ASPIM and IEIF, reference bodies for the unlisted real estate market, have published performance statistics for SCPIs, OPCIs and SCIs of life insurance contracts for the year 2021. According to the new indicator to measure performance, the SCPI distribution rate is 4.45%.
A new indicator to measure the performance of SCPIs
The ASPIM and the IEIF, the two benchmark organizations for the SCPI market, have worked to harmonize the indicators. Thus, since January 1, 2022, the “distribution rate on market value (TDVM)” is replaced by the “distribution rate”. This corresponds to the ratio between the annual dividend, gross of any tax deducted at source on behalf of the saver, and the reference purchase price at the start of the year. In the case of an SCPI with variable capital, the purchase price corresponds to the subscription price on 1 January of year N, and in the case of an SCPI with fixed capital, it corresponds at the average buyer’s price for year N-1.
An average distribution rate of 4.45% in 2021 for SCPIs
According to this new indicator, the SCPI distribution rate is 4.45% for 2021. As a reminder, the 2020 distribution rate, based on the old calculation method and therefore not comparable, was at 4.18%.
SCPIs specializing in logistics and business premises recorded the best performance with 5.67%. They are closely followed by diversified SCPIs with 5.38%. SCPIs specializing in the health sector come in third place with 4.83%. The next 3 places are occupied by residential SCPIs (4.29%), offices (4.25%) and shops (4.16%). SCPIs specializing in hotels and tourism suffered in 2021 from health restrictions and posted an average performance of 2.85%.
As of December 31, 2021, the capitalization of SCPIs reached 78.6 billion euros.
Retail OPCI: an average performance of +4.4% (dividends reinvested)
According to the IEIF index, Retail OPCIs deliver an annual performance of 4.4% dividends reinvested in 2021. This performance breaks down into a distribution of 1.5% and a revaluation of assets of +2.9%. More than half of the OPCIs (58%) on the market delivered an overall performance of between 3% and 4%, and 20% of the OPCIs a performance of between 7% and 8%.
As of December 31, 2021, the net assets of retail OPCIs amounted to €20.7 billion.
Life insurance contract SCPIs: an average performance of 3.8%
Unit-linked real estate companies in life insurance posted an overall performance of +3.8% in 2021. 42% of SCIs delivered a performance of between 4% and 5%.
As of December 31, 2021, the cumulative net assets of real estate unit-linked SCIs amounted to €18.7 billion.
“After a slight drop in performance in 2020 due to the reduction in rents collected and certain appraisal values during the health crisis, the three main types of real estate funds held up well and returned to performances close to 2019 levels. eal estate delivers very attractive performances in life insurance contracts and we believe that this asset class should occupy a more important place within pension and employee savings. With regard to SCPIs, their distribution rate for 2021 stands at 4.45% and we note that the internationalization of their assets continued last year with more than a third of the amounts invested outside France” summarizes Jean-Marc Coly, President of ASPIM.