our Shareholders this also means a 14% growth in our dividend.

Our portfolio returned to valuation growth in the second half with a 1.1% increase which offset the decline in the first half related to the one-off impact of tax changes (the removal of multiple dwellings relief, MDR). Over the whole year valuation declined by 0.8% (FY23: (2.4)%) including this one off impact; excluding MDR underlying valuations increased 0.8% during the year.

Over the past two years, due to rising interest rates, we've experienced yield expansion yet our portfolio value's decline was successfully largely offset by rental growth due to the resilience of our assets and the strength of our operating platform.

Our proactive asset recycling programme drives continued growth, which also preserves the strength of our balance sheet. This year we disposed of a record number of non-core assets generating £274m of gross revenue from these lower yielding assets. We are then reinvesting this capital into higher-yielding, modern, purpose-built, energy efficient, attractive homes. This, together with our high level of asset recycling last year is leading to the continued high quality and strong potential of our portfolio.

The investment and focus we have placed on creating the UK's leading build-to-rent (BTR) operating platform means that we can leverage our planned growth using our central platform and deliver significant margin gains, with our EBITDA margin set to grow by six percentage points to over 60% by FY29, a compounding effect on our earnings growth.

The strategic transformation we have undergone since setting out our strategy in 2016 is enabling us to convert to a REIT in October 2025, made possible by the fact that the business will be majority BTR homes, focused on investment and growing net rental income and no longer reliant on trading profits. Our BTR/PRS portfolio now represents 81% of our operational portfolio given the success of both our pipeline delivery and recycling of our regulated tenancy portfolio.

High customer satisfaction and healthy customer affordability

We are committed to delivering great homes and a great service to our customers. Satisfied customers deliver the most robust returns for our Shareholders.

Our investment in customer experience, including deeper customer insight, our CONNECT technology platform and our Company-wide customer service training programme, has led to year-on-year improvements in customer metrics.

Our key metric for customer satisfaction, Net Promoter Score (NPS), has increased even further this year following last year's exceptional score, and is now +48, significantly ahead of industry peers and many other industry market leaders.

Customer retention is high at 63%. On average, our customers stay with Grainger for nearly three years.

In addition to our customers telling us that they are happy renting with Grainger, we closely monitor the financial health of our customers and their rental affordability. It is generally accepted that housing costs should be no more than a third of a household's gross income.

I am pleased to report that Grainger's customer affordability remains healthy at 28%.

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Operational excellence

We have successfully been leasing our four new schemes well ahead of underwriting, which typically assumes 12-18 months to fully lease up a new building.

In Cardiff at the Coppers Works (307 homes), in Bristol at Millwrights Place (231 homes), in Birmingham at The Silver Yard (375 homes), and in London, our second phase of Windlass Apartments (65 homes), our newly completed buildings are all leasing exceptionally well, ahead of underwriting.

We continue to reap the benefits of scale as we grow. Operating expenses continue to be improved with our 'gross to net' leakage down from 25.5% to 25%, a 75% gross rental margin. This margin is after refresh and refurbishment costs which are included in the 25%.

In addition, with scale we have created efficiencies in our procurement and supply chain. Good examples of this were our consolidation of our repairs and maintenance supplier in the South of England and our consolidation of national furniture suppliers this year, both enabling us to drive savings and, importantly, further enhance customer experience.

Our fully integrated and fully digitised customer journey, combined with our CONNECT technology platform, enables us to benefit from the significant data and insight we have at our fingertips, a benefit of operating all our own properties directly. CONNECT, along with our data, enables us to readily utilise AI and analytics across the business, such as lettings, customer experience, building operations, asset management, development and our core corporate functions too.

We also launched a new website improving our leasing journey for those wishing to rent with Grainger.

Leading the way on sustainability and responsibility

We continue to demonstrate our leadership in sustainability and responsibility.

94% of our properties are compliant with future energy efficiency standards expected to come into force in 2030 (BTR/PRS portfolio, EPC ratings A-C).

We continue to make good progress against our target to be net zero carbon for our operations by 2030 with our Scope 1 & 2 emissions reducing again year on year by 8%.

Our focus to reduce Scope 3 emissions, particularly our customer emissions, supported by our consumer campaign, Living a Greener Life, continues to bear fruit, with Scope 1-3 emissions per m2 reduced by 9% year on year on the PRS portfolio.

Through targeted initiatives, we have successfully established a robust baseline of customer emissions data, which has enabled us to apply for our established carbon targets to be recognised as science-based targets, an important step on our net zero carbon pathway.

Safety remains a core focus for Grainger. All housing businesses have a responsibility to keep their residents safe.

