Property (AO) | KECH Property Monitor #6 - June 2026

Research evidence excerpt

Property (AO) | KECH Property Monitor #6 - June 2026

News comment

Release date: 02 July 2026

Frederic Renard, CFA

Head of Belgium Equity Research, Co-head of Real Estate

+32 11 49 14 63

Property frenard@keplercheuvreux.com

Europe

KECH Property Monitor #6 - June 2026

Key points:

June saw the sector underperforming the SXXP by almost 2pp, with the EPRA Index up 0.9% in total return. Yet the RE SXXP is up

2.1%, narrowing the gap with SXXP (-60bps).

The industrial sub-sector performed strongly this month (+9.2%), driven by Prologis' potential offer for SEGRO, which highlighted

the valuation disconnect across the different names.

The UK was the best-performing geography this month (+7.1%), while Sweden underperformed (-7.4%).

We reshuffled our Most and Least Preferred Lists. Our top "Long" saw the addition of Unite and VGP while removing

LondonMetric. We removed Shaftesbury and Icade from our Least Preferred list and added Deutsche EuroShop.

One of the defining events this month was Prologis' potential offer for SEGRO, which sparked numerous discussions with

investors regarding valuations across the logistics real estate sector.

We will be back in September for an analysis of the Summer. Enjoy your summer break.

UK and Logistics on fire

The EPRA Index was up 0.9% in total return this year, bringing the YTD performance to 3.1%, still underperforming the YTD

performance of the SXXP at 10.9%.

Across sub-sectors, logistics clearly outperformed with a 9.2% return this month, while the diversified and residential segments

lagged. Across geographies, the UK was the best performer (+7.1%), whereas Sweden was the weakest (-7.4%).

YTD, both the EPRA Retail and Logistics sub-sectors outperform the SXXP YTD, while Self-Storage and residential continue to lag.