Want to know what makes them excellent turnaround shares to consider? Read on…

Growing market

Unite Group is the UK’s largest provider of student accommodation, operating 142 properties across 22 university towns. It’s slumped 44% in value over the last year during a tough period for the company.

Student numbers are still rising, but rental growth and reservations have cooled, reflecting pupils’ currently fragile finances. In February, the company cut its full-year guidance and warned that rents would grow at the “lower end” of a 2%-3% range. To add to its problems, the soaring oil price is raising inflationary pressures and interest rate risks. Borrowing costs can balloon for property stocks when rates increase.

Yet the long-term outlook for its market remains robust as ever. Britain’s centuries-old position as an academic hub isn’t going to change any time soon. I expect revenues and earnings to pick up sharply when economic conditions improve.

This makes Unite shares an attractive recovery share in my book. And right now it offers terrific value, with a forward price-to-earnings (P/E) ratio of 9.3 times. But that’s not all — the dividend yield for 2026 is a pumped-up 8.4%.

One final thing: as a real estate investment trust (REIT), Unite must pay at least 90% of annual rental profits out in dividends. And dividend cover is robust at 1.2, making it a great share for dividend investors to consider.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Another bargain stock to buy?

Sage’s share price has been hit by a double-whammy in recent months. It means the software share’s down 33% on a 12-month basis.

Firstly, it’s dropped on fears that widescale artificial intelligence (AI) adoption will hit client demand. Broader economic worries have also hit the broader IT sector, worsened by the escalating Middle East conflict.

It’s no surprise that fears of a cyclical downturn have hammered Sage’s shares. But have AI-related concerns been overblown? I think so. Over the longer term, I’m confident the FTSE 100 share will rebound strongly as sales increase.

I’m confident for a few reasons. Accounting, payroll and HR are critical processes in any business, and I’m not certain millions of them will be willing to entrust this to AI. Particularly when you consider what a low proportion of a company’s total costs Sage’s software account for.

Furthermore, Sage is actually integrating AI into its products to turn this danger into an opportunity. And it seems to be paying off, driving double-digit revenue growth.

There’s clear risk here, but I think this is more than baked into Sage’s share price today. The forward P/E is 16.5 times, miles below the 10-year average of 31-32.

The post Down 45% and 33%! Consider these 2 cheap stocks to buy in April appeared first on The Motley Fool UK.

A short-term hit

The dividend yield calculation factors in the dividend per share and the share price. Therefore, if the dividend hasn’t changed in recent weeks but the share price has fallen, it pushes up the overall yield.

One company this has happened to is Unite Group (LSE:UTG). The share price is down 19% in the past month and 42% over the last year. It’s the largest owner, developer, and manager of purpose-built student accommodation in the UK. As a result, the general selling pressure — partly related to worries over the Middle East — is misplaced for Unite, as it doesn’t have any exposure.

However, the stock has also been hit by a weaker 2026 earnings outlook released in February. The real-estate investment trust (REIT) outlined softer demand for student housing in some markets, suggesting profits could fall this year. Obviously, this isn’t great and remains a key risk going forward.

This has pushed the dividend yield up from 6.5% at the end of last month to 7.99% now. That’s a 23% increase. More than that, I think the dividend is sustainable. As a REIT, it needs to pay out income in order to keep certain favourable tax treatments. Further, the dividend cover ratio is 1.2. This means that earnings comfortably cover the level of dividends being paid. Finally, let’s not forget that student housing tends to be less cyclical than other property sectors because demand comes from universities. So, with a long-term investment lens, I think this could be a good income stock to consider.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Dividend pressure

Not all increases in yield mean that the stock is a great dividend purchase. For example, take Marshalls (LSE:MSLH). The dividend yield has popped from 4.3% last month to 5.34% currently.

The share price fall of 20% in the past month compounds the 41% drop in the past year. It has struggled due to a slowdown in the construction and housing markets. Interest rates in the UK haven’t fallen as quickly as many had expected over the past year. Further, concerns about higher inflation due to the spike in oil prices means investors have repriced their thinking for any cuts in interest rates this year. In fact, I’ve heard talk of raising interest rates to combat inflation! This would hurt Marshall’s future as it could cause mortgage rates to increase, putting off new buyers.

As for the dividend, the company already cut its interim dividend by about 15% last summer. With profits declining, I doubt it will increase any time soon. Therefore, the high dividend yield needs to be treated with caution.

