HGLG11: the Brazilian logistics 'brick' FII's 9.6% — an honest yield that sits below the risk-free rate
Composite-board score: 5.2 · Where it is strong: Net cash flow, Hands-off degree · methodology
Against the papel funds (entry No. 81), HGLG11 (Patria Log) is a brick fund of physical logistics warehouses: its distributions come from real rent, with no indexation dressing to split. Its November 2026 distribution of R$1.17 per quota (B3/CVM calendar) annualises to about 9.6% gross at the R$146.52 price; after the non-resident 20% IRRF, about 7.7% in hand (in reais). The characterisation is in the title: that 9.6% sits below the Selic's 13.75% — in Brazil, a brick fund's current income failing to beat the risk-free rate is not a scandal but rate-regime arithmetic; the reasons to hold it are rent growth and asset value (warehouse valuations compressed by a 13.75% discount rate carry re-rating room if rates fall), not reigning current income. The other half of the characterisation: part of the yield fell out of price (a 52-week range of 143.39–161.99, about −7.3% over 12 months). The segment cross-check, KNRI11 at R$1.10 monthly (0.73% monthly DY), reads consistently. Verdict: do, on conditions, positioned as Brazil's low-illusion pole: its rate exposure is the mirror image of the papel funds' (cuts flatter its valuation and relative appeal), and the pair together is the Brazil page's complete shape. Access friction matches entry No. 81 (CMN 4,373).
In short: four lines first
Listed quotas, at about R$146.52 (a 4,373 non-resident account required)
9.6%（HGLG11 logistics brick FII gross distribution yield (B3/CVM announced basis)）
Fairly hands-off (listed route; account and tax arrangements are heavier)
Rates staying high for long: if the Selic remains in double digits, warehouse valuations stay compressed by a 13.75% discount rate, and rent growth must first outrun the discount rate's drag before total return turns positive.
The numbers that matter
Why we think it makes money
It is the Brazil page's composition control group: rent-backed distributions need no indexation split and no reserve top-up check — the brick's value is not a higher yield but a verifiable yield substance.
'Below the risk-free rate' is the starting line for pricing any Brazilian asset: printing 9.6% and 13.75% on the same screen tells the reader instantly that a brick fund buys rent growth and a rate-cut option rather than current income — this site refuses to let any Brazilian yield appear without the Selic beside it.
Paired with the papel funds it forms a rate-exposure hedge pair: when the Selic falls, papel payouts shrink while brick valuations rise — presenting both lets the reader choose an exposure direction from a complete toolkit instead of betting a single path.
How to actually get in
- Listed route: after CMN 4,373 non-resident arrangements, buy HGLG11 quotas on B3 (about R$146.52 per quota; market cap about R$5.38B, daily traded value about R$16M). Distributions are monthly with 20% withheld; the capital-gains exemption basis matches entry No. 81.
What it costs, what it earns
Entry amount: Listed quotas, at about R$146.52 (a 4,373 non-resident account required)
How much work for you: Fairly hands-off (listed route; account and tax arrangements are heavier)
- Real exposure as in entry No. 81: size it as a currency position.
- The stated opportunity cost: an in-hand ~7.7% against a 13.75% Selic — the spread paid during the hold is the price of the rent-growth and re-rating option; recognise it before buying.
