author
Carlos Balthazar Summ
author
Carlos Balthazar Summ
post date
15/08/2023
reading time
2 minutes
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The Valor Econômico print edition on August 14 highlighted how the recovery of stock prices on B3 and the beginning of a Selic rate reduction have started to unlock real estate fund issuances, with offerings nearing R$ 11 billion. According to Anbima statistics, R$ 10.9 billion in operations flooded the market through July, including registered offerings and those with restricted, automatic, or standard procedures. Last year, the segment moved R$ 24.7 billion. Another positive sign was the performance of average stock prices, as measured by the Ifix index, which reached 3,200 points, its highest level since December 2019.
The report notes that lower vacancy rates, rising rents, and asset recycling within portfolios have led to non-recurring capital gains. The weighted average dividend yield of brick-and-mortar funds decreased slightly, from 9.5% per year in 2022 to 8.9% between August 2022 and July 2023, despite a significant market surge. This result is attributed to improved operational performance in the segment.
Insights from João Pedro Araujo of CIX Capital
Among the specialists interviewed by Valor Econômico was João Pedro Araujo, Portfolio Manager at CIX Capital. He highlighted Brazilians’ strong affinity for real estate funds, a class that has seen its number of investors grow even during a period of rising interest rates.
“This recent appreciation brings much-needed dynamism to the sector because, while secondary market prices were falling, investors had no incentive to allocate resources into new vehicles,” Araujo explained.
He further noted, “There is a greater inclination to look at new operations. On the investor side, there was a demand for high returns due to the elevated Selic rate and economic uncertainties, while on the developer side, the math didn’t add up. Companies faced high-interest costs, leading to shelved projects. Now, with better real estate fund and CRI offerings, business is back on the table.”
Araujo also emphasized that “there is more willingness for restricted placements.”
CIX Capital’s Exclusive Funds in the Pipeline
In its structuring phase, CIX Capital is preparing exclusive funds that could reach R$ 200 million by the end of the year.
For the full article, visit Valor Econômico.
author
Carlos Balthazar Summ
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CIX Capital is an investment by Maiz: maiz.com.br