I could be wrong. The company is pushing hard for cost savings, which could act to ease financial pressure. If the Middle East conflict ends quickly, we could see consumers more confident about making large purchases, such as property. However, it’s not an income stock I’d consider right now.

The post The dividend yield of these 2 income stocks just jumped almost 25% appeared first on The Motley Fool UK.

Sabre Insurance Group (LSE: SBRE) certainly fits my value criteria, with a forward price-to-earnings (P/E) ratio of only 8.6. That gives it a lot of room for growth if markets recover. But it also boasts a very attractive 9.3% dividend yield. 

Usually, when I see that combination, I expect to find a share price that’s been in decline for years. But not here — Sabre is actually up about 30% over the past two years.

So, is it an untapped income opportunity with strong prospects, or a value trap?

Let’s take a look.

A tough industry

Despite a rise in profitability and improving margins, Sabre’s share price has suffered a moderate decline in the past few months. This could be attributed to falling gross premiums and a weakening UK motor insurance market.

Management has prioritised margin over volume to protect against “external macro shocks,” but this has come at the cost of headline revenue and future growth rates.

Now, analysts forecast stable (but not growing) profits for 2025, which could limit capital appreciation in the short term. But for income investors, that wouldn’t be a huge issue — so long as the dividends remain steady.

That’s where things start to look questionable. With very little cash flow, even a mild profit hit could risk a dividend cut.

Where things could go wrong

There are some notable risks to account for, including ongoing claims inflation and premium declines if the UK car insurance market remains soft. Also, it relies on its disciplined pricing strategy to draw business, which could limit growth.

Additionally, Sabre underperformed both the wider market and its insurance peers over the past year, reflecting investor caution. If sector conditions worsen or claims inflation spikes, Sabre may be forced to reduce dividends or see further share price declines.

I’d say the risks may outweigh the potential returns in this case. Fortunately, there are many other options.

A safer pick?

For risk-averse investors, a more stable income stock to consider is the student accommodation developer Unite Group (LSE: UTG). It’s not quite as impressive with only a 6.3% yield, but it looks more sustainable. It may not be ‘the best’ stock out there (that’s very subjective, after all). But it could be worth further research.

As a real estate investment trust (REIT), it’s required to return 90% of profits to shareholders as dividends. That adds a level of reliability for those seeking passive income.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

The caveat is that REITs tend to underperform in weak markets. Subsequently, Unite shares have lost a third of their value this year as the UK property market struggled. So long as that continues, returns may be limited.

Final thoughts

Unite’s current price looks significantly undervalued, with a P/E ratio of only 7.8. With the UK housing market already hinting at a recovery, 2026 could be a good year for Unite Group.

But November is always a difficult time to pick stocks, and the upcoming Autumn budget adds extra uncertainty. While I think it’s a promising REIT to consider, I’d wait until the month’s end before making any big decisions.

The post 9.3% yield and P/E of just 8.6! Could this be the best value stock on the FTSE today? appeared first on The Motley Fool UK.

A top REIT

Real estate investment trusts (REITs) can be great shares to target long-term passive income. Sector rules state at least 90% of annual rental earnings must be paid out in dividends. This can make the cash rewards they deliver less volatile than those from other dividend shares.

Unite (LSE:UTG) is one trust I feel demands close attention. It operates in the highly defensive student accommodation market, which gives profits protection from changing economic conditions. Following its acquisition of sector rival Empiric Student Property, it will be the UK’s largest operator with 75,000 beds, chiefly centred on the country’s strongest universities.

Unite has proven one of the UK’s most reliable dividend growth stocks, with payouts rising almost every year since 2011. The only exception came in 2019 when Covid-19 uncertainty forced a reduction.

For this year, the REIT’s dividend yield is a large 6.2%, which is almost double the FTSE 100 average of 3.2%. This figure has been boosted by a sharp fall in Unite’s shares on Wednesday (8 October) — then, the company said sales to date had delivered rental growth of 4%, down from 8.2% in the same 2024 period.

I think this represents an attractive dip-buying opportunity to consider.

Competition is tough, and Unite’s problems are being compounded by extra stress on students’ budgets right now. But the long-term sector outlook remains robust, and the company’s increased scale gives it a significant advantage. I expect dividends to continue rising over the next decade and beyond.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Going green

Foresight Solar Fund (LSE:FSFL) is another top dividend stock worth serious attention after recent price weakness.

