MSCI/AREF Property Fund Index Analysis Webinar | 27 March 2026
AREF members joined us for a webinar exploring the latest results from the MSCI/AREF UK Property Fund Index, with expert insights into performance trends, market dynamics, and the outlook for UK property funds.
The session was chaired by Tom Richardson (Knight Frank Investment Management), alongside Ed White (MSCI Real Estate) and Frances Spence (Swiss Life Asset Managers).
Key takeaways
Performance stabilising, but recovery remains uneven
The Index highlighted signs of stabilisation across UK property funds following a challenging period. While overall returns showed improvement compared to 2023–2024 lows, performance remains mixed across sectors, with some areas recovering faster than others.
Sector divergence continues to shape outcomes
Speakers noted ongoing divergence between sectors:
- Industrial and logistics assets continue to demonstrate relative resilience.
- Office performance remains under pressure, particularly in secondary assets.
- Retail showed pockets of improvement, though recovery is selective and asset-specific.
This divergence is increasingly influencing fund-level performance and portfolio strategy.
Income remains a key driver of returns
With capital growth still uncertain, income return continues to play a central role in overall performance. Investors are placing greater emphasis on:
- Secure, long-term income streams
- Tenant quality
- Asset management initiatives to protect and enhance income
Liquidity and flows remain a focus
The discussion touched on ongoing liquidity considerations within open-ended funds. While redemption pressures have eased compared to peak periods, capital flows remain cautious, with investors continuing to assess allocation strategies carefully.
Valuation trends beginning to settle
There are early signs that valuation adjustments are moderating. However, speakers emphasised that pricing clarity is still evolving, and investor confidence will depend on sustained evidence of stability.
The role of active asset management
Active management was highlighted as increasingly critical in the current environment. This includes:
- Repositioning assets
- Enhancing ESG credentials
- Improving leasing performance
- Managing operational risk
Market outlook
Looking ahead, the panel discussed a cautiously optimistic outlook for UK property funds. While macroeconomic uncertainty remains, there is a growing sense that the market is moving through the adjustment phase.
Key factors to watch include:
- Interest rate trajectory
- Capital flows back into real estate
- Continued repricing across sectors
- The ability of managers to drive performance through asset-level interventions
With special thanks to our speakers Tom Richardson, Ed White and Frances Spence.
Event resources
Presentation Slides
Download the slides by clicking here, or on the image below:
Watch the webinar recording or listen to the podcast (members only)
AREF members can access the full webinar recording and podcast here or by clicking the image below.