Consumer real estate fundraising reached €2.8 billion in Q1 2023 (Aspim/IEIF)
According to’Aspim and theIEIFconsumer real estate funds collected €2.8 billion in the first quarter of 2023 compared to €3.9 billion in Q1 2022.
“After record inflows in 2022, consumer real estate funds collected a volume close to the average of the previous five years,” says Jean-Marc Coly, president of Aspim. “The rise in interest rates has restored the attractiveness of monetary investments, which explains the slight drop in subscriptions at the start of the year. While we note an increase in the volume of units traded on the secondary market since the end of last year, the volume of subscriptions as well as the various liquidity management tools allow normal management of withdrawal requests. We do not observe any particular difficulties on the market in the data transmitted by the managers in the first quarter of 2023. Finally, with regard to distributions in 2023, the managers of SCPIs anticipate, for the most part, levels comparable to those of 2022.”
Aspim notes that the interest rate increases were also taken into account by real estate experts in the end-of-year appraisals. Thus, it notes that the market values of SCPI real estate assets were adjusted by an average of -1.5% at the end of 2022 on a like-for-like basis. For the year 2022, the overall real estate yield of SCPIs, an overall performance indicator for the real estate portfolio, stands at +2.1%. These changes are in line with the data MSCI that investment properties in France posted a return on capital of -1.9% for an overall performance of +1.9%.
SRI-labeled retail funds represent 47% of net inflows and 51% of the overall capitalization of retail unlisted real estate funds in the first quarter of 2023.
Collection of SCPIs in the average of the previous five years
In the first quarter of 2023, net SCPI inflows amounted to €2.4 billion, an amount down 10% compared to the first quarter of 2022, but which remains above the average for the first quarters of the last five years. “
SCPIs with a diversified strategy achieved 40% of net inflows in the first quarter and outstripped predominantly “office” SCPIs (34%). Next, SCPIs with a preponderance of “health and education” (15%) are ahead of “logistics and business premises” SCPIs (6%). Finally, “retail” and “residential” respectively captured 3% and 2% of the collection in the first quarter of 2023”, detail Aspim and IEIF.
On the secondary market, €433 million in SCPI shares were traded in Q1 2023. This amount corresponds to a share turnover rate of 0.47% over the quarter, down from the last quarter of 2022 (0.52 %), but slightly higher than the average observed in 2022: around 0.40% per quarter. The accumulation of shares awaiting withdrawal at the end of the first quarter of 2023 is limited to 0.15% of the total capitalization, compared to 0.16% at the end of 2022.
As of March 31, 2023, the capitalization of SCPIs reached €91.7 billion, up 2% over a quarter.
Slowdown for civil companies distributed in life insurance
In addition, non-trading property unit-linked companies recorded net subscriptions of €752 million in Q1 2023, “an amount down 33% compared to the first quarter of 2022.” A limited number of funds posted outflows in the first quarter, for a total of €45 million representing only 1.4% of their total net assets.
As of March 31, 2023, the net assets of real estate unit-linked civil companies amounted to €26.53 billion, up 1% over a quarter.
Outflows from retail OPCIs continue
Finally, in the first quarter of 2023, retail OPCIs recorded net outflows of €325 million. This outflow is partly linked to the decline in performance in 2022 (-3.5%) caused by the underperformance of the listed real estate (-29%) and financial (-5%) pockets.
The net assets of retail OPCIs amounted to €19.6 billion at March 31, 2023, down -3% over one quarter.
