The cheapest real estate funds according to experts
Discover the cheapest real estate funds and learn how this type of investment works
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What are the cheapest real estate funds? This is a common question for those interested in this type of investment.
Órama Investments created a tool to help investors analyze the real estate fund market.
Through the analysis of quantitative metrics, the ranking assigns a score to each Fii.
However, it is important to remember that this ranking is not an investment recommendation, according to Órama. In fact, it is a quantitative tool based on data from the last few months.
With that in mind, in today’s article, we’ll talk more about this type of investment, its advantages and disadvantages. Keep reading to find out more.
What are real estate funds?
Real estate funds are investment funds whose portfolio is made up of assets from this market.
In other words, we can say that Fiis are a type of investment made through the bag, in which the investor acquires the fund's shares. He can make a profit both from the appreciation of the shares and from the distribution of income.
Typically, investments in real estate funds are sought by those who want to take advantage of this segment, but without having to invest directly in real estate.
What are the cheapest real estate funds according to Órama?
The ranking was divided into several segments.
Below, you can check what they are:
Corporate slab FIIs
| Bottom | Ticker | DY 12 months | P/VP | Scoring |
| XP PROPERTIES | XPPR11 | 12,43% | 0,62 | 2 |
| REAL ESTATE INCOME REC | RECT11 | 10,87% | 0,6 | 1,82 |
| GREEN TOWERS | GTWR11 | 12,06% | 0,73 | 1,65 |
| BTG PACTUAL CORPORATE OFFICE FUND | BRCR11 | 9,53% | 0,59 | 1,61 |
| AUTONOMY CORPORATE BUILDINGS | AIEC11 | 11,29% | 0,75 | 1,5 |
Logistics Fiis
| Bottom | Ticker | DY 12 months | P/VP | Scoring |
| REC LOGISTICS | RELG11 | 12,61% | 0,62 | 2,02 |
| BLUEMACAW LOGISTICS | BLMG11 | 13,16% | 0,83 | 1,59 |
| NEWPORT LOGISTICS | NEWL11 | 11,77% | 0,8 | 1,47 |
| RBR LOG | RBRL11 | 9,97% | 0,79 | 1,25 |
| HOMELAND LOGISTICS | PATL11 | 9,22% | 0,76 | 1,21 |
Shopping malls
| Bottom | Ticker | DY 12 months | P/VP | Scoring |
| HSI MALLS | HSML11 | 8,69% | 0,84 | 1,03 |
| HEDGE BRAZIL SHOPPING | HGBS11 | 7,35% | 0,8 | 0,92 |
| VINCI SHOPPING CENTERS | VISC11 | 7,79% | 0,88 | 0,89 |
| LEGATUS SHOPPING CENTERS | LASC11 | 7,13% | 0,83 | 0,86 |
| XP MALLS | XPML11 | 7,88% | 0,94 | 0,84 |
Hybrid fiis
| Bottom | Ticker | DY 12 months | P/VP | Scoring |
| TORDESILLAS EI | TORD11 | 12,47% | 0,62 | 2,01 |
| SANTANDER RENTAL INCOME | SARE11 | 10,70% | 0,71 | 1,5 |
| RIZA ARCTIUM REAL ESTATE | ARCT11 | 16,07% | 1,09 | 1,48 |
| REAL ASSET TG | TGAR11 | 13,29% | 0,93 | 1,43 |
| RIO BRAVO RETAIL INCOME | RBVA11 | 12,49% | 0,89 | 1,4 |
Real estate receivables FIIs (CRIs)
| Bottom | Ticker | DY 12 months | P/VP | Scoring |
| URCA PRIME INCOME | URPR11 | 19,25% | 1,08 | 1,78 |
| VERSAILLES REAL ESTATE RECEIVABLES | VSLH11 | 16,07% | 0,9 | 1,78 |
| HECTARE CE | HCTR11 | 16,67% | 0,96 | 1,74 |
| RIO BRAVO HIGH GRADE REAL ESTATE CREDIT | RBHG11 | 15,13% | 0,91 | 1,66 |
| REAL ESTATE RECEIVABLES CARD | CACR11 | 16,18% | 1 | 1,61 |
Fund of funds FIIs
| Bottom | Ticker | DY 12 months | P/VP | Scoring |
| MORE REAL ESTATE FOF | MORE11 | 12,60% | 0,76 | 1,66 |
| XP SELECTION | XPSF11 | 11,72% | 0,82 | 1,43 |
| BRAZIL ABSOLUTE PLURAL | BPFF11 | 11,57% | 0,83 | 1,4 |
| BLUEMACAW INCOME+ FOF | BLMR11 | 11,99% | 0,87 | 1,38 |
| MAHOGANY FOF | MGFF11 | 11,01% | 0,8 | 1,37 |
These are the highlights of the “Quem tá barata” ranking, a tool developed by Órama.
The ranking was published on the website Money Times.
It is important to remember that this article is for informational purposes only. It is not an investment recommendation, but an analysis of quantitative metrics.
Before making any investment in real estate funds, it is essential that you know your investor profile, set financial objectives and understand the risks involved.
What are the advantages of real estate funds?
Now that you know how this type of investment works, it’s time to learn about the main advantages of this type of investment.
Check it out!
Monthly income
According to the law, Fiis must distribute to shareholders at least 95% of the half-yearly profit.
However, in Brazil, it is quite common for dividends to pay income on a monthly basis.
Professional management
Managers are specialized professionals who can help you in this process.
Factors such as conducting rent adjustment negotiations and choosing which properties to acquire or sell are the responsibility of the fund manager.
Liquidity
If a shareholder wants to sell his shares, he can sell them on the Stock Exchange, for a price negotiated at the time of the transaction.
Income tax exemption
The proceeds distributed by the Fiis are completely exempt.
However, for this benefit to occur, three basic requirements must be met:
• Be traded exclusively on the stock exchange or over-the-counter market
• Have more than 50 shareholders
• Only shareholders with less than 10% of the fund's total shares can enjoy this benefit.
Low initial application
When purchasing a physical property, it is necessary to take out financing or have the amount corresponding to the value of the property.
In real estate funds, even small investors can have access to higher-value properties.
Through the negotiation of shares, Fiis allow individuals to acquire small parts of properties and, thus, benefit from a proportional share of the profits generated.
What are the main risks of real estate funds?
As you can see, investing in real estate funds has several advantages.
However, we are talking about variable income. This means that there are also risks involved, which must be analyzed.
Among the main risks, we can mention:
Market risk
Depending on supply and demand, the value of shares may increase or decrease.
It is also important to mention that the properties in the fund's portfolio may also suffer devaluation, for various reasons.
Liquidity risk
This risk is not exclusive to real estate funds.
Liquidity, basically, it is the ease of converting the asset into cash whenever the investor wishes.
In relation to the most traded funds, the sale of shares can occur on the same day that the shareholder wants to sell them, which can be an advantage.
However, there is a risk that you may want to sell but not find a buyer at the time. In this case, you may have to wait a little longer.
For this and other reasons, before you invest in a fund, check its trading average over the last few months.
Conclusion
Now you know which are the cheapest real estate funds and how the “Quem tá barata” tool, from the brokerage firm Órama, works in practice.
However, before investing in a FII, you need to take into account several other factors, such as your risk profile and, of course, the specific characteristics of each fund.
