Interim Results - Pre-tax Profit Up 81%

Grainger Trust PLC
22 June 2000


                          INTERIM RESULTS FOR THE
                      SIX MONTHS ENDED 31ST MARCH 2000


Grainger Trust plc, the tenanted residential property specialist, today
announces Interim Results for the six months ended 31st March 2000.
Highlights are as follows:-

*    Pre-tax profits up 81% to £8.5 million (1999: £4.7 million before
     exceptional net credit).

*    Earnings per share before exceptional items up 78% to 22.9p (1999:
     12.9p).

*    Independent review of property portfolio by Chesterton & Jones Lang
     LaSalle, disclosing a surplus of £61 million as compared with the
     position at 30th September 1999.

*    Net Asset Value per share increased by £2.62 per share, up 37% to £9.70
     (as at 30th September 1999: £7.08).

*    Proposed interim dividend of 2.3p per share, an increase of 15% (1999:
     2.0p).

Commenting on the results, Stephen Dickinson, Managing Director, said:-
'We are delighted with the excellent performance we have achieved, with a
near doubling of pre-tax profits due to increased contributions from the
Tenanted Residential and Land Development activities.  Our Net Asset Value
has increased substantially as a result of the improvement in house prices,
which in turn has strengthened the demand for residential land.

Overall, the Group's consistent strategies are delivering very good returns,
and we have a strong financial and operational base from which to exploit,
in particular, the longer term opportunities that exist in the marketplace.
We remain confident for the future.'

Enquiries
Stephen Dickinson   Managing Director    Grainger Trust plc   0207 7954700
Andrew Cunningham   Financial Director   Grainger Trust plc   0207 7954700
                                                              
James Garthwaite                         Brunswick Group      020 7404 5959
Sarah Tovey                              Brunswick Group      020 7404 5959



                                 GRAINGER TRUST plc
                 INTERIM RESULTS FOR SIX MONTHS TO 31ST MARCH, 2000


RESULTS AND DIVIDENDS
The unaudited results for the six months to 31st March, 2000 show a pre-tax
profit of £8.5m  (1999: £4.7m prior to net exceptional credit of £11.9m).
The non exceptional pre tax earnings have risen by 81% and earnings per
share by 78%, the latter increasing to 22.9p per share (1999 12.9p). The
near doubling of pre tax profits arises equally from increased contributions
from the tenanted residential and land development activities.  The interim
dividend of 2.3p, an increase of 15%, will be paid on 21st July 2000 to
shareholders on the register at the close of business on 7th July 2000.

NET ASSET VALUE ('NAV')
In view of the significant increase in residential values over the past
year, your Directors have instructed Chesterton, a major firm specialising
in the residential sector, to carry out an independent review of our
tenanted residential portfolio.  Chesterton have valued some 60% by value of
the portfolio and reviewed our internal/managing agents valuations of the
balance.  At the same time Jones Lang LaSalle have revalued the commercial
and land development portfolios.

The valuations as at 31st March 2000 disclose a surplus of £61m as compared
with the position as at 30th  September 1999, an increase of £2.41 in NAV
per share.  In broad terms two thirds of this increase arises from tenanted
residential and one third from land development activities.  The valuation
surpluses together with the retained profits of £5m increase NAV per share
from £7.08 to £9.70.  NAV is further discussed in the Notes to this
announcement.

The sharp increase in both indicators of Group performance, EPS up 78% and
NAV per share up 37%, are the result of the Group's maintained strategy of
specialising in areas where high margin reversionary values and strong
cashflows are available.  Our long term strength in the tenanted residential
business has been supplemented by the specialist task of taking major
residential sites through the planning process.  These activities are
supported by our commercial arm which has an increasing emphasis on
development.  Overall this produces a structure within which dynamic
entrepreneurial activity can and does deliver.  Since flotation in 1983
gross property assets at market value have increased from £17m to £438m, and
EPS, dividends and NAV per share, have averaged a compound rate of increase
of 14% per annum.


