If I tell you, regular income, diversification of your real estate and simplicity of management. Yes, it is the SCPI! Investors are increasingly turning to this type of investment, but at what price?

This investment vehicle allows access to a diversified real estate portfolio, without the hassles of a classic direct investment and with a more affordable starting bet.

For more information on this investment, here is a link to our article presenting this investment solution. https://www.wealth-a7.com/fr/actualites/les-scpi/.

Although a priori this form of detention has many qualities, it is nevertheless essential to carefully select your SCPI. Yes, not all are equal, and it is essential to keep only those with a strategy in accordance with your values and adapted to your heritage situation. Here is our selection of the 7 criteria to analyze before investing in a SCPI.

1. Distribution rate and carry-over again:

Often highlighted, this rate reflects the return on dividends paid annually to associates. Be careful not to look only at this figure: a high rate can hide a risky strategy or a decrease in the price of shares in recent years. In addition to this first parameter, the carry-over again, often expressed as a day, showing the willingness of the company to keep liquidity in reserve.

An SCPI with a stable history over several years, even in times of crisis, is often managed by an experienced company. It is a sign of confidence.

2. Financial Occupancy Rate (TOF):

It indicates the proportion of rents collected compared to those potentially chargeable if all the properties that make up the CSPI were leased. A TOF greater than 90% indicates good rental management.

3. Wealth diversification:

An SCPI that invests in several geographical areas (France, euro zone, international) and in several typologies of goods (offices, shops, health, logistics...) will be less exposed to the economic vagaries of a sector or region. Conversely, non-diversification can also be a strategy to meet one or more objectives. The goal is always to limit risk or increase return potential. To illustrate this we can refer to SCPI being sectorized only in Paris or only in the medical field.

4. Liquidity and capitalization:

The key to a SCPI is to control its liquidity and, by extension, its collection and redemptions. This criterion is closely linked to the distribution rate and the evolution of the share price, but whether it is the small or the large SCPI, both will face the same problem in case of a willingness to buy back or high investment by investors. Note, however, that a large SCPI will have more room for manoeuvre, especially in view of the many assets it has.

5. Management Strategy:

Patrimonial or opportunistic? Fixed or variable capital? Predominantly office or oriented towards alternative assets such as health or logistics? With environmental, social and government criteria? Strategy is the cornerstone of each CIMS and should be selected based on your profile, goals and values.

6. The WALB or the average residual term of real estate leases:

The “Weight Average Lease Break” is an indicator to assess the average remaining term of leases before their maturity, thus providing a forecast of future rental income.

7. Management and entry fees:

Considered in the net distribution rate of management fees or defined as “exit” fees, the analysis of the various fees helps to understand the management company’s business model, your possibilities in terms of investment horizon and the overall ability to understand whether these will have a strong impact on the return on your investment.

Investing in SCPI means investing in real estate with flexibility and risk sharing. However, careful analysis is required to choose the right vehicle. And in addition to the technical analysis, it will truly be a “good investment” only if it is perfectly in line with your financial situation, your investment horizon, your appetite for risk, your taxation and that it meets your objective or need.

So do not hesitate to contact the members of the Finankap Group firm right now to set up a tailor-made asset strategy and define whether the SCPI is an investment vehicle that can be included in your strategy and select the most relevant one.

In a world that moves, Finankap Group is here to give life to your desires.