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The challenge and opportunity for UK REITs in the Covid-19 e-commerce boom

Heightened demand for logistics space places specialist REITs in the sub-sector at a strong advantage. For an investor, the improved liquidity profile of REITs, as well as their yields – which are attractive relative to the yields on offer from bonds – adds to the opportunity currently on offer. Around a third of the VT Gravis UK Listed Property (PAIF) Fund (GULP) is exposed to this trend in the UK REIT space, and could benefit from this accelerating long-term trend.

The business critical nature of logistics assets means rent collection is likely to remain high, and this reliability supports the dividend payments to REIT investors, while low vacancy and affordable rents would suggest a high level of support for rental growth in the future. This level of assurance seems much needed in a post-Covid 19 world and is an attractive combination for an investor and a sector that GULP will continue to focus on.

To find out more about the VT Gravis UK Listed Property (PAIF) Fund, please click here.

Matthew Norris CFA, Director of Real Estate Securities, Gravis Advisory Limited