Amid interest rates as high as 14.25%, the country's largest real estate fund aims to raise up to R$ 1.25 billion.

Brazil's largest real estate receivables fund has just taken another billion-dollar step. Maxi Renda had its 12th share issuance approved, in a transaction that could raise up to R$ 1.25 billion - the initial fundraising is R$ 1 billion, with an additional 25% allotment.

The decision comes at a time when the Selic rate is at 14.25% per year, with the Copom signaling that it will interrupt the downward trajectory of interest rates in the face of persistent inflation (projections for 2026 and 2027 are at 4.9% and 4.0%, well above the center of the target).

With R$4.32 billion in net assets, MXRF11 is a machine for buying Real Estate Receivables Certificates (CRIs).

Its portfolio comprises 89 operations, with a market value of R$ 3.25 billion in CRIs (Real Estate Receivables Certificates) at the end of March, according to public documents from the real estate investment fund.

The portfolio is diversified, ranging from shopping malls to logistics warehouses, including residential and corporate credit, with debtors ranging from giants like Arcelor Mittal and CSN to developers such as MRV , Tecnisa, and Helbor.

Although the first quarter was marked by a volatile scenario in private credit in Brazil, with spreads widening for several names following credit events and restructurings, mainly the requests for extrajudicial recovery from the Raízen and GPA groups.

MXRF11 itself reports five operations under stress and another two on alert, which are being monitored more intensively by management.

The fund manager, however, sees opportunity. In the first quarter, the fund invested over R$ 250 million in CRIs (Real Estate Receivables Certificates) in the primary market. The report highlights the R$ 50 million operation in Hot Beach You, a large timeshare development located in the city of Olímpia, São Paulo state, and the R$ 30 million investment in the securities portfolio managed by Nova Milano KSM.

The new funding round of R$1 billion would allow for the acceleration of these opportunities. With a strengthened cash reserve, MXRF11 can acquire assets at a time of less competition and more attractive spreads.

The strategy is well-known to the nearly 1.5 million investors in the fund, which has demonstrated over the years its ability to navigate adverse scenarios, maintaining monthly distributions of around R$ 0.10 per share, with a monthly dividend yield of around 1%.

Currently, the issuance of new shares represents approximately 23% of MXRF11's current net worth. This move, if well executed, could further consolidate MXRF11's position as the largest receivables REIT in the country.

However, the approval of the issuance by the unit holders does not define the price per unit, the schedule, or the distribution structure. These elements will be subject to market conditions.

Furthermore, the fund has already signaled a reduction in dividends in recent months, with the yield falling below 100% of the CDI in March.

On the B3 stock exchange, the MXRF11 share price has been trading near R$ 9.70, up 1.9% this year. Over the past 12 months, the increase is 3.3%.