The dynamics of the financial market are not simple, much less predictable; there are projections and speculations, but they are not 100% certain. Some funds perform well, while others do not, as is the case with RECT11, a real estate investment fund by REC.

Data from Clube FII shows that over the last 12 months, RECT11 has experienced a negative variation of 27.09%*. In a conversation with fund representatives, they attributed these numbers to two external factors: 1) high interest rates; and 2) the way the Brazilian real estate market is priced.

According to the Brazilian Central Bank, the Selic, the basic interest rate, fell by 3 percentage points over the last 12 months, dropping from 13.75% to 10.75%. According to the manager, the rates did not have an ideal reduction, and this has affected not only RECT11 but also other office funds.

"With the country's high interest rate, everyone compares REITs with the CDI, which has close to zero risk, impacting all investment alternatives with some type of risk, such as real estate. Interest rates are falling, but more slowly than expected. So I think this is a factor that hinders, especially office funds," they commented.

The second point that would explain the movement of the REIT is pricing. According to the managers, the market prices funds based on dividends, and although important, they believe this should not be the main metric for evaluating an asset.

"In general, real estate funds are priced based on the dividend being paid. In quotes, today it matters little what is inside the fund. Ideally, it would be to understand what the real value of the asset is, what the replacement cost is, and other value metrics, in addition to the dividend," they argue.

A fictitious REIT that is paying 10% per year is given as an example; it is well-priced, but you can also look at the square meter, the value of the brick. Only then can you understand the absurd values ​​found in other funds, such as possible improvements to be made in assets.

"It's like a stock, it's not priced just because of the dividend, there are several other factors, REITs should be the same. The dividend should be one of the components of the analysis, not the only one," they add.