BCPT, AEWU, BREI: Top performing REITs investors may consider now  

Highlights

• UK house prices have crossed the £250,000 mark for the first time in April.
• The yearly house price inflation has declined from 9% in March to 8.4% in April 2022.
• By the end of 2022, Zoopla expects the annual house price inflation to drop to 3%.

The UK housing market is headed for a slowdown as the home prices are surging but the speed of price growth is coming down. For the first time, the average price of UK houses has surpassed the £250,000 mark, but at the same time, the yearly house price inflation has declined from 9% in March to 8.4% in April 2022.

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According to property portal Zoopla, the UK housing market is still more active as compared to the pre-pandemic levels, but there are signs that the market may be headed towards a slowdown over the coming months. By the end of 2022, Zoopla expects the annual house price inflation to drop to 3%.

Amid the rising housing prices, Real Estate Investment Trusts (REITs) are on the radar of investors. These companies basically own, manage, or invest in income-generating real estate. REITs allow investors to go for real estate investments without taking on the responsibility of the properties themselves.

Let’s look at 5 top-performing UK REITs based on their annual returns.

RELATED READ: HWG, PCA, HRE: Housing stocks to explore amid rising prices

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1. BMO Commercial Property Trust Ltd (LON: BCPT)

The shares of BMO Commercial Property Trust Ltd were trading at GBX 119.00 at around 11:15 AM (GMT+1) on 30 May 2022. The FTSE250-listed REIT has given its shareholders a return of 32.22% over the last one year as of 30 May 2022, while its year-to-date return stands at 13.33%. The current market cap of the REIT stands at £865.44 million.

2. AEW UK REIT plc (LON: AEWU)

The shares of AEW UK REIT plc were trading at GBX 120.80 at around 11:15 AM (GMT+1) on 30 May 2022. The REIT has given its shareholders a return of 28.76% over the last one year as of 30 May 2022, while its year-to-date return stands at 8.10%. The current market cap of the REIT stands at £191.38 million.

3. BMO Real Estate Investments Ltd (LON: BREI)

The shares of BMO Real Estate Investments Ltd were up by 0.21% at around 11:15 AM (GMT+1) on 30 May 2022, at GBX 93.60. The REIT has given its shareholders a return of 28.02% over the last one year as of 30 May 2022, while its year-to-date return stands at 8.83%. The current market cap of the REIT stands at £224.82 million.

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4. Standard Life Investments Property Income Trust Ltd (LON: SLI)

The shares of Standard Life Investments Property Income Trust Ltd were up by 0.25% at around 11:15 AM (GMT+1) on 30 May 2022, at GBX 80.20. The REIT has given its shareholders a return of 24.34% over the last one year as of 30 May 2022, but its year-to-date return is negative, at -1.60%. The current market cap of the REIT stands at £317.54 million.

5. Ediston Property Investment Company plc (LON: EPIC)

The shares of Ediston Property Investment Company plc were trading at GBX 81.00 at around 11:15 AM (GMT+1) on 30 May 2022. The REIT has given its shareholders a return of 18.62% over the last one year as of 30 May 2022, but its year-to-date return is negative, at -5.82%. The current market cap of the REIT stands at £171.18 million.