Are SCPIs exposed to the sharp rise in mortgage rates observed since the beginning of the year? The MeilleurSCPI.com platform provides some answers through a study on the indebtedness of performance SCPIs (95 SCPIs selected as of December 31, 2021).
For the year 2021, MeilleurSCPI.com has calculated an average debt ratio close to 17% for all categories of yield SCPIs (up to almost 39% for the most indebted SCPI). This ratio is considered to be at a controlled level, well below other stone-paper vehicles such as OPCIs or listed property companies, whose debt ratio can reach 65%. It must be said that the SCPI market has historically benefited from a good level of fundraising, which therefore allows managers to insure a good part of their investments.
Debt concentrated among the big players
The overall volume of indebtedness of investment SCPIs amounts to 12.5 billion euros, which represents an average indebtedness per management company of 347 million euros. However, these averages hide major disparities: 9 SCPIs show a ratio of over 30%, on which MeilleurSCPI recommends being vigilant. Conversely, 13 SCPIs did not resort to debt.
Other key figures: the 10 most indebted SCPIs contribute 59% of the overall debt volume and the 5 most indebted management companies (Primonial, La Française, Amundi Immobilier, Perial and Sofidy) also account for nearly 71.34 % of the total debt of the yield SCPI market.
The debt of all SCPI categories increased by around 3% between 2020 and 2021, with increases of between 2 and 7% depending on the category. The maturity of these debts is most often between 1 and 5 years.
71% fixed rate loans
Out of a sample of 82 SCPIs representing 77% of market debt, MeilleurSCPI calculated that 71% of loans were at fixed rates and 29% at variable rates. ” We can therefore say that SCPIs are moderately exposed to the rise in Euribor rates “, emphasizes BestSCPI. In other words, the returns served to savers should hardly be altered by the rise in interest rates.
The platform also recognizes that the increase in this fixed-rate leverage, on the eve of the rise in rates, can be seen as opportunistic and relevant. 83% of this debt has an in fine profile (the capital is repaid once at maturity) against only 17% of amortizable loans.
Focus on the scpi efimmo 1
The financial situation of the Efimmo 1 office SCPI is a good example. As of September 30, 2022, this SCPI managed by the Sofidy group bore a debt level of 20% at an average interest rate of 1.8% for a duration of 5.4 years.
The borrowings taken out in recent years have therefore made it possible to finance certain acquisitions at low fixed rates over a fairly long horizon and the manager believes that he is protected from any refinancing problems over the next few years. Especially since Efimmo 1 has a good cash reserve allowing it to take advantage of this new market environment marked by the rise in interest rates.
Efimmo 1 has also confirmed a potential distribution rate of approximately 4.94% gross of tax for the year 2022 and 4.74% net of tax.