7 Best UK REITs to Add to Your Portfolio in 2026

Real estate investment trusts (REITs) have become the investments of choice for UK investors seeking to generate income from property without having to build a brick-and-mortar portfolio. In this guide, we review what we consider the 7 best UK REITS available currently.

The UK real estate investment trusts market will be worth $143.1 billion by 2033 from $78.30 billion in 2024, expanding at a compound annual growth rate (CAGR) of 6.20%, according to projections from the IMARC Group.

The key drivers fueling this growth include tax benefits, the advantages of diversification, and the UK’s dependable legal structure. Rapid urbanisation, heightened interest from institutional investors, and an increasing emphasis on both sustainable and residential properties are accelerating the trend.

An in-depth look at these top REITs to invest in 

We found these seven UK REITs to be the best available for their ability to continue growth, both in share price and in dividend:

1. Tritax Big Box REIT: Finding its way with logistics

Tritax Big Box (BBOX.L) has the largest logistics investment and land development portfolio in the UK, worth £6.82 billion. It grew significantly last year with its £924 million purchase of rival UK Commercial Property (UKCM).

The company is continuing to add assets even during its acquisition by Aberdeen Group Plc (ABDN.L). Aberdeen is exercising its option to acquire a 40% stake in Tritax it doesn’t already own. The deal will be completed in two instalments, in April 2026 and 2029.

The REIT’s shares have increased by more than 11% this year. Its total return over the past five years is 19.47%. Its loan-to-value ratio, which indicates the amount of debt a REIT has relative to the value of its real estate assets, is 0.47%, leaving it room for growth.

Another supportive factor is that the company raised its first-half dividend by 4.9% to 3.83 pence, resulting in a yield of approximately 5.37%. The dividend payout ratio is less than 46.28%, within the safety margins for a REIT.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

2. The PRS REIT: New kid on the block builds rental homes near schools

PRS (PRSR.L) has built 5,478 homes for rental purposes across 71 sites in the UK. Its stock is up more than 6% in the past 12 months. The attractively-priced stock trades at less than 8.2 times earnings. It has a five-year total return of 85.69%.

The big news for PRS, however, is that it’s in the process of being sold. Waypoint Asset Management is buying PRS’s operating subsidiary for £628.86 million.

PRS focuses on developments near large employment centres outside London, with units typically located near local amenities and transport facilities, as well as nearby primary schools.

Its dividend declared for the year through June rose 0.75% to 4.3 pence per share, equaling an annual yield of around 3.87%.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

3. Segro (SGRO): Warehouse specialist moving into data centres

Segro (SGRO.L) focuses on leasing warehouses in dense urban settings that face land shortages and challenging planning regimes. The stock has increased less than 1% this year. It trades at around 16 times earnings.

The company is also pushing into the fast-growing data centre segment. Data centres already account for 8% of the company’s holdings. It currently has 500 megawatts (MW) of data centre capacity either operational or under construction, with an additional 1,800MW of potential capacity. 

Its pipeline includes an additional £45 million of future rent through projects currently on site and in advanced negotiations.

To sum up, there are several aspects to like about the stock. To begin with, it has consistently increased earnings. Furthermore, it has recently increased its interim dividend by 6.6% to 9.7 pence, and the total annual dividend yields around 4.27%.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

4. Land Securities Group: Shifting priorities toward more retail, residential properties

The Land Securities Group stock (LAND.L) is up more than 4% in the 11 months of 2025 so far. Its total return over the past five years is more than 18%.

The main reason for this is rising profits, driven by improved tenant occupancy and rental growth in its retail and London properties. Moreover, the stock still appears to be a bargain, as it trades at around 18 times earnings. It has forecast that in 2026 like-for-like net rental income will grow between 4% to 5%.

Most of Land Securities’ properties are offices in central London, accounting for 45% of its income; however, it’s also seeing growth elsewhere. The company is scaling back its office properties and doubling down on its retail and residential property investments.

All in all, one of the best aspects of the REIT is its dividend, which has a yield of nearly 7% and increased by 2% this year to a total of 40.4 pence. It also changed its dividend from quarterly to semi-annual.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

5. British Land Company: Slow, dependable growth, steady dividend

British Land’s stock (BLND.L) has risen by more than 9% so far through mid-December. The company has been able to buttress its declining earnings from its London office properties with improved funds from its retail and urban logistics properties.