It’s fallen in value as optimism over sustained interest rate cuts over the next year have declined. As with Unite, asset values come under pressure when rates are higher, and cost of borrowing pressures increase.

While this issue can be significant, the impact it’s had on Foresight’s dividend yield merits serious consideration. Its forward yield is now an enormous 10.7%.

Like any renewable energy stock, the company has significant long-term investment potential as the move from fossil fuels continues apace.

Foresight has ambitious plans to capitalise on the green transition — the business has 1 GW of capacity across its assets, and plans to treble its development pipeline to 3 GW from current levels, with growth focused on the UK and Europe where clean energy policy is especially favourable.

Investing in energy producers has another significant advantage for investors. Electricity demand is largely unchanged across the economic cycle, giving companies the financial strength and the confidence to steadily raise dividends.

In the case of Foresight, annual dividends have risen each year since it listed on the London stock market in 2013. It’s a theme I expect to continue long into the future.

The post A 9.5% dividend yield! 2 dividend stocks to consider for long-term passive income appeared first on The Motley Fool UK.

Blips can happen, as we saw during the Covid-19 crisis when even reliable dividend shares cut or suspended payouts. But largely speaking, the UK’s blue-chip share index remains a great place to target a decent second income, supported by:

• Dozens of market-leading companies that enjoy strong barriers to entry.
• Companies in mature industries that return more earnings through dividends.
• The presence of many defensive (ie non-cyclical) shares.
• Businesses with strong cash flows and manageable debt levels.

Lift-off

Considering defence shares like BAE Systems (LSE:BA.) can be great ways to target a growing second income. Their operations aren’t substantially influenced by broader economic conditions, giving them the strength and confidence to raise dividends whatever the weather.

This Footsie operator continued increasing cash rewards during the pandemic, underlining this resilience. Defending one’s borders from external threats is any country’s top priority, meaning BAE Systems products enjoy persistently strong demand. In fact, the outlook here is stronger than it’s been for decades as key European clients rapidly re-arm.

Of course tech failures could be highly damaging for future earnings, impacting profits and the company’s reputation. However, the blue-chip’s strong track record helps soothe any fears I have on this front.

Today the forward dividend yield on BAE Systems shares is 2%.

High yielder

Phoenix Group (LSE:PHNX) has a long record of offering above-average dividend yields, as the chart below shows. They’ve grown for around a decade on the spin, and City analysts expect this to continue over the medium term.

As a consequence, the dividend yield on Phoenix shares for 2025 remains enormous, at 8%.

Put simply, the financial services giant is an impressive cash generator. Its share price may disappoint when economic conditions worsen and demand for its financial services might decline. But a strong balance sheet means this doesn’t come to the detriment of its generous dividend policy.

Its Shareholder Capital Coverage Ratio was 172% as of December. I’m expecting the firm’s half-year trading update (on 8 September) to reaffirm its robust financial foundations.

Top trust

Unite Group (LSE:UTG) is set up to provide a large and reliable passive income to its shareholders. As a real estate investment trust (REIT), it must distribute a minimum of 90% of rental profits in the form of dividends. This is in exchange for juicy tax advantages.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Such a stipulation doesn’t on its own mean REITs are no-brainer dividend buys. However, Unite’s focus on the highly stable student accommodation market makes it far more resilient than other property trusts (like warehouse operators or owners of shopping centres).

There are risks here, such as interest rate pressures that can depress asset values. Yet I think the opportunities here outweigh the dangers, supported by growing numbers of overseas students and an enduring property shortage.

The forward dividend yield here is 5.3%. Like BAE Systems and Phoenix, I think the trust is worth serious consideration.

The post 3 FTSE 100 dividend shares to consider for a passive income in September appeared first on The Motley Fool UK.

That may sound grim, but for income hunters like me, a share price tumble can spell opportunity. At today’s valuation, Unite trades on a price-to-earnings (P/E) ratio of just 10.4 and a price-to-book (P/B) ratio of 0.73. In other words, it looks cheap compared to its assets and earnings power.

The question is: does this Footsie landlord deserve a place in an income portfolio, or is the low price a warning sign?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

What does Unite Group do?

