UK-listed property shares recovered some of their recent losses in October, with the average share price rising 1.8% after a difficult September. The recovery was relatively broad, with 32 of the 50 companies in our dataset recording gains and a median return of 1.1%.

The improvement was particularly noticeable among some of the larger property companies with strong operational performance, especially among London office landlords. Corporate activity continued to play an important role, with activist investors targeting Big Yellow Group (BYG) and Grainger (GRI), two of October’s best performers.

Several companies are still nursing substantial year-to-date losses, however. For a more sustained recovery, investors will likely need further evidence that stronger rental growth is translating into higher valuations and greater confidence in the direction of interest rates and property yields.

Best performers in price terms

Source: Bloomberg, Marten & Co

Big Yellow was October’s standout performer, rising 14.5% as activist investor Ancora Holdings increased pressure on the self-storage operator to consider a sale.

The US activist, which holds around 4% of BYG, called for a strategic review and potential sale of the company, arguing that its assets were worth substantially more than the value attributed to them by the stock market. The intervention follows an approach from Blackstone last December, which BYG rejected. Ancora claimed the offer was around 50% above the company’s share price at the time, although the price was never confirmed.

BYG’s board said that it remains focused on executing its existing strategy while continuing to evaluate opportunities to maximise shareholder value. The company’s shares are down 10.2% in 2026.

Great Portland Estates (GPE) was the second-best performer, gaining 10.9%, supported by encouraging leasing activity in the London office market.

In an update, GPE revealed it had agreed 19 new leases and renewals during the quarter to September, generating £5.8m of annual rent. Market lettings were agreed at an average 5% premium to March 2026 estimated rental values (ERVs), up from 3.7% in the previous quarter. A further £9.8m of annual rent was under offer at premiums averaging 6.7%.

The update highlights the continued strength of demand for high-quality, well-located London offices. GPE’s shares are now up 7.1% year-to-date.

Grainger also recorded a double-digit share price rise, as activist interest in the residential landlord continued to build. Saba Capital increased its stake in Grainger to 9.2% from 8.9% during October. Mike Ashley, founder of Frasers Group, also acquired a 4.2% holding earlier in the year.

The presence of two significant investors has raised questions about the potential for pressure on Grainger to take action to address its discount to NAV.

International Workplace Group (IWG) also enjoyed a strong month, gaining 10.3%, although its shares remain down 17.8% year-to-date.

Meanwhile, Sirius Real Estate (SRE) gained 9.6% following an encouraging trading update, which showed rental growth of 11.3% year-on-year. Organic growth contributed 5.1%, with the remainder coming from acquisitions, including investments in defence-related properties.

There was also a recovery among the larger diversified landlords. Land Securities (LAND) gained 7.9%, British Land (BLND) rose 7.2%, and Shaftesbury Capital (SHC) added 6.3%.

Worst performers in price terms

Source: Bloomberg, Marten & Co

Home REIT (HOME) was October’s weakest performer, falling 18.0% as the troubled former homeless accommodation provider continued to grapple with the consequences of its collapse. At the beginning of the month, law firm Harcus Parker launched High Court proceedings on behalf of around 800 current and former shareholders against HOME, its directors and former investment adviser Alvarium. The action adds another complication for a company whose shares only resumed trading in April after a 39-month suspension.

Residential Secure Income (RESI) fell 13.5%, although its share price performance needs to be viewed in the context of its ongoing managed wind-down and capital returns.

Phoenix Spree Deutschland (PSDL) and Schroder European REIT (SERE) are both also in managed wind-downs.

Workspace Group (WKP) fell 3.4% after a trading update highlighted the challenges facing its disposal programme. The flexible office landlord said the additional £100m of asset sales identified as part of its defence against activist investor Saba would take longer than originally expected. Management pointed to subdued transaction activity and buyers seeking substantial discounts to book values.

London offices show signs of life

The recovery among London office landlords was a feature of October and comes against a backdrop of increasingly divergent conditions within the office market.

Demand for prime, sustainable and well-located buildings remains relatively strong, with occupiers prepared to pay higher rents for the best space. GPE’s latest leasing figures and British Land’s progress across its campus developments provide further evidence of this trend.

In a trading update during the month, British Land reported campus lettings 14.8% ahead of ERV, with 1 Broadgate and One Triton Square now fully let. It also reported a 1.5% increase in portfolio valuations despite a slight outward movement in yields, demonstrating the positive impact of rental growth on asset values.

However, the difficulties at Workspace show that conditions remain challenging elsewhere in the market. Buyers continue to demand discounts to book values, while weaker occupier demand in that segment of the office market and elevated financing costs are complicating asset sales.

Activists continue to circle

Corporate activity continued in October, with activist investors making their presence known. The emergence of Ancora at Big Yellow and Saba’s growing position in Grainger add to a growing list of listed property companies facing questions about capital allocation strategies.

Saba has already been active at Workspace, where it unsuccessfully attempted to replace directors earlier this year, and has also disclosed a significant economic interest in Unite Group.

However, Workspace’s experience illustrates the difficulty of selling assets while investment markets remain subdued.