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Starbucks’ commercial real estate certificates (CRIs) have been deemed safe against an operator’s legal attempt to recover their value, according to a prominent investor in the company’s securities. The Fundo de Investimento Imobiliário (FII) investor, in their overall report, also indicated that the bonds are sound and reaffirmed their earnings forecast. The management team of the fund, led by Riza Akin (RZAK11), made their first public comments regarding the status of the Starbucks CRIs held in their portfolio. This week, SouthRock Capital, the operator of Starbucks in Brazil, filed a petition for judicial recovery, claiming a debt of R$1.8 billion. However, the court ruled against the company and demanded further information about its financial health.
The managers of RZAK11 reiterated on Friday (March 3) that the issued titles of Starbucks’ CRIs are not subject to the ongoing court recovery procedure and are, at present, fully paid. The fund’s portfolio of CRIs are not included in the scope of the competition due to their exemption from the judicial recovery procedure, as confirmed by the document. The report supplemented its wording by stating, “All CRIs remain fully adimplent in their respective shares.” The CRI is frequently utilized by companies as a tool for resource acquisition in the marketplace. Companies consolidate their future receipts into this debt instrument and sell them to investors such as real estate investment trusts.
In general, the CRI entails a monthly prefixed yield and is indexed by an indicator, typically the Certificado de Depósito Interbancário (CDI) rate or the Índice de Preços ao Consumidor Amplo (IPCA), which is the Brazilian consumer price index. RZAK11 possesses three CRIs from SouthRock in its portfolio, namely Starbucks III, IV, and V. The total value of these titles amounts to R$814,000,000.00, which constitutes 6.51% of the fund’s liquid assets according to the trustee’s most recent report. As of the end of October, the paper represented a total of R$50,189,000,000, as stated in the document.
Despite the current situation, RZAK11 shares have experienced a decline of over 7% in the past two trading sessions, dropping from a high of R$92.59 to a low of R$86.34 at the close of trading on Friday (March 3). However, the incident involving Starbucks’ CRIs did not have a significant impact on the updated projection of the fund’s returns for 2023. Fund distributions are expected to continue at the current rate of R$1.30 per share until December, with a range of between R$1.20 and R$1.40 anticipated per month. The paragraph emphasizes that the optimistic distribution forecast for the upcoming months is primarily due to the near recognition of a significant kicker within the fund’s catalog. However, no further details pertaining to this subject are provided. The government promises to announce the winner as soon as the kicker is confirmed, through official channels.