Unite Group specialises in student accommodation. Across the UK, the company manages tens of thousands of rooms for university students, making it one of the biggest players in a niche but resilient sector. Even during downturns, demand for university places has remained high – a factor that often supports rental income.

That said, Unite is not immune to the wider UK property malaise. Housebuilders like Taylor Wimpey and Barratt Redrow have also struggled this year, and the weakness across the real estate market has dragged down sentiment for Unite’s stock too.

A closer look at the numbers

Despite the gloomy share price, the business itself is ticking along nicely. Revenue is up 12.7% year on year, while earnings have grown 13.3%. Free cash flow is strong, with a margin of 38.8%, and the balance sheet looks reassuringly sturdy – assets outweigh liabilities four-fold, with a low debt-to-equity ratio of 0.28.

For income investors, the dividend story looks attractive. Unite currently offers a 5% yield, with a payout ratio of just under 49%. Better still, dividends have grown almost every year since 2012, averaging a 10% rise annually, aside from a temporary Covid interruption. Of course, that Covid break reminds us that dividends are never guaranteed.

What’s new?

Just two weeks ago, Unite announced a £723m takeover of Empiric Student Property, a rival student landlord. This deal is part of a wider consolidation wave across the real estate sector following years of subdued activity. If it pays off, Unite will significantly boost its market share. If it doesn’t, however, it risks the deal weighing on returns for years to come.

The market reaction so far has been cautious, but analysts remain upbeat. Citi slapped a Buy rating on the stock in mid-August with a target of 1,205p. The average 12-month price target from analysts is 973p, suggesting a potential 34.5% increase from today’s level.

My verdict

The FTSE 100 contains plenty of dividend payers, but Unite is unusual in offering both income and long-term growth potential. Yes, property market challenges could linger, and the Empiric deal carries execution risk. But with the shares at a 52-week low, I think the losses look increasingly priced in.

While I do think there’s potential here, I’m not rushing to buy today. I’d like to see clearer signs of recovery in the UK property market before jumping in. Still, it’s worth considering – because if conditions improve, this FTSE 100 REIT could reward patient investors with both steady dividends and capital growth.

The post With a 5% dividend yield, this FTSE 100 stock is at a 52-week low! Time to consider buying? appeared first on The Motley Fool UK.

The sector has kept delivering for those individuals chasing a second income, broadly speaking. This reflects partly REIT rules requiring the lion’s share (90%) of annual rental profits to be distributed to shareholders.

However, the share prices of these property stocks have weakened following recent central bank actions. Higher interest rates in 2023 and 2024 hammered these companies’ net asset values (NAVs) and raised their borrowing costs.

Time to invest?

Yet, with interest rates falling, now could be a good time to consider buying shares in these dividend-focused investment trusts. Here are three to consider for a long-term passive income.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Top marks

Unite Group (LSE:UTG) is a leading player in the purpose-built student accommodation (PBSA) segment. Not only is this a defensive part of the property market. It’s one where rents are booming as tenant numbers rapidly rise.

Like-for-like income here jumped 7% in the six months to June, latest financials showed. This reflected both robust occupancy and rental growth.

Earnings are naturally sensitive to university enrolment levels in the towns where Unite operates. However, its wide geographic footprint helps reduce this threat (it currently operates in 23 UK cities).

Furthermore, the FTSE 100 stock’s planned £723m takeover of Empiric Student Property will (if successful) further diversify its portfolio and boost its earnings prospects, too.

Safety first

Self-storage trusts like Safestore (LSE:SAFE) have enormous growth potential, driven by trends like:

• A growing urban population, resulting in smaller living spaces
• Individuals moving home more frequently
• A rising culture of ‘hoarding,’ where people accumulate possessions
• People decluttering and relocate items from the home
• The growth of online shopping, raising storage demand from e-retailers

Safestore is one of two REITs operating in this area. I like this particular one because its 200 stores span the UK, Spain, France, The Netherlands, and Belgium, meaning it carries less geographic risk than companies operating in one country.

While the long-term picture is bright, be mindful that rental growth and occupancy rates can disappoint during economic slowdowns.

Home comforts

Rents on residential properties have slowed considerably of late. But a steady exodus of buy-to-let investors means the outlook for companies like the PRS REIT (LSE:PRSR) remains encouraging.

This trust holds a portfolio of roughly 5,500 homes. It’s also focused on the family homes segment where shortages are especially acute. Consequently, like-for-like rents on stabilised sites rose 9.6% over the 12 months to June, greater than the broader rentals market.

