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Starbucks’ CRIs (commercial real estate certificates) have recently been deemed safe against a legal attempt by the operator of the restaurant chain in Brazil, SouthRock Capital, to recoup their value. According to a major investor in Starbucks’ securities, the CRIs are considered sound and have maintained their value. This positive assessment was also reflected in the fund’s overall report, which stated that the earnings forecast remains unchanged.
The management team of the fund, led by Riza Akin (RZAK11), has made their first public comments regarding the status of the Starbucks CRIs held in their portfolio. SouthRock Capital filed a petition for judicial recovery, claiming a debt of R$1.8 billion, but the court ruled against the company and demanded further details about its financial health. In response, the managers of (RZAK11) reiterated that the company’s issued titles are not subject to the ongoing court recovery procedure and are currently fully paid.
It is worth noting that the fund’s portfolio of CRIs is not included in the scope of the competition and is not subject to the judicial recovery procedure. The document went on to confirm that “All CRIs remain fully adimplent in their respective shares,” providing a reassuring statement regarding the current state of Starbucks’ CRIs.
CRIs are commonly used by companies as a means of acquiring resources in the marketplace. These debt instruments allow companies to bundle their future receipts and sell them to investors, such as real estate investment trusts. Typically, CRIs offer a fixed monthly return and are adjusted according to indicators such as the CDI (certificate of interbank deposit) rate or the IPCA (Broad Consumer Price Index).
RZAK11 owns 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, representing 6.51 percent of the fund’s liquid assets, as reported by the trustee in the most recent report. As of the end of October, the CRIs accounted for a total of R$50,189,000,000, according to the document.
In response to the recent development with Starbucks’ CRIs, the shares of RZAK11 have experienced a decline of over 7% in the past two trading sessions. The shares dropped from a high of R$92.59 to a low of R$86.34 as of the close of trading on Friday (March 3). Despite this decline, the incident involving Starbucks’ CRIs has not had a significant impact on the fund’s projected returns for 2023.
It is expected that the fund distributions will continue at their current rate of R$1.30 per cota until December, with a monthly range of between R$1.20 and R$1.40 anticipated. The paragraph emphasizes that an upcoming significant kicker (a trigger of sorts) within the fund’s catalog is responsible for the optimistic distribution forecast in the coming months. However, no further details regarding this kicker are provided in the report. The government promises that the official announcement of the winner will be made as soon as the kicker is confirmed.
