BRCO11 — Bresco Logística REIT

(Bresco Investimentos e Gestão Ltda. — CNPJ 20.748.515/0001-81)

Recommendation: BUY · Score 7.7/10 · Price R$ 116.09 · P/BV 1.0006 · 12m DY 9.34%

Analysis and recommendation

BRCO11 remains one of the highest-quality logistics funds on B3, with 14 A+ properties totaling 591 thousand sqm of GLA, 71% in last-mile assets and ~23% of the GLA within 25 km of São Paulo. The tenant base is dominated by top-tier names (Whirlpool, BRF, GPA, Natura, Heineken, Mercado Livre, Pague Menos, Reckitt and Nubank), with 77% classified as Investment Grade after the direct incorporation of Bresco Simões Filho (exit from the SPE structure on 2026-03-26) and atypical contracts representing 37% of stabilized revenue.

The April/2026 Management Report brought a headwind: the return of Bresco Resende (4.6% of GLA) in March, with the prior contract ended at maturity, raised physical vacancy to 11% (Embu 100% + Canoas 53% + Resende 100% + Mall Viracopos 0.4%). On the other hand, there are three material positive signals: (i) Pague Menos renewed its contract for 10 years at Simões Filho (until Apr/2036, 9.1% adjustment); (ii) management reports advanced talks to fully lease the three vacant warehouses (Resende at 1.0x the vacant area, Embu at 2.0x, Canoas at 0.9x); and (iii) average traded volume jumped from R$ 5.7 M/day to R$ 8.9 M/day.

A price near book value (P/BV 1.01), an annualized DY of 9.7% on the 2026-04-30 close, total return of +97.5% since the IPO and accumulated undistributed cash profit of R$ 35.2 M (R$ 1.95/unit) underpin the BUY verdict with a score of 7.6. Vacancy rose, but there is a concrete commercial pipeline across the three vacant properties and the portfolio remains institutional.

Investment thesis

The BRCO11 thesis rests on three pillars: (i) the institutional quality of the portfolio (13 of 14 properties classified A+ by SiiLA, 71% last mile, ~23% within 25 km of São Paulo); (ii) a tenant base now 77% investment grade (vs. 67% in Feb/26, after the direct transfer of Bresco Simões Filho to the Fund and the 10-year Pague Menos renewal) and atypical contracts representing 37% of stabilized revenue; and (iii) specialized, aligned management, with a track record of profitable divestment (GPA CD06) and transformational acquisitions (Viracopos).

At the current moment, the fund offers a DY of 9.7% annualized with the unit at parity with book value, in a structural sector of growing demand and a favorable macro scenario with the Selic rate falling. The return of Bresco Resende in Mar/26 raised vacancy to 11% (Embu + Canoas + Resende), but management reports advanced talks to fully lease the three properties. The main short-term levers are precisely the re-leasing of these three warehouses and the monetization of the Viracopos expansion (15% potential GLA).

Who it is for

  • Investors with a moderate, long-term profile seeking exposure to the premium logistics segment with recognized active management
  • Those who value portfolio quality (A+, last mile, Investment Grade tenants) even paying parity to book value
  • Investors seeking tax-exempt income with a DY of ~9.55% and growth potential tied to recycling and the Viracopos expansion
  • Defensive allocators who prefer atypical contracts (36%) and multinational tenants over higher yields from funds with worse credit

Who it is not for

  • Book-value-discount hunters — P/BV at 1.00 does not offer the classic margin of safety of a discounted REIT
  • Investors who need maximum dividends — a 9.55% DY is healthy, but there are peers with 10%+ DY (albeit with lower quality)
  • Profiles averse to tenant turnover — the 2024-2025 cycle showed multiple terminations even in a premium portfolio
  • Investors who reject leverage — the new R$ 247 M CRI brings material financial expenses and raises LTV to 11.8%

Attention points and risks

Mercado Livre under renewal at Bresco Bahia (confirmed Apr/26)

The contract with Mercado Livre at Bresco Bahia (the property's largest tenant, occupying 58.7 thousand sqm) expired on 2026-04-08 and remains under renegotiation with an undetermined term — a status confirmed in the April/2026 Management Report (ID 1201593). An exit or reduced rent would have a material impact: Mercado Livre's share of revenue ranges between 7% (Management Report) and 11-16% (community estimates by property). Awaiting a Material Fact.

GPA in out-of-court reorganization (Mar/26)

Grupo Pão de Açúcar (GPA), 7% of BRCO11's revenue (typical contract until 2031 at the GPA CD04 São Paulo property), had its out-of-court reorganization granted by the 3rd Bankruptcy Court of SP on 2026-03-10 to restructure R$ 4.5 Bn in debt. A new plan approved by the board on 2026-05-06 provides for a reduction of more than 50% in the total amount and an average term extended to 6.4 years. Risk of default or rent renegotiation.

Vacancy of 6.2% concentrated in Canoas and Resende

After Bresco Embu was fully leased to Expresso 3300 on 2026-05-26 (3 years, 7.6 thousand sqm warehouse + 14 thousand sqm yard), physical vacancy fell from 11% to 6.2%. Remaining: Bresco Canoas (53% vacant, 3.0% of GLA) and Bresco Resende (100% vacant, 4.6% of GLA — returned in Mar/26). Management reports advanced talks to lease Resende (1.0x the vacant area) and another 16 thousand sqm in Canoas (0.9x). The pipeline remains active, but maturation takes quarters.