Basis: this site uses full-cost net returns only — income minus vacancy, management, maintenance, taxes and insurance, then financing interest, with entry costs in the denominator. See the methodology。
Identity & tax
Status (residency / citizenship)
This asset does not count toward the channel This asset leads to no status
Threshold: 城市房产 ≥R$100 万（北部/东北部 ≥R$70 万），自有外资汇入
持有 FII 份额不给任何身份。巴西的房产居留是 CNIg 规范决议 36/2018（经 RN 46/2021、RN 49/2024 修订）：以境外汇入的自有资金购买城市房产 ≥R$100 万（北部/东北部 R$70 万）、资金经央行授权机构入境登记，得 4 年居留许可、其后可续/转。企业通道另有 RN 13/2017：投巴西公司 R$50 万（永居）或创新/初创 R$15 万。RN 36 已列入本站身份枢纽待评分队列。
Source: CNIg RN 36/2018；RN 13/2017
Tax (investor level)
FII 分派：居民个人在条件内免税（基金须交易所挂牌、≥50 名持有人、个人持 ≤10%）；非居民没有免税——分派预扣 20% IRRF。经交易所出售份额的资本利得对 CMN 4,373 制度下、非低税辖区的非居民投资者免税（低税辖区居民各类所得 25%）。
- 税改状态（本站已核）：MP 1.303/2025（拟对居民 FII 所得征 5%、统一 17.5%）已于 2025-10-08 被众议院移出议程而失效——2026 年 FII 税制不变；仍在印「5%/17.5% 即将实施」的材料是旧的。
- Law 15.270/2025（2025-11-26 颁布）自 2026 年 1 月对非居民股息设 10% 预扣，但交易所挂牌、≥100 名持有人的 FII/Fiagro 分派据律所对颁布文本的解读在排除清单内——FII 维持其专门税制（非居民 20%）；此点以官方公报文本为最终准。
Double-tax treaties: 巴西与新加坡无税收协定适用于此项的减免——到手数按 20% 全额推导。
Source: EY 税务简报；PwC/Mayer Brown 对 Law 15.270/2025 的解读；Lei 8.668/1993
This section is general information only — not immigration or tax advice. Program rules change frequently; before acting, rely on the official texts and a licensed adviser.
Risks: what could go wrong
What we have not verified yet
The following key figures have not yet been verified; the reason is noted for each item.
- The 9.6% is this site's annualisation of the November announced distribution: HGLG11's monthly amount is comparatively stable but not fixed — each month follows the B3/CVM announcements.
- The ~7.7% in-hand figure is a derivation after 20% withholding, excluding FX and home-country tax.
FAQ
- At 9.6% it cannot even beat the 13.75% risk-free rate — why is it on the board at all?
- Because the cash-flow board ranks 'citable real cash and its substance', not spreads over the home sovereign — otherwise, under a 13.75% Selic, no Brazilian asset could ever appear, while Brazilian rents and assets demonstrably exist. It appears as a conditional entry with 'below the risk-free rate' written in its title: this site's readers are entitled to know what Brazilian physical assets' current income looks like and to decide for themselves whether they want the rate-cut option. Packaging it as a '9.6% high yield' would be the dereliction.
- Brick or papel, if Brazil gets only one slot?
- It depends on the exposure wanted: for current nominal cash, accepting a floating rate and indexation components, take papel (entry No. 81, about 11% in hand, shrinking as rates fall); for physical assets, rent substance and a rate-cut re-rating option, take brick (about 7.7% in hand, currently trailing the risk-free rate). Their real-denominated risk is identical and undiversifiable between them — this site presents the pair so the choice appears in its complete shape.
- Are Brazilian logistics warehouses overbuilt?
- This site cites no vendor verdict on Brazilian logistics over- or under-supply — that cell stays empty. What is citable is the price signal: the fund's units sit near 52-week lows, and part of the 9.6% yield fell out of price. Supply/demand judgments should be checked period by period against the fund reports' vacancy and rent data; this site does not endorse vendor reports.
Related opportunities
Get the free one-page brief
Get the one-page brief / subscribe for updates
Leave a contact and this page will immediately show a time-limited download link for the brief (valid 24 hours). This site only sends information — it will never pitch you a specific project or pass your contact to any project party.
Received — thank you.
Your brief download link: Download the one-page brief (PDF/HTML) (valid for 24 hours; submit again after it expires).
Updates are sent only after the monthly briefing launches, and every email carries an unsubscribe link. To have your contact details deleted, contact us as described in the Privacy Policy.