According to Aspim, as of December 31, 2021, a quarter of Real Estate AIF’s total assets are labeled as SRI.
This is a remarkable success for SRI property labels, only 18 months after being created by a property management expert. According to the latest press release from ASPIM (Association Française des Sociétés de Placement Immobilier), assets of € 45 billion out of a total of € 186 billion of all real estate AIFs as of December 31, 2021 are labeled. Global assets. This involves 12 additional funds in 2021, in addition to 12 real estate vehicles labeled during the three months at the end of 2020. These figures are taken from an annual survey by the Observatory of SRI labeling practices for fund properties. , OID (Sustainable Real Estate Observatory) and Novethic, a sustainable transformation promoter of the Caisse des Dépôts Group, conducted by Aspim.
As of December 31, 2021, 54 real estate funds have acquired SRI labels for only 12 at the end of 2020.
Assets of real estate AIFs (ie, alternative real estate investment funds) labeled SRI have quadrupled over the course of a year, from € 11 billion at the end of December 2020 to € 45 billion on December 31, 2021. Increased. The number of vehicles is even higher, from 12 labeled funds to 54. As of the end of 2020, only eight companies were successful in labeling one or more real estate funds. In 2021, 26 management companies acquired at least one real estate vehicle label, but by 2020 they had already acquired only five labels, so in 2021 21 new players will be SRI manager clubs. Joined in.
Looking at the types of real estate funds that have acquired the SRI label, we find 20 SCPIs, which is 51% of the labeled assets (that is, € 23 billion of SCPI’s total assets of € 78.6 billion on December 31, 2021). )), 11 OPCIs for the general public, 43% of labeled assets (ie € 19.3 billion out of a total of € 20.7 billion), 11 OPPCIs representing 3% of labeled assets, and 12 other AIFs (FPS). , SCI, commercial enterprises, etc.) account for 2% of SRI labeled assets.
In 2021, Aspim estimates that € 3 billion has been allocated by investors in SRI-labeled real estate funds. That’s 28% of total consumer funding.
Labeled real estate fund performance is in line with market average
Despite the additional constraints associated with SRI labels for non-financial performance, the 2021 financial performance of funds labeled for the general public is worthless and, according to Aspim, is a significant overstatement compared to the market. Or it indicates that there is no underperformance. Therefore, the overall performance of retail SRI OPCI is exactly equal to the average (4.4%) in the OPCI market. This is not surprising given that more than 93% of retail OPCI assets are labeled as SRI. The distribution rate of SRI SCPI is 4.43% compared to the market average of 4.45%.
Some labeling strategies
Management companies are being guided to develop different labeling strategies depending on their purpose, Aspim said. The first approach is to create a new vehicle that is intended to be SRI labeled from the beginning. This applies to 38% of SRI label funds launched in 2020 or 2021. However, these products are in the process of being launched. Of course, there are far lower unpaid amounts than vehicles that have been established for years and even decades. Therefore, it is only 4% of the total capital labeled as SRI. Therefore, before 2020, 25 labeled funds (62% of labeled vehicles) represent 96% of assets, 85% of which are from the 9 largest vehicles. For these older products that get labels for life, continuing to raise money from savers who are becoming more and more sensitive to SRI issues is a matter of putting odds on their side.
There are two main approaches to ESG real estate strategies that apply in connection with the management of funds with SRI labels: “best in class” and “ongoing”. The first is to select favorable real estate assets from the beginning, and the second is to improve assets that are currently performing poorly over time from an ESG perspective. Aspim has only 7 of the 54 labeled funds adopting a purely “best-in-class” approach, while the other 47 vehicles have adopted a mixed approach or a purely “ongoing” strategy. It states.
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