In this short video, Matthew Norris talks to Wealthwise about investing in real estate investment trusts (REITs). He discusses their role in a multi-asset portfolio, the potential yield, growth and upside on offer at today’s discounts and Gravis’s credentials in this asset class.

The transcript is below

It's a really interesting time to invest in real estate right now. At Gravis we would say the acronym is PACE: Physical Assets, Compounding Earners. So, in a world where you have the threat of AI disrupting businesses, the great thing about real estate is it is a physical asset, and the earnings that you get from it, the rent that you get from it, compounds over time. In a world where there are inflationary risks, the benefit of compounding earners is great news for investors.

Now is a great time to invest in real estate investment trusts (REITs), because of the discounts. They're trading at discounted valuation, so there is a valuation opportunity out there. The second reason is diversification, [it is] often forgotten, but real estate offers an element of diversification for those running multi-asset portfolios. We certainly saw that in 2025, when the correlation to other financial asset classes was very low, and the returns were very attractive, as a sterling investor.

And then I think the other reason is really the catalysts that are out there. You certainly see people on the hunt for listed real estate companies, whether that's private equity looking to take them private, or whether that's public-to-public mergers to unlock efficiency gains, to unlock scale benefits.

Gravis is a boutique fund manager. We're specialists in infrastructure, clean energy, and real estate. We have a philosophy where we look for the mega trends out there - the social economic mega trends: ageing population, digitalisation, generation rent, and urbanisation. We invest in those areas where you've got strong social economic benefits.

We're stock pickers. We have a bias towards quality, and that's certainly paid off. If you look at our track record over the six or more years that we've been running the fund, 13 of the investments that we've made have actually been acquired*. So others have seen the beauty where we found it first. And if you look at the upside on those takeovers, on average we've been paid a 24% price premium*.

So, we have the mega trends, we have the stock picking, and if you bring it all together, you're getting yield + growth + upside potential. So the yield on a diversified portfolio of REITs is 5 or more percent*. Importantly, that's a real yield, not a fixed yield. So historically for our fund, we've grown it faster than inflation. Our growth of distributions has been in excess of 6%*. Inflation over that period of time has, has been about 5%.

And then there's the upside. So there's the upside to the asset value, there's the upside if private equity comes along, and there's the upside to analysts' consensus price target. So yield + growth + upside. I think at Gravis we're very good at identifying those opportunities.

*Source: Gravis, as at 26 March 2026

Important information

This video and article are issued by Gravis Advisory Limited (“GAL” or the “Firm”)), which is authorised and regulated by the Financial Conduct Authority. GAL’s registered office address is 24 Savile Row, London, United Kingdom, W1S 2ES. The company is registered in England and Wales under registration number 09910124.

TM Gravis UK Listed Property (PAIF) Fund (the “Fund”) is a sub-fund of TM Gravis Real Assets ICVC, which is a non-UCITS retail scheme and an umbrella company for the purposes of the OEIC Regulations. The Fund is a Property Authorised Investment Fund (“PAIF”).

The Authorised Fund Manager of TM Gravis Real Assets ICVC is Thesis Unit Trust Management Limited (TUTMAN), Exchange Building, St John’s Street, Chichester, West Sussex, PO19 1UP. TUTMAN is authorised and regulated by the Financial Conduct Authority. GAL is the investment manager of the Fund.

Any decision to invest in the Fund must be based solely on the information contained in the Prospectus, the latest Key Investor Information Document and the latest annual or interim report and financial statements.

GAL does not offer investment advice and neither this video nor this article should be considered a recommendation, invitation or inducement to invest in the Fund. Prospective investors are recommended to seek professional advice before making a decision to invest.

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