The FTSE 250‘s risen 9% in value over the past year. But it’s not been excellent news for the entire index’s constituents. Even some top-quality mid-cap shares have slumped resulting from current pressures.

These two UK shares have endured double-digit falls within the final 12 months. However the cream rises to the highest, as they are saying. So I feel they could rebound sharply, maybe by the tip of 2025, so might be value contemplating earlier than this occurs.

Right here’s why.

B&M European Worth Retail

Down 34%, B&M European Worth Retail‘s (LSE:BME) one of the FTSE 250’s largest fallers over the previous 12 months. It truly began 2024 within the FTSE 100 earlier than tumbling out of the blue-chip index simply earlier than Christmas.

This represents a stable dip-buying alternative to me. With a ahead price-to-earnings (P/E) ratio of 9.2 instances, it trades at a wholesome low cost to the broader blue-chip index (14.5 instances).

Traders had been spooked by B&M’s lack of ahead steerage in June’s full-year buying and selling assertion, and the corporate’s shares haven’t recovered since. Fears that falling inflation would draw consumers away from low-cost retailers hasn’t helped the share price both.

Nonetheless, a sequence of sturdy buying and selling updates since then recommend buyers are being too pessimistic. Newest financials (9 January) confirmed group revenues at fixed currencies up 3.5% and a couple of.8% within the monetary year-to-date and third quarter respectively.

Pleasingly, like-for-like gross sales at its core B&M UK enterprise returned to progress in December. And the corporate mentioned this optimistic momentum had continued at first of 2025 too.

It is a retailer with vital progress potential, pushed by an bold growth programme (it’s on monitor to open 73 gross new shops this fiscal 12 months alone). I feel B&M’s share price might rebound as buyers clever up to its worth.

Safestore

Safestore (LSE:SAFE) — like many actual property funding trusts (REITs) — has plummeted over the previous 12 months. As I kind, it’s down 24%, pressured by fears of sticky inflation and what this might imply for rates of interest.

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Greater charges imply larger borrowing prices, decrease property values, and weaker demand for rental area. This poisonous combine was evident within the agency’s newest financials (16 January), which confirmed like-for-like gross sales down 0.5% within the 12 months to October 2024, and borrowing prices up by virtually a 3rd.

That mentioned, I feel there’s good cause to imagine Safestore shares might rebound quickly. Rates of interest are tipped to fall steadily in 2025, reflecting the broader route of home inflation and the state of the UK economic system. A resurgent housing market — which is essential to the self-storage sector — additionally bodes nicely for the share price.

As a eager revenue investor, I’m contemplating including the property large to my very own portfolio. Latest share price weak spot has turbocharged Safestore’s dividend yield. At 5.1%, it comfortably outstrips the broader FTSE 250 common of three.3%.

This provides additional attraction to what I already contemplate to be a pretty passive revenue share. Underneath REIT guidelines, the agency pays out not less than 90% of rental earnings annually within the type of dividends.