SCPIs and OPCIs 2020 summari
ASPIM-IEIF statistics show that, despite the health and economic crisis, the two main real estate investment funds for retail investors sustained high levels of inflows. In total, inflows into SCPIs and retail OCPIs amounted to €8 billion in 2020, down 30% in volume on the 2019 figure but up 10% versus 2018.
For Jean-Marc Coly, ASPIM Chairman: "Like most economic actors, of which they are partners, real estate funds faced an unprecedented situation in 2020 due to the complexity of the challenges they had to meet. We therefore welcome the fact that, despite the constraints arising from the health crisis, inflows into real estate funds remained high, providing strong liquidity in the market. Acting in the interest of shareholders, asset management companies offered support for the hardest hit commercial tenants (retailers, restaurants, hotels). Thanks to their solid fundamentals, the funds were able to deliver the performance promised. While 2021 looks set to be another difficult year for the economy, I have no doubt that the strong appeal of real estate funds as saving products will be confirmed over time.”
Net inflows and investment
- SCPIs
Inflows into SCPIs totalled €6.03 billion in 2020, down 29.5% versus 2019, but representing the third highest level ever recorded for this type of fund. The full-year figure benefited from a very good first quarter (€2.56 billion), as well as a rebound in inflows during the last quarter (€1.56 billion, up 54% versus the third quarter).
On the investment side, SCPIs made acquisitions worth €8.4 billion in 2020, compared with €9.2 billion in 2019. In 2020, offices were the main investment focus (65%), followed by commercial premises (15%), healthcare and serviced residences for seniors (8%), logistics and business premises (5%) and lastly hotels (4%). Other categories (including housing, crèches/schools and mixed-use premises) rounded out investments at 3%.
Geographically speaking, investments were largely made in international markets (40%, including 14% in Germany, 7% in the Netherlands and 6% in the United Kingdom), followed by the Ile-de-France region (38%, including 11% in Paris) and lastly the French provinces (22%).
SCPIs also sold €1.2 billion worth of assets, compared with €1.7 billion in 2019. 77% of the assets sold are offices and 70% are located in the Ile-de-France region.
- Retail OPCIs
Retail OPCIs recorded inflows of €1.95 billion in 2020, down 29.7% versus 2019. The promising start in the first quarter (€1.29 billion) failed to withstand the decline in performance triggered by the stock market sell-off of listed real estate companies (8% of OPCIs’ net assets as at 31 December 2019). The fourth quarter confirmed the fall-off in net subscriptions, which came in at €105 million (down 57% versus the previous quarter).
Capitalisation and net assets
- SCPIs
SCPI capitalisation totalled €71.4 billion as at 31 December 2020, up 9% year-on-year.
- Retail OPCIs
The cumulative net assets of OPCIs rose to €20 billion as at 31 December 2020, an increase of 7.5% year-on-year.
Secondary market for SCPI shares
The value of shares in SCPIs traded on the secondary market amounted to €1.25 billion in 2020, representing 1.76% of capitalisation (versus 1.53% in 2019). As at 31 December 2020, shares pending sale amounted to €109 million, i.e. 0.15% of capitalisation (versus 0.12% in 2019).
Performance
- SCPIs
During the second and third quarters, postponements and cancellations of rent payments granted to tenants hit hardest by the health crisis had a negative impact on distributions. However, by keeping on top of rent arrears, as well as occasionally drawing on their reserves, corporate real estate SCPIs succeeded in maintaining an attractive distribution level of +4.18% (versus +4.4% in 2019).
Variation in the average price per share increased by +1.12% due to the price increases seen at the start of the year. Share prices remained stable overall during the second half of the year.
- Retail OPCIs
According to the IElF OPCI Grand Public index, the annual performance (dividends reinvested) stood at -1.54% in 2020. The share valuation fell by -2.87% year-on-year, while dividend payments provided a current yield of +1.33%.
In the fourth quarter, OPCIs recorded a +0.9% increase in net asset values, mainly due to the rebound in the stock markets as Covid-19 vaccination campaigns got underway in Europe.