PIERRE-PAPIER MARKET COLLECTED MORE THAN 10 BILLION EUROS IN 2021
For the third consecutive year, Rock-n-Data has conducted a study on the performance of 177 French retail real estate funds in 2021. In total, the total capitalisation of these funds represents more than 164 billion euros, for an average of nearly one billion euros per fund. With more than 10 billion euros collected in 2021, real estate savings continue to grow and show excellent results.
Total Capitalisation up by more than 9% compared to 2020
In 2021, the real estate funds Pierre-Papier have again aroused a strong interest among investors. As a reminder, the term “Pierre-Papier” refers to all forms of listed or unlisted financial investment that use real estate as an underlying asset. To carry out our study, we based ourselves on four different types of real estate investment vehicles: SCPIs (Société Civile de Placement Immobilier), OPCIs (Organisme de Placement Collectif Immobilier), SIICs (Sociétés d’Investissement en Immobilier Coté) and SCIs in real estate units of account (Sociétés Civiles Immobilières). For the purposes of our study, we analysed a total of 177 real estate funds represented by 47 different management companies.
The total capitalization of the pierre-papier market represents more than 164 billion euros, up 9% compared to 2020. This increase is the result of two factors. Firstly, SCPIs and SCIs showed constant inflows throughout the year, with €7.46 billion and €3.05 billion respectively collected. These two products are widely popular with investors and offer particularly resilient performances. On the other hand, the economic rebound enabled listed real estate companies to rebound over the year with an average increase in value of 4.92% between January 1 and December 31. The marginal and significant appreciation of other vehicles linked to the assets held also justifies this trend.
SCPIs are the most represented vehicles
As of December 31, 2021, SCPIs represented a total capitalisation of nearly 75 billion euros, followed by listed real estate companies, valued at 54.2 billion euros. OPCIs for the general public complete with 20.7 billion euros in total net assets. Regarding the information provided, real estate investment trusts (SCI) in real estate units of account have total net assets of 16.38 billion euros. These funds are a popular interest among investors and fund managers, who are no longer hesitating to launch new vehicles. In 2021, the average variation of their net asset value is nearly 4%. Only accessible within a life insurance contract, investment in SCIs also makes it possible to benefit from the tax advantages offered. OPCIs for the general public delivered an overall performance of 4.98%, taking into account the distribution of dividends as well as the change in net asset value. Excluding dividends, the average change in their net asset value was 2.67% over the year 2021.
The average French investor invested €150 in real estate in 2021
The economic rebound and the gradual end of health restrictions have enabled listed real estate companies to recover slightly, with an average annual variation of nearly 5% between January 1 and December 31, 2021. They also have a payout ratio of 4.01%, which is the ratio of dividends paid out to the share price on January 1, 2021. However, SIICs have not returned to their pre-crisis level after their sudden decline in 2020. As for SCPIs, they are delivering a distribution rate* of 4.45% and confirming their resilience by keeping all their indicators in the green.
On average, Pierre-Papier real estate indicated a distribution rate of 3.69% and an annual revaluation of 2.30%. Faced with inflation and a particular context of health and geopolitical crisis, it is important to protect one’s savings by directing them towards products with resilient underlying. In 2021, each French person will have saved an average of €150 in real estate.
New types of assets available to investors
Heavily impacted by the health crisis, office assets are real places of exchange and social interaction. They are being reinvented as service-oriented corporate real estate adapted to today’s challenges and the comfort of its users. Moreover, real estate funds are not mistaken and continue to direct their liquidity towards this type of asset. However, diversification should be considered, with the marked rise of healthcare and logistics assets within portfolios. All of the assets invested (offices, retail, healthcare, logistics, hotels, residential) are crucial and essential to our safety and well-being. They are responses to current economic, ecological and financial challenges. The real estate funds open to public savings that allow access to these types of investments bring awareness to investors.
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