Over the past five years, it has had a total return of just under 10%. Looking ahead, the company predicts annual EPS growth of 3% to 6% and has forecast 6% growth in 2027.

The growth is driven by the fact that it benefits from the shortage of key office space in Central London and the trend for increased retailers outside the city.

It’s also worth noting that the full-year dividend was 22.88 pence, equal to a respectable yield of around 5.71%. The stock is trading at just under nine times earnings.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

6. Unite Group: Top of the class for growing market share

Unite Group (UTG.L) is the UK’s leading owner, manager and developer of student housing. It operates 152 properties in 23 cities across England, Scotland, and Wales. The shares are down more than 37% this year, and the stock is trading for around seven times earnings.

There is a shortage of UK student HMOs (houses in multiple occupation), which refers to a property rented out by at least three people who are not from the same family.

To further benefit from this, Unite is investing more than £650 million in two partnerships with Newcastle University and Manchester Metropolitan University to deliver more than 4,300 new student beds, beginning in early 2026.

The REIT has grown revenue by 34.3% over the past five years. It also increased its interim dividend by 3% year-over-year to 12.8 pence. Furthermore, it has increased its total dividend for five consecutive years and has a yield of around 7.38%.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks}.

_{Your capital is at risk.}

7. LondonMetric Property: Growing through acquisitions, boosting efficiency

LondonMetric Property (LMP.L) has been on a buying spree and is now one of the largest REITs in the UK, with a market capitalisation of £4.33 billion and a portfolio of properties worth £7.4 billion.

Through mid-December, the stock has increased by more than 2%. It has a total return of 6.34% over five years.

In addition, the property trust has increased EPRA per share earnings at a compound annual growth rate of 11.5% since 2014.

That has enabled it to raise its annual dividend for a decade, including a 17.6% jump this year, and the yield is an above-average 6.71%, with a relatively low payout ratio of 52%. It said that it plans another 5.3% dividend increase in the first quarter of 2026.

The company is focusing on increasing its logistics properties, which it believes are more profitable than its healthcare and entertainment properties, and logistics now accounts for 54% of its properties.

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

---

The performance of the best UK REITs over the past 12 months

---

The pros and cons of investing in a real estate trust

---

Alternative ways to invest in the real estate sector without owning property

1. eToro’s Real Estate Trusts Smart Portfolio

The managed portfolio bundles together a selection of REITs based on a specific strategy or theme determined by eToro’s investment team, with the goal of offering simple and diversified exposure to the real estate sector. 

The “RealEstateTrusts” portfolio provides one-click access to a diversified real estate portfolio. As of December 2025, this portfolio has shown a year-to-date (YTD) return of -1.75% and a 2-year return of +11.79%.  The minimum investment for eToro’s Smart Portfolios is typically $500, and there are no management fees.

Lastly, the portfolio is designed for investors seeking a hands-off approach to investing with a long-term perspective. eToro provides a risk score for each Smart Portfolio, ranging from 1 (low risk) to 10 (high risk), to help investors understand the potential volatility. The average risk score for the RealEstateTrusts portfolio over the last seven days is around 4.

---

_{Copy trading does not amount to investment advice. Your investments value may go up or down. Your capital is at risk.}

---

2. REIT ETFs

Instead of choosing one or two REITs, there are exchange-traded funds (ETFs) that provide diversified exposure to real estate by collecting a selection of REITs, including many from our list. Here is one that we like:

iShares UK Property ETF (IUKP)

The ETF is designed to track the performance of the FTSE EPRA/NAREIT UK Index, which represents UK-listed real estate companies and Real Estate Investment Trusts (REITs) meeting specific size, liquidity, and free-float criteria. It has a market cap of around £454.74 million.

IUKP delivers a quarterly dividend equaling a yield of around 4.26%. Its expense ratio is 0.40%. It carries 39 holdings, led by Segro REIT at 19.10% and Land Securities at 9.22%.

From January to mid-December, its shares have risen by about 7.35%.

It has an Undertakings for Collective Investment in Transferable Securities (UCITS) risk factor of 5, with 1 being the lowest and 7 being the highest. The fund also has a strong MSCI ESG (Environmental, Social, and Governance) rating of 6.8 out of 10.

Explore other REITs ETFs with global exposure.

---

Why invest in REITs in the UK?

