FIIS COM DESCONTO: QUAIS VALEM A PENA E QUAL EU NÃO COMPRARIA AGORA | BRUNO OM

Summary

The presenter evaluates Brazilian real estate investment funds (FIIs), arguing that a high dividend yield alone can be misleading. The analysis considers valuation, liquidity, and whether distributions are supported by recurring income. The video also compares three higher-yielding funds with MXRF11 and emphasizes that higher returns come with risks.

Screening framework

From the 50 FIIs he follows, the presenter used three filters:

• Valuation: Price-to-book (P/VP) below 0.90.
• Liquidity: More than R$1 million traded per day.
• Distribution quality: Assess whether dividends are sustainable or temporarily boosted by a one-off event.

He says the high Selic rate of 13.75% had made some FIIs cheaper.

Four funds highlighted

• PMLL11 — Genial Malls, shopping-center fund: P/VP of 0.87, implying a stated 13% discount to asset value. The fund paid about R$1 per share per month, and management had indicated that level would continue in the second half of the year. The presenter cites an approximately 11% trailing 12-month yield. Shopping-center occupancy was 96%, and July sales were up 10% year over year. Caution: Part of the July result was attributed to a shopping-center sale and may not recur; the fund is exposed to consumer spending.

• XPLG11 — XP Log, logistics fund (rendered as “XP LG11” in the subtitles): Share price R$82.40 versus roughly R$105 in equity value, or about 0.80 P/VP. The distribution was R$0.82 per month, unchanged since February 2023. The fund had 31 properties and 94 tenants; physical vacancy fell from 8.8% to 4.1% after new leases. The presenter sees potential for the discount to narrow if low vacancy persists.

• RBRR11 — RBR Rendimento High Grade, credit/paper fund: P/VP of 0.73; paid R$0.90 per share in the latest month mentioned, with a 14.6% trailing 12-month return. Nearly all the portfolio was described as inflation-linked. Cautions: Monthly distributions can fluctuate; the manager was acquired by Pátria, potentially affecting strategy; and a loan had been renegotiated.

• HFOF11 — Hedge Top, fund of funds: Share price R$6.25, allowing an investor with R$300 to buy more than 40 shares. Its P/VP was 0.83, and its trailing 12-month yield was 11.2%. The presenter describes a “discount on a discount” because some underlying FIIs were also below book value. Cautions: Substantial exposure to funds from the same manager and layered management fees; investors should check the portfolio’s effective total fees in its management report.

Dividend sustainability caution: MFII11

The presenter says MFII11 was excluded from his screen. It had paid about R$0.90 monthly, but was a development fund whose expected income depended partly on a project not yet generating revenue. A bureaucratic delay with São Paulo City Hall postponed that revenue until 2028. In August, the distribution was cut to R$0.30, and the share price fell about 40%.

His key caution is to examine where a distribution comes from and whether it is recurring. A payment dependent on a future event is a promise, not established income.

Hypothetical income illustration

The presenter gives an example of investing R$1,000 in each of the four highlighted funds—described as about R$3,810 total—to generate roughly R$39 per month based on recent payments. He presents this as a reinvestment “snowball” illustration, where buying more shares could increase future income. These figures are based on recent distributions and are not a guarantee.

Comparison against MXRF11

The presenter uses MXRF11 as a benchmark:

• Trailing 12-month yield: 13.15%
• P/VP: 0.98
• 12-month price appreciation: 3.89%
• Liquidity: More than R$17 million traded per day

To outperform the benchmark, a fund should have a higher yield, a lower P/VP, and a stable or rising share price rather than a high yield caused by a price collapse.

Ranked from third to first:

1. RBRY11: 16.15% trailing yield; share price R$82.36 versus equity value R$100.43 (P/VP 0.82); latest distribution R$1 per share. Its share price fell 1.34% over 12 months, so the presenter says its yield came alongside a mostly stagnant price. He characterizes it as potentially suitable for investors prioritizing income over price appreciation.

2. RSR11 — RSR Recebíveis Imobiliários: 14.25% trailing yield; share price R$76.11 versus equity value R$86.48 (P/VP 0.88); share price rose 6.72% over 12 months. The fund had R$2.29 billion in assets and more than 170,000 shareholders. The presenter says it combined an above-benchmark yield with price appreciation.

3. IRDM11 — Iridium: 16.77% trailing yield; share price R$60.12 versus equity value R$82.68 (P/VP 0.73); share price rose 4.98% over 12 months. The presenter says this was the only one of the three to beat MXRF11 on all three comparison criteria. It had R$2.91 billion in assets and more than 200,000 shareholders.

Risks identified for the three comparison funds

• IRDM11: The large discount may reflect investor distrust after a strategy change associated with another fund from the same firm, as well as regional concentration and a recent history of using reserves to supplement distributions.
• RSR11: Credit exposure includes 32% incorporation/development, 17% lots, 13% hotels, and 10% individuals. The presenter says these types of borrowers may be more vulnerable when interest rates remain high.
• RBRY11: Its structured-credit transactions are designed by the manager and may offer higher returns than standard CRIs, but can be difficult to transfer or exit mid-term. A March report showed 100% compliance, though the presenter warns that problems in structured credit can emerge abruptly.

Disclosures and cautions

The presenter explicitly says the video is educational, not a recommendation to buy or sell. He notes that FIIs are equity investments subject to market risk and volatility, and that each fund’s higher yield has a corresponding risk.

He also states that FII distributions to individual investors in Brazil are exempt from income tax; this is the presenter’s claim in the video, not independently verified here.

Presenter/source: Bruno OM, on the Momento FIInanceiro channel.