Property (AO) | Buybacks, activists and M&A

Research evidence excerpt

Property (AO) | Buybacks, activists and M&A

News comment

Release date: 25 June 2026

Julian Livingston-Booth

Equity Research Analyst

+44 207 621 5221

Property jlivingston-Booth@keplercheuvreux.com

United Kingdom

Buybacks, activists and M&A

Key points:

Prologis' proposal to acquire SEGRO adds to a growing list of actions driven by UK REITs' "discounted" share prices. At least 14

listed UK REITs have been acquired in the last three years. Other UK REITs have increased disposal targets, with two in our

coverage now using disposal proceeds to buy back shares. Saba Capital, an activist investor, has acquired 25% of the shares of

another UK REIT and is pushing for a managed wind-down to capture as much of the upside to current NAV as possible.

Our UK REITs coverage traded at a 30% discount to last reported NAV on average before the news of Prologis' proposal (range;

7%-48%); taking Prologis' proposal to pay a price equal to last reported NAV implies 8-91% upside for our UK REIT coverage.

Acquisition prices in the last three years have implied an average discount to the last reported NAV of c. 3% (median: c. 4%) and

share price increases of close to 30% on average (range: 13-37%).

We identify the property sectors with the best strategic fits between larger US and UK REITs as being industrial, self-storage, net-

lease and healthcare. There is also some fit for retail and residential, but much less for offices, student housing and diversified

landlords in our view. We identify those UK REITs with shares trading at bigger discounts to NAV and stronger high-level strategic

fits. However, we also note how internal management actions and/or activist shareholders may be a significant alternative

catalyst for other UK REITs' share prices to increase towards NAV.