The survey, which analyses 20 of the 25 UK- REITs with aggregate total assets of £50bn, has found that despite the recent severe property downturn the UK-REIT sector has proved to be resilient.

The key findings of the survey show that:
• Those with a geographic and/or sector focus have tended to fare better than those which do not
• Size is no indicator of performance
• A&J Mucklow Group ranked number one overall

And across the sector there is:
• 10% median discount to NAV which outperforms the broader listed property sector
• 0.9% average increase in property values over the year under review which is broadly consistent with the wider commercial property market
• Average gearing levels remain high at 72% despite efforts to reduce debt

The UK-REIT sector has managed to successfully navigate a route through the market turmoil of the past five years and has thereby enhanced the reputation of UK-REITs as a suitable destination for both UK and overseas investors. The survey also found that four of the top five leading performers have a narrow geographic focus while seven out of the top ten UK-REITs have a sector or geographic focus.

There does not however appear to be any correlation between a UK-REIT's size and its performance. The top ten performing UK-REITs include representatives from both smaller REITs, such as McKay Securities and the Local Shopping REIT, and the larger REITs such as British Land and Land Securities.

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Tracey Dossett, Tax Director at BDO, commenting on the survey said: "Despite challenging real estate markets and the backdrop of uncertain economic conditions, the majority of UK-REITs continue to perform well. Investors generally view real estate as a safe, slow growth asset class with the potential to offer regular, predictable returns. This quality is particularly attractive in such uncertain economic times.

"In addition, given the reforms introduced by this year's Finance Act it is only a matter of time until the sector increases in size. Moreover, we expect to see the new entrants to the UK-REIT regime becoming increasingly influential in setting the tone for UK real estate investment and, certainly in relation to residential property, delivering Government policy."