Launched in 2018, HGRU11 is Brazil’s largest urban real estate investment fund (FII), ranking ahead of TRXF11 and RBVA11 by market capitalization. The fund was originally managed by Credit Suisse, but in May 2024 it was acquired by Patria Investimentos, Latin America’s largest independent asset manager, with over R$23 billion in real estate and R$263 billion in total assets under management.
The fund represents 2.09% of the IFIX index and carries a weight of 4.84% in the HERT11 ETF.
Note that this page was last updated June 26, 2025.
HGRU11 Key Facts
| Metric | Value |
| Fund Name | Patria Renda Urbana FII |
| Gestor | Patria Investimentos |
| Management Fee | 0.70% of AUM + 20% performance fee (>IPCA + 5.5%) |
| Manager Website | https://realestate.patria.com/tijolo/hgru11/ |
| Inception | April, 2018 |
| Setor | Urban Real Estate |
| Valor | R$2.9B |
| Number of Properties | 104 Urban Properties |
| Gross Leaseable Area (ABL) | ~613,000 square meters |
| Current Price | R$125.74 |
| Price-to-Book Value | 0.99 |
| Dividend Yield (Trailing 12M) | 9.61% |
| Index/ETF Inclusion | IFIX, HERT11 |
Since its launch in 2018, HGRU11 has delivered a total return of 138.2%, or 13.7% annually, well above the IFIX benchmark (7.3%) and the CDI rate (8.5%) over the same period.
Performance Track Record
Source: May 2025 Management Report
Portfolio Overview
HGRU11’s portfolio consists of 104 urban properties, totaling approximately 613,000 square meters of Gross Leaseable Area (ABL), making it the largest urban-focused FII in Brazil. Rental income is geographically diversified across sixteen Brazilian states, with São Paulo representing nearly half of total ABL (49.1%), followed by Paraná and Rio de Janeiro at 10.6% each.
The portfolio is primarily leased to grocery chains, educational institutions, and apparel retailers, providing a blend of essential services and discretionary consumption.
Source: May Management Presentation
The charts below show HGRU11’s portfolio composition by tenant segment, top tenants, lease structure, and inflation indexing.
Source: May Management Report
All of HGRU11’s leases are indexed to inflation: 95% to IPCA and 5% to IGP-M. The portfolio’s largest exposure is to grocery tenants (49%), followed by educational institutions (28%) and retail apparel (20%).
83% of leases are structured as atípicos (irrevocable contracts typically with longer terms), while 17% are típicos (more standard commercial leases with standard break clauses). While atípico leases offer greater contractual security, they often involve more specialized properties, potentially increasing re-leasing risk if a tenant defaults.
It’s worth noting that low-margin grocers and discretionary retailers can pose long-term risk. HGRU11 is highly exposed to Carrefour (23%), Assaí (22%), and Pernambucanas (17%). It also has 9% exposure to Ânima Educação (ANIM3), a leveraged private education company.
Sector Comparison & KPIs
📈 Market Cap & Yield
HGRU11 is the largest urban FII, with a market capitalization of R$2.9B. It offers a 12-month dividend yield of 9.61%, which is lower than the urban FII median of 12.99%. However, there are only four other urban FIIs in the IFIX, and they may not be meaningful peers. The 12-month dividend yield aligns more closely to large logistics FIIs.
🧮 Valuation
HGRU11 trades at a price-to-book ratio of 0.99x, above the IFIX urban FII peer median of 0.89x. This valuation is also more in line with large logistics FIIs.
💸 Dividend Pattern
HGRU11 has historically delivered consistent monthly dividends, which in recent years have generally grown with inflation.
In May 2025, the fund generated R$0.87 of recurring monthly income per share and paid R$0.90 per share, aided by R$1.14 in accumulated undistributed profit. Baseline monthly dividends have tended to grow over time, while larger periodic distributions every six months have added upside, but remain less predictable.
👉 Scroll sideways on mobile to view the full chart
📉 Vacancy & Lease Profile
HGRU11 has a Weighted Average Lease Term (WALT) of 9.5 years, with 85% of leases expiring in 2029 or later, supporting stable income expectations over the medium term.
Vacancy has remained low, averaging under 1% over the past 12 months. That said, the tenant mix could still present long-term risks.
Source: Patria Renda Urban FII – May Management Report
🩸Debt
HGRU11 maintains a modest debt profile, with leverage projected at 6.3% by the end of 2025 and a scheduled decline over the following years. The current level is considered healthy and has supported portfolio growth without compromising the fund’s capital structure.
Source: Patria Renda Urban FII – May Management Report
📘 Learn More
- If you’re new to Brazilian REITs (FIIs), check out my Guide for Global Investors or How I Choose FIIs
- For some great charts and graphs check out XPLG11’s page on O Funds Explorer.
🔗 Related Pages
Aviso de Conflito de Interesses
As of this writing, I do not hold a position in HGRU11, though that may change in the future. This content is for informational purposes only and does not constitute financial advice. Always do your own research and consult a licensed advisor before making investment decisions.
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