REVIEW OF OPERATIONS
Tenanted Residential
Operating surplus has increased by 22% to £9.5m (1999 £7.8m).  Net rentals
increased by £0.1m and trading profits by £1.8m.  In February this year the
Appeal Court unanimously declared the registered rental capping regime
introduced in early 1999 an inappropriate use of a secondary legislative
power.  The Government was denied leave to appeal to the House of Lords, but
is requesting a review of this decision. The improvement in trading profits
features selling prices above our 30th September 1999 estimates of vacant
possession values in London and the South and improved volumes in the
Midlands and North.  We have agreed purchases, to the date of this
statement, of £43m of tenanted stock, and stock numbers increased by 300 to
5,316 as at 31st March 2000 (5,016 30th September 1999).  Some 70% of our
stock, by value, is in London and the South where the market is not as
buoyant as it was in the first half of the financial year.  We continue to
concentrate on purchases of regulated stock, and are supplementing this by
the purchase of life tenancies at considerably larger discounts to vacant
possession values.

In addition to our regulated purchases projects include the forward purchase
of 21 flats at Redcliffe Backs in Bristol and a conditional agreement to
forward fund the 79 private flat element of the proposed Victoria bus
station development in Pimlico.  Bristol is likely to be completed in early
2001 and marketing to date has been very encouraging with the majority of
the flats already reserved.  Construction at Pimlico is expected to start in
August and complete in mid 2002.

We are pleased to have acquired the Real Estate Securities Limited portfolio
in October 1999.  This includes two development projects in Kensington
Church Street, and Ladbroke Grove which are respectively mixed residential
and commercial, and a high quality flat development.  The existing planning
permissions are being reworked and we expect an early start on the latter
scheme.

The increase in NAV arising from the 31st March valuation is £36m, £1.42 per
share.  This reflects improvements in both vacant possession values and the
valuation percentage of tenanted regulated stock.

Commercial
Operating surplus has increased by 3% to £4.1m (1999 £4.0m).  We are
continuing the reweighting of our portfolio and during the period purchases
included two properties in Kensington and a retail warehouse park in
Accrington for an overall cost of £10m.  The two Kensington properties are a
hotel in Westbourne Grove, currently being refurbished by the tenants and an
office building let to the Virgin Group which is suitable for redevelopment
for either commercial or residential use.  The retail park in Accrington is
next to the town centre, has an open A1 consent and should produce good
rental and capital growth.

We have also commenced our development programme with the purchase of an 8.5
acre site, at Dolphin Park, Thurrock.  Construction of 157,000 sq.ft. of
industrial accommodation is due to start shortly and tenant interest is
encouraging.  Total project costs will be in the order of £10m with an
expected rental value of £1.1m at £7 per sq.ft.  We have submitted a
planning application for a 90,000 sq.ft. office park at our Basingstoke site
and are shortly to submit an application for the redevelopment of Townsend
House in Victoria.

We are on target for our budget of £18m of sales for the year, having to
date completed or exchanged contracts on transactions totalling £16m.
Disposals are predominantly retail premises in Colchester, Fakenham,
Harpenden and Tonbridge.

The increase in NAV arising from the 31st March valuation is £2m, 8p per
share.

Land Development
Operating surplus £2.0m (1999 £0.2m loss).  We sold a 6 acre site at our
Kennel Farm development at Basingstoke in the first half, and have just
completed a further 7 acre sale in May.  We purchased the adjoining 12 acre
ex Motorway Service Area reservation during the period.  This is allocated
as residential in the Town Plan, and is being integrated into our
development.  House builders are very keen to be involved and we have taken
the opportunity of strong current demand to enter into conditional contracts
for the sale of the balance of the residential land at Kennel Farm.  These
are phased over the next four years, are expected to produce a gross income
flow of some £50m and protect the Group from any down cycle in residential
land values.  Trading profits are therefore likely to rise sharply in coming
periods. The first houses are being built, and our main site infrastructure
programme is well under way.

Progress on our 640 acre option site at West Waterlooville continues.  This
forms the great majority of one of the four Major Development Areas in the
recently adopted Hampshire County Structure Plan.  We have also acquired an
11 acre site with partial planning permission in Northumberland.

The increase in NAV arising from the 31st March valuation is £23m, 91p per
share.

PERSONNEL
I am very pleased to announce that Rupert Dickinson, who has been
responsible for the very successful London office for the last six years,
has been appointed Group Deputy Managing Director.

