HGRU11 — Pátria Renda Urbana FII

(formerly CSHG Renda Urbana)

Recommendation: ACCUMULATE · Score 7.4/10 · Price R$ 127.33 · P/BV 0.988 · 12m DY 8.6%

Analysis and recommendation

HGRU11 is one of the largest and most diversified urban-income REITs in Brazil — 100 properties across 16 states, 0.8% vacancy, Pátria management with a track record of 182.4% cumulative since 2019 (14.5% p.a.) and IRR > 100% on recycling sales. The much-touted "13.8% DY" thesis is a statistical illusion: the recurring DPS is R$ 0.95/month, generating a real DY of 8.8% on book value — but Pátria now projects DPS growing to R$ 0.97 (short term) and R$ 1.01 (medium term), with a target DY of 9.0% after full allocation of the 6th offering's capital. Window open: the preemptive right starts 2026-05-29 and runs through 06/11 (B3) / 06/12 (bookkeeper), with subscription at R$ 128.99/unit vs. the market's R$ 131.09 (~1.6% discount). Pipeline already identified with ~27 assets. The coordinators' commission is borne by Pátria, not by the fund. Good for those who already hold it — and attractive for those entering now to take advantage of the preemptive right.

Investment thesis

HGRU11 is the most diversified urban-income REIT in Brazil — 100 properties, 25 tenants, 16 states, 0.8% vacancy. Pátria management delivers proven operational excellence: 182.4% cumulative since 2019 (14.5% p.a., +9,930 bps over IFIX), historical average P/BV 1.00x and average IRR > 100% on recycling sales (Advertising Material, document 1201805). The SQR Q4/2025 confirms structural robustness: 98.55% contracts > 36 months, 99.36% IPCA, quarterly result R$ 1.25/unit/month. For the 6th offering, the manager projects DPS growing from R$ 0.95 to R$ 0.97 (short term) and R$ 1.01 (medium term), with a target DY of 9.0% after full allocation and a pipeline of ~27 assets already identified. The much-touted "13.8% DY" thesis is a distortion — the real figure is 8.8%. The unit at R$ 131 and P/BV 1.02 with no discount, but the preemptive right open from 05/29 to 06/12/2026 offers subscription at R$ 128.99 (~1.6% discount vs. the market).

Who it is for

  • Investors who want stable monthly income of R$ 0.95/unit with institutional management
  • A moderate profile that values geographic and sector diversification
  • Those seeking exposure to essential retail (food 55%) and education (25%)
  • Investors who appreciate Pátria management with a track record of 14.5% p.a. since 2019 and IRR > 100% on recycling

Who it is not for

  • Those who enter believing in the inflated 13.8% DY shown on websites — the real figure is 8.8%
  • Investors who do not accept the 46% food-retail concentration
  • Those who need a robust spread vs. NTN-B — it has become ~1.3 pp
  • An ultra-conservative profile or one that rejects leveraged REITs (5.6% CRIs)
  • Those who do not follow new offerings and dilution — the 6th offering is in execution

Points of attention and risks

The DY shown on websites is inflated by special distributions

Status Invest and similar sites show a "12-month DY" pulled up by the June (R$ 1.55) and December (R$ 1.45) special distributions. But the recurring regime is R$ 0.95/month = R$ 11.40/year = DY 8.8% on R$ 132. Pátria itself confirms 8.8% p.a. in its reports.

Spread vs. NTN-B has become narrow

With the NTN-B 2035 at ~7.5% real and a recurring DY net of income tax of 8.8%, the net real spread is only ~1.3 pp. In January/2025 this same fund delivered 9.4% — the spread shrank as the unit price rose.

27% of contracts mature in 2028

Almost 1/3 of revenue matures in 2028 — mostly IBMEC and Salvador (YDUQS), with WALEs of 3.0 and 2.7 years. A real risk of negative revaluation if the education market worsens.

Food-retail concentration 46%

Carrefour (24%) + Assaí (22%) = 46% of revenue in just 2 groups. AAA and AA+ ratings mitigate this, but it is relevant sector exposure. Dec/25 reappraisal of Carrefour: -3.0%.

Leverage 5.4% — controlled

CRIs on the liability side (Makro, Sendas, Una, MINT) total ~R$ 160M (Apr/2026). Financial expense of R$ 0.07/unit in Apr/2026. A deleveraging trajectory is forecast through 2034 (the balance falls from R$ 160M → R$ 10M).

