Investing in SCPI or Société Civile de Placement Immobilier is an attractive option for savers who want to invest in real estate and generate regular income.
Over the past few years, returns have grown considerably, reaching more than 7%. the best SCPI.
This increase was initiated by the progress of management companies in taking advantage of the best real estate opportunities in the European market.
In addition, key rates fell from -0.50% to 4%, which has the effect of lowering property prices.
A boon to agile SCPIs like these Origin of Corum or Remake Live, which regularly studies investment opportunities around 8% in 2024.
Market for SCPI it is diversified and includes different types of SCPIs issued by management companies under the supervision of the Financial Markets Authority.
Real estate investors should consider factors that affect SCPI’s price and yield, including interest rates and economic growth.
In addition, central bank decisions can have a significant impact on SCPI valuation.
SCPI is coming back to the fore due to the rise in inflation which should automatically cause an increase in the rent demanded from the tenant and ultimately an increase in returns for the investor. SCPI shares.
SCPI investment key points
– Investing in SCPI will allow you to save up to 7% on property rental and increase your purchasing power in 2024.
– Factors affecting the price SCPI they include interest rates, inflation and central bank monetary policy, which promises to be very favorable to real estate in 2024.
– Understanding the different types SCPIinvestment strategy and risks is essential before entering the real estate market.
What is SCPI?
Definition of SCPI
The purpose of SCPI is the acquisition and management of real estate.
When an investor buys an SCPI, he immediately becomes the owner of the real estate fund, which in exchange agrees to pay him regular rents, called dividends.
Main characteristics of SCPI
Dividend:
This is a reward paid to SCPI holders, usually up to 7.5% net per month, directly into a current account.
Capitalization:
SCPI capitalization is calculated by multiplying the number of shares outstanding by the exercise price. Then we get the total value of SCPI at time T.
Internal rate of return:
SCPI’s internal rate of return can be compared to net present value, which measures cash flow.
What are the different types of income SCPI?
Among the different categories SCPIwe can distinguish:
Diversified SCPI:
These SCPIs invest in several types of assets simultaneously and in several countries.
The most well-known diversified SCPI is SCPI CORUM ORIGIN.
Medical SCPI:
These SCPIs invest in clinics, hospitals, nursing homes and pharmaceutical laboratories.
PUSH Greetings SCPI the most famous SCPI PIERVAL SANTE
SCPI Logistics:
These SCPIs invest in logistics warehouses owned by Amazon or DHL, for example
PUSH SCPI Logistics is the most promising SCPI LOGIN
SCPI Hotel Industry:
These SCPIs invest in hotels across Europe operated by Accor, Hilton etc.
SCPI’s most famous hotel is SCPI Atream hotels.
When an investor buys an SCPI, he becomes the owner of a multi-billion property within the scope of his investment and earns up to 7% rental yield without doing anything.
Rent is generally paid monthly or quarterly directly into the investor’s bank account.
Price for part of SCPI it may also increase each year depending on the value of the award.
SCPI Digital Assessment Platforms
SCPI’s digital rating platforms assess SCPI’s solvency by assigning scores based on their ability to meet their financial obligations.
Their role is to provide investors with information about the risk of SCPI falling.
The main digital rating platforms are Centrale des SCPI and SCPI-SIGN.
Their ratings are based on multiple criteria, such as quality of management, financial health of SCPI, quality of tenants and economic situation.
There are SCPI rankings by SCPI category so that you can make the right decisions before investing your money in SCPI.
Management companies such as Corum AM, Alderan, Theoreim, Sogénial are indeed recognized for their exceptional agility and have received 5 stars from major digital rating platforms at various times.
This means that SCPI managed by these management companies are seen as having an extremely low risk of not meeting their return targets.
SCPI share price is influenced by factors
Key interest rates: impact on SCPI
Key interest rates play a key role in determining the SCPI price.
These rates are set by central banks and serve as a basis for evaluating real estate prices around the world.
When key rates fall, which is likely in 2024, property prices will rise significantly.
That’s why we have to hurryinvest in SCPI ahead of the rate cut announced for 2024 to benefit from SCPI share price appreciation.
Tenant quality: a defining role in SCPI life
The results of SCPI, which are investment properties, depend on the quality of tenants.
Investors generally compare SCPI performance to investment properties.
SCPIs that have the strongest tenants, such as Google, Carrefour or Apple, generally distribute the best returns.
It directly affects performance SCPI share price because it rewards the choice of location because they have attracted tenants.
Other factors affecting SCPI’s price are varied and include SCPI’s financial health, the economic outlook, SCPI’s liquidity and market conditions.
AND SCPI whose financial health is less reliable, it will not attract tenants and its income will decrease and thus its share price will decrease.
Investment strategy in SCPI
SCPI active management or SCPI passive management
Active management in SCPI means that investors buy fully owned SCPI shares and directly reinvest the rent each month to increase their share count.
Passive management in SCPI, on the other hand, simply consists of buy SCPI stock in full ownership to increase its purchasing power through the rents received.
This approach is often used more than active management during periods of inflation.
THE SCPI CORUM and SCPI REMAKE LIVE are common examples of active investment management in SCPI stocks.
SCPI hedge against rising inflation
SCPI hedging involves the use of various real estate or tactical instruments to reduce the risk of losing purchasing power in the event of a sudden increase in inflation, such as in 2023.
An increase in inflation can actually cause your quality of life to decline.
Investors can use solid SCPI and subscribe to multiple SCPIs at the same time to protect themselves from this risk.
Multi-SCPI strategy
The so-called Multi-SCPI strategy is to build a SCPI portfolio with strategies divided into different themes such as health, logistics, office, business, etc.
This approach reduces the impact of fluctuations in each category and increases portfolio diversification.
With each new SCPI investment, investors can reinvest their money into a new SCPI with a different strategy to maintain a balanced risk spread.
By investing in multi-SCPI portfoliosinvestors benefit from inflation protection and a potentially stable return.
Additionally, this strategy can offer more chances to benefit from an increase in the stock price.
What is the good news in the SCPI market?
Possibility of revaluation of some SCPIs in 2024
A likely decline in interest rates in 2024 will cause fluctuations in the share price of some SCPIs.
When interest rates fall, SCPI outstanding prices may increase, leading to an increase in value for SCPI stockholders.
Increased yield of some SCPIs in 2024
SCPI, which cashed in 2023, was able to take advantage of numerous opportunities to buy buildings yielding around 8%.
So these SCPI will be able to distribute the growing revenue as SCPI REMAKE LIVE
Which SCPIs to invest in?
Here is an example of a classic portfolio to gain exposure to the SCPI asset class
There are two pockets: an income pocket to provide performance and also a tactical pocket to increase SCPI’s share price.