The benefit period can deprive you of 3 to 6 months of return when you invest in an SCPI. However, few savers integrate this factor into the choice of their real estate fund. Well Named?
When you buy SCPI shares, you do so in the hope of receiving monthly or quarterly rent. However, this reward is sometimes delayed, since some SCPIs make you wait up to nine months before paying your first rent.
The reason? These SCPI apply what is called a period of enjoymentthat is to say that they provide for a period during which, after having purchased your shares, you are not eligible for the rents corresponding to your investment.
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Marketing argument
The period of use has an economic justification. It gives the management company the time necessary to find a property in which to invest the money of new entrants, explains Clment Renault, CEO and co-founder of Louve Invest.
On average, its duration is 3.4 months. However, we note significant disparities from one SCPI to another. Some management companies apply a period of enjoyment of six months. This is particularly the case for the SCPI Corum XL and Foncire Des Praticiens.
This deadline gives the management company the time necessary to find a property in which to invest the money of new entrants.
Other investment vehicles, on the other hand, do not provide no period of use. This is for example the case of the SCPI Aestiam Pierre Rendement, Carac Perspectives Immo, and Patrimmo Commerce. But how to explain it?
For these SCPIs, the elimination of the period of enjoyment is often a marketing argument. This is a way of revitalizing their collection by offering an additional return to the saver, explains Paul Bourdois, co-founder of France SCPI.
Another scenario: SCPIs which are no longer expanding, that is to say whose withdrawals exceed the amounts collected. These SCPIs do not need to purchase new real estate, maintaining a period of use is therefore not justified, observes Clment Renault.
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Mitig impact
To fully understand the impact of the benefit period on your return, let’s take the example of a saver who would invest 100,000 euros in an SCPI which generates an annual performance of 5%i.e. a target return of 5000 euros for the saver.
If this SCPI applies a six-month benefit period, the saver will only start accumulating rents from the first day of the seventh month. In other words, his gain will be divided by half in the first year, i.e. a shortfall of 2500 euros.
However, should we systematically favor SCPIs without a vesting period when you select the funds in which you wish to invest? Not necessarily. Because this delay can have a positive impact on the long-term performance of your SCPI.
The funds collected do not sit in a current account. Most often, they are placed in interest-bearing accounts, explains Clment Renault. However, in a period of zero interest rates, SCPIs rushed to invest these funds, since they did not bring in anything.
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But with the rise in central bank key rates, these accounts are now reporting 4% even 4.5% per year, which allows SCPIs to take their time to identify high-profitability real estate operations.
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Leverage
Enough to boost stone-paper yields. That said, the best management companies have a different strategy. Some SCPIs, like Iroko Zen, work with a pipe [canal, NDLR] very tight acquisition criteria, which allows them to create a leverage effect, notes Clément Renault.
Concretely, these SCPIs manage to invest the funds collected in less than a month. They thus generate returns of 7% Or 8% with the money of the new partners, but without paying them back during the period of enjoyment, which mechanically inflates their performance.
This is also one of the reasons why young SCPIs are able to offer such spectacular returns: their historical partners, still few in number, share the additional rents generated with the funds of the new arrivals, indicates Clément Renault.
We are talking about 3 months of return on the scale of an investment which will last 8, 10 or 15 years
So what place should be given to the period of enjoyment when choosing your SCPI? This delay is often a source of frustration for our customers.but we are talking about 3 months of return on the scale of an investment which will last 8, 10 or 15 years, answers Clément Renault.
Favor SCPIs with a short redemption period if you are hesitating between two vehicles that offer equivalent performance or if you want to buy SCPI shares on credit without having to dip into your cash flow, adds Paul Bourdois.
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