Some of the benefits of REITs

Although they trade like any other stock, REITs represent a distinct asset class that may or may not have a direct correlation with the overall health of the economy. Consequently, they can deliver a certain amount of diversification. Here are some of the advantages of investing in REITs.

1. Diversification

REITs also offer a straightforward and relatively affordable way to diversify an investment portfolio beyond traditional stocks and bonds. By investing in a single REIT, you gain exposure to a portfolio of numerous properties across various sectors (e.g., residential, commercial, industrial, and specialized properties).

This diversification helps reduce the overall risk compared to investing in individual properties, as the performance of one property or sector may offset that of another.

2. Ability to invest in larger properties

REITs pool capital from many investors, allowing them to acquire and manage large-scale, high-value properties such as shopping malls, office buildings, apartment complexes, hospitals, and infrastructure assets like cell towers. Individual investors typically cannot afford to invest directly in these types of properties independently.

By purchasing REIT shares, investors can indirectly participate in the potential income and appreciation of these substantial real estate holdings. This access also comes with professional management, as REITs are typically run by experienced teams with expertise in property management, finance, and real estate markets.

3. High-yield REIT dividends

Furthermore, REITs are legally required to distribute at least 90% of their taxable income to shareholders as dividends annually. This structure allows REITs to avoid corporate income tax, passing the income directly to investors. As a result, REITs often offer higher dividend yields compared to many other types of stocks.

This makes them attractive for investors seeking a regular stream of income. These dividends are typically funded by the rental income generated from the REIT’s properties. Additionally, in the UK, REITs are required to derive at least 75% of their income from rental properties.

In the UK, the average dividend of an FTSE 100 stock is 3.62%, but the average dividend yield for a UK REIT is between 4% to 6%. That can make a big difference for income-oriented investors.

4. Relative stability

While REITs are subject to market fluctuations and real estate cycles, they can offer relative stability compared to other investments, particularly during periods of economic uncertainty. This stability stems from several factors:

• Tangible Assets: REITs invest in physical properties, which tend to hold intrinsic value.
• Consistent Income Streams: Rental income from tenants provides a relatively predictable cash flow.
• Lower Correlation: As mentioned earlier, the lower correlation with the broader stock market can make REITs a stabilizing force in a diversified portfolio, especially during volatile periods.
• Professional Management: Experienced management teams strive to maintain high occupancy rates and effectively manage properties, thereby contributing to stable performance.

5. Liquidity

One of the main problems with traditional property management is it takes money and time to sell a property, making it difficult to exit an investment quickly.

That said, a REIT, like any stock, can be sold with just a click of a button on a share-dealing account. This is especially true of the REITs included in this section, as they are among the larger REITs in the UK.

---

_{eToro offers commission-free stock trading in the UK and the US.
Other regions have a $1 fee for UK/US stocks.}

_{Your capital is at risk.}

---

Some of the drawbacks of REITs

While UK REITs offer benefits such as diversification and income, investors should carefully consider their potential disadvantages and conduct thorough due diligence before making an investment. 

1. Sensitivity to interest rate changes

REITs often rely on borrowing to finance property acquisitions and developments. When interest rates rise, their borrowing costs increase, which can negatively impact their profitability and potentially lead to lower dividend payouts.

Additionally, rising interest rates can make fixed-income investments more attractive, potentially reducing the demand for REITs and causing their share prices to fall.

2. Taxation of dividends

While REITs offer attractive dividend yields, these dividends (known as Property Income Distributions or PIDs) are typically taxed as ordinary income rather than as dividend income, which would be subject to a lower tax rate. This can result in a higher tax burden for investors compared to dividends from regular companies.

However, it’s important to note that REITs themselves generally benefit from an exemption from corporation tax on their qualifying property income, provided they distribute at least 90% of it as PIDs.

Additionally, investments held within tax-efficient wrappers, such as ISAs or SIPPs, will not be subject to this tax.

3. Management fees and expenses

REITs charge management fees to cover the costs of running the trust, including property management, administration, and investment decisions.

These fees can eat into the overall returns for investors. It’s crucial to understand the fee structure of a REIT before investing.

4. Limited growth potential

Due to the requirement to distribute a large portion of their income as dividends (at least 90%), REITs may have less capital available for reinvestment and future growth compared to other types of companies.

This focus on income generation over growth, however, might limit the potential for significant capital appreciation.

---

FAQs on UK REITs