UK Real Estate "HY26 Results Preview" Gauge

Research evidence excerpt

UK Real Estate "HY26 Results Preview" Gauge

Powered by Lab Global17 JulyResearch2026ab Evidence UBS YES

UK Real Estate Equities

Europe including UKHY26 Results Preview

Real Estate

Zachary Gauge

Cash flow growth required to justify the rally Analyst

UK real estate enters results season with improving momentum, supported by recent zachary.gauge@ubs.com

M&A activity and the success of share buybacks where they have been deployed. The +44-20-7901 5534

key question is whether this can drive a further leg of corporate activity, or whether Charles Boissier, CFA

companies can instead deliver more traditional sources of value creation through Analyst

leasing, development, asset management and capital recycling. We remain sceptical charles.boissier@ubs.com

that this approach can be sustainably delivered whilst rates remain a constraint. Gilt +44-20-7568 4415

yields are still close to 5% whilst fiscal headwinds persist, MSCI data pointed to a small Nadir Rahman

contraction in capital values in 2Q, and CBRE yield data showed c.60% of markets Analyst

moving weaker with none moving stronger. This backdrop sits uneasily alongside the nadir.rahman@ubs.com

recent strength in equities. While equity investors are arguably less focused on NAVs +44-20-7567 1750

than in the past, they remain highly relevant in any potential M&A scenario. Equally, the

investment case for share buybacks becomes less compelling as share prices rise. In our

view, further upside therefore requires earnings upgrades. Aside from Unite (from a low

base), we see limited scope for this to emerge from the current reporting season.

The key debates on the stocks

For Unite (Buy, PT 595p from 585p), the focus will be on whether stronger application