Rock-n-Data is proud to present the performances of the “Stone-Paper” market funds for 2020. We have carried out the first study bringing together all public French Real Estate Investment Vehicles in France: SCPI, OPCI Grand Public, REIT, SCI (approved by the AMF) and SICAV Immobilières.
Capitalization concentrated around SCPIs and REITs
In 2020, the SCPI (Société Civile de Placement Immobilier) are further asserting themselves as the most popular and efficient Stone-Paper investment funds in France. With more than 6 billion euros raised over the year, its total capitalization amounts to 67.47 billion euros. REIT (Real Estate Investment Trust) represent a market capitalization of 51.11 billion euros, 34% less as compared to the previous year due to the high volatility of share prices, directly impacted by all the strict confinement measures imposed in France and more generally in Europe. Finally, OPCI, SCI and SICAV Immobilières represent 20% of the total market capitalization.
Panorama of Stone-Paper Real Estate funds in France (for 12/31/2020)
At the end of 2020, the total capitalization of the Stone-Paper market amounts to 152.54 billion euros.
In 2020, the Stone-Paper market recorded 167 funds. Finally, 6 new SCPI were launched on the market, bringing its total number of funds to 102 funds.
A performance which demonstrates the ability of unlisted real estate funds to remain stable in times of crisis
Despite the events that occurred during the Covid-19 crisis having affected the economy of European countries (implementation of lockdown measures, development of teleworking, etc.), the stone-paper market has once again proved the resilience by offering its private investors a stable return compared to 2019. Mainly, it emerges that unlisted real estate investment companies are getting much better through the crisis than investment vehicles whose assets are dependent on the stock market prices.
With an average dividend return at 5.15% in 2019, the return on the Stone-Paper market remains stable in 2020 and stands at 4.70%. It reaches the highest rate for listed real estate companies with a dividend yield of 6.30% However, the average price for listed companies has fallen sharply due to the global collapse of the markets financial and partial or even total lockdown measures imposed by governments across Europe in March 2020. Thus, the share price of REIT fell by 28.57%, on average. SICAV Immobilières, a product holding a majority portfolio of shares of real estate companies, experienced a share price fall by 7.01%. On the other hand, the the Average Price Variation (APV) of SCPI is positive by 1.08% and its Dividend Return (TDVM) reaches 4.20%.
Thus, the SCPI presents itself again this year as the flagship product of Stone-Paper by reaching performance objectives that are more than satisfactory for savers wishing.
Real estate assets invested more in Europe mainly made up of offices
The development of teleworking across Europe has not discouraged fund managers in the acquisition of office assets and other types of commercial properties. Of the nearly 12,500 assets held by funds invested in real estate, around a quarter are located out of France. This share of assets held abroad increased significantly in 2020, as a consequence of the investment strategy of management companies oriented towards European geographic diversification: a trend driven by economic factors, FOREX rates and favorable taxation of some countries.
* Based on a sample of 165 funds analyzed as of 12/31/2020 and the information communicated by the management companies
Thus, the most represented European country is Germany, which capitalizes more than 35% of the investments made out of France.
Offices represent 52% all assets, followed by retail for 27% of the total asset expertise value. The remaining part is divided between healthcare assets, logistics warehouses, hotels and even residential.