According to the Royal Institution of Chartered Surveyors (RICS), the number of new properties entering the market last month fell at its sharpest pace since the Covid-19 pandemic. This is a positive omen for PRS REIT over the short term and beyond.

A potential change in rental regulations might dampen the trust’s future returns. But so far, conditions in this highly stable sector remain favourable.

The post 3 top REITs to consider for long-term passive income appeared first on The Motley Fool UK.

Housebuilders have been leading the charge as mortgage rates cool, while precious metals stocks continue to benefit from safe-haven demand. However, not every part of the market has caught up with this momentum. In particular, some investment trusts and closed-end funds (CEFs) remain significantly undervalued, despite holding high-quality assets.

Trusts trade like shares but can often lag behind market movements due to their pricing structure — they’re based on demand for the fund, not just the value of its holdings. That can create buying opportunities when sentiment is slow to catch up to fundamentals.

Two such trusts that currently look like bargains to me are Polar Capital Technology Trust (LSE: PCT) and Unite Group (LSE: UTG).

Polar Capital Technology Trust

This tech-focused trust gives UK investors rare access to a portfolio packed with high-growth US tech stocks. Despite delivering a staggering 474% return over the past decade — equivalent to nearly 19% annualised growth — it still looks cheap by several key metrics.

Its return on equity (ROE) stands at an impressive 33%, showcasing how effectively the trust deploys capital. Meanwhile, its price-to-earnings (P/E) ratio of just 3.38 is unusually low for a tech-focused fund, even if it reflects recent weakness in the US tech market. The price-to-book (P/B) ratio of 0.96 suggests the shares are trading close to net asset value, offering investors solid exposure without overpaying.

That said, the recent subdued performance of US large-cap tech — particularly the ‘Magnificent Seven’ — has weighed on short-term returns. If the US market continues to stall, the trust could remain in limbo for a while longer. But for long-term investors willing to ride out the volatility, the trust’s low valuation and track record make a compelling case that’s worth considering.

Unite Group

I covered Unite Group back in May and I still think it’s a stock worth considering. As the UK’s leading provider of purpose-built student accommodation (PBSA), it’s in a sector with stable demand, strong pricing power, and limited supply.

It operates as a real estate investment trust (REIT), focusing on long-term capital appreciation and income.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Its 4.4% dividend yield is supported by a very low payout ratio of 38%, giving it room to grow. In fact, dividends have increased by an average of 5.37% annually, underlining its passive income appeal.

Of course, any slowdown in student demand or regulatory change to rental laws could pose risks. REITs are also highly sensitive to interest rates, which have improved lately — but we’re not in the clear yet.

That said, with limited university housing available and growing international student numbers, the outlook remains positive.

What really stands out is the underlying efficiency. Unite has a P/E ratio of just 8.77, a P/E-to-growth (PEG) ratio of 0.03 (suggesting rapid growth relative to price), and an operating margin of 55%. Even more impressive, its free cash flow margin is 74.8%, meaning it retains nearly 75p of every £1 of revenue as cash.

The post The FTSE 100 may be soaring, but these two trusts still look heavily undervalued appeared first on The Motley Fool UK.

The trick is understanding how valuation metrics apply in certain market conditions, particularly during rallies. While some stocks look fully priced, others remain neglected, offering the chance to buy quality businesses at a discount.

What makes a stock undervalued?

In simple terms, an undervalued stock is one trading below what it’s truly worth. This can show up in low price-to-earnings (P/E) ratios, attractive dividend yields or strong cash flow being ignored by the wider market. Importantly, not every cheap share is a bargain — investors should focus on businesses with solid fundamentals, even if they’re temporarily out of favour.

Valuation metrics like price-to-book (P/B) and P/E-to-growth (PEG) ratios, along with enterprise value, can help paint a fuller picture. But often, it’s sentiment and short-term news that create mispricing — especially when the broader stock market is in rally mode.

Consider the following two FTSE 100 stocks.

Prudential

Prudential (LSE: PRU) is a financial giant with a strong presence across Asia and Africa — markets with long-term demographic benefits and growing middle classes. 

Despite this, the stock is down over 15% in the past 12 months, partly due to negative sentiment around China. The country is a major earnings driver, and regulatory uncertainty or economic weakness there continues to weigh on performance. Currency fluctuations and geopolitical tensions also pose risks to its bottom line.

