In this short video, James Peel highlights his chart of the month showing the three different ways of looking at UK REIT valuations and the potential upside they suggest.
The transcript is below
Chart of the month March 2026: Attractive potential upside
Looking ahead, we still see material upside potential for the strategy, and we can measure this potential in several ways.
Discounts to NAV still average out at about 20%, representing almost 30% upside if share prices re-rate to NAV. It is also important to consider that NAVs do not account for the value embedded in a company’s operating platform, development pipeline or third-party capital management business.
If instead we look at sell-side price targets, upside is a bit less attractive at c.15%. However, the average here distorts the outliers, for example Grainger or Sirius Real Estate, where the upside to price targets is far greater.
Finally, we can look back at the premiums to undisturbed share prices achieved in M&A situations. For the 12 portfolio companies taken out over the life of the strategy, this has averaged c.25%, although we’ve seen higher premiums in recent deals where there were multiple interested parties, for example Assura and Warehouse REIT.
Investors assess value in different ways, but across these three metrics we can see meaningful upside potential for the strategy in 2026 and beyond.
Important information
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