Most of our BTR properties were built post Grenfell. This year, with the report on Grenfell, we have further invested in keeping safety at the front of all Grainger employees' minds, a commitment that runs from the Board all the way through the organisation. Our Live.Safe programme continues to successfully engender a safety- first culture. With the enactment of the Building Safety Act, we have been at the forefront of the industry, getting ahead of new building safety regulations and going beyond the new minimum safety standards.

Political and regulatory landscape

During the year we worked with both Governments on their proposals for reforming the rental housing market, which have been broadly similar.

The UK now has a Labour Government with a notable majority. The Labour manifesto focused on driving economic growth through stimulating the supply side, particularly through the delivery of 1.5 million new homes over this Parliament. At the same time, the Labour Government also committed to raising standards in the private rented sector.

We have been heavily engaged in dialogue with policy makers, including the Labour Party, both before the election and now they are in government, to ensure our perspective is understood and that policy and regulation continues to encourage investment into private rented homes, which is being met positively.

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We were pleased to see that the Labour Government publicly ruled out any form of rent controls in favour of stimulating housing supply and raising standards.

Proposals to raise rental standards have been consistently informed by Grainger over the years. We will continue to engage with Government and policy makers to ensure such changes protect future investment and housing delivery. Our ambition is to lead in the quality of homes and services our customers enjoy.

The Labour Government's commitment to reforming the planning system to stimulate housing delivery is also welcome and aligns to our growth strategy.

We will continue to engage with policy makers and the UK Government in the shaping of future legislation and regulation.

A great place to work

We know Grainger is a great place to work because our colleagues tell us it is. The number one reason is because of the people.

I am very proud to announce that Grainger this year achieved the UK's leading benchmark for Equality, Diversity and Inclusion (ED&I), the National Equality Standard, which entailed an in-depth and comprehensive assessment of our ED&I programme and supportive culture and policies.

I am also proud that this year Grainger was recognised as a leading FTSE business for women in business, ranking 19th out of the FTSE250 in the FTSE Women Leaders review.

It is also pleasing to report that our colleague engagement scores remain high, achieving a 'Very Good' rating in our annual survey administered independently by Best Companies. Grainger is now in the Top 100 Employers according to Best Companies.

Outlook of compounding growth and market momentum

FY24 marked another year of very strong growth in net rental income and EPRA earnings as our operating platform and excellent pipeline continue to deliver compounding growth. With earnings guidance increased for the next two years and a sizable opportunity for further additional growth beyond, we are accelerating our growth and delivering on our strategy.

The market opportunity for the UK BTR sector is substantial and Grainger, as market leader with a proven track record of successfully launching and operating new BTR homes, is best placed to continue to accelerate and grow in this sector.

Rental growth for the year ahead is expected to remain above the long-term historical average of 3-3.5% as well as above our underwriting assumptions.

Our pipeline for growth is impressive at c.50% of our current BTR portfolio. This growth in our core cities will be delivered with our strengthening relations with partners including public sector landowners.

Our asset recycling programme will continue to support our growth ambitions whilst allowing us to maintain a strong balance sheet.

Structural undersupply combined with pipeline for growth, our expertise and leading operating platform means we are perfectly positioned to continue to grow rapidly. The benefits of scale will enhance returns and deliver compound earnings growth for our Shareholders as well as providing a great experience for renters.

I am proud to lead a great team whose purpose is to enrich people's lives by the homes we create and the service we deliver. I want to thank the Grainger team, our Board and our Shareholders for continuing to support us in this endeavour.

Helen Gordon

Chief Executive Officer

20 November 2024

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Financial review

The 14% growth in our net rents has been achieved by the continuing delivery of our high quality pipeline and excellent operational performance with like-for-like rental growth of 6.3% and occupancy of 97.4%.

The demand for our homes continues to grow as consumers' awareness of the benefits of our offering increases. This strong revenue growth is magnified by the operational leverage generated through our CONNECT platform, scale efficiencies and continued cost control to deliver even stronger earnings growth with EPRA earnings up 21% in the year.

It was also an exceptional year for sales with a record £274m of sales delivered during the year. This higher level of asset recycling ensures that our property level returns are optimised while also providing capital for further investment and managing our net debt in line with our plans.

The second half of the year saw a return to valuation growth. Over the year we saw a continuation of the theme of strong ERV growth of 5.2% offsetting yield shift of c.20bps, but with yields stabilising the balance of these two components should prove more positive going forward.

Our balance sheet remains in great shape with strong liquidity and a strong hedging profile giving us minimal exposure to interest rate rises for the next four years. Both net debt and LTV have decreased from the half year levels demonstrating our ability to flex our capital structure through the strong liquidity in our asset base.

