In an interview with REsource, Mauro Lima, Managing Partner at Inter Asset, described the 2024 real estate market for Real Estate Investment Funds (FIIs) as "very good" for yields. He highlighted a positive trend: the increasing number of investors turning to real estate funds for dividend income, likening it to receiving monthly rent payments. According to Lima, “Many funds have shown growth in dividend payouts, and most rents have not decreased; on the contrary, some have even increased.”

However, the year has been less favorable for shareholders, particularly in the second half of 2024. “The value of shares has been dropping compared to their net asset value, and the gap is quite noticeable. This is partly due to Brazil's macroeconomic environment, where we see a natural migration toward fixed-income investments,” commented Lima.

• See: Carolina Borges, EQI Research Real Estate Funds Analyst, Expounds on Prospects Amidst Selic Rate Decline

Lima believes this situation will not be permanent and that, over time, the share prices will adjust, allowing investors who bought in during this period to benefit from future appreciation. He sees this as a great buying opportunity for those willing to take advantage of the "discount" currently offered by the market.

Regarding the real estate fund market, he describes the current situation as a "Black Friday" for funds, where assets are being sold at significant discounts. "Today, if you buy an asset worth R$100 with a share priced at R$70, you're getting a great discount. Keep in mind that this won't last forever, so it really is a Black Friday," Lima says.

The fund market is relatively new in Brazil. With just over 30 years of existence, REITs have proven to be good investments, expanding their market in the country with a growing number of investors.

Looking ahead, Lima sees 2025 as a year brimming with opportunities for those who can navigate the market with creativity and strategic insight. He emphasized the importance of avoiding herd behavior, as witnessed during the pandemic when many companies gave up office spaces. The standout sector for the coming year, according to him, is logistics, which is expected to show the most significant growth.

"Next year, it's necessary to be creative and experienced in the market to weather certain crises, while avoiding herd behavior. Now, with the high Selic rate, it's time to recycle portfolios, take good care of tenants and assets, make contributions (putting assets in exchange for shares), and possibly move toward new funds, maybe more hybrid or multi-strategy... there are many strategies to adopt for a potential crisis," Lima concludes.