What are Real Estate Funds (FIIs)?
Real Estate Funds are like “investor condominiums” that pool money to buy properties (malls, warehouses, offices) or securities from the real estate sector. You buy shares on the stock exchange and receive monthly rents.
How does it work?
- The fund buys properties with the money from the shareholders
- The properties are rented to companies
- The rents are distributed monthly to the shareholders
- Returns are exempt from IR for individuals
Advantages
- Tax-free monthly income
- Invest in properties with little money (from R$ 10)
- Diversification (a fund can have several properties)
- Liquidity (sell instantly on the stock exchange)
- No need to deal with tenants
Types of FIIs
| Type | Example | Characteristic |
|---|---|---|
| Tijolo | HGLG11 | Physical properties (warehouses) |
| Papel | KNCR11 | Real estate debt securities |
| Híbrido | KNRI11 | Mix of tijolo and papel |
| FOF | BCFF11 | Fund that invests in other FIIs |
How much does it yield?
The market average is 0.7% to 1% per month in returns. With R$ 100,000 invested, you can receive R$ 700-1,000/month exempt from IR.
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