The performance statistics for unlisted real estate funds published by the French Association of Real Estate Investment Companies (ASPIM) and the Institute for Real Estate and Property Savings (IEIF) confirm a slight increase in dividends paid by SCPIs over the course of the first half of the year: +4.3% in weighted average of capitalization compared to the first half of 2021. In detail, half of SCPIs paid higher dividends (+13% in weighted average) and 26 % of SCPIs paid stable installments over one year. There is still a proportion of 24% of SCPIs who have paid installments down over one year but only -3% on a weighted average.
Cautious distribution at the start of the year
The France SCPI platform previously estimated the annualized return (distribution rate) of SCPIs at 4.20% for the first half of 2022. This performance is currently slightly below the average for the year 2021 (4.49% gross foreign taxation) but the distribution of dividends being traditionally cautious at the beginning of the financial year, we can expect the traditional positive rebalancing at the end of the year.
Share Price Increase
With regard to unit prices, they were revalued by +0.7% on a weighted average in the first half of 2022. Unit prices remained unchanged for 72% of SCPIs in number, but 25% of SCPIs recorded price increases (up to +2.6% on a weighted average). Only 3% of SCPIs recorded a price drop (-1.8% on weighted average).
Given the current context of high inflation and rising interest rates, the ASPIM specifies that managers are now cautious about the evolution of appraisal values at the end of the year.
Fewer offices, more international
Offices accounted for only 45% of acquisitions made in the first half of 2022, compared to 61% a year earlier. The managers notably returned to the shops and the category of hotels and tourism and leisure establishments which had suffered a lot from the health crisis. SCPI investments continue to evolve with more acquisitions abroad (33%) and in the provinces (43%) to the detriment of the Paris region.
Outside France, figures from ASPIM and IEIF show that Germany and the United Kingdom capture the largest proportion of investments ahead of Spain, the Netherlands, Northern Europe and Italy. .
SCI in life insurance
As for real estate supports invested via a unit-linked life insurance contract, real estate companies (SCI) delivered an overall performance of +2.6% in the first half of 2022. A few SCIs still stand out with performance up to 10%. Unit-linked SCIs had delivered an average performance of +3.86% in 2021.
As of June 30, 2022, the net assets of the 37 unit-linked property companies amounted to €21.7 billion.