Socimis: How to Invest in Real Estate with Shares
Currently, there are numerous alternatives to invest in the real estate sector without needing to contribute large amounts of capital. Among them are listed real estate investment companies, commonly known as socimis. These entities, which have become increasingly popular in financial markets, allow investors to access the real estate market in a more accessible and diversified way. In this article, we will explore what socimis are and how they work.
What are socimis?
Socimis are companies specialized in real estate investment aimed at rental. These assets can be of various types, such as offices, commercial premises, hotels, housing, or any other type of real estate property. A distinctive feature of socimis is that they must be listed on the stock exchange and distribute at least 80% of their profits as dividends to their shareholders. This makes them attractive to investors seeking regular income, and anyone can acquire shares in a socimi, although in practice this is not so easy since their circulation is limited.
How socimis work
– Creation of the socimi: The process of creating a socimi involves registering the entity with the National Securities Market Commission (CNMV) in Spain. This step is crucial for the company to benefit from the tax and regulatory advantages associated with socimis.
– Investment in real estate assets: Once established, the socimi invests in a diversified portfolio of real estate assets. This can include office buildings, shopping centers, hotels, or any other property that fits its investment strategy.
– Stock exchange listing: The socimi is listed on a stock exchange, allowing investors to buy and sell shares of the company on the secondary market, similar to how they would with conventional company shares.
– Dividend distribution: Socimis are legally required to distribute at least 80% of their profits as dividends. This makes them an attractive option for investors seeking passive income.
The number of socimis can vary over time due to new registrations and changes in the financial market. Currently, there are 110 socimis listed between BME Growth (80) and Euronext Access (30). This makes access to investing in them not as straightforward when compared to investment through real estate crowdfunding.
In conclusion, socimis offer an innovative way to invest in the real estate market without the need to buy physical properties. They provide diversification, liquidity, and the possibility of obtaining regular income through dividends. However, although this investment is very attractive, it is also necessary to consider the disadvantages that investing in socimis can entail. Furthermore, before investing, it is important to research and understand the company and consider consulting a financial advisor to make informed and strategic decisions