Our dividend per share continues its strong growth trajectory, increasing by 14% to 7.55p on a per share basis (FY23: 6.65p). This year's strong growth looks set to continue with similar levels of absolute growth in net rents expected next year as well as a dividend that will continue to grow strongly as we convert to a REIT. We also upgrade our EPRA earnings guidance for FY26 by £5m to £60m, the second upgrade over the last 12 months, with the potential to deliver 50% EPRA earnings growth from the delivery of our committed pipeline over the medium term.

Financial highlights
Income return	FY24	FY23	Change
Rental growth (like-for-like)	6.3%	7.7%	-141bps
-	PRS	6.3%	8.0%	-167bps
-	Regulated tenancies	6.6%	5.9%	+74bps
Net rental income (Note 5)	£110.1m	£96.5m	+14%
Adjusted earnings (Note 2)	£91.6m	£97.6m	(6)%
EPRA Earnings (Note 3)	£48.0m	£39.8m	+21%
IFRS Profit before tax (Note 2)	£40.6m	£27.4m	+48%
Earnings per share (diluted, after tax) (Note 9)	4.2p	3.5p	+20%
Dividend per share (Note 10)	7.55p	6.65p	+14%

Capital return	FY24	FY23	Change
Total Property Return	1.9%	0.4%	153bps
Total Accounting Return (NTA basis) (Note 3)	0.3%	(1.8)%	+207bps
EPRA NTA per share (Note 3)	298p	305p	(2)%
Net debt	£1,453m	£1,416m	+3%
Group LTV	38.2%	36.8%	+135bps
Cost of debt (average)	3.2%	3.3%	+13bps
Reversionary surplus	£147m	£213m	(31)%

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Income statement

The business continues to deliver very strong growth in EPRA earnings, up 21% to £48.0m (FY23: £39.8m) with the strong growth in net rents of 14% driving even stronger earnings growth as a result of the strong operational leverage inherent in our business.

Adjusted earnings decreased by 6% to £91.6m (FY23: £97.6m) as sales profits were lower than prior years as we continue to shrink our regs portfolio in line with our strategy. Other adjustments include hedge ineffectiveness of £6.6m and a £5.0m fire safety provision.

Income statement (£m)	FY24	FY23	Change
Net rental income	110.1	96.5	+14%
Mortgage income (CHARM, Note 15)	4.6	4.7	(3)%
Management fees and other income1	8.1	5.0	+59%
Overheads	(35.3)	(33.5)	(5)%
Pre-contract costs	(1.0)	(1.2)	+20%
Net finance costs	(38.8)	(31.8)	(21)%
Joint ventures	0.3	0.1	+193%
EPRA Earnings2	48.0	39.8	+21%
EPRA EPS	6.5p	5.4p	+21%
Profit from sales	43.6	57.8	(24)%
Adjusted Earnings	91.6	97.6	(6)%
Adjusted EPS (diluted, after tax)3	9.3p	10.3p	(10)%
Valuation movements4	(39.4)	(70.2)	+44%
Other adjustments	(11.6)	-	(100)%
IFRS profit before tax	40.6	27.4	+48%
Earnings per share (diluted, after tax)	4.2p	3.5p	+20%

1. Including LADs: "liquidated and ascertained damages" which provide financial compensation for the loss of rental income caused by delays to the practical completion of our schemes
2. EPRA Earnings is a measure of recurring earnings from core operational activities which the Company uses in accordance with the Best Practices Recommendations of the European Public Real Estate Association (EPRA). For more details please see page [172]
3. Adjusted earnings per share includes tax of £22.9m (FY23: £21.5m) in line with Corporation Tax of 25% (FY23: 22%)
4. Including £(59)m in H1 due to the removal of MDR; excluding this, underlying valuation movement was +£20m in FY24

Rental income

Net rental income increased by 14% to £110.1m (FY23: £96.5m), as we continue our trajectory of recurring double-digit growth. The substantial £13.6m increase was driven by a combination of strong delivery of pipeline scheme launches which contributed £10.9m along with another year of good rental growth reflecting strong demand for our product.

Overall like-for-like rental growth was +6.3% (FY23: +7.7%) with the PRS portfolio continuing to deliver strong

growth at +6.3% (FY23: +8.0%), with rental growth on renewals of +6.8% (FY23: +7.2%) and +5.6% (FY23:

+9.2%) on new lets. Our regulated tenancy portfolio also delivered strong rental growth at +6.6% (FY23: +5.9%). Looking forward we see rental growth in the coming year continuing above the long-run average of 3.5%.

Gross to net for our stabilised portfolio improved to 25.0% (FY23: 25.5%) as we continue to deliver efficiency benefits as we build out our clusters.

We expect FY25 to deliver similar levels of absolute growth in net rent.

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