UK-listed property stocks enjoyed another positive month in July, with the average share price rising 2.3%, and 34 of the 49 companies in our dataset recording gains. The median return was slightly stronger at 2.5%. The sector has now delivered three consecutive months of positive average returns, taking the three-month gain to 3.9%. However, the average share price is still 7.2% lower than a year ago and is down 3.8% so far in 2026, reflecting the impact of the Iran conflict and interest-rate concerns.

Best performers in price terms

Source: Bloomberg, Marten & Co

There was plenty of action among the larger property companies, but July’s biggest risers were small-cap diversified property investor Town Centre Securities (TOWN), whose shares rose 13.5%, and office landlord CLS Holdings (CLI) was close behind, gaining 13.2%.

The standout among the larger REITs was SEGRO (SGRO), up 10.3%. The logistics giant’s share price continued to be driven by the takeover approach from US rival Prologis. Prologis increased its proposal several times during July, eventually putting forward a “best and final” offer valuing SEGRO at around £14bn, which has since been recommended by SEGRO’s board.

SEGRO’s gain in July takes its 2026 performance to an impressive 34.0%, making it comfortably the best performer among the larger companies in the dataset. The bid has also provided a useful reminder of the value embedded in UK-listed property companies after several years of depressed valuations.

London offices were also well represented among July’s winners. Derwent London (DLN) rose 8.4%, while Land Securities (LAND) and British Land (BLND) gained 8.4% and 6.9% respectively. The two larger diversified landlords are now up 13.4% and 9.5% respectively for the year.

Harworth Group (HWG) gained 8.7%, although its strong July performance only partly repaired a difficult first half, with the shares down 21.9% year-to-date at the end of the month.

Worst performers in price terms

Source: Bloomberg, Marten & Co

The downside was concentrated in a smaller group of stocks. Phoenix Spree Deutschland (PSDL) was July’s weakest performer, falling 11.9%, while First Property Group (FPO) dropped 11.1%. Henry Boot (BOOT), which had already suffered heavily earlier in the year, fell another 8.4%, leaving it down 32.4% year-to-date.

The contrasting performances of the large and small companies illustrate the continued bifurcation within the listed property market. Investors appear increasingly willing to pay for scale, liquidity and exposure to areas where rental growth or development opportunities are visible, while smaller companies continue to struggle to attract buyers despite wide discounts to NAV.

Corporate activity continues

Elsewhere in the sector, the bid situation at Alternative Income REIT (AIRE) became increasingly complicated. Glenstone’s low-ball offer remains on the table, while AEW UK REIT (AEWU) returned with a possible all-share proposal worth around 77.4p per AIRE share. AIRE’s board has recommended that shareholders reject the Glenstone offer, arguing that it undervalued the company.

There was further development at Picton Property (PCTN), where LondonMetric Property (LMP) and Schroder REIT (SREI) firmed up their offer, with the final terms still representing a discount to Picton’s NTA.

Corporate activity was not confined to takeover bids. Activist investor Saba Capital’s campaign at Workspace Group (WKP) hit a snag with shareholders backing the existing board at the 23 July AGM, with the incumbent directors receiving strong support excluding Saba’s votes. The outcome does not necessarily mean the issue is settled.

With listed property companies still trading at substantial discounts to asset values, pressure from activists and potential buyers is likely to remain a feature of the market. Saba has declared stakes in both Grainger (GRI) and Unite Group (UTG).