Like every year, Rock-n-Data conducts a study on the performance of mainstream real estate funds. Before presenting all the figures for 2021, we reveal those of the SCPIs whose capitalisation exceeds 74 billion euros on December 31, 2021. Our 2021 annual report indicates the inflow regarding the yields of SCPI, our distribution rates, and performance within our assets.
THE INFLOW OF YIELDING SCPI’S UP BY MORE THAN 24% COMPARED TO 2020
In 2021, SCPIs continued to show excellent results, both on financial and real estate indicators. The year 2021 was again marked by a particular context in France and Europe. However, the resilience of Sociétés Civiles de Placement Immobilier (SCPI de rendement) was once again confirmed after 2020 that was already heavily impacted by the Covid-19 crisis. As of December 31, 2021, SCPIs represented more than €74 billion in capitalization and saw their size increase by 10% compared to the end of 2020.
They collected nearly €7.5 billion, also up sharply by more than 24% compared to the previous year. Office SCPIs continue to concentrate the majority of inflows, followed by Healthcare & Education SCPIs and Retail SCPIs. The office buildings represent a place of social interaction, and even more so in recent months. The popularity of offices are growing in these regions, close to homes; along with prioritizing health regulations and comfort. In total, 103 SCPIs were analyzed by the Rock-n-Data team of analysts, including 42 Office SCPIs, 23 Retail SCPIs, 19 Diversified SCPIs and 19 Specialized SCPIs, now divided into the following typological segments: logistics and business premises; hotels, tourism and leisure; residential; healthcare and education and finally alternative SCPIs. For greater transparency, the ASPIM (Association Française des Sociétés de Placement Immobilier) wanted to define a more explicit typological segmentation to facilitate comparison between SCPIs.
7.22 billion in investments, in line with investment volumes of 2020. SCPIs have managed to align inflows to invest them in the best possible conditions, without damaging the performance of either the funds or the historical investors. Of the amounts invested in Q4, more than 34% were allocated to foreign assets (out of France) and French regional assets accounting for 40%. Asset Managers have strongly favored the provinces, thus confirming their desire to align themselves with new trends and the new propensity of companies to favor regions. The last quarter thus saw a total of 216 acquisitions representing nearly 940,000 sq.m of space. In terms of type, offices accounted for 53.31%, i.e. the majority of total investments, followed by healthcare assets for nearly 25%, the latter continuing to attract strong interest from investors.
A DISTRIBUTION RATE OF 4.45% IN 2021
At the end of 2021, the ASPIM also published a note setting out new calculation methods for various indicators relating to the performance of SCPIs. Until the last quarter of 2021, we were talking about the Market Value Distribution Rate (MVDR). It is now replaced by the Distribution Rate (DR) from January 1, 2022 and allows for a more uniform comparison of SCPIs among themselves. To calculate it, all you have to do is divide the dividend payments received during the year (before tax) by the share price of an SCPI on January 1 for open-end SCPIs and by the average unit price for the year n-1 for fixed-end SCPIs. In 2021, the SCPIs showed an average distribution rate of 4.45%, reflecting the excellent resilience of these real estate funds. Logistics and business premises SCPIs have the best distribution rate with 5.67% compared to 2.85% for hotel, tourism and leisure SCPIs in 2021.
To complete this performance indicator, we can also take into account the annual variation in the unit price, averaging 0.16% per unit in 2021.
As of December 31, 2021, the average financial occupancy rate (TOF) of SCPIs exceeded 92%. It measures the level of delinquencies and the attractiveness of the vehicle’s real estate assets. A TOF of 92% means that there are only 8% of vacant properties based on rents. ASPIM has changed the way we calculate this indicator. Indeed, a vacant asset, i.e. without a tenant, can be restructured in order to create value for the fund and for investors. In order to recognize the quality of work carried out by the managers, assets undergoing work or under a process of sale are no longer considered vacant. The SCPIs are also continuing their virtuous dynamic, as 18 of them had the CSR (Socially Responsible Investment) label on December 31.
In a current context of inflation, it is necessary to allocate savings towards attractive returns. Although past performance is no guarantee of future performance, SCPIs can be a response to the desire of savers to maintain their purchasing power and protect their savings.
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