Real estate funds to invest (and others to forget) in July, according to Warren

Real estate funds to invest (and others to forget) in July, according to Warren

Roger Pettingell Sarasota Real Estate

Warren’s real estate fund portfolio has a relevant portion allocated in bricks (Image: Money Times/ Gustavo Kahil)

In real estate funds (FIIs)a Warren continues to see opportunities in the bricks and good quality credits. This explains why the brokerage and investment manager kept its recommended portfolio intact, with a relevant portion allocated to bricks, for July.

Warren points out that, even in a challenging month for the class, its portfolio dropped slightly less than the Real Estate Funds Index (Ifix) in June, “evidencing that the choice of theses has fulfilled its role, even in the most troubled scenarios”.

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“The Fed’s unexpected rate hike caused major brick segments to undergo a sharp repricing. However, Brazil is ahead of the rest of the world and close to the end of the cycle of high Selic rate, which tends to benefit the properties. That said, we are looking for a portfolio that can survive the short term to take on more risk in the near future”, says the broker.

Warren remains optimistic with the shopping malls, based on positive sales data in the second quarter of the year. About slabsthe broker draws attention to the segment discount due to market uncertainties about how companies will return to occupy their offices.

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“We still see the values ​​per square meter heavily discounted on the stock exchange and disconnected from the material reality of the assets that the funds hold. The segment fell sharply in June (-3.8%), but we remain comfortable with our allocation, and the recent drop may even open up interesting opportunities”, he comments.

In the slab segment, Warren focuses on premium assets, AAA portfolios, with in-demand locations and rent correction capability.

Warren’s FII portfolio ended the last month with losses of 0.86%, compared to a 0.88% drop in Ifix.

FoFs urge caution

While the preference is for good quality bricks and credits, Warren is keeping some distance from funds of funds (FoFs) and Cris more risky.

Regarding FoFs, Warren currently does not have any segment assets in the portfolio.

The broker highlights that this class usually has a good performance during the “periods of bonanza”, generating relevant capital gains and fattening its dividends. However, the market still does not have as many opportunities for carrying out short operations (generating a gain in the fall of the asset).

“Therefore, FoFs have few resources to defend themselves against a generalized downturn in the real estate segment”, explains the broker.

Check out Warren’s recommended FIIs for July:

real estate fund ticker Weight
Real Interest Vectis VCJR11 10%
CSHG Urban Income HGRU11 10%
HSI Malls HSML11 7.50%
JS Real Estate JSRE11 10%
Kinea Real Estate Income KNCR11 10%
Mauá Capital Real Estate Receivables MCCI11 5%
VBI Prime Properties PVBI11 10%
Homeland Logistics PATL11 5%
XP Malls XPML11 7.50%
Flagship Securities II CPTS11 5%
Vinci Offices VINO11 5%
RBR High Grade Income RBRR11 5%
Rio Bravo Renda Logística SDIL11 5%
Green Towers GTWR11 5%

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O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.


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