Eight FIIs with good entry points despite the recent appreciation of real estate funds

Ifix – the index of the most traded real estate funds on the B3 – has accumulated eight straight weeks of gains and many funds seen with good eyes in July no longer offer a good entry point. Even so, experts consider that there is room for new heights and that there are still good investment opportunities in this market.

The theme was featured in this Tuesday’s edition (13) of League of FIIsa program produced by InfoMoney and which has a presentation by Maria Fernanda Violatti, analyst at XP, Thiago Otuki, economist at Clube FII, and Wellington Carvalho, reporter at InfoMoney.

In the program, experts from League of FIIs discussed the current moment of the real estate fund market, which had the best month of the year in August, with an increase of 5.76%. In addition, Maria Fernanda and Otuki highlighted eight funds still discounted and with good potential for appreciation in the medium and long term.

For the selection of the FIIs, they were based on the rate of return with dividends of the portfolios (dividend yield) in the last 12 months and the P/VPA (price over book value), an indicator used to measure the discount offered by the fund.

The JS Real Estate Multigestation FII, for example, has been traded for 75% of the book value, that is, with a 25% discount, the highest among the funds mentioned by Maria Fernanda and Otuki. Check out the complete list.

tickerBackground SegmentDiscount on quota (%)Dividend Yield – 12 months (%)
JSRE11JS Real Estate Multimanagementcorporate257.2
PATL11Homeland LogisticsLogistics18.38.6
HGRE11CSHG Real Estatecorporate13.57.7
VIUR11Vinci Urban PropertiesCity Income13.210.3
HSML11HSI Mallsmall8.27.7
TEPP11Tellus Propertiescorporate87.1
LVBI11VBI LogisticsLogistics3.17.7
HGBS11Hedge Brasil Shoppingmall37.4

Source: FII Club

Discover the step-by-step guide to living on income with FIIs and receiving your first rent in your account in the next few weeks, without having to own a property, in a free class.

Recovery of the FIIs market

With the reduction in the movement of people during the Covid-19 pandemic, real estate funds – especially those for shopping malls and offices – had reduced revenue and saw their shares lose value on the stock exchange. The migration of investors from variable income to fixed income – more profitable with higher interest rates – also helped to bring down the papers.

However, the deflation verified by the IPCA in July and August and the possible end of the cycle of interest rate hikes triggered the market’s trigger, which went shopping and took advantage of the opportunities among the “brick” FIIs – which had the greatest discounts.

To this day, real estate funds are still trading below book value, but at a slightly higher level than two months ago. With a current P/VPA of 0.79 – against 0.70 in July – the corporate building segment remains the most discounted.

P/VPA – The closer the P/VPA is to 1, the closer the FII share will be to fair value. Above this level, the paper is traded at a premium and, below, at a discount.

In August, these “brick” funds – which invest in logistics, offices and shopping centers, among others – rose, on average, 11%, above the 5.76% of Ifix.

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Also discount on “paper” FIIs?

In parallel with the resumption of “brick” funds, the market reflects the impact of deflation on the distribution of dividends from “paper” FIIs – focused on investing in fixed income securities linked to inflation indices or the CDI rate (certificate of interbank deposit).

In recent years, the profitability of this asset class followed the rise in prices and interest in the country and the funds came to boast an appreciation of almost 30% in 12 months. The change in the trend of indicators now reduces the attractiveness of “paper” FIIs, which can even reduce the payment of dividends.

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Maria Fernanda recognizes the most challenging moment for “paper” FIIs, but remembers that the market’s current care with this type of fund may reflect on the devaluation of quotas, opening up buying opportunities.

“We look carefully at the capacity of these funds [de “papel”] to continue paying good dividends and the discount that they may eventually offer from now on”, ponders Maria Fernanda, who compares the situation with that of “brick” funds until July.

Check out more tips from Maria Fernanda Violatti and Thiago Otuki, in addition to the complete analysis of the eight FIIs selected in this Tuesday’s edition (13) of League of FIIs. produced by InfoMoneythe program airs every Tuesday at 7 pm on the InfoMoney on Youtube. You can also review all past edits.

Discover the step-by-step guide to living on income with FIIs and receiving your first rent in your account in the next few weeks, without having to own a property, in a free class.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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