SCPI, OPCI, SCI Guarantee Conflict: In 2021, unlisted real estate funds will return to pre-crisis performance

ASPIM and IEIF, reference agencies for the unlisted real estate market, have released performance statistics for SCPI, OPCI and SCI for 2021 life insurance policies. According to a new measure of performance, the SCPI distribution rate is 4.45%.

A new indicator for measuring SCPI performance

ASPIM and IEIF, two benchmarking organizations in the SCPI market, have been working to harmonize the indicators. Therefore, since January 1, 2022, “Market Value Distribution Rate (TDVM)” has been replaced by “Distribution Rate”. This corresponds to the annual dividend, the total amount of tax withheld on behalf of the saver, and the ratio of the reference purchase price at the beginning of the year. For variable capital SCPI, the purchase price corresponds to the January 1st subscription price in N, and for fixed capital SCPI, the purchase price corresponds to the average purchaser price in N-1.

The average distribution rate of SCPI in 2021 is 4.45%

According to this new indicator, the SCPI distribution rate in 2021 is 4.45%. To be on the safe side, the incomparable distribution rate in 2020 was 4.18% because it is based on the old calculation method.

SCPI, which specializes in logistics and business establishments, recorded the best performance at 5.67%. Immediately after them are 5.38% of diverse SCPIs. SCPI, which specializes in the health sector, ranks third with 4.83%. The following three locations are occupied by residential SCPIs (4.29%), offices (4.25%), and stores (4.16%). SCPI, which specializes in hotels and tourism, suffered from health restrictions in 2021 and recorded an average performance of 2.85%.

As of December 31, 2021, SCPI’s capital reached € 78.6 billion.

Retail OPCI: Average Performance + 4.4% (Reinvested Dividend)

According to the IEIF Index, Retail OPCI will provide annual performance with a 4.4% dividend reinvested in 2021. This performance is categorized as 1.5% distribution and + 2.9% asset revaluation. More than half (58%) of OPCI on the market achieved 3% to 4% overall performance, and 20% of OPCI achieved 7% to 8% performance.

As of December 31, 2021, retail OPCI’s net worth reached € 20.7 billion.

Life insurance policy SCPI: Average performance 3.8%

Life insurance unitlink real estate companies recorded an overall performance of + 3.8% in 2021. 42% of SCI provided 4% to 5% performance.

As of December 31, 2021, SCI’s cumulative net worth linked to the real estate unit reached € 18.7 billion.

“Three major types of real estate funds remained strong at 2019 levels after a slight decline in performance in 2020 due to lower rents collected during the health crisis and certain valuations. We’re back to near performance. It’s a very attractive performance in life insurance policies, and we believe that this asset class should occupy a more important position in pensions and employee savings. SCPI In 2021, the distribution ratio was 4.45%, and the internationalization of assets continued last year, accounting for more than one-third of the investment outside France, “said Jean-, President of ASPIM. Marc Coly summarizes.