The Bank of England’s Bank Rate is coming down more slowly than perhaps many anticipated, the economic outlook remains murky and the twin threats of online retail and hybrid working continue to place additional pressure on the business models of some Real Estate Investment Trusts (REITs). But another bid battle for a property play, this time between Tritax BigBox (BBOX) and private equity giant Blackstone (BX:NYSE) for Warehouse REIT (WHR), suggests there is value to be had here.

We have already bagged a bid for CARE REIT and should be a beneficiary of the fight for Assura (AGR) between Primary Health Properties (PHP) and KKR (KKR:NYSE). In this context, the discounts on offer to net asset value per share (NAV) at British Land (BLND), Derwent London (DLN), Shaftesbury Capital (SHC) and Town Centre Securities (TOWN), which range from 24pc to 52pc, still feel like they merit patient support, even if the foursome operate in different areas of the property market compared to Warehouse REIT and Assura.

Lower interest rates and improved economic activity could both help, while a growing number of REITs, including bid target Assura, Safestore, Custodian Property Income, Sirius Real Estate and British Land, are also starting to show signs of stabilisation, or even renewed increase, in net asset value (NAV) per share. The discounts are starting to close in some cases, and any further merger and acquisition activity could accelerate that process.

Questor says: hold
Assura (AGR): 50.1p
British Land (BLND): 381p
Derwent London (DLN): £20.50
Shaftesbury Capital (SHC): 151.8p
Town Centre Securities (TOWN): 139.0p