SCPIs raised 2.4 billion euros in the first quarter, up 14% from a year earlier. But the collection slowed down significantly in April. According to estimates by France SCPI, the average annual TDVM for 2020 would be 4.01%.
The paper stone had always been popular with investors before the start of containment. The figures for the collection of SCPIs in the first quarter attest to this.
The SCPI collected 2.4 billion euros over the period from January to March, an increase of 14% compared to the 1st quarter of 2019 despite an abrupt cessation of activity from March 17, the date of confinement in France.
Not surprisingly, this quarterly fundraising was mainly invested in office SCPIs (57% of the capital raised), ahead of diversified SCPIs and specialized SCPIs with respectively 24% and 13% of the sums allocated.
On the other hand, commercial SCPIs did not take advantage of this influx (only 6%), penalized in January by the health crisis.
What will happen for the rest of the year? Many investors have decided to be cautious and have postponed or even canceled their investments in SCPIs. The first pick-ups in fundraising in April from management companies show flows lower by half than usual.
Several levers to guarantee performance
There is also the question of yields to the extent that requests to postpone or cancel rents have multiplied in recent weeks from TPE and businesses.
According to estimates by France SCPI, la platform dedicated to SCPIs, the average annual TDVM (market value distribution rate) for this year would stand at 4.01%, knowing of course that it differs according to the SCPI typologies.
SCPIs that hold walls of shops, malls, medium-sized businesses or those specializing in restaurants and hotels will fare less well.
SCPIs have several levers to maintain their performance: their ability to negotiate with their tenants, the carryforward (or RAN) which corresponds to the sums kept in reserve in order to smooth the results over time and therefore to absorb any shocks, or extension of the period of enjoyment for new incoming partners.
The only certainty is that not all media will emerge unscathed from this unprecedented crisis, and according to France SCPI, ” the time for performance at all costs may be over ”