Real estate investment: “Which SCPIs have increased their share price recently?”

A Capital reader asks us which SCPIs have increased their subscription prices in recent years. While this indicator is relevant for investors looking for added value on the resale of their shares, it is not enough.

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Jean-Christophe, reader of Capital, sent us the following remark in response to one of our articles: “Hello, your article on SCPI returns is interesting, but in my opinion incomplete. Indeed, what about the evolution of the share value in recent years? Hello Jean-Christophe, and thank you for your question, which allows us to return to how the performance of real estate investment companies (SCPI) is measured. The most common indicator is the distribution rate – or TD – which we actually use in our articles. It is obtained simply by dividing the amount of dividends paid to partners during the four quarters of year N by the price of the share on January 1 of that same year. For example, in the first half of 2024, the average TD of the sector was thus 4.5%.

For a yield SCPI, the TD remains more relevant

Currently, a majority of SCPIs are called “yield”: their primary objective is to pay regular income to unit holders. In this sense, the distribution rate remains the most relevant indicator for assessing their ability to fulfill this objective. However, we must not forget, as you point out, that the revaluation of the share price also counts in the overall performance. If a share is purchased for 200 euros, then is revalued by 10% (to 220 euros), the partners will in fact earn a capital gain when reselling these same shares.

Below you will find a ranking of SCPIs having increased their subscription price since December 31, 2022. But this indicator has its limits. IIt is mainly of interest to investors already associated with the SCPI concerned, and who therefore see the value of their investment increased. “Conversely, an investor who has not yet taken the plunge will rather look for an SCPI in a discount situation (the price of the share is lower than its real value, Editor’s note), in order to optimize his investment »advises Paul Bourdois, co-founder of the France SCPI platform. Indeed, at equivalent dividend levels, when the share price is lower, the yield, expressed by the TD, increases mechanically.

An indicator more suited to capitalization SCPIs

Also, the revaluation of the share price is rather a relevant indicator for so-called “capitalization” SCPIs, which aim to increase the value of their assets over time, in order to allow potential capital gains for their outgoing partners. This is the case for example of Novapierre Résidentiel, which displays a TD of 0% in 2023, because its vocation is to revalue its share price on a regular basis. But here too, jumping on the bandwagon is equivalent to reducing your chances of capital gain: the more expensive the share is purchased, the less significant the capital gain on resale. However, capitalization SCPIs can remain at a discount despite the increase in the share price, in order to increase the price of the latter regularly from one year to the next.

As you see Jean-Christophe, studying the revaluation of the share price of an SCPI has only two interests: if you are already associated, or if you are looking for a capitalization SCPI, but in this case you will have to evaluate the ability of the latter to increase its share price again in the future. In any case, this criterion should not be looked at alone. To get an idea of ​​the overall return, you can rely, for example, on the overall real estate return of an SCPI, the RGI, which combines the two indicators: the TD and the revaluation of the assets. And if you have not yet invested, we invite you to consult our selection of discounted SCPIs with high return potential.

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