Vitruvio, a company managed by Abante Asesores, acquires properties to rent them out, following an investment policy that is simple to understand and aligned with the risk profile defined in 2014 when the SOCIMI was established. In this article, we summarize how we operate and what investors in Vitruvio can expect:
1. Our activity:
Vitruvio adds to its portfolio properties that are in good condition and already rented, as well as properties requiring minor or major refurbishment in order to improve their rental potential—often because they are not optimally segmented for market demand. In our early years (2014–2018), up to 50% of the portfolio was under refurbishment for transformation and improvement. Today, however, Vitruvio is much larger, and it is now rare for more than 10% of the portfolio to be under rehabilitation.
2. Locations:
We invest in large cities with population growth, as these are the hubs where ideas and capital converge to create businesses, which in turn require workers—attracting more people and, therefore, more ideas. This cycle drives wealth creation in a knowledge-based economy that thrives in large metropolitan areas. This process occurs both in Spain and globally. In short, Vitruvio invests where demand for living, working, and leisure is strongest: major metropolitan areas.
3. Diversification:
Vitruvio does not aim to bet on a single “winning” property type, as that approach carries risk. Instead, a more conservative strategy is to have exposure to all types of spaces: where people live (residential), where they work (offices and industrial), and where they spend their leisure time (retail and hotels).
4. Tenants:
This is perhaps the most important factor in understanding how Vitruvio’s portfolio has been built from the start. The maximum counterparty risk is 5%. This means that no single tenant accounts for more than 5% of total rental income. This approach ensures high income predictability and a stable dividend.
5. Low leverage:
Vitruvio’s debt cannot exceed 33% of the value of its properties. This is another key element that allows shareholders to navigate economic downturns with confidence.
6. Quarterly dividends:
Profits generated by Vitruvio’s activity are distributed quarterly to shareholders, similar to how a landlord receives recurring rental income. Dividends are paid in February, April, July, and November. The target dividend is 3% annually, split across these four payments. Additionally, Vitruvio aims to increase its dividend every year at least in line with inflation.
7. Return target:
The objective is expressed as inflation + 3%, combining share price appreciation and dividends. In other words, Vitruvio aims to deliver an annual return of around 5%–6% for its shareholders. This is consistent with a prudent, asset-focused investment approach.
The description of how Vitruvio invests would not be complete without explaining two additional key elements:
Long-term vision:
Vitruvio has always invested with the goal of building a publicly traded property portfolio (in the Anglo-Saxon sense of “public”) with a very long-term horizon. In other words, a collective investment vehicle open to the public, carrying out the same activity as many individual savers who invest in property to generate long-term recurring income. This long-term perspective shapes where and how we invest.
Contribution transactions:
Property owners with a similar investment philosophy see Vitruvio as a solution for generational succession and property management challenges by contributing their assets to the company. Vitruvio was designed from the outset as a mirror of traditional property-holding companies, making it easier to integrate them into a larger, more diversified, more profitable structure—one that also offers liquidity through its shares.
BME Growth