PROSPECTS
These results demonstrate that the Group's consistently pursued strategies
are working through successfully to both profit and NAV.  Since 1994 NAV has
trebled.  The group is more than replacing its tenanted residential stock,
Kennel Farm is proving very successful and the new development activities
both residential and commercial are assuming an encouraging momentum.  We
have recruited an experienced professional team in the London office who
have initiated and are carrying through the development programmes described
above.  Our combination of residential and commercial skills is very
relevant to mixed use schemes, now much favoured by planners to increase
accommodation within urban centres.  Grainger always has been cash
generative and is now particularly so.  This allows us both to expand our
activities into areas where our expertise is relevant and to take on long
term projects where final returns can be significant, for instance in the
land development activity.  Your directors have every confidence of
continued improvements in Group performance.

SHAREHOLDER VALUE
We are very aware that the company's shares, in common with the rest of the
sector, have traded recently at large discounts to NAV.  Your Directors
regard this as unsatisfactory and are addressing it by calling an
Extraordinary General Meeting to be held on 26th July 2000.   A resolution
will be put to shareholders to increase the Company's existing powers
topurchase its issued share capital from 5% to 10% in the period expiring at
the conclusion of the Company's next AGM.  If these powers are approved,
your Directors would intend to propose them for renewal at the next AGM in
February 2001, and from then on annually.


Registered Office                                          Robert Dickinson
Chaucer Buildings                                          Chairman
57 Grainger Street
Newcastle upon Tyne.
NE1 5LE                                                    22nd June 2000



                                GRAINGER TRUST plc
                       CONSOLIDATED PROFIT AND LOSS ACCOUNT
                    FOR THE SIX MONTHS ENDED 31ST MARCH 2000


                                         Six                       
                                      Months
                                       Ended        Six Months     
                                    31.03.00      Ended 31.03.99   
                                    ________   _________________   
                                                           Excep-           
                                                 Normal    tional      Total
                                       £'000      £'000     £'000      £'000
                                       _____     ______    ______     ______
   Turnover                           33,232     21,904               21,904
                                       _____     ______    ______     ______
   Gross rental income                12,267     11,289               11,289
   Trading profits                     8,627      4,494                4,494
   Exceptional item:                                                        
   Movement on provision against                                            
   development land                                        16,457     16,457
   Other income                          147        167                  167
                                       _____     ______    ______     ______
                                      21,041     15,950    16,457     32,407
   Less:                                                                    
   Property expenses                 (3,839)    (3,113)              (3,113)
   Administrative expenses           (1,564)    (1,243)              (1,243)
                                       _____     ______    ______     ______
   Operating profit                   15,638     11,594    16,457     28,051
                                                                            
   Net profit/(loss) on sale of                                             
   fixed assets                          113        (5)                  (5)
                                       _____     ______    ______     ______
   Profit on ordinary activities                                            
   before interest                    15,751     11,589    16,457     28,046
                                                                            
   Net interest payable and                                                 
   similar charges                   (7,216)    (6,887)   (4,569)   (11,456)
                                       _____     ______    ______     ______
   Profit on ordinary activities                                            
   before taxation                     8,535      4,702    11,888     16,590
                                                                            
   Taxation                          (2,732)    (1,434)   (3,626)    (5,060)
                                       _____     ______    ______     ______
   Profit on ordinary activities                                            
   after taxation                      5,803      3,268     8,262     11,530
                                                                            
   Dividends                           (584)      (505)                (505)
                                       _____     ______    ______     ______
   Retained profit for the period                                           
                                       5,219      2,763     8,262     11,025
                                       _____     ______    ______     ______
   Earnings per share                  22.9p      12.9p     32.8p      45.7p
                                       _____     ______    ______     ______
   Diluted earnings per share          22.8p      12.9p     32.6p      45.5p
                                       _____     ______    ______     ______
                                                                            



                              GRAINGER TRUST plc
                          CONSOLIDATED BALANCE SHEET
                              AT 31ST MARCH 2000


                                                      31.03.00    30.09.99
                                                         £'000       £'000
                                                       _______    ________
   Fixed assets                                                           
                                                                          
