Analysis by Good Value for Money of the SCPI CORUM Origin delivering an annual dividend of more than 6% since its creation in 2012

Launched in 2012 by CORUM, CORUM Origin is positioned by Good Value for Money as being the 11th SCPI on the market in view of its capitalization which is €2,214m at the end of 2021be one increase of nearly €220m compared to the end of 2020.

CORUM Origin is a Diversified SCPI mainly positioned on investments in Europe outside Francewhich induces a relatively pragmatic investment policy consisting for the managers of the SCPI in find opportunities in terms of acquisition where they arewith a relative freedom in terms of the nature of the goods purchased and investment areas.

Concretely, the heritage of CORUM Origin is distributed as follows (figures at the end of 2021):

between different European countries(13 countries in total): Netherlands (27%), Italy (14%), Finland (12%), Germany (10%), Ireland (8%)…
between different types of real estate : Offices (41%), Shops (35%), Hotels (12%), Business premises (6%), Logistics platforms (5%)…

Another feature of CORUM Origin is the choice of properties of a certain sizewhich facilitates management, the SCPI thus concentrating its assets on 137 properties for a total area of 1,377,510 m² at the end of 2021. average area per property is thus around 10,000 m².

The goods purchased by CORUM Origin in 2021 son well aligned with its investment policy :

Acquired in November 2021 of an office and retail building in Bologna (Italy) with a total area of 9,261 m², with the contribution by the seller of the guarantee of an occupancy rate of 100% for a period of 4 years.
Acquired in June 2021 of a commercial business park of 13,784 m² in Málaga (Spain) with mainly brands specializing in furniture and decoration. Presence of ten tenants (Conforama, Maisons du Monde, etc.) within the park.
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Likewise, the SCPI has chosen to resell properties in 2021 that will generate a good level of unrealized capital gainsinstructs the managers of CORUM Origin to identify other properties to acquire with good potential both in terms of rental and in terms of the ability to generate unrealized capital gains over time:

Resale in December 2021 of eight B&B hotels in Spain for a disposal amount of €49.3 million to look at a acquisition price of €36.9 million paid between 2017 and 2018.
Resale in the Netherlands in December 2021 from two buildings acquired in December 2016 in the Bioscience Park in Leiden. Realization of a capital gain of €5 million.
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By applying this policy combining pragmatism, vigilance and monitoring of both the local market for acquired properties and the ability to rent them, CORUM Origin has managed to deliver strong recurring performances since its creation :

the financial occupancy rate (TOF) is 96.1% end of 2021. Similarly, the physical occupancy rate (TOP) is 94.7%.
the market value distribution rate (TDVM) 2021 of the SCPI is 7,03 %. It replaces 6.00% in 2020 and 6.28% in 2019 respectively.
the internal rate of profitability (TRI) of CORUM Origin over 10 years is of 6.60% end of 2021.

Main advantages of SCPI CORUM Origin

10-year internal rate of return (IRR) positioned at a significant level on a recurring basis :
- IRR over 10 years at end of 2021: 6.60%
- IRR over 10 years at the end 2020 : 5,77 %
- IRR over 10 years at the end 2019 : 5,65 %
- IRR over 10 years at the end 2018 : 5,57 %
- IRR over 10 years at the end 2017 : 5,53 %
Effective service since its creation in 2012 by CORUM Origin an annual dividend (TDVM) at least 6%with in parallel a certain increase in the value of the share.
Diversification of the real estate portfolio of the SCPIboth at the level of the nature of the assets held (offices, shops, hotel premises, warehouses, business premises, etc.) and at the level of the countries in Europe (Netherlands, Italy, Finland, Germany, etc.) making it possible to spread the risks.
Excellent occupancy rate of SCPI assetswhether measured from a physical or financial point of view, knowing that it is one of the key levers for generating performance.
Average remaining term of commitment of CORUM Origin tenants of 6.8 years at the end of 2021 guaranteeing a certain security to the investor.

Main disadvantages of SCPI CORUM Origin

Choice by the SCPI to pay a high annual dividendwith a target of at least 6% per year, logically resulting in a limited valuation of the share price over time. Over the period 2012-2021, it rose from €1,000 to €1,090, i.e. an average annual valuation of 1.0%.
Relatively limited number of tenants, i.e. 292 at the end of 2021, resulting in an average leased area of around 4,250 m² per tenant. This is both an advantage, because it reduces the number of tenants to manage and a point of vigilance for anticipating the end of leases.
Period of enjoyment of the shares acquired located at 6 months after their acquisition and their full paymentknowing that :
- qu’such a delay is also practiced by other SCPIs on the marketbut that some are positioned 4 or even 3 months after acquisition,
- what this allows CORUM Origin managers to take their time to invest and not to overpay for goods on acquisition due to too short a time frame for investing the sums invested.