River One is an example of guaranteed income applicability. In 2021, SDI sold the project to RBR Properties, which paid R$ 420 million at the time and incorporated the property into the RBRP11 fund. With guaranteed income, the transaction's CAP Rate was 7%. However, the CAP Rate determined by the Market Analytics platform was 5.95%, excluding this monetary tool. 

The guaranteed income period was 15 months, meaning the asset had one year and three months to improve its performance and ensure a 7% return for shareholders. At the time of purchase, River One was 100% vacant. After 15 months, or five quarters, the vacancy rate remained high, at 92.7%. With the end of the guaranteed minimum income, the fund’s value dropped by 25.9%, according to Clube FII, a digital real estate investment fund ecosystem. RBRP11 dividends fell from R$ 1.35 to R$ 1.00 and in the following quarter, to R$ 0.81. 

In the graph below, it is possible to track the property’s vacancy performance and return to shareholders since the delivery of River One:  

Even with reduced vacancy, dividend values did not increase, as some new leases had grace periods — estimated at 12 months — affecting dividends in the months ahead. 

Today, three years after the building's delivery, River One has just secured a major lease, and its occupancy rate has risen to 75%. Currently, in the third quarter, the latest yield is around R$ 1.22 per share, according to Clube FII. 

• Read more: Media Company Secures Four Floors in River One, Boosting Office Occupancy to 75%. Get the Details

In contrast to River One's situation, Kinea’s acquisition of 57% of Rochaverá includes a six-year guaranteed income totaling R$ 70.3 million. Market sources view this long-term guaranteed income as evidence that the asset purchased does not offer good prospects for increased returns to shareholders at the time of purchase. 

While River One had a guaranteed income for 15 months, considering the building was being delivered, with no tenants, and in an area still underdeveloped for corporate assets, Kinea's six-year guaranteed income was applied to a building performing well but located in an unstable region with a high vacancy rate, currently around 25%. 

Schneider says that while each fund has its own strategy, guaranteed minimum income “helps integrate a non-performing or partially performing property into a fund that needs income.” 

Another point highlighted by the specialist is the size of the REIT markets today. “The problem was bigger 10 years ago, but it’s still a point of attention. Back then, funds had smaller stocks and values, which increased the risk when acquiring an asset for the portfolio. Often, R$ 300 million funds bought R$ 200 million warehouses, which compromised more than 50% of the equity. That’s when guaranteed minimum income came into play,” he recalls. 

Schneider explains that the larger the fund, the easier it is to incorporate assets into its portfolio and rely less on guaranteed minimum income. “A R$ 10 billion fund won’t feel the impact as much when buying a R$ 500 million asset, unlike a R$ 1 billion fund, which would compromise half of its equity,” he explains.