Brazilian real estate funds show divergent leverage trends

Brazilian real estate investment funds (FIIs) are showing divergent trends in leverage and asset movement. According to a BTG Pactual report, while overall leverage for brick-and-mortar funds has decreased from 2025 to 2026, shopping center funds are an exception, showing increased debt levels. The debt-to-asset ratio for shopping funds rose from 16.5% to 19.5%, with net debt to FFO jumping from 2.2 to 3.3 times. In contrast, the logistics sector has seen improved metrics due to significant investments from retailers like Amazon, Mercado Livre, and Shopee.

Specific fund updates include Hedge Brasil Shopping (HGBS11) completing the sale of a 19% stake in Shopping Jardim Sul for R$ 135.4 million. Patria Malls (PMLL11) concluded its acquisition of a 29% stake in the same mall for R$ 204.2 million, partly through the exchange of shares. Other notable activities involve Kinea Unique (KNUQ11) adjusting its offering schedule, Kinea Oportunidades Real Estate (KORE11) considering share buybacks, and Maua Capital Real Estate (MCRE11) concluding its latest rights issue.