UK real estate investment trusts (REITs) are due to report full-year 2025 results starting next week, with Segro Plc scheduled to open the season on February 20. UBS has detailed its outlook for the four London-listed property companies reporting in late February - Segro Plc (LON:SGRO), Hammerson PLC (LON:HMSO), Shaftesbury Capital PLC (LON:SHCS) and Derwent London PLC (LON:DLN).
UBS view: constructive on logistics and central London retail
UBS retains a positive stance on Segro and Shaftesbury Capital. For Segro, the bank highlights improving demand in the logistics sector, firmer pre-let activity and a clearer development pipeline as supportive factors. UBS expects Segro to set capital expenditure guidance of roughly
(Note: The capital expenditure figure above was stated by UBS as guidance expectations for 2026, representing a circa 50% increase year-on-year.)
Data centre expansion is singled out as a particular area of interest for Segro investors, with attention likely to focus on updates regarding Slough capacity and the Park Royal joint venture with Pure DC. UBS projects a 1.3% uplift in Segro's portfolio value for 2025.
For Shaftesbury Capital, UBS cites MSCI data indicating that estimated rental value (ERV) growth sits within the company s medium-term target of 5-7%. UBS expects capital growth for Shaftesbury of roughly 5% for FY25 and anticipates earnings per share to grow by around 12.5% year-on-year.
More cautious views on Hammerson and Derwent London
UBS adopts a more guarded outlook for Hammerson and Derwent London. In Hammerson s case, slowing indexation in France points to a softer rental growth trajectory for 2026 and suggests margin improvement could be hard to achieve in the near term. Investors will be watching Hammerson s first results under new chief executive Rob Wilkinson.
With Derwent London, UBS expects assets that come to market to trade below book value, a trend likely to influence year-end valuations. The bank also raises concerns about medium-term office demand as it anticipates some displacement of white-collar jobs due to artificial intelligence, which it views as a negative factor for office-focused assets.
Valuation and ratings snapshot
Across its UK real estate coverage, UBS notes a collective trading discount of approximately 20% to EPRA net tangible assets (NTA). The bank lists Buy ratings on Segro, Shaftesbury Capital and Landsec, and assigns Sell ratings to Great Portland Estates, Derwent London and Hammerson.
Analyst note
Market participants will be watching February results for confirmation of UBS s forecasts, including Segro s capex guidance and updates on data centre exposure, Shaftesbury s ERV momentum and margin trajectories for Hammerson and Derwent London.