Brazilian REITs (FIIs)

Paper FIIs: CRIs, Receivables, and How to Invest

March 15, 2026

Paper FIIs invest in real estate debt securities (CRIs), not physical properties. They're especially attractive in high interest rate scenarios.

How paper FIIs work

What are CRIs? Real Estate Receivables Certificates are debt securities backed by real estate credits. When someone finances a property, that credit can be "packaged" into a CRI and sold to investors.

Types of indexers: - CDI+: Yields CDI plus a spread (e.g., CDI + 3%). Payments rise when Selic rises. - IPCA+: Yields IPCA plus a spread (e.g., IPCA + 7%). Protects against inflation. - Fixed rate: Fixed rate. Less common in FIIs.

Impact of Selic on paper FIIs: - Selic rises → CDI+ FII dividends increase - Selic falls → CDI+ FII dividends decrease - IPCA rises → IPCA+ FII dividends increase

Paper FII risks: - Credit risk: Borrower may default - Prepayment risk: Borrower pays early, reducing future income - Market risk: Share price can drop in adverse scenarios

In PaxMoney, paper FIIs are automatically categorized, letting you see how much of your portfolio is exposed to paper vs brick.

Frequently Asked Questions

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