The share of real estate assets (property and property rights) decreased slightly: -4% compared to June 2013 and is equal to 83% of total assets (66,67% is the legal minimum). The main intended use is the directional tertiary, followed by commercial (shopping centers and parks, supermarkets), health residences-welfare and Hotel. From a geographical point of view, the choice of properties located at the prevails Northwest (in all the cities of Milan, Turin, Bologna, Lodi, Modena, Biella, Como and Padua) and al Centro (where Rome excels).
These are the results of the 5th Real Estate Finance Monitor, the study that aims to analyze the financial investments of real estate funds which this year saw the participation of 18 asset management companies active in real estate. The research, carried out by the University of Parma in collaboration with CACEIS Investor Services (asset servicing company of the Crédit Agricole group), analyzed 47 real estate funds, of which 23 listed, for a total of assets as at 30 June 2014 amounting to 10,5 billion euros.
The analysis of the fund portfolio indicates how the use of funds has increased financial instruments (this asset class accounts for 10,4% of assets today, compared to 2013% in June 7,6). Within this category, over half (55,3%) are unlisted shares (a slight increase compared to 52% in June 2013), most of which control "often in real estate companies with which the fund has strategic relationships in various capacities".
8,6% (down from 9,4% in the previous year) of financial instruments is represented by debt securities (mainly corporate bonds of unlisted Italian or European companies, or Italian government securities such as CTZs, BTP, BOT), while the UCI units (open-end securities funds, closed-end securities funds, reserved and speculative funds, real estate funds and funds of funds), mostly unlisted, account for 36% (data substantially in line with that of June 2013).
Only 0,01% (it was 2,08% in June last year) of the composition of the funds, on the other hand, is attributable to derivative instruments (swaps, put and call options, caps, plain vanilla interest rate swaps) which are used exclusively for the purpose of hedging the interest rate risk linked to existing loans or leasing contracts linked to the purchase of properties.
Also very topical is the analysis of those causes – for the first time the subject of the Monitor – which can lead real estate funds to stressful situations. The renegotiation of rents appears the dominant reason for tense situations for 26,6% of the interviewees, followed by vacant situations or vacancy (20%) and by delays in sale of properties (20%).
This latter option appears to be consistent with the general tendency to extend the period of activity of the real estate fund (the so-called "grace period") subject to authorization by the Bank of Italy. The other possible causes of stress for the funds, each chosen by 6,67% of the sample, are: the delay in the planned real estate developments, the delayed or non-payment of the commitments subscribed, the devaluation of the properties, the debt.
