IFRS Transition Report

Grainger Trust PLC
03 May 2006


FOR IMMEDIATE RELEASE

3 May 2006


                              Grainger Trust plc:

THE EFFECT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ('IFRS') ON THE
FINANCIAL REPORTING OF GRAINGER TRUST plc ('GRAINGER')

Grainger is today presenting information to show the effect of adopting IFRS on
its balance sheet at the transition date of 1 October 2004 and on its income
statement and balance sheet for the year ended 30 September 2005 in preparation
for the adoption of IFRS for the year ending 30 September 2006.

Presentation is made also of the group's accounting policies under IFRS.

The adoption of IFRS has no effect on the operating basis of the group, its
strategy or management, or on the cash flows derived from the business.

The term IFRS includes all EU endorsed International Accounting Standards (IAS)
and International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) and the International Financial
Reporting Committee (IFRIC) and Interpretations issued by IFRIC.

Effect of adoption of IFRS on the 2005 position and results:-

                                       UK GAAP       IFRS    Difference

Profit after taxation                   £26.5m     £30.9m         £4.4m
Shareholders funds                     £223.6m    £205.0m      (£18.6m)
Basic earnings per share                 21.2p      24.7p          3.5p
Market value net assets per share       558.3p     474.8p       (83.5p)
NNNAV per share                         385.2p     388.9p          3.7p
Grainger NAV per share                  492.3p     496.0p          3.7p
Net Debt                               £861.0m    £861.0m             -
Loan to value ratio                      54.0%      54.0%             -


In summary, the main changes to Grainger's income statement and balance sheet
are as follows:-

   • Under IFRS 3 all negative goodwill in the opening balance sheet as at 1
     October 2004 is written back to retained earnings. The amortisation of
     negative goodwill in the 2005 income statement is therefore reversed.

   • Under IAS 12 deferred tax is provided in the opening balance sheet on a)
     the difference between the fair value of properties acquired as part of a
     business acquisition and their tax base cost and b) on the cumulative
     revaluation surplus on investment properties. This charge will result in 
     the group's effective tax rate being closer to 30% compared to 40% 
     currently.

   • The final proposed dividend is recorded as a liability only when
     approved at the group's Annual General Meeting.

   • Surpluses and deficits arising on the revaluation of investment
     properties are shown in the income statement rather than through 
     revaluation reserve.

   • The result of providing for deferred tax as set out above is that the
     market value net asset value per share ('NAV') will reduce. However, NNNAV,
     which now under IFRS only takes account of the market value of fixed rate
     debt and contingent tax over and above that now provided under IAS 12, and
     Grainger NAV, which adjusts for the reversionary surplus in the portfolio,
     both remain materially the same.

The main adjustments required by Grainger under IFRS are similar to those made
by other companies within the property sector. However, some other property
companies have made adjustments to treat leasehold properties subject to ground
leases as finance leases under IAS 17 and to spread lease incentives to tenants
over the lease term rather than to the first rent review under the SIC 15
interpretation issued by IFRIC. Grainger has concluded that neither of these
adjustments are required in its financial statements.

A more detailed review of the impact of IFRS on Grainger's financial results,
including reconciliations to UK GAAP and explanations of all adjustments made,
can be found in a separate report on the company's website,
www.graingertrust.co.uk.

                                     Ends.



Contact:


Grainger Trust plc Telephone: [phone]


Andrew Cunningham

Deputy Chief Executive and Finance Director

David Smith

Group Financial Controller














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