Buying SCPI before the price of its units rises is always a good move to get a quick capital gain or limit entry costs. To make the right choice, you must compare subscription prices with recovery values, which are calculated each year based on the assessed value of each SCPI’s real estate assets.
The management companies have the right to fluctuate the price of SCPI shares by plus or minus 10% in relation to their replacement value. Therefore, it is generally necessary for the replacement cost to be more than 10% higher than the share subscription price in order for the price increase to apply.
In the current highly uncertain economic context for growth and the prospect of continued increases in interest rates, choosing SCPI, which has a subscription price discounted to its replacement cost, also provides a cushion in case real estate values decline. market, which may lead to depreciation of unit prices.
75 SCPI verified
The SCPI observatory of the online savings platform Linxea already last summer studied the value of SCPI real estate and, pleasantly surprised, observes a new overall increase in recovery values established as of December 31, 2021. This increase is measured on average at the level +1.57% for major SCPIs on the market (studyed 75 SCPIs). The largest growth is observed in the category of retail MIS (+2.45% compared to the end of 2020).
Thus, this study once again confirms this year’s majority discount situation for major SCPIs in the market, with the share price averaging 3.71% below their replacement value. ” This means that subscribers today are buying their shares for an average of 3.71% less than the actual cost of the item. sums up Pierre Garin, Director of Real Estate at Linxea.
Average discount 3.71%
It is the diversified SCPIs that experience the biggest discount of -4.23% on average. Linxea notes that the residential sector, which had the biggest discount last year, “came in line” with an average discount of -3.25%. Linxea clarifies that this category is likely to be more affected than other sectors by the rate increase, which affects the price of residential property more directly.
Among all the SCPIs analyzed by Linxea, fifteen stand out with a replacement value that exceeds the share price by more than 7%.
SCPI with the highest discounts according to Linxea rating:
– Novapierre Residential (Paref Management): 7.05%
– Cap Foncières & Territoires (property and territories): 7.4%
– Stone Savings (Atland Voisin): 7.2%
– Fair Invest (Norma Capital): 7.2%
– LF Opportunity Immo (La Française AM): 9.7%
– Selectipierre 2 (Fiducial Gérance): 9.9%
– Practices of the earth (Foncière Magellan): 7.6%
– Elialis (Advenis): 7.6%
– Savings on real estate (La Française AM): 9%
– LF Europimmo (La Française AM): 9.1%
– LF Grand Paris Patrimoine (La Française AM): 8.9%
– Selectinvest (La Française AM): 9.4%
The shops :
– Novapier 1 (Paref Management): 8.1%
– Novapier Germany (Paref Management): 9.4%
– Novapier Germany 2 (Paref Gestion): 9.7%
6 SCPI with discounts around 10%
If we kept only the highest discounts that could lead to the next increase in the share price, then there would be 6 SCPI with a discount of more than 9%: LF Opportunit Immo (La Française AM), Sélectipierre 2 (Fiducial Gérance), Selectinvest (La Française AM ), Novapierre Germany and Novapierre Germany 2 (Paref Gestion) and LF Europimmo (La Française AM).
To clearly illustrate this healthy SCPI estimate, we might add that 32 SCPIs, or over 40% of the sample, reported discounts of at least 5%. ” With a general increase in the estimated value, the situation has improved even more compared to the previous year. It also led to multiple share price increases in the first half of 2022. While the environment poses real threats (inflation, rate hikes, etc.), SCPI is approaching the second half of 2022 in even better shape than last year. Thus, the widening gap between replacement cost and unit prices provides grounds for optimism about the evolution of the latter, gaps that could also act as a buffer in the event of a general decline in property prices following current rate hikes. ”, concludes Pierre Garin.
Conversely, Linxea’s research shows that 15 SCPIs show a stock price higher than its replacement value (a ratio similar to last year). These revaluations are small in most cases, averaging around 2%, with the exception of SCPI Patrimmo Commerce (Primonial REIM), where the difference is around 10%, which could indicate a drop in the share price in the short term. .