XP Investimentos recommends Guardian Real Estate (GARE11) for purchase

XP Investimentos has initiated coverage of the Guardian Real Estate real estate fund (GARE11) with a buy recommendation. The brokerage set a price target of R$ 9.33 per share, suggesting a 6.5% upside from its current value of R$ 8.76.

Analysts highlighted the fund's predictable earnings, high-quality properties, and active portfolio management as key strengths. However, they issued a cautionary note regarding the concentration of revenue among a few tenants and a lack of portfolio diversification.

The fund is projected to yield an estimated 11.4% in dividends over the next 12 months, with monthly distributions expected to remain between R$ 0.083 and R$ 0.090 per share. Since its inception in 2020, GARE11 has accumulated a return of 44.8%, outperforming both the IFIX and the IFIX Tijolo indices.