Table of Contents
Investment thesis .............................................................................. 3
UK-REITs overview............................................................................ 4
Strong performance post capital raisings..................................................................................4
Rents still declining ...................................................................................................................5
But return of yield compression................................................................................................5
De-leveraging complete for REITs but not for banks ................................................................6
Property and inflation ................................................................................................................8
Direct property looks ‘good value’ ............................................................................................9
Direct market implies attractive valuation of UK-REITs ...........................................................11
UK-REITs stock selection ................................................................ 12
NAV the main valuation metric................................................................................................12
Differences in portfolios..........................................................................................................12
NAV forecasts .........................................................................................................................13
Recommendations.................................................................................................................14
British Land...................................................................................... 16
Land Securities ................................................................................ 25
Hammerson...................................................................................... 34
Liberty International........................................................................ 43
SEGRO.............................................................................................. 52