The XPML11 real estate fund announced on March 19, 2025, it will maintain its dividend at R$ 0.92 per share, set to be paid on March 25, marking the 11th consecutive month that this amount has been distributed. Investors wishing to receive the dividend need to ensure they hold their shares of the fund until the market closes on March 18.
This consistent payout is good news for investors, especially since the R$ 0.92 per share rate exceeds the average dividends paid over the last two years, which clocked in around R$ 0.89 per share. A closer look at XPML11’s performance reveals it has distributed R$ 11.03 per share over the past twelve months.
Considering the share's closing price of R$ 95.25 in February, the recently announced dividend represents a monthly dividend yield of 0.966%. While these dividends are beneficial, they are also tax-exempt, meaning investors do not have to pay income tax on the earnings they receive from holding shares of XPML11. This feature makes investments in real estate funds particularly attractive in the current financial climate.
The distribution announced is based on results from February 2025, the specifics of which have yet to be officially disclosed. According to the latest management report available from January 2025, the fund reported a profit of R$ 50.41 million, a decrease from R$ 62.705 million in December 2024. The revenue for January amounted to R$ 59.267 million, predominantly sourced from real estate (R$ 53.136 million), with additional income from fixed income and other real estate funds.
Expenses during the same month totaled R$ 8.857 million. For February, XPML11 paid R$ 50.894 million in dividends, corresponding to the consistent R$ 0.92 per share.
Additionally, the broader financial environment is witnessing strategic movements as analysts anticipate the Copom (Brazilian Monetary Policy Committee) will announce a further increase in the Selic rate, expected at a rise of one percentage point to 14.25% annually. Despite the anticipated rise in interest rates, the real estate investment trust (REIT) market remains buoyant.
For instance, the IFIX index closed at 3,236.94 points on March 18, reflecting a rise of 0.52% compared to the previous day, maintaining a streak of positive performances. Reports indicate that more than 100 funds have distributed dividends recently, fueling investment interest and activity in the sector.
"The recent appreciation of the IFIX seems sustainable, as it’s supported not just by the current level of Selic but also by the prospect of a new cycle of interest rate declines on the horizon," explains Eliane Teixeira, an economist at Cy Capital. This perspective underscores the ongoing allure of REITs for long-term investors seeking consistent returns.
In summary, XPML11's decision to stick with the R$ 0.92 per share distribution reflects not only its reliable performance but also its strategic positioning within a dynamic financial landscape. As investors navigate a rapidly changing market, funds like XPML11 offer a compelling vehicle for income generation, reinforcing the notion that diligent investment strategies can yield sustainable results even amid economic fluctuations.
