What is a land business? Understand, invest, choose

Real estate is not only a market for buyers and sellers: it is also a universe of companies specialized in management, valuation and holding of real estate assets. Among them, theland company occupies a strategic position. A true pivotal player in real estate assets, it invests, administers and develops properties in a logic of long-term profitability.

But what exactly does a land company do? How does it work? And how does it differ from a traditional SCI or investment firm?
Let's discover together the fundamentals of this economic model that appeals to both private and institutional investors.

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1. Definition and role of the land company

Before considering investing or creating one, it is essential to fully understand what the term “land business” means.
Often unknown to the general public, real estate is however one of the silent engines of the French real estate market : it structures the holding of assets, facilitates collective investment and stimulates the valorization of the territory.

A real estate company does not immediately sell the property it acquires: it makes them live, grow and grow over time.
Let's see in concrete terms how this translates into its operation and its missions.

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What do we mean by a “land business” or “land company”?

One land company (or land company) is a legal structure whose main activity consists in acquire, own, manage and value real estate, often with a long-term perspective.

Unlike a developer, who builds to resell, real estate invests to own and operate its assets over time.
Its model is based on two pillars:

1. Regular rental income, received through the rental of its properties.
2. Valorization of heritage, through the resale or revaluation of the assets held.

A land business can be listed on the stock exchange (SIIC) or Not listed, according to its size and strategy.
Large listed real estate companies (such as Gecina, Icade, Unibail-Rodamco-Westfield) are major players in the market, while smaller real estate companies, often family-owned, operate on a regional or sectoral scale.

💡 In summary: a real estate company is not a property dealer, but a long-term investor in real estate.

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What is the corporate purpose and the main missions? (acquisition, management, valuation)

THEsocial purpose of a land company is clearly defined: it is build, manage and optimize real estate assets.
Its missions revolve around three main axes:

1. Acquisition
   Real estate companies identify and buy properties with high potential, according to a specific investment strategy: geographical sector, type of property, target return.
   It can buy buildings, property portfolios or shares in real estate companies directly.
2. Management
   It manages the assets held: tenant search, maintenance, rental management, lease renegotiation, regulatory and energy compliance.
   The aim is to maximizing profitability and the stability of rental income.
3. Valorization
   A land company does not just collect rent: it optimizes the value of its assets. This may involve renovation work, a change of use, a strategic resale or a restructuring operation.

🎯 Its purpose: to generate sustainable capital and return performance, while controlling risk.

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The types of assets held: residential, office, retail, logistics, land

A land company can hold a wide variety of assets, depending on its specialization and strategy:

• Residential real estate : residential buildings, collective housing, student or senior residences.
• Offices and tertiary : business buildings, business centers, tertiary parks.
• Shops : shopping centers, retail parks, premises in the city center.
• Logistics and industrial : warehouses, e-commerce platforms, factories, business areas.
• Land and land : land reserves intended for future projects or for resale after valuation.

Some real estate companies are diversified, while others adopt a niche positioning (for example, only on sustainable housing or prime offices).

💬 The composition of the asset portfolio reflects the real estate company's strategy: prudent, opportunistic or asset based.

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2. Possible legal forms and statuses

Creating or investing in a land business requires understanding its legal status And his mode of operation. All real estate companies pursue the same objective: to own and value real estate assets, but they do not all have the same structure, nor the same fiscal obligations.

Depending on its size, its strategy and its level of openness to the public, a real estate company can be listed, unlisted or structured under another real estate status.
Let's discover the main existing forms and their specificities.

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Unlisted real estate: an often family or entrepreneurial model

Les unlisted real estate are the most common in France. They include companies created by individuals, families or private investors who want to manage a common real estate portfolio.

Their main advantage: great management flexibility.

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They can be constituted in various legal forms, including:

• SARL : ideal for a small real estate company owned by a limited number of partners.
• SAS : more flexible and adapted to a medium to large structure, in particular to welcome external investors.
• HER : rather used for large-scale real estate companies with several shareholders.

Unlisted real estate is not subject to financial market rules. So they keep a total control over their strategy and their trade-offs (buying, selling, financing).
In return, they benefit from less liquidity : reselling your shares can be more complex.

💡 This model is particularly suitable for wealth investors looking for a transmission tool or long-term management.

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Listed real estate companies (SIIC): transparency, performance and yield

Les Listed Real Estate Investment Companies (SIIC) represent the most successful and most regulated form of real estate.
They are listed on the stock exchange and allow investors to access real estate through the purchase of shares, without direct management.