Non-recurring revenue: Bresco SP installments until Jun/2027

Since Jul/2023, real-estate revenue includes 48 monthly CDI-adjusted installments from the sale of the Bresco SP property (GPA CD06) to JBS. Current amount: ~R$ 3.98 M/month (~R$ 0.22/unit). Last installment expected in June/2027. After that date, recurring results lose ~R$ 0.22/unit absent a new asset sale or compensating lease. The manager's track record includes at least one profitable sale (Bresco SP, 2023), but the timing of the next one is uncertain.

Cycle of early terminations in 2024-2026

Successive exits by Americanas (Contagem), FM Logistic (Canoas), MRO (Embu), WestRock (Itupeva) and the return of Bresco Resende in Mar/26 pressured vacancy and required commercial recycling. Indemnities contributed to revenue on a one-off basis, but expose the risk of concentration in few tenants per property.

Recently contracted leverage for acquisitions

The 6th offering and the R$ 252.8 M CRI (IPCA + 8.1% p.a., maturing Dec/2030) to acquire Bresco Viracopos and Bresco Simões Filho raised securitized obligations. LTV in Apr/26 stands at 11.9% (was 11.8% in Feb/26). Financial expenses rose from R$ 117 thousand (Oct/25) to ~R$ 1.8 M/month.

Market price at parity with book value

A P/BV of 1.01 eliminates the margin of safety typical of discount scenarios. The fund captures a quality premium (Bresco management, A+ portfolio) that is already reflected in the price, limiting short-term book-value appreciation upside.

Typical contracts predominate in revenue

63% of contracts are typical (under the Tenancy Law), subject to revision/termination with limited indemnity. Only 37% are atypical (built-to-suit), reducing long-term predictability vs. peers such as HGLG11 and LVBI11.

Average term of 4.8 years declining gradually

WALE recovered marginally from 4.7 (Feb/26) to 4.8 years (Apr/26) after the 10-year Pague Menos renewal at Simões Filho. Even so it remains below the 5.0 years of Feb/25, and ~31% of contracts mature in 2026-2028, requiring active renewal management.

Dividend sustainability

The fund is in a positive trend: DPS rises gradually as new recycling contracts (Correios, M. Dias Branco, Nubank, Reckitt expansion, Fedex amendment) take effect. Cash at end of Mar/26 of R$ 58.6 M covers 35+ months of financial expense. Accumulated undistributed cash profit of R$ 35 M (R$ 1.95/unit) is a relevant buffer. No sign of disruption in the next 12-24 months, except a tail scenario of Mercado Livre not renewing in Bahia.

About the manager

Bresco Investimentos e Gestão is an independent manager specialized exclusively in the logistics/industrial segment, with active and integrated involvement in leasing, development and asset management. The fund holds a 100% stake in all properties — a sign of alignment with unitholders and operational maturity.

The post-IPO track record includes total return of 104.1% vs. 34.1% for the IFIX, the profitable divestment of the Bresco São Paulo property (GPA CD06) for R$ 325 M in 2023, and the recent acquisition of Bresco Viracopos (7 stabilized assets) and Bresco Simões Filho via the 6th offering. Hiring S&P Ratings (brAA+) to rate the fund and the CRIs reinforces institutional governance.

See the full analysis of the manager Bresco Investimentos e Gestão Ltda. →

Conclusion

The Bresco Logística REIT is, across the 294 documents analyzed, one of B3's highest institutional-quality logistics REITs: 14 properties (13 classified A+), 591 thousand sqm of GLA, 71% in last-mile assets, ~23% within 25 km of São Paulo and 67% of revenue from tenants with an investment grade rating. Bresco management holds a 100% stake in all assets, does not use structural Minimum Guaranteed Income and has a proven value-creation track record — the profitable divestment of Bresco São Paulo in 2023 (R$ 325 M) and the transformational acquisitions of Osasco/Murici (2024) and the Viracopos + Simões Filho complex (2025).

From a fundamentals standpoint, the fund presents net assets of R$ 2.10 Bn (R$ 116.31/unit), stabilized annual revenue exceeding R$ 214 million and accumulated undistributed cash profit of R$ 35 M (R$ 1.95/unit) — an important reserve to smooth distribution fluctuations. The 6th offering brought moderate leverage (LTV 11.8%) via a CRI with an S&P brAA+ rating (IPCA+8.1%, 5 years), raising financial expenses to ~R$ 1.8 M/month, but enabling the incorporation of 7 stabilized assets in Campinas.

In the short term, the main catalysts are: (i) the decision on the Mercado Livre renewal at Bresco Bahia (May-Aug/2026) — the biggest risk/opportunity; (ii) the re-leasing of Bresco Embu (advanced talks for a full lease) and Bresco Canoas (talks for 16 thousand sqm); (iii) the monetization of the 15% GLA expansion potential (~90 thousand sqm in Viracopos). In a macro scenario of a falling Selic (14.75% → projected 11% by the end of 2026), premium logistics REITs tend to lead the IFIX recovery, favoring unit appreciation.