BRCO11 - DE OLHO NAS MOVIMENTAÇÕES

Summary

In this video, the host provides an update on Bresco, a logistics fund with high-quality warehouses. The fund is currently priced around R$108, with an 87-cent distribution per share, offering a solid 10% annual return. Despite its relatively small portfolio, Bresco focuses on premium properties, making it a high-value player in the logistics market. The fund's financials are strong, with a low vacancy rate and no leverage, providing investors with a stable, low-risk option. The report also discusses upcoming vacancies, tenant diversification, and contract maturity, highlighting the fund's positive outlook.

Takeaways

• 😀 Bresco's latest report is significantly improved compared to previous ones, allowing for monthly monitoring again.
• 😀 Bresco's price is currently stuck at R$108, with a 10% annual distribution yield, making it an attractive investment.
• 😀 The fund consists of 12 warehouses covering 470,000 m² of EBL, which is considered small but high quality.
• 😀 Bresco is a small fund with a value of almost R$2 billion, focused on high-standard warehouses with a higher added value.
• 😀 38% of Bresco's contracts are atypical, and 82% of tenants are on a triple rate basis.
• 😀 Vacancy rate is currently at 4.5%, with specific warehouses facing upcoming vacancies, but potential new tenants are in negotiations.
• 😀 The fund's profit for the first half of the year was R$15.7 million, with 86% of revenue distributed, signaling strong dividend performance.
• 😀 The fund has a low vacancy rate of 6%, and there are significant future opportunities in warehouse leasing.
• 😀 Bresco has zero leverage, making it a safer investment in the context of high interest rates in Brazil.
• 😀 The fund's portfolio consists of 64% high-quality, last-mile warehouses, and its client diversification includes major companies like Natura and Mercado Livre.
• 😀 There are some upcoming contract expirations in the next year, but overall, Bresco's contract profile is stable and predictable.

Q & A

What is the current price of Bresco, and how has it been performing recently?

Bresco is currently stuck at around R$108. It went up from the 90s and has remained at this price level, which is relatively stable.

How much does Bresco distribute in dividends, and what is the annual yield?

Bresco distributes a dividend of 87 cents per share, which represents a 10% yield per year.

What is the total size of Bresco's real estate portfolio?

Bresco's portfolio consists of 12 warehouses with a total of 470,000 m² of EBL (Effective Built-up Area).

Why is Bresco considered a high-quality fund despite having a smaller portfolio?

Bresco is considered high-quality because its warehouses are of a very high standard, despite the smaller portfolio. These warehouses have higher added value compared to those in larger funds with more space.

What is the average contract term for tenants in Bresco's portfolio?

The average contract term for Bresco's tenants is 5 years.

What is the vacancy rate for Bresco, and are there any notable vacancies?

Bresco's vacancy rate is currently at 4.5%. Notably, there are some upcoming vacancies in August, such as Americanas at Brasco Contagem and FM Logistics in Canoas, but there are prospects to fill these spaces soon.

How well has Bresco been performing in terms of revenue and profitability?

Bresco has performed well, with a profit of R$15.7 million and a distribution of R$13.8 million. It has paid out 86% of its revenue in the first half of the year, reflecting a strong dividend delivery.

How much cash profit has Bresco accumulated per share, and what is its liquidity?

Bresco has accumulated a cash profit of R$1.64 per share. The fund has a stable liquidity, with an average of R$3 million in trades and around 120,000 shareholders.

What is the level of leverage in Bresco, and why is it important?

Bresco has minimal leverage, only 1%. This is important because it means the fund has low financial risk, especially in a high-interest-rate environment like the current one in Brazil.

What are the major tenants in Bresco's portfolio, and how does this impact the fund?

Bresco's major tenants include Natura (19%) and Mercado Livre (15%). While these concentrations could pose a risk, the fund maintains a diversified portfolio that helps mitigate this.