#GARE11: NOVO RELATÓRIO GERENCIAL, COMO FICARÃO OS DIVIDENDOS EM 2025? ALAVANCAGEM VAI SUBIR?

Summary

In this detailed analysis of GAR11's performance for November 2024, the fund's recent developments are explored, including its asset revaluations, the sale of the BRF Visa property, and the acquisition of 15 Carrefour properties. Despite a drop in share price, GAR11 shows signs of recovery, with a growing dividend payout and strategic asset management aimed at strengthening its portfolio. The fund’s financial structure is improving through asset sales and new share issuance, though its leverage may rise again with recent acquisitions. The outlook for 2025 remains positive, with expected increases in rental income and dividends.

Takeaways

• 😀 Gar 11 closed December 2024 at R$ 8.50, with an annual dividend yield of 11.36%, indicating potential for appreciation as it's currently undervalued (P/B ratio of 0.93).
• 😀 The fund saw a significant drop in its price in November 2024, reaching a historic low of R$ 7.90 but has since recovered, showing signs of stability.
• 😀 Gar 11 has nearly 280,000 cotistas and a net asset value (NAV) of R$ 9.16, reflecting a 5.2% increase in the valuation of some of its logistics properties.
• 😀 The fund's BRF Visa property is in the process of being sold, potentially generating R$ 67 million in profits and reducing the fund's debt by R$ 145 million.
• 😀 In December 2024, Gar 11 completed the acquisition of 15 properties from Carrefour, diversifying its portfolio with both logistics and urban rental assets.
• 😀 The fund has been increasing its dividend payouts, with the latest distribution being R$ 9.2 per share, and there is potential for further increases in 2025.
• 😀 Gar 11 is expected to benefit from rental adjustments on its properties in 2025, with significant increases projected in April and July due to major tenants.
• 😀 The fund’s financial position is strong, with the November 2024 result showing a positive net income (R$ 11.73 million), which exceeds its dividend distribution.
• 😀 Despite not initially planning a new issuance of shares, Gar 11 raised R$ 194 million through a secondary offering to maintain financial stability.
• 😀 The fund’s leverage decreased to 14%, but it is likely to rise again with the recent Carrefour acquisitions, although it has sufficient cash reserves to manage its debt obligations.

Q & A

What is the Gar 11 fund's performance in November 2024?

In November 2024, the Gar 11 fund performed with a significant decrease in its share price, reaching a low of R$7.90 on December 19, 2024. However, it managed to recover slightly, with the share price closing at R$8.50 on December 30, 2024. Its 12-month yield was 11.36%.

What does the Gar 11 fund's current price-to-book (P/B) ratio indicate?

The Gar 11 fund has a price-to-book (P/B) ratio of 0.93, meaning the fund's shares are currently trading below their estimated fair value based on the fund's net asset value.

How is the Gar 11 fund performing in terms of dividend distribution?

The Gar 11 fund has been steadily increasing its dividends over the past 12 months. The most recent distribution was R$0.09 per share, and there's a possibility of further increases in 2025, especially with the sale of assets and adjustments to rental contracts.

What impact will the BRF Visa asset sale have on Gar 11?

The sale of the BRF Visa asset is expected to generate an estimated gross profit of R$67 million for the Gar 11 fund. Additionally, the sale will reduce the fund's liabilities by approximately R$145 million, which will help decrease the fund's leverage.

How does the Gar 11 fund's acquisition of Carrefour properties affect its portfolio?

The acquisition of 15 Carrefour properties in December 2024 significantly expanded Gar 11's portfolio. This will result in increased rental income starting in January 2025, with Gar 11 now managing a portfolio of 40 properties, including both logistics and urban rental assets.

What is the significance of Gar 11's lease contracts?

Gar 11 has long-term, 100% atypical lease contracts with its tenants, meaning that if tenants leave before the contract ends, they must pay the full remaining rent. This structure provides financial stability and ensures consistent income for the fund.

How did the Gar 11 fund handle its latest equity issuance?

Gar 11 launched its sixth equity issuance to raise capital, but it fell short of its target. While the goal was to raise R$450 million, the fund raised only about R$194 million. Despite this, the issuance helped reduce leverage and ensured the fund's financial flexibility for future investments.

What is the current leverage situation of Gar 11?

As of November 2024, Gar 11's leverage stood at 14%, a decrease from 24% earlier in the year. However, the leverage is expected to increase again due to the recent acquisition of Carrefour properties, which added R$725 million in debt to the fund's balance sheet.

How does Gar 11 plan to adjust its rents in 2025?

Gar 11 plans several rental adjustments throughout 2025, starting in January with two properties. The fund regularly adjusts rents based on the CPI (Consumer Price Index), which is expected to positively impact its revenue. These adjustments will help improve the fund’s cash flow.

What should investors be aware of regarding Gar 11's liquidity?

Gar 11 maintains excellent liquidity, with an average daily trading volume, meaning investors should have no difficulty buying or selling shares. However, it's important to monitor the fund's leverage and potential risks associated with debt, especially after the recent property acquisitions.