A recent report from InfoMoney  highlighted a growing incidence among Brazilian commercial real estate investment funds (like REITs) defaulting on interest payments on properties. Real estate funds Panamby (PABY11) and RSB1 will not pay their dividends for the month of February, according to a statement from their managers Brascan and NSG Capital.

Brascan, manager of Panamby, said the earnings will not be paid because the fund recorded expenses greater than revenues in the first month of the year, preventing the payout.

Just two weeks ago, two other real estate funds announced their own problems with income distribution. Europar (EURO11) and Caixa TRX Logistica Renda (CXTL11) said the dividend payment will be significantly lower because of default by their properties’ tenants.

Let’s hope this trend doesn’t catch up, otherwise it will hurt a lot of investors.

Source: InfoMoney

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2 Responses to Brazilian REITs starting to unravel? Four real estate funds default on payments within two weeks

  1. speculate this says:

    I guess that is why the Government just removed the IFO tax on foreign investments for REITS, the are running out of suckers to invest in these things and the GOVT is probably desperate to stop the hot air from leaking out of the real estate bubble

  2. speculate this says:

    I guess that is why the Government just removed the IFO tax on foreign investments in REITS, as they need more suckers to stop the air from leaking out of the real estate bubble

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