A Nomura survey of more than 50 U.K. fund managers cited a number of worries, from the rapid property rebound to lower REIT revenues and dividends. They also are avoiding REITs that are pursuing speculative building or high leverage levels. "Over the next 10 years, U.K. REITs should evolve towards the overseas models -- low leverage with high income returns for shareholders. In future, gearing should be sufficiently low to be robust through the cycle," Nomura analyst Mike Prew says.

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