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The main characteristics:

• They benefit from a advantageous tax regime : exemption from corporate tax (IS) provided that most of their profits are redistributed.
• They have to distribute at least :
  • 95% of the rent received,
  • 60% of the capital gains on sales,
  • and 100% of dividends received from other SIICs.
• They are subject to transparency obligations and to strict governance rules.

The most famous SIICs in France: Gecina, Icade, Unibail-Rodamco-Westfield, Covivio.
Their model offers investors a immediate liquidity (resale of shares at any time) and a attractive yield, similar to that of stone, but without management constraints.

🎯 It is the stock market equivalent of “paper stone”: an accessible, diversified and efficient real estate investment.

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SAS, SARL, SPPICAV: what are the differences for a real estate company?

In addition to the listed/unlisted distinction, a real estate company can take several forms depending on its purpose and its capital structure:

💬 The choice of legal form depends on the level of capital, the number of partners, the targeted tax regime and the degree of openness to third parties.

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Comparison with SCI and SCPI: beware of confusions

The terms “real estate”, “SCI” and “SCPI” are often used incorrectly as synonyms.
However, these structures respond to different legal and economic logics :

So, a SCI does not have a commercial activity (it cannot actively manage a park), unlike a real estate company.
And a SCPI, for its part, makes it possible to invest in real estate via a collective investment product, but without direct decision-making power.

💡 Real estate is located halfway between private management (SCI) and collective investment (SCPI).

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3. The economic model and performance drivers of a land company

The economic model of a land company is based on a simple but strategic logic: transform real estate assets into a source of income and added value.
Its role is not only to own buildings, but to make them productive assets, capable of generating a stable cash flow while increasing in value over time.

The efficiency of a real estate company depends on three main levers: rental income, capital valuation and active asset management.

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Rental income, capital gains and asset valuation

The first pillar of a real estate company's performance is regular rental income.
The rent received is the basis of its turnover. They come from leases concluded with tenants: individuals, businesses, commercial brands or public actors, depending on the type of assets held.

These rents ensure:

• Financial stability of the company, thanks to recurring flows.
• Annual profitability, often expressed in the form of rental yield (5 to 8% on average).
• Self-financing capacity, for future investments or works.

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But the performance of a real estate company is not limited to current operations. It is also appreciated through the valorization of heritage :

• Resale of buildings at a price higher than their acquisition cost.
• Accounting revaluation of certain assets, especially in tense areas.
• Optimization of the use of assets (division, transformation, extension).

💡 A successful real estate company does not only seek to collect rents; it builds capital that increases in value over time.

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Diversification effect and risk sharing

One of the great advantages of the land model is the diversification of assets and income.
Unlike an individual investor depending on a single asset, a real estate company owns a complete portfolio, often spread over several segments:

• Residential and tertiary, for the balance between stability and performance.
• Shops and logistics, to capture higher rents.
• Varied geographic areas, in order to limit exposure to a single local market.

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This diversification makes it possible to pool risks :

• A vacant property or a reduction in rent on an asset does not have a major impact on overall performance.
• Revenues from one segment (for example residential) can offset the volatility of another (such as retail).

🎯 It is a prudent but powerful asset approach: the security of return combined with the growth of overall value.

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Issues related to energy performance, sustainability and transition

Today, the value of a real estate asset is no longer measured only in square meters or in rents; it also depends on its energy and environmental performance.
Land businesses are now at the center of ecological transition of the real estate sector.

They must:

• Bring their assets up to energy standards (DPE, RE2020, HQE or BREEAM labels).
• Renovate or restructure obsolete buildings to make them attractive.
• Investing in sustainability, with low-carbon projects, photovoltaic roofs, or recyclable materials.

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These actions have a double impact:

1. Preserving the value of assets, as non-compliant goods will lose value in the medium term.
2. Reinforcing rental attractiveness, by meeting the growing requirements of institutional occupiers and investors.

💬 Real estate companies that integrate the energy transition into their model are becoming key players in the real estate of tomorrow: efficient, sustainable and responsible.

In short, a successful real estate company is one that combines immediate profitability and long-term value creation, while adapting its strategy to new economic and ecological challenges.

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4. Tax regime and obligations for the land business

Taxation is a central element in the operation of a land business.
It is even one of the factors that determine the legal form, the capital structure And the investment strategy.
Mastering the tax regime for real estate allows you to maximizing net profitability while complying with the legal obligations imposed by the administration.

Let's see in detail how taxation applies according to the types of land structures and what obligations to anticipate.

Find out why you should work with a tax advisor in this article.

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Income tax: the general rule for real estate companies

By default, a land company is subject tocorporate tax (IS).
This means that the profits it generates (rents, capital gains, other financial products) are taxed directly at the company level, before any possible distribution to partners.

