Grainger issued a positive trading update (11th October) highlighting that recurring PBT would exceed £50m for FY16e, above the upper end of market expectations. We factor this into our forecasts, but make a small 2% reduction to NNNAV to reflect the impact of marking-to-market fixed rate debt. With an increasing pipeline of PRS investment, we have a positive stance and believe that the current 20% discount is too conservative. We remain at BUY with a 320p 12m Target Price (1.1x NNNAV).