Some SCPIs are subject to placement troubles.

The real estate market situation is affecting real estate investment trusts (SCPIs). These instruments, which provide access to a portfolio of real estate (stores, offices, clinics, hotels...), are popular due to their simplicity and profitability. Last year, they distributed an average of 4.53%. Typically, savers pay less attention to the value of a share, which can go up or down. But the current context, marked by rising interest rates and declining real estate prices, is causing them to be more careful.

The impact of the market on SCPI

In its "2023 Market and Risk Mapping" Financial Market Authority noted the vulnerability of real estate funds. The move was first started by SCPI offices of Laffitte Pierre, managed by AEW, lowering its price on March 1. This year, two major players followed suit: Amundi Immobilier (Edissimmo, Génépierre and Rivoli Avenir Patrimoine) and BNP Paribas REIM (on Accimmo Pierre). Others followed, including Perial AM, La Française REM and Primonial. It is worth knowing that the price of SCPI is regulated by law: it must be between plus 10% and minus 10% of the cost of SCPI recovery. The latter corresponds to the market value of the portfolio increased by the financial assets and the costs required to redeem all its assets. However, the cost of recovery decreased at the end of 2022, by an average of 1.12% according to Linxea's SCPI Observatory. "And it's an optimistic reflection of reality," says Pierre Garin, director of property pool Linxea.

The collapse has accelerated since the beginning of the year. In addition, some funds recorded sharper declines. "Those that have experienced the most severe falls are often those that seemed best prepared a few years ago, i.e. large SCPIs with large capitalizations," Pierre Garin analyzes. The current crisis is more likely to benefit small SCPIs with recent portfolios and fundraising for deployment. And the hardest part is ahead... "The biggest correction will happen at the end of 2023," believes Paul Bourdua, co-founder of France SCPI. Other products are approaching the 10% mark below their price, which will force them to lower their price (see. Infographic). "If having a share value below the recovery value should not be of concern to savers in absolute terms, it is better to avoid buying these products at present," recommends Paul Bourdua.

Possible surprises

But good surprises should not be ruled out. For example, four SCPIs re-priced in early July: Aestiam Cap'Hébergimmo (Aestiam), Cœur de Régions (Sogenial Immobilier), Fair Invest (Norma Capital) and Kyaneos Pierre (Kyaneos AM). And new increases could occur toward the end of the year as the level of real estate values is refined.