   Tangible assets                                     135,865     115,879
   Investments                                             272         302
   Goodwill                                                 95       (205)
                                                       _______    ________
                                                       136,232     115,976
                                                       _______    ________
   Current assets                                                         
                                                                          
   Stocks                                              158,943     134,475
   Debtors:                                                               
   Amounts falling due within one year                   4,360       4,023
   Cash at bank and in hand                              1,538      18,432
                                                       _______    ________
                                                       164,841     156,930
                                                       _______    ________
   Creditors: amounts falling due within one year                         
   Short term borrowings                                13,428       9,967
   Other creditors                                      22,667      19,054
                                                       _______    ________
   Net current assets                                  128,746     127,909
                                                       _______    ________
   Total assets less current liabilities               264,978     243,885
                                                                          
   Creditors: amounts falling due after more than                         
   one year                                            155,936     144,665
                                                                          
   Provision for liabilities and charges                                  
   Deferred taxation                                     6,072       5,019
                                                       _______    ________
   Net assets                                          102,970      94,201
                                                       _______    ________
                                                                          
   Capital and reserves                                                   
                                                                          
   Called-up share capital                               6,344       6,312
   Share premium account                                20,704      20,435
   Revaluation reserve                                  25,371      22,369
   Capital reserves                                     14,093      14,093
   Profit and loss account                              36,454      30,988
                                                       _______    ________
   Equity shareholders' funds                          102,966      94,197
                                                                          
   Minority interests                                        4           4
                                                       _______    ________
   Total capital employed                              102,970      94,201
                                                       _______    ________
                                                                          

This announcement does not constitute statutory accounts within the meaning
of Section 240 of the Companies Act 1985.  Statutory accounts for the period
ended 30th September 1999 have been filed with the Registrar of Companies.
The auditors have reported on these accounts: their report was unqualified
and did not contain a statement under Section 237(2) or (3) of the Companies
Act 1985.


Notes To The Results Announcement


1.   Property Valuations

     For NAV purposes, all properties are shown at valuation.  The
     commercial and land development portfolios have been valued by Jones
     Lang LaSalle.

     Tenanted residential properties have been valued in-house or by
     managing agents.  Chesterton have valued some 60% by value of this
     portfolio and reviewed the valuations of the balance.

     Trading properties are shown in the balance sheet at the lower of cost
     and net realisable value.

     The comparison of cost, net of provisions, against valuation, on the
     above basis is as follows:-

                                         30.3.00                30.9.99
                                    Cost    Valuation       Cost   Valuation
     Investment properties            £m           £m         £m          £m
                                    ____         ____       ____        ____
     Commercial properties         106.0        126.0       88.6       106.3
     Tenanted residential            6.4          9.5        6.8         9.2
                                    ____         ____       ____        ____
                                   112.4        135.5       95.4       115.5
     Trading properties            158.9        302.1      134.5       219.1
                                    ____         ____       ____        ____
                                   271.3        437.6      229.9       334.6
                                    ____         ____       ____        ____
                                                                            

2.  Net Asset Value Per Share

    This consists of balance sheet equity plus the excess of market value
    over book cost of trading stock divided by the number of shares in
    issue.  Net asset value per share at 31st March 2000 before the
    adjustments referred to below was £9.70, compared to £7.08 at 30th
    September 1999. Two proforma adjustments are commonly made to NAV per
    share:-

    1.   FRS13.  This records the difference between the current market
         value of fixed rate debt and derivatives and their book values.
         After allowing for tax, this has increased from 21p to 25p per
         share as from 30th September 1999.  If the relevant debt and
         instruments are repaid or settled at par on maturity, which is the
         Group's intention, actual liabilities would not arise.

    2.   Contingent tax.  This is the cost of tax that is payable if all
         Group properties were disposed of at valuation on 31st March 2000,
         and amounts to £2.15 per share.  The majority (85%) of this tax
         relates to trading properties, and in the normal course of business
         will only crystallise over extended periods.   This liability is
         typically discounted by 50% in corporate transactions.

3.   Earnings per share

The calculation of earnings per share is based on a weighted average of
25,327,936 ordinary shares in issue during the period (1999: 25,247,387).
The diluted earnings per share is based on a weighted average of  25,427,711
ordinary shares (1999: weighted average 25,353,410).