Current tax rate (in 2025):

• 15% on the first installment up to €42,500 in profit,
• 25% beyond.

Partners are not taxed only in case of distribution (dividends, remuneration).
This structure allows capitalize income in society to finance new projects, without immediate taxation on retained earnings.

💡 IS is particularly suited to real estate companies whose aim is to grow or develop assets over the long term.

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Special rules for SIICs (Listed Real Estate Investment Companies)

Les SIIC, the most successful form of listed real estate companies, benefit from a derogatory tax regime established to encourage the ownership and transparency of real estate capital on the stock exchange.

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The conditions to be respected in order to benefit from it:

1. To be listed on a regulated market (Euronext, for example).
2. Owning real estate assets intended for rental (and not for immediate resale).
3. Opt for the SIIC tax regime when creating or going public.

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Key tax benefits:

• Total corporate tax exemption, subject to redistribution of results:
  • 95% of rental income,
  • 60% of the capital gains on sales,
  • 100% of dividends received from other SIICs.
• The distributed income is then taxable by shareholders according to their fiscal status (individual, company, institutional).

🎯 This regime promotes the transparency, liquidity and attractiveness of the listed real estate market.

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Mandatory distribution of results and transparency obligations

Whether listed or not, a real estate company must comply with strict obligations in terms of financial management and transparency.

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The main obligations:

• Maintaining compliant accounts to French standards or IFRS (for listed companies).
• Annual publication of accounts and a management report detailing income, investments and prospects.
• Declaration of rent received and associated taxes (CFE, property tax, VAT on certain commercial leases).
• For listed real estate companies: regular financial communication (half-year results, asset portfolio, debt, occupancy rate).

These obligations ensure the reliability and transparency of operations, essential elements for investors and financial partners.

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Taxation of investors and shareholders

The taxation of partners or shareholders depends on their profile and the type of structure:

💡 For an investor, the interest of a real estate company therefore depends as much on the performance of its assets as on its distribution strategy and its tax regime.

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Tax impacts related to real estate capital gains

When a real estate company resells real estate, it can generate a taxable capital gain.
Under the corporate income tax regime, this capital gain is integrated into the tax result and taxed at 25%, but some exemptions may apply:

• In case of sale of equity shares (partial exemption).
• In case of reinvestment of earnings in a new real estate project.

Real estate companies often adopt a active management of arbitrations, that is to say that they sell certain goods to buy others that are more strategic, while optimizing the taxation linked to these movements.

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In short, the taxation of a real estate company is complex but strategic.
Well managed, it allowsincrease net profitability while facilitating the growth of real estate assets.
This is why the most efficient real estate companies rely on a solid tax engineering, managed by specialized accounting and legal experts.

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5. Advantages and disadvantages of investing through a land company

Investing through a land company offers a structured, professional and sustainable framework to develop real estate assets.
However, like any investment vehicle, it presents undeniable advantages but also Constraints to be fully understood before starting.

Here is a clear and concrete overview of the strengths and limitations of this model, whether it is a listed, unlisted or family real estate company.

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The advantages: performance, diversification and transmission

1. Professional and shared management

Creating or joining a real estate company allows you to benefit from centralized management : market analysis, choice of goods, maintenance, financing and arbitration.
Decisions are taken according to a global strategy, which guarantees more consistency and efficiency than individual management.

💡 For an investor, it is a way to access real estate without having to manage tenants, works or administrative procedures.

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2. Diversifying assets and risks

A real estate company has a portfolio composed of different types of assets : housing, offices, shops, warehouses, even land to be developed.
This diversification:

• Limits the impact of a possible non-payment or a rental vacancy.
• Protects against fluctuations in a single market segment.
• Offer a regularity of income thanks to the sharing of rents.

🎯 It is a prudent wealth strategy, suitable for those looking for stable returns over the long term.

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3. Powerful fiscal and financial levers

Real estate companies can benefit from advantageous tax regimes:

• Optimized IS for unlisted real estate companies (capitalization of profits before distribution).
• SIIC regime for listed companies, exempt from corporate tax in return for a redistribution of profits.
  They also have the option of finance their investments on credit, taking advantage of the leverage effect to amplify overall profitability.

💬 A good legal and fiscal structure makes it possible to combine efficiency, optimization and transmission.

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4. An ideal tool for the transmission and sustainability of assets

By forming a land company, real estate is no longer owned directly by individuals, but via social shares.
This method of detention makes it considerably easier to:

• Les Family transmissions, thanks to the gradual sale of shares.
• La Continuity of heritage in case of succession.
• La protection of heirs thanks to the separation between ownership and management.

