Foncière

Foncière is a French term describing a company that owns and manages a portfolio of real estate assets, deriving most of its income from rents. Foncières may be listed on a stock exchange (foncières cotées) or privately held, and they typically invest in commercial real estate such as offices, retail spaces, logistics centers, or, to a lesser extent, residential properties across one or several markets.

Their business model centers on long-term asset ownership, lease management, and portfolio optimization through acquisitions and dispositions. The objective is to generate stable rental income while increasing the value of the property portfolio, which in turn sustains dividend distributions to investors. Management activities can include asset enhancement, development projects, and refinancing operations to optimize returns.

In France, many foncières benefit from a tax framework associated with the regime of sociétés d’investissement immobilier cotées (SIIC), the French REIT-like regime. This status generally requires significant distribution of profits as dividends and imposes certain operational and reporting standards. Foncières can be listed or non-listed and may operate across Europe or internationally, governed by applicable financial and regulatory authorities, such as the AMF in France.

Notable examples of foncières include Gecina, Icade, Klépierre, and Unibail-Rodamco-Westfield, which own and manage large portfolios of office, retail, and other commercial real estate. The term emphasizes the property-centric, income-generating nature of these entities within the real estate investment landscape.