The “brick and paper funds” should stand out throughout April. According to experts interviewed by the CNN Brasil Business, Assets that depend on the economic reopening end up showing more expressive signs of recovery – in the case of real estate funds.
Fred Nobre, responsible for the analysis area at Warren, highlights that the reduction in the number of cases related to Covid-19, “mainly in São Paulo and the Northeast”, as well as the release of the use of masks favored the funds of physical properties, “where people need to be in person”, such as malls and stores.
Caio Ventura, an analyst at Guide Investimentos, also said that since March, a relief in investors’ perception of risk has given a better moment to “brick funds” — a category of real estate fund that invests in physical properties.
Both experts highlighted that the relief is due to signs of stabilization of the interest rate path, a predictability of monetary tightening and also the monitoring of the external scenario.
On the other hand, Gabriel Teixeira, real estate investment fund analyst at Ativa, suggests “paper funds” —targeted to securities related to the real estate market— that accompany indicators such as the Broad Consumer Price Index (IPCA), General Prices–Market (IGP-M) and the CDI rate (interbank deposit certificate).
“As these funds invest in fixed income instruments, they are able to pass on inflation “more quickly”, and the current economic scenario helps the performance of these FIIs”, says the analyst.
The financial market projection for inflation in 2022, for example, increased from 6.59% to 6.86%. This is the 11th consecutive weekly rise in the median of forecasts for the IPCA (Extended Consumer Price Index). The expectation for 2023 also rose, from 3.75% to 3.80%.
april portfolio
For the April fund portfolio of the CNN Brasil Businessthe nominations of eight brokers and banks were analyzed: XP, Warren, Genial, Ativa, Guide, BTG Pactual, Órama and Terra Investimentos
The most recommended funds were Bresco Logística, with five nominations, and RBR High Grade, CSHG Renda Urbana, Capitania Securities II and CSHG Real Estate —all with four recommendations.
Here’s what analysts said about the top-rated real estate funds for April:
Bresco Logística
ticker: BRCO11
Comment: XP
Bresco Logística is a fund with a portfolio of high quality and well located assets (mainly close to the city of São Paulo), comprising 11 properties.
In general, the fund’s properties are of high constructive standard, have a high occupancy rate and most of their contracts are atypical, which provides greater security in periods of uncertainty.
Our view is that the fund has tenants with low default risk and high exposure to e-commerce, especially Mercado Livre, Magazine Luiza and B2W, in addition to other major global players such as Whirlpool and Carrefour.
RBR High Grade
ticker: RBRR11
Comment: Guide
The choice of RBRR was made mainly because of its high grade asset portfolio (high investment grade) and excellent track record and management expertise in the credit segment. In addition, the asset portfolio has dominant, well-located and highly liquid guarantees.
RBRR’s portfolio comprises 41 CRIs, with a wide diversification of sectors, with retail, residential and real estate being the largest. CRI indexing is more concentrated in IPCA (43%), followed by CDI (31%) and IGP-M (19%).
The portfolio has an average LTV (life time value, or value that a customer returns over time) of 64%, with all assets rated A and 69% of guarantees concentrated in São Paulo (50% in regions of high city standard, such as Faria Lima, Jardins and Pinheiros).
CSHG Urban Income
ticker: HGRU11
Comment: drama
HGRU underwent a change in strategy, focusing on spreading its portfolio to other tenants and other business segments. The fund expanded its portfolio to the retail segment.
In 2019, it acquired ten properties from the BIG group (formerly Walmart), and three new colleges, and after its last acquisition, it also acquired stores from retailer Casas Pernambucanas. In addition, in December 2021, it completed the purchase of 11 properties located in different regions of Brazil and leased by 3 retail chains.
An important point about the fund is that the management team seeks to adopt a policy of low variation in dividends, in order to bring greater predictability to shareholders. Therefore, always in the closing months of the semester (June and December), if there is any non-recurring result during the previous months, the distribution may eventually be above average.
Captaincy Securities II
ticker: CTPS11
Comment: BTG Pactual
CPTS11 is a fund that seeks to acquire mostly high grade securities, and may also invest in shares of other real estate funds. Therefore, our recommendation for CPTS11 is based on the following pillars: dispersed loan portfolio; excellent management; robust guarantees; debtors with good credit risk; and the possibility of additional gains from its exposure to FIIs.
In terms of the CRI portfolio, the fund has around 35 papers, spread across different debtors and segments, with exposure to quality papers and with guarantees well tied in performed assets, with a high grade credit profile and greater segment diversification. In addition, the majority of the fund’s CRIs portfolio is made up of exclusive operations by Capitânia, which makes it possible to negotiate rates and guarantees with its debtors.
The fund’s portfolio is distributed among inflation-indexed CRIs (63%), CDI-indexed CRIs (0.7%), and shares of other real estate funds (35%).
CSHG Real Estate
ticker: HGRE11
Comment: Land Investments
HGREll is a brick-type real estate fund. Its investments are mainly intended for properties in the corporate slab segment, also known as commercial offices. Brick funds such as HGREll have this characteristic because they obtain physical properties, and the fund can monetize through purchase or construction, to generate rents or also earn from the sale of properties.
HGREll’s income distribution policy must distribute to its shareholders at least 95% of the results obtained. Income earned in the semester may be distributed monthly, always on the 10th business day of the month following receipt of funds.
Source: CNN Brasil
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