Inter Asset's logistics-focused Real Estate Investment Fund (FII), LGCP11, recently made headlines with its latest dividend payout of R$ 0.73 per share in July, marking a 21.7% increase from the R$ 0.60 per share distributed in April 2023.

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Despite this substantial growth over just one year, the fund’s managers predict that upcoming dividends could reach as high as R$ 0.82 per share—an impressive 36.7% increase compared to the April 2023 figures.

But what's driving this growth?

To uncover the strategies behind LGCP11's rising dividends, REsource spoke with Mauro Lima, Managing Partner at Inter Asset, who shed light on the factors contributing to the fund’s appreciation and offered insights into its short-term outlook.

"We've been focused on making the portfolio more efficient, a strategy we refer to as active management. Essentially, it's about recycling the fund's assets to maximize returns," Lima explained.

A key part of this strategy was the fund's first sale, which involved divesting its 46.25% stake in the Goiânia property. The transaction is subject to certain conditions being met.

According to a statement from LGCP11, the property will be sold at its book value, representing a 12% premium over the original purchase price. The fund projects that this sale could result in an additional distribution of R$ 3.54 per share, expected to benefit shareholders in the months following the transaction's completion.

“The Goiânia property was the largest in our portfolio in terms of square footage, but it generated the least revenue. We’re advancing with due diligence, have submitted the transaction to the Administrative Council for Economic Defense (CADE), and have communicated with tenants. We expect to finalize the transaction by September,” Lima noted.

In another move, LGCP11 recently secured a new lease for 1,747 square meters in the Gaiolli property, where the fund holds a 48.8% stake in the Gross Leasable Area (GLA). According to Clube FII, a specialized real estate investment fund website, the new lease was signed at a rate 17% higher than the previous one.

Currently, the fund's entire portfolio is fully occupied, with a 0% vacancy rate. Below is a breakdown of the warehouses and LGCP11’s ownership percentage in each: