The UK's six largest real estate investment trusts (REITs) have seen significant market growth, collectively increasing their market cap from £23 billion last year to £32 billion. This is attributed to mergers and acquisitions, equity issues, and easing interest rate concerns.
There is a chance that all of JPM's Super Six - SEGRO PLC (LSE:SGRO), Landsec,LondonMetric Property PLC (LSE:LMP), Unite Group PLC (LSE:UTG), Tritax Big Box REIT PLC (LSE:BBOX), and British Land Company PLC (LSE:BLND) - could be in the FTSE 100, which would improve liquidity and possibly enhance valuations.
JP Morgan has analysed the six and ranked them based on their outlook and performance. SEGRO, rated as 'overweight', takes the top spot due to its strong growth outlook. LondonMetric also holds an 'overweight' rating based on the bank's projections being more optimistic than consensus.
Unite and Tritax Big Box, both showing good upside potential, are also noteworthy. Tritax Big Box, rated as 'overweight', is a candidate for FTSE 100 inclusion in September. While JP Morgan has not upgraded Unite to 'overweight' yet, it still recommends holding its shares. British Land is rated 'neutral' in the rankings.