How to invest in FIIs in the second half of 2022? Analyst flags two funds to keep on radar

How to invest in FIIs in the second half of 2022?  Analyst flags two funds to keep on radar

After a semester marked by monetary tightening from the Central Bank, inflationary pressures and a series of controversies involving major FIIs in the market, such as Maxi Renda (MXRF11), what to expect from real estate funds in the second half of 2022?

The theme was featured in this Tuesday’s (28) edition of FII Leaguewhich has a presentation by Maria Fernanda Violatti, analyst at XP, Thiago Otuki, economist at Clube FII, and Wellington Carvalho, reporter at InfoMoney.

On the program, experts took stock of the last few months of the real estate fund market and projected what could become an opportunity in the second half. Additionally, Maria Fernanda pointed to two funds to stay on investors’ radar: XP Crédito Imobiliário (XPCI11) and RBR Rendimento High Grade (RBRR11).

“These funds have characteristics that favor them in the current scenario of inflationary pressure and high interest rates, which should still guide the market in the second half of the year”, assesses the analyst.

Discover the step-by-step guide to living off your income with FII and receive your first rent in your account in the next few weeks, without having to be a landlord, in a free course.

Inflation, high interest rates – and controversies

An advocate of the semi-annual revaluation of the portfolio of real estate funds, Otuki says that the best opportunities for the second half should remain in “paper” FIIs, which invest in fixed income securities linked to inflation indices and the CDI rate (certificate interbank deposit).

Up until then, Otuki recalls, there was a discussion of capital appreciation opportunities with “brick” funds, which are currently trading at a very favorable price on the stock exchange. But, given the projection of interest rates and inflation over the next two years, the economist says the strategy should be revised.

“Perhaps there will be a longer delay than expected to bring inflation back to the center of the government’s objective, which should only come in April 2024,” he said. “The forecast would force the Central Bank to keep the economy’s (Selic) interest rate at high levels for longer.”

Sheltered from rising inflation and rising interest rates, “paper” FIIs would benefit from the scenario projected by Otuki, as has been the case in recent months. In 2022, this class of real estate funds recorded, on average, an increase of 1%, compared to a drop of 3% for “brick” FIIs.

In addition, the election period will add an additional volatility factor to the financial market, Otuki points out, not to mention that the first half of the year has already been more difficult than expected.

In addition to inflation and the rise in the Selic rate to 13.25% per year, the highest since December 2016, the real estate fund market has also experienced a semester of controversy.

In January, the Securities and Exchange Commission (CVM) questioned Maxi Renda’s (MXRF11) dividend distribution, casting doubt on how most real estate funds calculate their income. The entire segment could be affected – but, much to the market’s relief, after four months of stalemate, autarky has reversed and kept the calculus as it always has been.

Later, in April, the discussion of a possible conflict of interest in the operations of Hectare (HCTR11) caused its quotas to fall. Digital influencers speculated that the fund would invest in IRCs whose debt would belong to its own partners. The FII fell 16% in four sessions, taking with it other so-called portfolios high yield, more at risk. Hectare denied wrongdoing and, weeks later, recouped some of the losses suffered in the episode.

Another fund that caught the market’s attention in the first half of 2021 is BTG Pactual Terras Agrícolas (BTRA11), which communicated the receivership of the tenant of one of its farms. During the week of the news, the portfolio closed down 15%, partly because it announced that the situation would lead to a reduction in dividends paid to investors from R$0.94 to R$0.70 per stock.

FII “paper” featured

For Maria Fernanda, of XP, the most recommended real estate funds for the second half are also “paper” funds. During the FII Leagueshe highlighted two options for investors.

One of them is the RBR Rendimento High Grade Fund (RBRR11). With assets of just over 1.04 billion reais, the FII has a portfolio mainly composed of real estate debt certificates (CRI).

According to the fund’s latest management report, 55% of the CRIs are indexed to the Broad Consumer Price Index (IPCA). The portfolio also includes bonds linked to CDI (24%) and IGP-M (18%).

On the 17th, RBR Rendimento High Grade deposited BRL 1.20 per share, which equates to a gain of 1.19% over the period. Over 12 months, the rate of return on the portfolio with dividends is 12.05%.

The second indication is XP Crédito Imobiliário (XPCI11), also focused on investing in IRCs. The fund has 69% of its portfolio indexed to the IPCA. The other part of the portfolio – 31% – is linked to the CDI rate, which follows the rise in the Selic rate.

In the last distribution in June, the fund transferred R$1.22 per share to shareholders, which equates to a monthly return of 1.28%. In 12 months, the fund’s dividend yield reached 13.25%. Currently, XP Credit’s share is trading at a 4% discount to its book value, another allure of the fund, according to Maria Fernanda.

Discover more analysis and advice on the two funds in yesterday’s edition of FII League. produced by InfoMoneythe show airs every Tuesday at 7 p.m. on InfoMoney on Youtube. You can also review all past edits.

Discover the step-by-step guide to living off your income with FII and receive your first rent in your account in the next few weeks, without having to be a landlord, in a free course.

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