But dig into the numbers and I think it has good long-term prospects. The forward P/E ratio sits around 8 and the PEG ratio is below 0.5, indicating the market may be mispricing the company’s growth potential. Analysts forecast over 20% earnings growth in 2025, while the stock currently trades at a deep discount to its average historical valuation.

Prudential is already shifting towards higher-margin insurance and wealth management products, while maintaining a solid balance sheet. With a 12-month price target that implies growth of more than 34%, long-term investors may see this as a compelling entry point.

Unite Group

Unite Group (LSE: UTG), the UK’s largest provider of purpose-built student accommodation, is another underappreciated Footsie stock. The shares are still well below their pre-pandemic highs, but demand for university housing has never been stronger.

Its P/E ratio is low at around 8.7 and it has an ultra-low PEG ratio below 0.1. Earnings are expected to rise sharply as rental income benefits from inflation-linked contracts and growing student numbers. At the same time, its development pipeline and institutional partnerships give it room to scale.

Looking back, I’m a little concerned about interest rates rising again — in the past, this has impacted development margins and asset valuations. A sharp decline in student numbers, particularly from overseas, would also pose a threat. While Unite has weathered recent market cycles well, it’s not immune to broader economic shifts.

Despite macro concerns, analysts are bullish, with consensus price targets suggesting growth of 25% on average over the next year. For investors seeking steady appreciation and exposure to a defensive, cash-generative sector, it looks worthy of consideration.

The post While the UK stock market nears record highs, here are 2 FTSE bargains to consider in June appeared first on The Motley Fool UK.

It’s instructive to see which ones are on the up. It suggests they’re the ones to benefit from lower inflation and interest rates – when we finally get them. Should investors consider buying them?

Housebuilder Barratt Redrow (LSE: BTRW) has jumped 3.67% today (15 January) as investors digest the positive inflation surprise. It’s about time they saw some share price growth. The stock’s still down 25% over 12 months, and 40% over three years.

Can the share price build on this?

Falling inflation and interest rates make mortgages more affordable for prospective homebuyers. This should boost demand and house prices, driving up sales and revenues. Lower inflation will also cut the cost of materials such as timber, steel and cement, and put a lid on wages too. All would boost profit margins.

Barratt Redrow shares look decent value, with a price-to-earnings (P/E) ratio of 14.2. The dividend yield is a solid 3.88%. I won’t get too excited though. Inflation’s expected to hit 3.2% by spring, as Budget tax hikes and minimum wage increases kick in, along with Donald Trump’s mooted tax cuts and trade tariffs. Investors may have to be patient.

The same principle applies to another share that’s flying this morning, commercial real estate investment trust (REIT) Land Securities (LSE: LAND). Its shares are up 3.65% as I write, as lower inflation and borrowing costs would ease the pressure on a company that had net debt of £3.6bn in September.

They would also make it easier to fund new developments and refurbish its existing estate, as well as supporting rental yields and minimising defaults.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Landsec offers a brilliant yield

Until we get there, volatility’s likely to continue. The Landsec share price is down 22% over one year and 32% over three.

Yet it looks good value with a P/E of just 10.6, while yielding a blockbuster 7.2%. Again, investors have to be patient as inflation remains sticky. Working from home is also hitting demand for office space while struggling consumers spend less at retail centres. The group’s diversification into mixed-use developments could mitigate some of the risks.

It’s hardly a surprise that my third stock in recovery mode is also in the property sector, student housing specialist Unite Group (LSE: UTG). Lower borrowing costs would make expanding its portfolio of properties cheaper and easier, while stable inflation would support predictable rent growth.

The Unite share price has also taken a beating, falling 24% over the last 12 months. It’s not super cheap though, with a P/E of 17.8. The yield’s 4.4%.

Unite could take a hit if Labour tries to reduce immigration by tightening student visas, hitting demand for accommodation.

Today, occupancy levels for the 2025/26 academic year expected to be 97-98%. CEO Joe Lister reckons that “the outlook for student numbers remains positive with a growing UK 18-year-old population and improving trends in international student recruitment”.

I expect all three to spark into life once inflation really starts falling and central banks get cutting. The problem is, that could take time. All three are worth considering, but with a long-term view as I expect further ups and downs.

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