UBS maintains a selective stance on listed real estate, favoring growth-oriented companies while warning against value traps. Despite current volatility, the outlook for earnings growth and real estate transaction volume recovery in 2026 remains positive.
Key Takeaways
- 1.We favor companies that pursue growth and engage in acquisitions with accretive issuance, while demonstrating strong pricing power, profitable pipelines, attractive yield gaps, and robust cash flows.
- 2.We remain selective toward companies still trading at a discount to net asset value (NAV), as they risk becoming value traps.
- 3.Preferences have shifted; the UK is favored over continental Europe, and we maintain a preference for US REITs.
Table of Contents
- CIO View: Listed real estate
- Market review
- FTSE EPRA/Nareit Developed Index
- Preferences
- Our expectations
- Upside scenario
- Downside scenario
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Authors
Thomas Veraguth
Securities
FTSE EPRA/Nareit Developed Index
Themes
Real estate transaction volume recoveryInterest rate sensitivityNAV discount/premium analysis
Regions
EuropeUnited StatesUKSingapore