6th Offering — preemptive right OPEN from 05/29 to 06/12/2026

The definitive documents published on 2026-05-22/23 (documents 1201802 Commencement Announcement, 1201803 Definitive Prospectus, 1201804 Term Sheet, 1201805 Advertising Material) consolidate the terms: issue price R$ 128.87/unit (= book value as of 2026-04-30, no patrimonial dilution), subscription price R$ 128.99 (fee R$ 0.12), amount R$ 1.5 Bn (11,639,637 units) + additional lot up to 25% (total 14,549,546 units = R$ 1.875 Bn). Official timetable: preemptive right on B3 from 05/29 to 06/11/2026, at the bookkeeper until 06/12/2026, leftovers + additional amount from 06/15 to 06/25/2026, DDA settlement on 06/30/2026, maximum closing on 11/18/2026. Preemptive-right factor 0.50088755395 (≈0.5 new unit per existing unit). Coordinators BTG Pactual (lead) + Itaú BBA — commission R$ 4.71/unit (R$ 54.8M) borne 100% by the manager (Pátria), NOT by the fund. The manager projects DPS GROWING from R$ 0.95 (current) to R$ 0.97 (short term, ramp-up) and R$ 1.01 (medium term, full allocation), with a target DY of 9.0%. Capital at Selic 13.75%/12 = 1.14%/month sustains the DPS during allocation. Pipeline already identified with ~27 strategic assets.

Performance fee charged in Q4/2025

The SQR Q4/2025 (document 1199351) confirms a R$ 5.34M performance fee charged in the quarter (~R$ 0.23/unit) — management exceeded the IPCA+5.5% benchmark in the period. The item recurs in the semiannual structure; there is no surprise, but it is an expense that adds to the management fee (R$ 5.21M in the same quarter).

Q4/2025 was strong — a contrast with the Q1/2026 burn

The SQR Q4/2025 shows a result of R$ 87.17M (R$ 1.25/unit/month), well above the recurring DPS of R$ 0.95. The reserve burn observed in Mar-Apr/2026 (R$ 0.80-0.85/unit) is a phenomenon of the Q1/2026 quarter in isolation — there is no SQR for Q1/2026 yet. Pátria's seasonal pattern: H1 consumes the reserve, H2 rebuilds it via sales.

About the manager

The largest independent REIT manager in Brazil (R$ 38 Bn under management in RE, 30+ listed REITs). The CSHG → Pátria migration was executed without operational noise. Track record validated by the 6th offering's Advertising Material (document 1201805): 182.4% cumulative since 2019 = 14.5% p.a., beating IFIX by +9,930 bps, CDI by +8,590 bps, TEVA-Brick by +15,810 bps. Historical average P/BV 1.00x (the sector has traded at a ~10% discount since 2022). Average IRR > 100% on portfolio recycling sales (Santo Alberto, Pernambucanas Poços, Machado, Araguari, Campo Mourão). The H2/25 result beat guidance (R$ 1.04 vs. R$ 0.99 forecast). An honest team in its communication: it discloses the real DY (8.8%) and does not hide the difficulty of re-leasing Dutra 107. In the 6th offering, it bears 100% of the coordinators' commission (R$ 54.8M).

See the full analysis of the manager Pátria Investimentos →

Conclusion

HGRU11 (Pátria Renda Urbana, formerly CSHG Renda Urbana) closes April/2026 as one of the largest and most diversified urban-income REITs in Brazil: net assets of R$ 3.0 billion, 100 properties across 16 states, 600,276 m² of GLA, a WALE of 9.2 years, physical vacancy of just 0.8% and 230,866 unitholders. The revenue is mostly atypical and 99.4% indexed to IPCA, with 98.6% of contracts above 36 months — one of the most robust contractual durations in the brick-and-mortar segment. The recurring DPS is R$ 0.95/unit (paid on 2026-06-15, May reference), equivalent to a DY of ~8.8% on the book value per unit of R$ 128.87.

There are three main points of attention. First, concentration: Carrefour/Atacadão/Sam's Club (24%) and Assaí (22%) add up to 46% of revenue in two food-retail groups — mitigated by AAA/AA+ ratings and long atypical contracts. Second, ~27% of contracts mature in 2028, concentrated in YDUQS's education assets (IBMEC, Salvador), opening a risk of negative revaluation. Third, the 12-14% DY touted on some websites is a statistical distortion — it incorporates the semiannual special distributions from recycling sales; the real recurring cash flow is 8.8%, and the spread over the NTN-B has shrunk to ~1.3 pp as the unit price rose. The 5.4% leverage (CRIs Makro/Sendas/Una/MINT) is controlled, with a deleveraging trajectory mapped through 2034.

Looking ahead, the 6th offering (R$ 1.5 Bn, up to R$ 1.875 Bn with the additional lot) is underway at R$ 128.87/unit — exactly the book value as of 2026-04-30, with no patrimonial dilution. The preemptive right ran from 05/29 to 06/12/2026 with subscription at R$ 128.99 (~1.6% discount vs. the market) and the coordinators' commission (BTG Pactual + Itaú BBA, R$ 54.8M) borne 100% by Pátria, not by the fund. The manager projects DPS growing to R$ 0.97 (short term) and R$ 1.01 (medium term), with a target DY of 9.0% after the full allocation of a pipeline of ~27 assets (cap rate ~9% p.a. vs. sales at ~6.5%, a favorable spread of 2.5 pp). With Pátria management rated 9 (track record of 182.4% cumulative since 2019, 14.5% p.a., and IRR > 100% on recyclings), P/BV around 1.00x and an income-growth thesis anchored, HGRU11 is an ACCUMULATE for those seeking high-quality urban income — good for those who already hold it and attractive for those who entered taking advantage of the preemptive right.