ICRI11

What it is

ICRI11 is a listed real-estate investment fund — a Brazilian FII — whose purpose is to buy bonds backed by real-estate receivables (CRIs), seeking long-term returns through private credit; it is categorised as a “paper” fund with active management, run entirely within the Itaú Asset Management group.

The stated goal is to beat inflation-linked government bonds by 1.50 to 2.50 percentage points a year — in other words, keep investors ahead of Brazilian consumer prices without the volatility of equities. The strategy sits mainly in CRI bonds, complemented by positions in other real-estate funds and cash.

The fund was constituted on 3 October 2023, and began trading on the B3 exchange on 19 February 2024. It is regulated and supervised by Brazil’s securities regulator, the CVM, and is open to all investors — individuals and institutions alike.

Income distributions are paid on the 8th business day of each month and are exempt from income tax for individual Brazilian investors.

Who owns it

ICRI11 is a Brazilian condomínio fechado — a closed-end fund with no single controlling shareholder in the corporate sense. Its 3,857,359 units are spread across 11,851 individual and institutional unitholders.

Ownership is diffuse; the free float is effectively 100% of units outstanding, as is standard for Brazilian listed FIIs.

The institutional parent behind the scenes is Itaú Unibanco, Brazil’s largest private bank. The fund is administered by INTRAG DTVM (a licensed Itaú group entity) and managed by Itaú Unibanco Asset Management, with a management fee capped at 1.00% per year of net assets and no performance fee.

Who runs it

The fund is administered and managed by Itaú Asset Management, Itaú Unibanco’s asset management arm. The administrator of record is INTRAG DTVM Ltda.

(CNPJ 62.418.140/0001-31), reachable at [email protected].

The named fund manager (gestor) at the individual level is not disclosed in available public filings; all management communications are published under the Itaú Asset brand. The team’s role covers origination, structuring and ongoing monitoring of each credit operation.

The money, in plain words

This is a credit fund, not an operating company, so its “revenue” is interest collected on the bonds it holds. As a FII of Securities with active management, essentially all income flows through to unitholders.

Over the twelve months to May 2026, the fund collected roughly R$56.9 million (≈ US$10.9 million) in interest and other income, kept R$52.5 million (US$10 mn) after costs — a net margin of ~92% — and distributed R$31.67 (US$6)per unit in cumulative dividends over the fund’s life to date (our calculations).

The May 2026 manager’s letter shows a portfolio net asset value of R$393.0 million (≈ US$75.5 million), while units on the B3 trade at R$95.98 (US$18)— putting the market capitalisation at about R$370 million (≈ US$71 million, our calculation). That means buyers today pay roughly 94 cents for every real of underlying assets — a P/Book ratio (P/VP) of 0.94 — a modest but real discount that partly explains the eye-catching yield.

ICRI11 pays dividends monthly; over the last 12 months it distributed R$11.95 (US$2)per unit in total, averaging R$1.00 (US$0.19)per month, producing a trailing dividend yield of 12.59%. The manager’s May 2026 letter reports the current annualised yield at 14.65% on market price — high by any developed-market standard, though Brazil’s own benchmark rate (Selic) sits above 13%, which anchors all domestic yields at elevated levels.

The portfolio is well-diversified: roughly 89% in CRI bonds, with the rest in other listed real-estate funds and cash. Segments span residential developers, logistics warehouses, shopping centres, rural producers and distributed solar energy, with no single name exceeding about 7% of assets.

What it is doing now

In May 2026, the management team actively reshuffled the book. CRI-backed funds like ICRI registered smaller price adjustments than broader equity funds, because they benefit, over time, from a high-interest and high-inflation environment.

The team closed its position in a distributed-energy CRI from AXS and bought two new positions: a built-to-suit logistics CRI backed by a Mercado Livre warehouse near Florianópolis at IPCA + 9.48% per year, and a residential CRI from MRV at CDI + 2.05%, fully guaranteed by MRV against any default.

The fund closed June 2026 with a reserve of R$2.99 (US$0.57)per unit, providing a cushion for future distributions even after a one-off valuation impact from a position in another fund (MAGOPPF) that will appear in the June figures — the manager has signalled no effect on dividend payments ahead.

What to watch

• Interest-rate path: ICRI’s income rises when Brazil’s Selic and inflation stay high, because most of its CRI bonds are indexed to IPCA (inflation) or CDI (the overnight rate). A rate-cutting cycle compresses yield.
• Discount to book (P/VP 0.94): The market currently pays less than the assets are worth on paper. If confidence returns and the gap closes, unitholders gain both income and capital appreciation; if it widens, the reverse.
• Credit quality: The fund has so far closed months with 100% of operations current on payments, but the portfolio leans heavily toward smaller Brazilian developers and niche segments — a credit event in any of the larger names would be felt.
• Fund size: At under R$400 million (US$77 mn) in net assets, ICRI11 is a boutique by Brazilian FII standards. Rapid growth through new share offerings could dilute yield if fresh capital is deployed slowly.
• Tax advantage sunset risk: The income-tax exemption for individual holders is a legal privilege, not a constitutional right; any change to Brazilian tax law affecting FIIs would alter the fund’s relative attractiveness overnight.

This is news, not investment advice.