The Weekly Take from CBRE Do the Evolution: What’s up with U.K. REITs
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Oct 13, 2025 Andrew Jones, CEO of London Metric Property, and Franco Sidoli, Executive VP at CBRE, delve into the evolving landscape of UK REITs. They explore how triple-net leases provide income stability, highlight the booming sectors of urban logistics and convenience retail, and discuss the rising interest in smaller lot sizes from family offices. They also assess the impact of M&A on scalability, investor demand amidst changing market conditions, and the potential of retail environments reshaped by e-commerce trends. A must-listen for anyone intrigued by real estate dynamics!
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UK REITs Maturing Toward Income
- Andrew Jones argues UK REITs are maturing into income-focused vehicles rather than legacy trading companies.
- He positions triple-net, predictable income as core to total return and investor appeal.
Targeting Predictable Total Returns
- London Metric targets ungeared total returns about 9% composed of income and capital growth.
- With gearing and costs, their dividend yield targets sit near 7% and earnings yield around 7.8%.
First Warehouses Leased To Retailers
- Andrew recounts buying his first warehouses in 2013 and initially leasing them to trusted retailers.
- Early warehouse purchases were all let to retailers like Next and Marks & Spencer's to validate suitability.
