The 2024 results of SCPI share price variations are rather gloomy. 17 vehicles announced reductions, often very significant. Only 7 posted increases in their subscription price. State of play, and comments, to date…
The « ball of valuations » may not be completely finished. With the end-of-year appraisals, which have already started, it is possible that the value of the assets of certain SCPIs will be further revised downwards. But, while waiting for this new salvo, it is rather, for the moment, the SCPIs having carried out the revaluation of their subscription price which stand out.
Latest revaluation to date: the SCPI Alta Convictions, at Altarea IM
The 1is Last December, the young SCPI Alta Convictions, managed by Altarea IM, announced double good news. On the one hand, the increase in the price on its part, going from €300 to €305. An increase of +1.67%. And, on the other hand, the revision, again upwards, of its annual distribution objective. Now set at 6.5%, compared to 6% previously. Note that despite its new subscription price, Alta Convictions remains at a discount. The value of its shares remains almost 5% lower than its reconstitution value as of June 30, 2024 (€320.80). Thanks to the significant increase in the value of the SCPI's assets since its creation. Altarea IM specifies that the appraisal values of the assets under management have increased on average by 7% since their acquisition…
Also increase in the subscription price of SCPI Cristal Life, at Inter Gestion REIM
Just a month earlier, another – a little less – young SCPI also revalued the price of its shares. Cristal Life, the SCPI dedicated to essential activities launched in 2021 by Inter Gestion REIM, increased its subscription price for the second time since its creation. This one passed, dated 1is November, from €204 to €206. An increase of +0.98%. Lower, therefore, than that observed a year earlier (+2%). But progress nonetheless… This new revaluation was also expected. Since the evaluation of the SCPI's assets carried out on June 30 revealed a very strong discount (9.31%) between the reconstitution value on that same date (€224.93) and the old subscription price.
Seven SCPIs have revised their subscription prices upwards since the start of 2024
Note also that the increase in the latter certainly reduces the discount, but marginally. The subscription price of Cristal Life remains in fact still 8.42% lower than its “VR”. So there is reason to hope for a future upward revision… In the meantime, these two SCPIs are added to the 5 other vehicles which, since the start of 2024, have carried out a revaluation of their share price. The increases observed are quite modest. Often less than 1%. With the exception of another SCPI managed by Inter Gestion REIM, Cristal Rente. The increase, recorded last July, reached 2.27%. But these increases, even modest, unfortunately remain the exception. Since they face a much larger number of declines…
And 17 SCPIs lowered them in 2024…
With the latest, that operated by Amundi Immobilier last October on its SCPI Genepierre – the 3e decline since July 2023-, there are in fact a total of 17 SCPIs which have revised, often drastically, their subscription price since the start of the year. The scale of the devaluations is incommensurate with that of the revaluations. No decline is less than 5%. The highest reaches 25%. This sad record is held by the SCPI Primopierre, at Praemia REIM. Worse, if we add the reductions made since the start of the crisis, Primopierre shows a cumulative decline of almost 40% in the value of its shares since the start of 2023… Two other SCPIs, Laffitte Pierre, at AEW Patrimoine, and Accimmo Pierre, at BNP Paribas REIM France, show cumulative declines greater than 30%. Four others exceed 20%…
A new – and final? – valuation shock expected
Despite these drastic devaluations, several of these SCPIs, given the composition of their assets – mainly offices -, risk being forced to make further adjustments. Because the market values of this asset class, at least for some of them, are still trending downward. And that the level of residual premium for some vehicles (greater than 9% for at least three SCPIs) would not allow them to absorb a new – and let us hope, final – valuation shock… Leading to the announcement of new adjustments to their share price. subscription. Answers by the end of the year or, more likely, the beginning of 2025.
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About d'Altarea IM(i)
Altarea Investment Managers is a new management company approved by the Financial Markets Authority under number GP-20230008 specializing in the management of real estate funds. Thanks to an experienced team, recognized on the market, we offer our clients real estate savings solutions. Altarea IM is backed by the Altarea entrepreneurial group, a true real estate expert and leader in low-carbon urban transformation.
About Inter Gestion REIM(i)
At the head of several entities recognized for their expertise in the investment sector, the Inter Gestion Group has been developing SCPIs for more than 30 years through its subsidiary Inter Gestion REIM. The Management Company now provides investors with a complete range of yield funds. Inter Gestion REIM has always stood out for its prudent management and its ability to capture the performance of niche markets. It currently markets 2 SCPIs, CRISTAL Rente and CRISTAL Life. And manages assets of more than 850 million euros.
- Information taken from an official company document.
