From Leasing to Equities: A comparative study and analysis of the benefits provided by indirect real estate investment in SOCIMIs

Identifier:  TFG:10213

Handle: https://hdl.handle.net/20.500.11797/TFG10213

Authors:  Canal Cortina, Pío

Abstract:
This paper analyzes the role of SOCIMIs (Spanish Real Estate Investment Trusts) as an investment tool within the Spanish context, focusing on their capacity to generate recurring income. The study begins with a framework centered on Law 11/2009, highlighting the investment requirements and their favorable tax regime—featuring a 0% Corporate Tax rate—in exchange for a mandatory dividend distribution of at least 80% of rental profits. Additionally, the study introduces specific indicators that are crucial for stock selection, such as NAV (Net Asset Value) and FFO (Funds From Operations). Regarding the practical component, a detailed financial analysis is conducted on five benchmark companies—Merlin Properties, Inmobiliaria Colonial, GMP Property, Castellana Properties, and Vivenio—evaluating aspects such as dividend yield, price returns, volatility, and the Sharpe ratio. The project also includes the simulation of various portfolios to identify the optimal combination of assets in terms of excess return per unit of total risk assumed. Through this analysis, the study aims to determine the strengths that make SOCIMIs an attractive investment vehicle for investors.