One class of passive income stock has been rising the top-10 rankings among Stocks and Shares ISA investors in the past few months. And it looks undervalued to me too, after a long spell when investors have been losing interest in the sector. Are we ripe for a long-term sector recovery?

I’m also seeing progressive dividend prospects, which can be a cornerstone of successful passive income investing. In fact, the one I’m looking at today offers a forecast yield of 5.9%, which definitely isn’t too shabby. What’s more, analysts forecast a rise as high as 6.7% by 2028. Want to know what it is? Read on…

So what is it?

My eyes are on Tritax Big Box (LSE: BBOX) right now. And it’s a real estate investment trust (REIT). Yes, I know, I said ‘real estate’. But please don’t turn away (as so many UK investors have been doing). If you hear me out, you’ll at least get to know why I’m contemplating investing in the sector.

Tritax Big Box specialises in logistics real estate. That’s warehouses, distributions centres, and related commercial properties. They’re often known colloquially as big boxes, hence the name. It includes big names such as Amazon, Tesco, Next, and plenty more, among its tenants.

The nature of selling is changing, big style. But whether we trudge to the stores to see the goods, or trust online selection, everything still needs to be stored somewhere and distributed. And that’s why I foresee long-term strength for this kind of business.

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Buy when they’re down?

Did I say the shares appear cheap? We’re looking at a forecast price-to-earnings (P/E) ratio of 9.6 for 2026, dropping to only around six by 2028. We need more than a low P/E in this sector, for sure, but I see it as a good start.

Property valuations and debt are key measures, as the value of the real estate we buy can be far more important than short-term profits. And Tritax Big Box has net debt of around £2.3bn, in keeping with the way this kind of business is funded. I see debt and uncertain property valuations as the biggest risks here.

A look at the share price chart above shows how major UK investors have shunned this stock. The peak around 2022 though, was a pandemic effect, when everyone was piling into anything related to distance selling — with the focus on distance. But looking back 10 years, we see essentially just a flat line.

What’s changing?

In my view, the investment distaste for anything based in real estate is a relatively short-term thing. Investing cycles come and go. And companies with sound business models, generating steady streams of free cash to reward their shareholders, are surely likely to come good. Aren’t they?

Now that Tritax Big Box has been creeping up the ISA popularity lists, I reckon investors looking to build a retirement income stream might do well to consider it while the price is still down.

Whether I buy some will depend on how it fares against another of my current favourite passive income candidates. And it’s very much in the same ballpark…

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Alan Oscroft does not hold any positions in the companies mentioned.