The Primonial REIM property investment trusts for private individuals get a clean bill of health

Paris, 15/09/2020

A healthy asset allocation that proves the strategy

1.3 billion euro of net collections by the end of August 2020

In the unique context of this public health crisis, Primonial REIM has once more proven the solidity of its business model, both in terms of investment strategy and pay-outs which cements its position as the leading SCPI fund collector on the French market for the 1st half of 2020.

Over the first eight months of the year, Primonial REIM has registered 1.3 billion euro in net collections for its private individual investment funds.

The extent of this collection - in spite of the uncertainties surrounding the current public health crisis - is clear proof of the confidence that investors have in Primonial REIM’s investment solution offer. These figures also stand as proof of the effectiveness of the conviction management approach developed by staff since Primonial REIM was first founded, almost 10 years ago, based on a patrimonial and multi-asset class type property allocation, associated with extensive geographical diversification.

A market position confirmed by the SCPI fund collections and property investment unit of account supports

SCPI fund collection statistics for the 1st half of 2020, published at the end of August by ASPIM and l’IEIF, show a net fund collection of 3.4 billion for the whole of the market. No major movement on the withdrawal side has been observed since the volume is almost the same as for 2019.

At the end of August 2020, Primonial REIM registered a total collection volume of 572 million euro for all of its managed SCPI, confirming its positioning as the leading SCPI fund collector on the market.

This performance is largely due to the enormous success of two of its key SCPI funds:

• SCPI Primopierre, mainly involving office property investments, with 286 million euro collected.

• SCPI Primovie, mainly involving healthcare and education property investments, with 240 million euro collected.

On 30 June 2020, the capitalisation for all of the managed SCPI was more than 7.5 billion euro, putting Primonial REIM in the top 3 French SCPI asset management companies.

The Property Unit of Accounts supports (the Primonial Capimmo UC and the PREIMium OPCI available through life insurance policies), had collected 787 million euro in funds by the end of August 2020.

Primonial REIM has constructed its property investment and asset allocation policies such that they can resist major economic shocks. The asset management company’s property portfolio - 22 billion in assets under management at the end of June - benefits from an effective shared risk factor with 55% in offices (mostly occupied by the head offices of solid international Groups), 29% healthcare property (operated by large European private operators). The rest of the allocation is made up of retail units (10%) with the priority on city-centre high streets, residential property (4%) and hotels (3%).

The results of the 1st half of the year show how the solidity and pertinence of this model and allocation has been maintained during the months of confinement:

• the value of Primonial REIM’s asset holdings on 30 June 2020* were practically the same as on 31 December 2019, which confirms the resilience of an asset investment strategy which prioritises quality: quality of location, quality of assets and quality of tenants.

• the rent collection rates for all of the Primonial REIM asset classes were 95% at the end of August 2020. For all of the SCPI, the advance dividend payments for the second quarter were very similar to those of the first quarter and in keeping with the set objectives.

In addition, Primonial REIM economic property trust modelling presents encouraging prospects for the end of 2020 as regards the asset management company’s ability to meet the commitments made to its investor clients. Remember that, in 2019, the Primonial REIM SCPI offered a returns rate between 4.03% and 5.92%*.

Stéphanie Lacroix, Primonial REIM’s Managing Director says: “We will be meeting our commitments for 2020 and will pay out regular additional revenue to our shareholders whilst continuing to maintain the evolution of their capital in the long-term. During these uncertain times, we are proud that the general public shows such an interest in our property investment solutions. We are convinced that unlisted property investment trusts will continue to attract French investors since they respond perfectly to their current needs: provide additional returns whilst keeping market volatility under control and in comparison to risk-free placements which are now proposing less and less returns. “

*Previous investments are not a reliable indicator of future results.

About Primonial REIM

Primonial Real Estate Investment Management (Primonial REIM) is a portfolio management company certified by the AMF in 2011; it creates and manages a range of investment schemes based on its strong property market convictions. Its main objective is to propose a range of SCPI that invest in office, healthcare, retail and residential property to the general public. As a portfolio management company Primonial REIM sets up and manages OPCI (specifically aimed at either institutional or general public investors). On 10 June 2014 Primonial REIM received AIFM (Alternative Investment Fund Manager) certification from the Autorités des Marchés Financiers (Financial Markets Regulator), and is therefore subjected to stricter obligations in terms of information, liquidity monitoring and risk management. The Chairman of the Directorate is Grégory FRAPET. Stéphanie LACROIX, Managing Director and Tristan MAHAUT, General Secretary, are members of the Directorate.