FII BTRA11 plans to sell the farm after the tenant’s receivership; dividends may drop by R$0.22 per share

In a statement released this Thursday afternoon (23), the FII BTG Pactual Terras Agrícolas (BTRA11) considered that the market’s reaction to the request for judicial reorganization of the Vianmancel farm, in Nova Maringá (MT) was exaggerated and, among the solutions for the case, does not exclude the sale of the land. At 3:14 p.m., the fund’s shares were down almost 6%. In the previous session, shares fell 16%.

The fall in the price of the fund began after the revelation of a material fact, in the afternoon of this Wednesday (22), which confirmed the situation of those responsible for the farm, acquired in August 2021 by the portfolio, in an operation sale-leaseback – who rents the property purchased from the former owner. Land currently accounts for 23% of the fund’s contract revenue.

Given the difficulty presented by the lessee, who will have to pay debts to creditors, the fund estimates a temporary reduction in the distribution of dividends of approximately R$ 0.22 per share, if the producer does not honor the payments related to the lease of space. .

“It is difficult to say how long this temporary situation will be resolved, but it is seen that the management should work more on the front of a commercial solution than in a legal dispute”, explains the press release.

If the default is confirmed, the fund works with two options: replacing the current tenant or selling the land.

BTRA11 recalls that it acquired the space at a fair value discount and that the sale of the farm could generate up to 63% capital gain, an operation which would be in line with the strategy of the portfolio.

According to data presented by the fund, the current trading value of land for grain production in Nova Maringá is R$42,000 per hectare. Considering the total area of ​​3.1 thousand hectares of the farm, the property would have a market value of around 130 million reais.

Last year, BTG Pactual Terras Agrícolas acquired the Vianmancel farm – specializing in the production of corn and solja – for 81 million reais.

Under the contract, the previous owner would occupy the space for a period of ten years in return for a monthly fee of R$742,000, an amount that would be adjusted annually by the national broad consumer price index ( IPCA).

Faced with the possibility of profiting from a possible sale, the fund considers the fall in the price of the fund on B3 to be disproportionate, which yesterday fell by 16.5%.

“We consider the 16.5% drop in the last trading session to be extremely overstated, as it assesses almost the entire loss of the asset,” details the text. “The fund is currently trading with a rate of return with dividends of 10.3% [assumindo distribuição de R$ 0,72 por cota]with a potential for revaluation by the sale of the asset at its market value”, punctuates the text.

According to the management report, the Vianmancel farm – identified as Milton Cella – covers an area of ​​3,148 hectares and represents 24% of the fund’s equity value.

Besides the Vianmancel farm, the BTG Pactual Terras Agrícolas portfolio also includes five other properties, four in Mato Grosso and one in Bahia, totaling an area of ​​10,079 hectares. The fund currently has 14,012 shareholders.

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