O CNN Brazil Business prepared the portfolio of recommended Real Estate Funds for December. For its composition, indications of some of the main banks and investment brokers in Brazil are listed. They are: Banco do Brasil, Órama, BTG Pactual, Warren, Terra, Genial and XP.
For this month, the managers have recommended, mainly, investments in the segments of real estate receivables, corporate slabs, logistics, residential, warehouses and shopping malls.
Among the main funds are Kinea Rendimentos Imobiliários, with 4 recommendations, followed by CSHG Real Estate and Bresco Logística, both with 3 nominations.
On the radar in December
Genial Investimentos sums up the month of November as having been marked by pessimism. “The month of November was marked by uncertainty and pessimism with proposals for a hole close to R$ 200 billion in the spending ceiling, which could raise the country’s debt to unsustainable levels”.
For the month of December, the assessment is that attention should be paid to the Transition PEC and the announcement of the next economic team. Therefore, for this month’s FII portfolio, “although we believe that the assets are exaggeratedly discounted, we recommend caution to investors”.
BTG Pactual, on the other hand, assesses that long-term interest rates may remain at these higher levels due to greater uncertainty regarding the process of raising US interest rates; and by the more negative perspective regarding the aforementioned Brazilian tax issue.
In recent months, the bank has migrated its portfolio to receivables funds that offer greater liquidity, lower volatility and a more attractive load than brick funds – especially in assets pegged to the CDI that gained greater weight over the months.
“In our view, we made the right decision and were able to be more defensive at this most troubled time and boost the weighted average liquidity of the portfolio”, points out BTG.
Highlights
See what analysts said about the FIIs with the highest recommendations for December.
Kinea Real Estate Income
Action: KNCR11
Comment: Bank of Brazil
Over the last few months, the fund has been gradually raising the level of dividend distribution, and for the month of December, the distribution of R$ 1.10 per share has already been announced, which represents an annualized dividend of around 13 %.
The bank points out that the fund has been benefiting from the scenario of interest rates at high levels due to its portfolio being mostly post-fixed.
The institution claims that the recommendation for the fund is in line with the macroeconomic scenario that has been shaping up for the coming months, with inflation still under pressure and interest rates at higher levels.
“Such a scenario tends to favor paper funds with greater exposure to the CDI, as is the case with KNCR11”.
CSHG Real Estate
Action: HGRE11
Comment: Genial Investimentos
It is the Credit Suisse Heding Griffo fund that aims to acquire income-oriented corporate assets. The fund has 19 assets spread from Rio de Janeiro to Rio Grande do Sul with 34 contracts and an average term of 5.8 years.
According to the brokerage, currently the vacancy of the portfolio is at 22%, with the two main assets with vacancy being Torre Martiniano, which is undergoing a retrofit with delivery scheduled for this month. In the month of October, the result was impacted by non-recurring expenses related to the intermediation commission for leases made recently.
“In our view, the management has carried out an important portfolio recycling process, which has generated value for the shareholder, in addition, we believe that the fund has good prospects for reducing vacancy at Torre Martiniano throughout 2023, repeating what was done in the previous year. Paulista Star”, assesses Genial.
Bresco Logística
Action: BRCO11
Comment: BTG Pactual
Bresco Logística FII is a real estate fund focused on income and active management, with the objective of investing in logistics warehouses that present a high construction standard, in addition to being located close to the main consumption regions.
Currently, BRCO11 has assets located in the states of São Paulo, Minas Gerais, Bahia, Paraná, Rio Grande do Sul and Rio de Janeiro.
The purchase suggestion for the fund, according to BTG, is based on the large exposure to the state of São Paulo, especially in regions close to the capital; in exposure to atypical contracts, which bring predictability to part of the fund’s revenues; the very high standard properties; the possibility of generating value in the long term through renovations and expansions in its assets; and good liquidity in the secondary market.
Source: CNN Brasil
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