In the face of declines, see if it’s still worth having FIIs in your investment portfolio – Money Times

Real Estate Funds
Income from real estate funds was already depressed by the pandemic. After the proposals for the new tax reform, they suffered new falls. But was this the time to let them go? Or indeed the perfect entry time? See what Caio Araújo, responsible for Empiricus’ Renda Imobiliária series, says.

Who already invests or is following the news about the world of real estate investment funds (FIIs) already know that this was a year full of challenges for those who usually distribute income (rents). In today’s video, Caio Araujo, FII specialist at Empiricus, talks about what to expect from now on.

Check out the full video by clicking here.

The performance of the FIIs this year has really dropped a lot. The IFIX retreats 5% this year. Another important point is the performance of brick Funds (offices, shopping malls, etc.), which showed a considerable drop in relation to paper funds (real estate credit).

There are several reasons for this devaluation in the sector. The first is that the initial tax reform proposal on this segment influenced the price of assets. The possibility of taxation on dividends delivered by FIIs, which ended up not passing the vote in the Chamber. But it is necessary to wait for the entire process.

Other points are the impacts of the pandemic and the increased Selic rate.

But fortunately, the scenario is positive for the future. The expectation is that after the pandemic, Real Estate Funds will be corrected for inflation, since they are pegged to the IPCA.

Another important point is the new strategies adopted by the market, after all, since the beginning of the year, new fund ideas have emerged and this is encouraging. Finally, with the correction of the IFIX, the market for those who want extra income becomes very attractive.

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