💡 It is a tool for long-term asset structuring, particularly appreciated by families and multi-generational investors.

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The disadvantages: constraints, taxation and liquidity

1. Higher creation and management costs

Setting up a real estate business involves:

• Of legal fees (drafting of statutes, registration, chartered accountant).
• One heavier accounting, with balance sheets, reports and administrative obligations.
• Possibly some management or audit fees for important structures.

👉 It is a professional framework, but it has a cost that must be anticipated in terms of overall profitability.

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2. Taxation is sometimes complex

If tax benefits exist, they often come with a regulatory complexity :

• Obligation of transparency and distribution for SIICs.
• Formalities related to corporate tax (IS).
• Management of dividends and capital gains to be optimized.

Without appropriate legal or fiscal support, the risk is lose effectiveness or to suffer from poorly calibrated taxation.

💬 Customized asset engineering remains essential to get the most out of a real estate company.

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3. Limited liquidity for unlisted real estate

Unlike an SCPI or a SIIC, private real estate companies do not benefit from a fluid secondary market.
Reselling your shares can therefore be more difficult, especially if the circle of partners is limited.

🎯 It is a long-term investment, to be considered with a wealth perspective and not a speculative one.

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Summary table — Strengths and limitations of a land company

💬 In summary, real estate offers a solid framework for collectively investing in stone while sharing risks.
But it requires rigor, long-term vision and professional support adapted to its strategy.

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6. How to choose a land company to invest?

Investing via a land company means opting for an approach structured and professional real estate.
But not all real estate companies are the same: some prefer stability and asset management, others focus on financial performance or rapid growth.
Before investing your capital, it is essential to compare their strategies, portfolios and governance.

Here are the key criteria to consider in order to make an informed choice that is aligned with your investment goals.

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Analyze past performance, portfolio, and strategy

An efficient real estate company is distinguished first of all by the quality and consistency of its assets.
Before investing, take a close look at:

• The composition of the portfolio : residential, offices, retail, logistics, etc.
• Geographical location : dynamic markets, areas of rental tension, valuation potential.
• The occupancy rate : an essential indicator of profitability and rental management.
• The historic performance : evolution of yield, rental income, asset values.
• The strategy displayed : maintaining assets, external growth, sectoral repositioning, energy renovation...

💡 A solid real estate company has a clear strategy and regular performance, without depending on a fad or an exceptional economic situation.

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Verify transparency, profitability and governance

The best real estate companies also stand out for their financial transparency and the quality of their governance.
Here are a few things to check:

1. Information transparency
   • Accessible financial publications (annual reports, key indicators).
   • Clear communication on the value of the portfolio, debt, and the trade-offs made.
2. Net profitability
   • Internal rate of return (IRR), net rental yield and distribution policy.
   • Comparison with reference indexes or other real estate in the same segment.
3. Governance and leadership
   • Composition of the board of directors or managers.
   • Management history, management expertise and long-term vision.
   • Existence of ESG charters (Environment, Social, Governance).

🎯 A serious real estate company focuses on transparency, rigor and stable governance. It is the best guarantee of sustainability for the investor.

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Practical cases: individual vs institutional investor

The choice of real estate also depends on the Investor profile and its objectives:

💬 An individual investor will favour stability and transmission, while an institutional investor will seek performance and sectoral diversification.

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Expert advice: always analyze the coherence between strategy and investor profile

Before investing, ask yourself three key questions:

1. What is my investment horizon? (short, medium or long term)
2. What risk am I prepared to accept? (patrimonial, balanced, opportunistic)
3. What type of return am I looking for? (regular income or capital valuation)

🎯 A good land company is not necessarily the most profitable in the short term, but the one whose strategy best fits your wealth objectives and your risk tolerance.

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Conclusion — The land company, a sustainable and strategic asset driver

The land company is not a structure reserved for large investors: it is above all a intelligent tool for the management and valuation of real estate assets.
It makes it possible to invest collectively, to structure asset ownership, to optimize taxation and to ensure transmission over several generations, while contributing to the dynamization of the French real estate market.

True heritage lever, the real estate company combines three strengths:

1. Profitability : regular rental income and long-term valuation.
2. The safety : risk sharing and professional management.
3. The strategy : a flexible legal and fiscal framework, adapted to each investor profile.

But like any investment, it requires rigor, support and vision.
An efficient real estate company is built on clear choices: thoughtful positioning, solid governance and a sustainable strategy integrating the environmental and societal challenges of tomorrow.

💡 In short, real estate is much more than an investment tool: it is a sustainable, structuring and transferable investment model, at the service of intelligent real estate assets.