Anyone recommend best reits in the U.K.?

Suggestions would be welcome :pray:t2:

1 Like

I don’t hold any Reits because I figure I have property covered through index trackers.

However, Tritax Big Box is one of the most popular/highly recommended ones. Segro, British Land and Landsec would probably be the UK’s biggest but I haven’t looked at them in any depth for years–and I’d be wary of the commercial property landlords.

Any particular reason you’re limiting yourself to the UK? The US might offer some better options such as Progolis, Digital Realty, Crown Castle and so on.

If I was to add a separate property holding, I’d probably go for something like VanEck’s Global Real Estate ETF, which is pretty reasonable at an ongoing cost of 0.25%.

Edit: It’s worth noting that this ETF is domiciled in the Netherlands which may have tax implications for UK investors, so there may be better options.

I personally feel Tritax Big Box to be the best warehouse REIT, they seems to be doing a very good job whenever I read or watch company updates. They are the only REIT I hold as I dont feel a REIT is a good way to get residential property exposure (just buy a flat/house would be better). But warehouse/logistics REITs are good to play the eCommerce and race for space boom.

Recommend viewing Tritax recent investor update video here (its 2 hours so maybe check if your interested in Tritax first then watch to get recent view): Sign up - TRITAX BIG BOX REIT PLC - Capital Markets Day


Just keep in mind US REITs you need to factor in a 15% cut in dividend, as you get charged tax on that, whereas UK REIT like Tritax in an ISA is not tax. So for example lets say Tritax is about a 2.6% yield currently, thats equivalent to a US 3.1% yield due to tax implications.

2 Likes

Might consider DGI9

https://www.d9infrastructure.com/ something a bit different. Relatively new and focussed on digital infrastructure.

1 Like

Yeah as mentioned above it’s purely down to the dividend tax, plus not really interested in the US property market.

I’m looking to invest in a REIT which is good for residential, I know there’s plenty which do commercial and that’s where the money is. But if there’s any good residential ones I will take a look.

I have my own house but not in the position to rent it out at the moment so maybe a REIT would be a great alternative.

1 Like

Fair enough. I wouldn’t let withholding tax alone deter me–but each to their own. The AIC lists a handful of UK residential Reits: Compare investment companies | The AIC

2 Likes

Strong results last week, last year earnings:

Annual rent roll: £195.6m +8.3%
Adjusted EPS: 7.38p +6.8%
Portfolio value: £5.48bn +24.3%
NAV: 218p +28.4%
Dividend: 6.7p +4.7%

All that while decreasing LTV to just 23.5% from 30% last year.

AND… today it dipped to 217p, so under the 218p NAV, CRAZY. I bought more thats for sure.

1 Like

Been buying BBOX from 228 missed out today cos i forgot to set alert :rage:

Whilst its not science, I try to have an alert say like 4-5% above current NAV and then one at NAV or like 1-2p above NAV. As generally are solid opportunities so I like to know if it dips then I can see cash position if I want to add.

1 Like

Tritax has now moved up to 243 at time of writing, and gone ex div for 1.9p divvie, so from that 217p buy thats a 12-13% paper gain… in a week or so, on a stock that is in my ‘slow and steady’ category… my ethos of buy BBOX under or near NAV seems to hold up.

Lets see if an interest announcement by BoE tomorrow has an impact.

I own some Urban Logistics, they seem to be doing well in the market currently and they pay a decent dividend. They concentrate on small to medium commercial and industrial property, there’s unlikely to be a drop in demand in the near future. Sensible PE and they have a decent amount of assets. Worth a look.

Still can’t decide between BBOX and Segro, if anyone would like to sway my decision please…

I would choose either iShares Developed Markets Property Yield ETF or TR Property Investment Trust

Biggest difference is Tritax Big Box is UK, Segro is only about 25-30% UK in terms of lettable space I believe. I prefer to deal with UK for property as I have no clue with the market forces on property outside of the UK.

So would be people favour Big box over Landsec and British Land?

1 Like

It’s a bit like comparing apples and oranges. BBOX is focused on warehouses whereas the other two own things like offices and retail developments.

WHR is more comparable. If remember rightly, it’s Aim-listed so there’s no stamp duty to pay. That said, I think both trade at a double-digit premium to NAV.

1 Like

I personally see Tritax Big Box as one of the best UK traded stocks period, and my fav from what I have seen of REITs. Equally with REITs and many UK stocks its all about valuation, so my last purchase of Big Box was at just a touch below NAV. It seems like have the occasionally crash by 10%+ if they do a capital raise or bad news on the industry etc, generally I buy close to or below NAV where possible. It takes patience as the stock doesn’t move significantly that frequently but it does have a good track record of delivering NAV growth. Risk is though as much of that is around value of properties, so if land/properties in general lose value their NAV could plummet, but long term they are well run so if there is a property/land value crash in coming years I would actually look to scoop up companies like Big Box if their balance sheet and position still strong.

Not advice just my thoughts on a company I have followed for a few years now.

Where will I find the current NAV? Thanks

They list it at the top of each earnings:

earnings page - Results and presentations - Investors - Tritax Big Box

1 Like

Anyone buying recently/now? Im adding small amounts, think we’re going lower for a few weeks more.