With the Selic rate beginning a downward cycle, the Brazilian market is experiencing a positive moment, driven by the inflow of foreign capital and the appreciation of the stock market. At the same time, interest rates are starting to fall, albeit at a slower pace than expected at the beginning of the year. For real estate investment trusts (REITs), this change is particularly relevant.
In an interview with Janela de Mercado, a NeoFeed program that gives voice to analysts and strategists in variable income, Carolina Borges, head of EQI Research, states that, historically, real estate funds benefit from lower interest rates, as they begin to compete with less attractive fixed income and gain value with the reduction in discount rates, but this movement is not immediate.
“Real estate funds end up waiting for a more concrete view of what this interest rate cut cycle will look like,” says Carolina Borges. This wait, however, may open a window of opportunity: many funds are still trading at a discount, only partially anticipating the scenario of a Selic rate cut.
Another point that sustains interest in this asset class is the income profile. REITs remain attractive for those seeking passive income exempt from income tax for individuals. Furthermore, access is broad, with shares being traded starting at around R$10.
Carolina warns, however, that, as variable income assets, real estate funds fluctuate daily and require more careful analysis. Therefore, looking only at the dividend yield can be a mistake.
Watch the video to understand which REITs (Real Estate Investment Trusts) were selected by the head of EQI Research to include in the portfolio.
