Also known as "stone-paper", SCPI (civil real estate investment trust) is a form of real estate investment. These management companies raise funds that they reinvest in real estate and pay back rents in the form of dividends to investors. Here are 4 criteria that identify a good SCPI.
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Effective rental management
A good relationship with tenants is essential for a SCPI to reach a high level of performance. This conviction is reflected in CORUM's fully managed in-house and tenant management, thanks to a dedicated team of experts, when most SCPI outsource this function. "It is the tenants who generate the income of the REIT by paying their rent, the quality of our relationship with them is fundamental. Whether offices are too small for a business, whether occupants are satisfied, whether they think they are renewing their lease or not, is essential. All this valuable information allows us to optimize the management of our property portfolio ", explains Frédéric Puzin, Manager of CORUM AM.
A concrete occupation rate
The occupancy rate expresses the portion of SCPI's assets for which rent is paid. The stronger he is, the more he testifies to the good health of a SCPI. It happens that this rate deteriorates punctually, when leaving a major tenant for example. But in a quality housing stock, the premises do not remain long vacant and some SCPI show a record occupancy rate, such as CORUM, more than 99%.
The diversification of investments, both in terms of types of premises and geographically, is a guarantee of sustainability. Spreading the investment on different goods (shops and offices, but also school, hotels for example) can minimize the risks for all partners. But this diversification can go further: like CORUM, the first to invest beyond French borders to take advantage of low market moments, favorable to acquisitions, SCPIs are now investing throughout the euro zone.
A collection guided by investments
A good SCPI solicits investors according to the visibility it has on acquisition possibilities and its good control of real estate cycles. "For 4 years, we have limited our annual collection to 300 million euros. Our strategy is to buy when the market is low and to collect only what we can invest according to the announced objective, "explains Frédéric Puzin. It is useless to acquire buildings that are too expensive, or impossible to rent. A winning strategy, since the results of CORUM, whose profitability objective of 6% is higher since its creation: 6.45% * in 2017.
* Market Value Distribution Rate (DVM) (ie the yield, ie the annual dividend compared to the share value)
CORUM's past performance does not prejudge future performance. Long Term Savings / Limited Liquidity / Unsecured Income / Risk of Capital Loss. "CORUM – SCPI visa n ° 12-17 of the AMF of 24/07/2012 – Balo n ° 61 of 21/05/2018. Managed by CORUM Asset Management, approval AMF GP-11000012 of 14/04/2011 "