Investing in UK REITs
UK Real Estate Investment Trusts, or REITs, are publicly traded companies which own and manage portfolios of income generating property on behalf of their shareholders.
Since being introduced to the UK in 2007, there are around 40 REITs listed on the London Stock Exchange. But which are the top UK REITs to watch? And why consider investing in UK Real Estate Investment Trusts in the first place? Keep reading to find out.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
UK Real Estate Investment Trusts Explained
UK Real Estate Investment Trusts own and manage portfolios of property on behalf of investors.
The types of properties owned by UK REITs can include office buildings, apartment blocks, shopping malls, hotels or any other property which generates rental income.
Investing in UK REITs, allows investors to gain exposure to income generating property market without the high level of capital required to buy the physical real estate, or the headaches that come with managing them.
UK REITs benefit from advantageous tax status but, in order to do so, they must meet a number of conditions, one of which is to distribute at least 90% of the profit made from property income each year to their shareholders as dividends.
Therefore, REITs might appeal to income investors, as, unlike other companies, they are compelled to distribute a portion of their profits as dividends. This can result in some REITs offering high dividend yields, although bear in mind that yields are subject to change.
Disadvantages of UK REITs
However, income prospects aside, there are some potential downsides to REITs which investors should consider.
Slow Growth
Whilst the requirement for a REIT to distribute 90% of its tax-exempt profit to shareholders might sound good from an income perspective, it has knock-on implications.
Distributing the majority of profit leaves REITs with very little to reinvest back into the business. Naturally, this can have a negative impact in terms of future growth potential, limiting a REITs ability to acquire or develop new property without raising funds.
Consequently, for those whose investment goals prioritise capital appreciation, REITs might not be of interest.
Debt
Furthermore, REITs tend to carry a higher level of debt than many other companies.
This is largely due to operating in a capital-intensive industry but can be exacerbated by having a limited amount of profit to reinvest.
Strictly speaking, this isn’t necessarily a disadvantage, provided the REIT can reliably generate enough rental income to service its debt.
However, in a high-interest rate environment, the cost of servicing this debt increases, which can hinder profitability. Consequently, with borrowing costs still at high levels, this is something investors should consider before making any investment decisions.
Top UK REITs to Watch
UK REITs have struggled in the last couple of years, with slow economic growth and high interest rates weighing on sentiment.
Furthermore, an increase in working from home and a greater shift to online shopping has negatively impacted REITs whose portfolios are exposed to office spaces and shopping centres.
Consequently, the share prices of many REITs have fallen significantly and could fall further if the economic outlook in the UK gets worse. Moreover, with interest rates still at high levels, the cost of servicing debt remains high.
However, with the Bank of England currently in a rate-cutting cycle, things may improve for the sector. In the following sections, we’ll examine two top UK REITs.
LondonMetric Property
Typically, REITs tend to specialise in a particular type of income generating property.
LondonMetric, on the other hand, has a relatively diverse portfolio of properties, split across the following sectors:
- Logistics: Warehouses.
- Entertainment & Leisure: Theme parks, hotels and venues.
- Convenience: Foodstores, retail and roadside convenience stores.
- Healthcare: Private hospitals, care homes and children’s nurseries.
Of these sectors, logistics is the largest, making up around 55% of LondonMetric’s portfolio; and that’s not by chance.
The REIT states that logistics is its “conviction sector” and has taken steps to increase its exposure. Indeed, to further this effort, within the last year, LondonMetric has acquired Highcroft Investments and Urban Logistics REIT.
Source: LondonMetric - 10 December 2025.
| WAULT: The average remaining lease term, weighted so that leases generating more rent have a greater impact. |
In the year ending 31 March 2025, net rental income increased more than 120% to £391 million. Past performance is not a reliable indicator of future results.
At the end of the year, gross debt stood at £2.1 billion (around 33% of its portfolio value at the time), with an average maturity of 4.7 years and an average cost of 4.0%.
In the same year, LondonMetric hiked its dividend by 18% to 12.0p per share, marking its tenth consecutive year of raising dividends.
At the time of writing, 10 December 2025, LondonMetric had a dividend yield of 6.7%. However, it’s important to note that yields are subject to change and future payouts are never guaranteed.
Primary Health Properties
Primary Health Properties (PHP) is a UK REIT with a portfolio of more than 500 properties in the healthcare industry across the UK and Ireland.
There are not many industries as defensive as healthcare. Unfortunately, there will always be demand for health services and these services need locations to treat patients.
- Portfolio Value: £2.8 billion
- Occupancy Rate: 99.1%
- WAULT: 9.4 years
Source: Primary Health Properties - 10 December 2025.
Almost 90% of PHP’s rent roll is funded by the UK and Irish governments, meaning that there is a very low risk of tenants going bust or not honouring their contract.
In the year ending 31 December 2024, net rental income increased 3% to £154 million and adjusted earnings rose 2% to £93 million. Past performance is not a reliable indicator of future results.
Its total debt stood at £1.3 billion, which represented around 48% of its portfolio value at the end of the year, and the average cost of this debt was 3.4%.
The healthcare REIT has a strong track record of paying and increasing dividends, having paid dividends for 25 years. In 2024, it hiked its dividend by 3% to 6.9p per share and, at the time of writing, the stock had a dividend yield of 7.2%.
How to Invest in REITs UK
- Open an Invest.MT5 account, complete the onboarding process and log in to the Dashboard
- Find your account details and click ‘Invest’ to open the web trading platform
- Search for the desired UK REIT and open the instrument page
- Enter the number of shares you wish to purchase in the new order window and hit 'Place order’.
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Frequently Asked Questions
Are REITs available in the UK?
Yes. REITs were introduced in the UK at the beginning of 2007 and there are currently around 40 listed on the London Stock Exchange.
What is the largest REIT in the UK?
At the time of writing, 10 December 2025, in terms of market capitalisation, SEGRO is the largest REIT in the UK.
Are there any UK REITs that pay monthly dividends?
No. REITs currently listed on the London Stock Exchange pay dividends on a quarterly, semi-annual, or annual basis. However, please note that dividend policy is subject to change.
Which UK REITs have the highest dividend yields?
At the time of writing, Supermarket Income REIT, Primary Healthcare Properties, Workspace Group and Unite Group have the highest dividend yields amongst REITs in the FTSE 350.
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