What are the “cheapest” FIIs in early 2023? The study lists the highlights in six market segments

Office real estate fund Autonomy Edifícios Corporativos (AIEC11) has become one of the cheapest FIIs on the market, according to a report by Órama Investimentos. XP Properties (XPPR11) remains at the top of the table.

To help investors select opportunities in the segment, the brokerage house publishes the monthly “Cheaper Quem Tá” survey, which ranks funds by dividend yield rate (dividend yield) and the P/VPA (price over book value) of each portfolio.

The higher the rank, the better the ratio of dividends paid by the portfolio to the price of publicly traded shares, the report explains.

In this edition, the XP Properties office fund (XPPR11) scored 2.91, the highest score among all the FIIs analysed. Tordesilhas EI (TORD11) and Autonomy Edifícios Corporativos (AIEC11) follow with scores of 2.62 and 2.16 respectively. Consult the complete list, divided into the six main types of real estate funds:

credits

corporate slabs

the logistics

shopping center

Hybrid

Fund of Funds (FoF)

Source: Órama Investimentos. Note: The closer the P/VPA is to 1, the closer the FII share will be to fair value. Above this level, the stock trades at a premium and below it at a discount.

Órama Investimentos believes it is using past data to compose the ranking, which is not a guarantee for future earnings. The brokerage’s monthly report only takes into account funds with an average daily liquidity of more than R$ 300,000.

The study also points out that the choice of a real estate fund must also take into account the quality of the assets, the experience of the management team and the perspective of the portfolio with respect to the macroeconomic scenario.

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ifix today

In this Wednesday’s session (18th), the Ifix – index of the most traded real estate funds on the Stock Exchange – operates in a positive field. At 14:17 the indicator recorded an increase of 0.26%, to 2,845 points. Discover the other highlights of the day.

Highest highs this Wednesday (18):

Major victims this Wednesday (18):

Source: B3

dividends today

Discover the FIIs that distribute dividends this Wednesday (18):

Source: StatusInvest

Real estate turnover: tAmericanas’ portfolio shouldn’t put pressure on mall credit, Fitch says; Performance of the FII market during the Bolsonaro government

Between the pandemic and high interest rates, the FII market is losing steam during Bolsonaro’s tenure, study shows

A survey by Clube FII, an information and data platform on real estate funds, measured the performance of the sector during the last four presidential terms. According to the study, the FII market showed the lowest performance during the Jair Bolsonaro administration.

The research was based on the variation of the Ifix – index of the most traded real estate funds on the B3 -, created in 2011, the year of Dilma Rousseff’s first mandate. The management, which continued until December 2014, was responsible for the highest growth of the indicator: 33.67%, equal to 7.53% per year.

In the subsequent management – ​​partly commanded by Dilma and partly by Michel Temer – the index maintained its pace above 30%. In the Bolsonaro era, however, Ifix lost strength and totaled an expansion of 21.9%.

Source: FII Club

“[Com Bolsonaro,] Ifix had a nominal gain of 21.92%, being the worst result of the four mandates” underlines the study of the Clube FII. “The performance was even lower than the profitability of the Temer government, which was only a year and a half old”, underlines the text.

Nathan Octavio, a real estate fund specialist and one of the leaders of the study, recalls that the former president’s mandate was marked by the Covid-19 pandemic – which affected the functioning of a large part of FIIs, especially in the office and shopping segments of the shopping center.

“The first year [de Bolsonoro, em 2019] it was even quite positive, with a gain of more than 35%,” recalls Octavio, or Nod, as it is also known. “But at the beginning of 2020, Covid generated a huge loss, with funds collapsing by 40% in a few days,” he adds.

Remember that since then, despite having recovered much of that loss, Ifix has never approached the prices of 2019.

Even the base rate hike cycle, the Selic – which went from 2% at the beginning of 2021 to the current 13.75% per annum – made the difference in performance. The higher the indicator, the more profitable fixed income becomes, attracting equity investors, including FIIs.

In 2022, the real estate fund index closed with a rise of 2.22%, after two consecutive years of decline. Individually, real estate funds returned up to 26% last year.

Protecting Americans shouldn’t put pressure on the malls’ strong credit quality, Fitch says

The injunction obtained by Americanas (AMER3) is not expected to put pressure on the strong credit quality of Brazilian mall operators, according to Fitch Ratings. For the venture firm, retailers have very little exposure to the retailer in their revenue structure, and any insolvency would have little impact on the malls’ cash generation.

“The companies’ operational and credit metrics would not be materially affected if Americanas were unable to meet its lease obligations,” Fitch reinforces.

The Brazilian shopping centers assessed by the risk agency have a low exposure risk for individual tenants given the fragmented nature of their customer base. The top 10 tenants typically account for less than 20% of the annual base rent, with rentals accounting for about 70-75% of revenue, with the remainder mostly made up of parking and utilities.

On Tuesday, Fitch downgraded Americanas’ long-term foreign currency (ME) and local currency (LC) issuer default ratings (IDR) from “CC” to “C” and its long-term rating from the national scale from ‘CC(bra )’ to ‘C(bra)’.

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