FII (REIT) Yield Calculator

How to evaluate a real estate fund (FII)

Brazilian FIIs (Fundos de Investimento Imobiliário) are required by Law 8.668/1993 to distribute at least 95% of semiannual accounting profit to shareholders, in practice paid monthly. Two core metrics: Dividend Yield = (monthly dividend × 12) / share price, expressed annually; and the CDI ratio = DY / CDI, which says whether the fund beats risk-free fixed income. A monthly dividend of R$ 0.85 on a R$ 100 share yields 10.2% per year — at a 10.5% CDI, that's 97% of CDI gross, but the FII is tax-exempt for individuals, so net-to-net the FII wins.

Typical monthly yields sit between 0.5% and 1.0% (6%–12% annualized). Anything dramatically above the band usually flags a problem: vacant tenants, an unsustainable one-off gain, or principal erosion via capital distribution. Always check the management report (relatório gerencial) for vacancy rate, average lease term, and tenant credit quality before extrapolating.

FII categories and Brazilian taxation

FIIs split into four main types: tijolo (brick-and-mortar — shopping malls like XPML11, corporate slabs like HGRE11, logistics like HGLG11); papel (securities — CRI/CRA-backed funds like MXRF11, KNCR11); híbrido (mixed); and fundo-de-fundos (FoF, holding other FIIs — RBRF11, HFOF11). Tax rules (current as of 2026, under review by the tax reform): dividends are income-tax-exempt for individuals if the fund has ≥50 shareholders, the investor holds <10% of the fund, and shares trade on B3; capital gains on share sales are taxed at 20% regardless of holding period, with no monthly exemption (unlike stocks). The IFIX index tracks the most-traded FIIs. Largest funds by assets: KNRI11, HGLG11, MXRF11, BTLG11. FIIs are not covered by FGC.

FAQ

Why is FII yield often quoted monthly? Because distributions are monthly, matching how investors plan passive income. To compare against CDI or Selic (annual), multiply by 12. The compounded annual yield (1+m)^12 − 1 is slightly higher but rarely reported.

Is the IR exemption guaranteed forever? No. The 2025–2026 tax reform discussions included proposals to tax FII dividends at 5%–15%. As of this writing the exemption holds, but check current rules before basing long-term plans on it.

Higher yield = better fund? No. Yield without context is dangerous. A 1.5% monthly DY may signal upcoming vacancy, lease renegotiation, or amortization being distributed as "dividend". Check P/VP (price-to-net-asset-value): around 1.0 is fair; below 0.85 suggests market skepticism; above 1.15, premium for quality or speculation.

FIIs versus owning property directly? FIIs offer liquidity (B3 trading), professional management, geographic and tenant diversification, and lower entry tickets (one share, not one apartment). Direct ownership offers leverage (mortgage), use value, and zero counterparty risk on management. Most FIRE-oriented Brazilians use FIIs for the passive-income leg.