The sky is darkening over real estate investment companies (SCPI). These supports giving access to a real estate portfolio (shops, offices, clinics, hotels, etc.) are prized for their simplicity and their performance. Last year, they distributed 4.53% on average.
In ordinary times, savers pay less attention to the share value, which can nevertheless move up or down. But the current context, marked by a rise in interest rates and a fall in real estate prices, invites them to be more careful. In his “2023 mapping of markets and risks”, the Financial Markets Authority also highlighted the vulnerability of real estate funds.
It was Laffitte Pierre, an office SCPI managed by AEW, which started the movement by reducing its price on March 1. This summer, two heavyweights followed suit: Amundi Immobilier (Edissimmo, Génépipierre and Rivoli Avenir Patrimoine) and BNP Paribas REIM (on Accimmo Pierre). Others followed including Perial AM, La Française REM and Primonial.
You should know that the price of SCPIs is regulated by regulations: it must be within a corridor ranging from plus 10% to minus 10% in relation to the reconstitution value of the SCPI. The latter corresponds to the market value of the park, increased by financial assets and the costs necessary to repurchase all its assets.
A decline that accelerated
However, reconstitution values fell at the end of 2022, by 1.12% on average according to the Linxea SCPI observatory. “And again: this devaluation is an optimistic reflection of reality,” estimates Pierre Garin, director of the Linxea real estate division. Indeed, since the start of the year, the decline has accelerated. In addition, some vehicles recorded much more violent stalls. “Those who experience the most severe falls are often those who seemed best armed a few years ago, namely large SCPIs with large capitalizations, analyzes Pierre Garin. The current crisis rather benefits small SCPIs with a recent and of the collection to be deployed.” And the hardest part is yet to come… “The worst of the correction will arrive at the end of 2023”, estimates Paul Bourdois, co-founder of France SCPI.
Indeed, other products are approaching the 10% mark below their price which would require them to adjust the latter downwards (see infographic). “If the fact of having a share price lower than the reconstitution value should not be a source of concern in absolute terms for savers, it is better to avoid acquiring these products at present,” recommends Paul Bourdois.
However, pleasant surprises cannot be ruled out. Thus four SCPIs reassessed their prices at the beginning of last July: Aestiam Cap’Hébergimmo (Aestiam), Cœur de Régions (Sogenial Immobilier), Fair Invest (Norma Capital) and Kyaneos Pierre (Kyaneos AM). And further increases could occur as the end of the year approaches, as the landing level for property prices becomes clearer.
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