REIT Dividend Yield

FII dividend yield: what the number means

A FII (Fundo de Investimento Imobiliário) is a real-estate trust traded on B3. Most of them own offices, logistics warehouses or shopping malls, and some hold real-estate-backed paper (CRI) instead of physical property. Under Law 8.668/1993 and CVM rules, the fund has to distribute at least 95% of its taxable income as monthly dividends. The dividend yield is just DY = dividend / share price. Take a R$ 0.85 monthly dividend on a R$ 110 share: that works out to DY 0.77% per month, or roughly 9.6% per year. Healthy FIIs tend to sit at 0.5-1.0% per month (6-12% a.a.). When you see numbers above 1.2%, it usually means one of three things went wrong: the property quality slipped, vacancy climbed, or the share price is sliding. Right now dividends are IR-exempt for individuals (though the ongoing tax-reform debate could change that), while capital gains on share sales are taxed at 20%. Some of the better-known names are KNRI11, HGLG11, MXRF11.

Use cases

Building a passive-income portfolio, keeping an eye on IFIX (the FII index), or planning cash flow for a FIRE goal. People usually compare DY across sectors — logistics against paper against malls — and check the result against Selic and IPCA + 5% as a real-rate hurdle.

FAQ

Is the dividend really tax-free? For now, yes, if you're a PF holding B3-listed FIIs that have at least 50 quotaholders and where no single investor holds more than 10%. Tax reform could undo that, so keep an eye on the latest legislation.

Is a high DY always good? No. When the DY runs above 1.2-1.5% per month, it's often the share price sinking — the denominator drops faster than the dividend. Look at vacancy, leverage and when the contracts come up for renewal before you get excited.

Past DY vs forward DY? Historical DY adds up the last 12 months of dividends; forward DY is a guess at the next 12. The forward number works fine for funds with predictable contracts, but it's shakier for paper FIIs whose payouts ride on CDI/IPCA.