There have been some negative remarks on the generally lacklustre performance of UK Reits since the market began at the start of this year. However, these comments are likely to have come from those who were expecting a significant increase in price on the actual date of conversion on January 1, and who would have been disappointed to find that the Reit premium had already built up over the previous year. It was reasonably clear by the middle of last year which companies would be in a position to convert to Reit status, and therefore the one-off benefits of conversion to Reit were already largely reflected in the share price.
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