Gafisa is facing a crisis as renegotiations increase pressure, with at least 6 FIIs having exposure to embedded CRIs.

Gafisa (GFSA3) is showing further signs of worsening its financial crisis as the balance of the second quarter is delayed for the third time. On September 15, a credit operation backed by the company failed to pay its investors, affecting the project in Arpoador, Rio de Janeiro.

The report highlighted a second instance where insufficient resources halted payments to investors, totaling R $ 215.5 million across both debts.

CRI Bait, managed by Opea in 2021, is included in RK14 credits through the SPE, Canto Rio’s development project by Bait, acquired by Gafisa in 2022.

CRIs enable investors to raise funds backed by real estate loans, providing a form of reimbursement to those purchasing the securities.

The debt, originally set to be paid in September 2025, was postponed until December 30 of the current year. However, on the 15th of the last month, the borrower failed to make the scheduled payment or replenish the reserve fund meant to safeguard operations in situations of financial shortfall. Consequently, investors did not receive the expected funds, as reported by Opea.

The operation had an outstanding debt of R$ 154.7 million in August. Gafisa acts as a guarantor, meaning it is liable for the debt if the company overseeing the project fails to make payment.

The company has postponed its results announcement multiple times due to requests from auditors for additional document review.

Also read

• Gafisa, a business entity, delays the release of its second-quarter financial report due to shareholder conflicts amidst the crisis.
• Gafisa sells hotel and shopping properties in Rio amid a series of crises.

Debt documents and reports from the lenders of Gafisa reveal a growing crisis across various projects as the balance remains outstanding.

Investors do not get a return.

At CRI Sabiá, which funds Vinci Moema in southern São Paulo, the borrower’s financial difficulties occurred months before the payments to investors were halted. The project has also faced complaints from buyers regarding delivery delays.

Riza Securitizadora issued the security on behalf of Upcon 36, a specific-purpose company, backed by Gafisa’s guarantee. The total amount is R$ 60.8 million, with half of the principal to be repaid by December and the rest by March 2027.

Since January, the borrower has not been supplying the funds needed to pay the interest. Investors have been receiving payments from the interest reserves and keeping the operation afloat. In subsequent months, they have agreed to add the interest to the borrower’s balance, postponing the payment.

The final cash payment was made on June 1st. The interest for July and August was not settled, leading to a default being documented at B3 in August.

The holders decided in a meeting on 17 September to eliminate the impacts of premature maturity, enabling the full balance to be charged at one time, and postponed the remaining payments to 2 October.

Since December, 17 meetings have taken place to address delays and other patterns. This includes the submission of four registrations involving real estate guarantees, which have been mandatory since August 2024. A total of R$4.6 million is needed only for replenishing interest and reserve funds, as per contractual obligations.

Press the box to win.

The two situations involve a variety of debts. An examination of the Vitrify platform identified 28 roles associated with Gafisa, including CRIs and debentures, totaling R$ 856.6 million as of August 31. Gafisa is shown as either the primary debtor or the trustee for the projects’ companies.

About two-thirds of the total amount, which is R$ 581.9 million, will mature by May 2027.

Within this category, there is a total of R $ 434 million in positions that focus on generating returns primarily upon maturity. These positions involve paying only interest or adding charges to the debtor’s balance over the term of the contract. While this approach eases cash outflows along the way, it also leads to a significant cash requirement on the final date.

The closest due date is a transaction of R$ 41.9 million from the Securitizing Province, set for September 30, with an already extended deadline. In August, creditors also allowed additional time to restore guarantees that had fallen below the agreed minimum.

Also read

• Warning signs for FII investors: High CRI renegotiations in investment.

In its most recent statement for the first quarter, Gafisa reported a total debt of R$1.6 billion and R$306 million in cash. The company incurred a loss of R$45.6 million, reversing the profit of R$21.1 million from the previous year.

Funds that are made visible

Investors are exposed to risks through real estate fund portfolios, with at least six funds having investments in Gafisa totaling R$ 209.9 million according to a survey by InvestNews.

Tivio Securities (VOTS11), managed by Tivio Capital, holds the highest percentage of CRI Bait with a value of R $ 4.9 million, representing 6.5% of its total assets.

Valora CRI CDI (VGIR11) holds the biggest cash position of R$ 72.1 million, accounting for 5.1% of its assets. The majority of this amount, R$ 47.9 million, is invested in the Evolve Vila Mariana project in São Paulo, which has faced delivery delays of about a year and a half.

The identical structure is featured in Fator Verità Multiestratégia’s portfolio managed by Resource Administrator Factor, with R$10.9 million in a transaction comprising the acquisition of 17 units off-plan. An additional R$9.2 million is invested in CRI Gafisa II – Oscar Freire, associated with Allard Oscar Freire, in the Gardens district of São Paulo.

Also make sure to read

• FIIs are facing pressure on credit due to investments in medium and high-quality residential properties.

The Fator Verità fund managed by the same manager holds R$ 50.3 million in two CRIs from the developer linked to Allard Oscar Freire.

The Credit Price Index (PCIP11) of the country Investments shows a total of R$ 47.6 million, with R$ 3.2 million allocated to the Canto Rio project and R$ 44.4 million to the CRI Invert project supporting Invert Campo Belo in São Paulo. The project is also experiencing a delay in delivery of over a year and a half.

CRI Invert is at the bottom of the watch list. The manager’s report mentions that the company is facing challenges in meeting its responsibilities and is experiencing tight liquidity.

The Homeland increased the risk premium for evaluating the CDI role in June by 5.64% for CDI plus 11.62%. This adjustment decreased the asset value in the portfolio and impacted the fund’s assets.

Add R$ 1.5 million to the Pulverized Receivable Habitat (HABT11) XP Asset list, and include R$ 13.4 million invested in the CRI Evolve Vila Mariana, along with other funds showing similar delays.

The information was revised on September 28 to reflect the new delay of Gafisa’s second-quarter financial statement, now set for October 20.