TIME Investments, which specialises in real asset income-producing funds, including the hybrid fund TIME:Property Long Income & Growth, is predicting that UK real estate investment trusts (REITs) are likely to deliver better returns for investors as the sector continues to consolidate, improving quality and scale.
The London Stock Exchange had 83 real estate investment trust (REITs) or similar listed property securities at the beginning of 2019.1 Today that number is heading towards 40.2 Whilst some have been privatised and taken out of the listed arena, many have been acquired by fellow REITs. While this means there are fewer REITs to choose from, TIME believes that many that have left the sector didn’t offer a unique investment or growth opportunity and similar investment strategies continue to be provided by the remaining REITs.
Consolidation should also mean more efficient use of capital. This is because REITs tend to be proportionally more expensive to run when smaller, with fixed general administration costs and high debt margins covered by less rent, so a larger number of small REITs can be a less efficient use of capital.
Andrew Gill, Co-Fund Manager of the TIME:Property Long Income & Growth Fund, points to a trail-blazer in intra-REIT M&A, LondonMetric, a REIT focused on low-cost to run assets with a logistics theme: “Management have upsized the company, moving from a mid-tier FTSE 250 company in 2018 to a FTSE 100 company in 2025 through strong property returns but primarily through acquiring other REITs. This growth combined with underlying rental growth has also supercharged dividend growth with the company’s dividend per share growing 46% from its 2019 to 2025 financial year-end.3 That’s an impressive 6.5% per annum growth in dividend.4 UK inflation (CPI) was up 27.5%, or 4.1% per annum, in that same period.5”
LondonMetric is not alone. Logistics company, Tritax Big Box has acquired and is proposing to acquire other REITs. Whilst primary care REIT, PHP and student accommodation REIT, Unite, have proposed mergers with their peers.
Andrew Gill continues: “Whilst further consolidation means there will be fewer UK REITs to choose from, in our view, the sector now offers higher quality and as a consequence, a much
greater chance of higher long-term growth. This could ultimately lead to more attractive returns for investors such as TIME and more cash in the pocket of investors through faster dividend growth.”
New guide to hybrid property investing
TIME has launched a new guide to investing in property and accessing the benefits of both listed real estate such as REITs and direct property using a hybrid investment approach. TIME pioneered the hybrid model and launched the TIME:Property Long Income & Growth Fund on 1 September 2021. The Fund takes a fully active approach, aiming to offer shareholders a consistent income with capital growth prospects from a portfolio of primarily UK-listed real estate securities and directly held long-income properties.
To read the guide, click here: TIME-Hybrid-Property-Guide.pdf
TIME is part of the Alpha Real Capital Group, which encompasses Alpha Real Capital LLP (AlphaReal) and TIME Investments. AlphaReal is a specialist institutional real assets investment manager focused on secure income strategies. It invests in UK and European assets with predictable secure long-term cash flows. It provides market leading and innovative real asset solutions across a range of investments such as Commercial Ground Rents and long lease property, renewable infrastructure, social infrastructure and secured lending.
TIME is the Group’s authorised wealth management investment solutions arm. The Group works with a wide range of UK, European and international investors, including pension funds and other large institutional investors, as well as private investors, family offices and wealth managers. Together, the Group has a 180-plus strong professional team and £4.5 billion of assets under management.
1 – BCLP, 30 May 2023
2 – LSEG, July 2025
3 – LondonMetric, May 2025
4 – LondonMetric, May 2025
5 – Source LSEG, April 2025