Real estate investment funds: a proposal for dividend distribution in Brazil

• Autores: Fábio Vasconcellos, Arilda Teixeira
• Localización: Cuadernos de Educación y Desarrollo, ISSN-e 1989-4155, Vol. 16, Nº. 2, 2024
• Idioma: inglés
• DOI: 10.55905/cuadv16n2-117
• Enlaces
  • Texto completo
• Resumen

  • This article discusses the current challenges faced by Real Estate Investment Funds (REITs) in Brazil, particularly regarding the mandatory dividend distribution based on the "cash" result, which can pose financial risks for managers, especially when future obligations exist. While this practice benefits passive income for investors, it may jeopardize the financial health of the funds. The Brazilian Securities and Exchange Commission (CVM) is keen on revising the current model but will have to overcome resistance from parts of the market. This article suggests a technological solution inspired by models used in developed countries such as the United States, the United Kingdom, and Spain, where dividends are distributed according to accounting profits with the option for dividend reinvestment. Implementing this model in Brazil would necessitate changes in market regulation and investors adapting to the investment platforms' modus operandi—proper accounting of distributions. This model would enhance transparency in resource management and financial stability for REITs. The article emphasizes the role of technological innovation in evolving Brazil's REIT market.

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