What is a REIT and how does it work?
A real estate investment trust (REIT) is a company that owns, operates or finances income-producing property. In the UK, REITs must distribute at least 90% of their qualifying property rental income to shareholders as dividends, making them one of the most income-focused investment structures available on the stock market. In return for this distribution requirement, they pay no UK corporation tax on qualifying rental profits.
UK REITs were introduced in January 2007 and the sector has grown significantly since. The largest UK REITs, including Segro, Land Securities, Unite Group and LondonMetric, are FTSE 100 constituents. The sector spans logistics warehouses, shopping centres, offices, student accommodation, data centres, healthcare facilities and residential properties.
UK REIT stocks to watch
The following profiles cover major UK-listed REITs. All financial data is from the most recently published full-year or half-year results. This is not a personal recommendation to buy or sell.
Segro (SGRO): logistics and industrial
Full-year 2025 results: revenue of £726 million (up 7.6% year-on-year), record £99 million of new headline rent secured, like-for-like net rental income growth of 6.0%, occupancy improving to 94.9%, and the full-year dividend raised 6.1% to 31.1p per share. Source: Segro full-year results (2025). Europe's largest REIT, with a market cap of approximately £10.1 billion as of June 2026, owning or managing 10.9 million square metres across the UK and seven European countries.
What to watch: Segro is expanding into data centres, having announced a £1 billion joint venture with Pure Data Centres for a fully fitted data centre in West London targeting a 9-10% yield. AI-driven data centre demand is a significant new growth driver alongside its core logistics franchise.
LondonMetric Property (LMP): logistics and healthcare
Net rental income of £455.3 million for the year ended 31 March 2026, up 16.6% year-on-year, with EPRA earnings of £305.3 million and the full-year dividend raised 3.8% to 12.45p per share (covered 108% by earnings). Source: LondonMetric full-year results (March 2026). JP Morgan holds an 'overweight' rating, citing earnings forecasts above consensus and diversified exposure across urban logistics, retail and healthcare.
Tritax Big Box REIT: large-scale logistics
Specialises in large-scale distribution centres, with a portfolio of over 70 assets valued at approximately £5.6 billion. Market cap approximately £4.1 billion. Current trailing dividend yield approximately 4.1%. Analysts at JP Morgan have previously identified Tritax as a candidate for FTSE 100 inclusion, which would improve institutional liquidity. H1 2026 results due in July.
Land Securities (LAND): commercial property
Like-for-like net rental growth of 3% in full-year 2025 results (LSE/Landsec). Market cap approximately £4.76 billion. Significant office exposure, where the investment case depends on continued demand for best-in-class London workspace. Development pipeline includes residential schemes and ongoing retail park projects.
British Land (BLND): campuses and retail parks
H1 2025/26 results (to September 2025) showed like-for-like net rental growth of 3%, with campuses up 2% and retail/logistics up 5%. Market cap approximately £3.97 billion. British Land's deliberate move toward a campuses plus retail parks plus urban logistics model reflects a shift away from traditional retail centres. 0.6 million square feet under offer at 18.4% ahead of ERV in retail/logistics.
Unite Group (UTG): student accommodation
Strong full-year 2025 trading overall, with some weaker demand in specific cities for the 2025/26 academic year. Commenced a £100 million share buyback. Market cap approximately £2.8 billion. The UK's leading listed provider of purpose-built student accommodation, focused on properties close to high-ranking universities. H1 2026 results due in July.
UK property ETFs to watch
ETF | Ticker | OCF | Key characteristic |
iShares UK Property UCITS ETF | IUKP | 0.40% | Largest UK property ETF by AUM. Segro ~19%, Land Securities ~9%. Quarterly dividend. 39 holdings |
iShares European Property Yield UCITS ETF | IPRP | 0.40% | Broader European REIT exposure including Vonovia, Unibail, Segro, Klepierre. Higher yield focus |
Vanguard Global ex-US Real Estate ETF | VNQI | 0.12% | Very low cost; diversified global REIT exposure excluding the US. Suitable for broader diversification |
The iShares UK Property UCITS ETF (IUKP) is the most commonly referenced benchmark for UK REIT exposure in a single fund. Its trailing yield is approximately 4.26% and its ongoing charge is 0.40%. It can be held within a stocks and shares ISA or SIPP for tax-efficient property income.
What drives UK REIT performance?
Interest rates: the single most important macro driver. Falling rates reduce financing costs, compress the risk-free rate benchmark and typically support property valuations
Occupancy and rental growth: like-for-like rental income growth reflects the health of underlying property markets. Segro's 6% like-for-like growth in 2025 illustrates strong logistics fundamentals despite the rate headwind
Discount to NAV: when REITs trade below the book value of their properties, it can represent a buying opportunity if valuations are expected to recover. The average 10-15% UK sector discount has narrowed considerably from the 2023 trough
Gilt yields: because REIT dividends are benchmarked against risk-free gilts, movements in 10-year gilt yields directly affect relative attractiveness. At approximately 4.82% (June 2026), the elevated yield limits near-term REIT re-rating
Structural property demand: logistics demand from e-commerce, student housing from demographic trends, and data centre demand from AI infrastructure are secular tailwinds for specific subsectors
Best UK REITs FAQs
The iShares UK Property UCITS ETF (IUKP) is the largest and most widely held UK property ETF, with Segro as its largest holding at approximately 19%. Its trailing yield is approximately 4.26% and ongoing charge 0.40%. It can be held in a stocks and shares ISA for tax-free income. This is not personal investment advice.
UK REITs offer income, diversification and property exposure without the capital required for direct ownership. Their performance is closely linked to interest rates: rate cuts support valuations and borrowing costs, while rate rises do the opposite. As with all investments, prices can fall as well as rise. Capital is at risk.
UK-listed REITs are accessible through our share dealing account or stocks and shares ISA in the same way as any other listed company. REIT ETFs are also available and eligible for ISA and SIPP wrappers. REIT shares bought within an ISA generate dividend income free from UK income tax.