- New position opened: Grainger PLC.
- It’s the biggest landlord in the United Kingdom.
- It’s aggressively increasing its real estate assets' portfolio, banking on a structural house shortage in London and several other British counties.
I think the house market is the correct place to be right now, from an investor's viewpoint.
Grainger PLC (LONDON:GRI) is the biggest landlord in the UK and it has projects well financed to almost double its size in the years to come.
British house market is characterized by a structural house shortage and a huge renting demand, given the average high prices.
In this situation it should be a good idea to bet on a British house developer, which is also a landlord, like GRI.
Its dividend yield is less than 1.8% at the moment but it's growing and the payout ratio is less than 50% (GRI is not a REIT). I believe that when it will reach the target assets size, it will change its structure and become a REIT, significantly increasing the payout. Moreover, British dividends are not subjected to withholding tax.
Valuation is compelling: it is now trading at around NAV.
Check out the investment thesis here.
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Analyst's Disclosure: I/we have a beneficial long position in the shares of Grainger PLC either through stock ownership, options, or other derivatives.
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