Brick is Back: Top 10 Most Recommended REITs (FIIs) by Analysts in October 2025

• Why Are Brick-and-Mortar FIIs Gaining Traction Again?
• Top Performers: BTLG11 and KNCR11 Lead the Pack
• Strong Contenders: KNSC11 and XPML11
• The Complete October 2025 FII Leaderboard
• What's Driving the Brick Fund Revival?
• Methodology Matters
• Investor Takeaway
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After months of attention focused on paper-based real estate funds (receivables funds), which benefit from high interest rates, October 2025 has brought brick-and-mortar REITs (FIIs) back into the spotlight. A survey compiled recommended portfolios from 13 analysis firms, banks, and brokerages, revealing the 10 most recommended assets this month. Six are brick-and-mortar funds, while four are paper-based, signaling renewed interest in physical real estate-linked funds. Here's the full breakdown of where smart money is flowing this month.

Why Are Brick-and-Mortar FIIs Gaining Traction Again?

The shift toward physical assets reflects changing market dynamics. While receivables funds thrived during periods of high interest rates, investors are now recognizing the stability and growth potential of actual properties - especially in Brazil's recovering real estate market. The BTCC research team notes this rotation often precedes broader economic recoveries, making brick funds an interesting hedge against inflation.

Top Performers: BTLG11 and KNCR11 Lead the Pack

Two funds dominate October's recommendations with seven endorsements each. BTG Pactual Logística (BTLG11), a logistics sector standout, boasts a high-quality portfolio with diversified tenants and balanced contracts. XP Investimentos highlights its prime warehouse locations within 60km of São Paulo - a region experiencing record occupancy levels thanks to e-commerce demand. "This isn't just a temporary bump," notes a BTCC analyst. "We're seeing structural changes in Brazil's supply chain infrastructure."

Sharing the spotlight is Kinea Rendimentos Imobiliários (KNCR11), a receivables fund capitalizing on Brazil's current CDI rates. With 99% of its portfolio tied to interest-bearing assets, it's become a cash Flow machine. Monte Bravo praises its management quality and sectoral diversification, though investors should note its sensitivity to potential Selic rate cuts.

Strong Contenders: KNSC11 and XPML11

Close behind with six recommendations each are Kinea Securities (KNSC11) and XP Malls (XPML11). KNSC11's clever indexing strategy - 56.7% IPCA-linked and 42% CDI-linked - creates what Empiricus calls "an all-weather income generator." Meanwhile, XPML11's R$0.58 per share undistributed earnings showcase why malls remain relevant despite e-commerce growth, particularly in Brazil's experience-driven consumer culture.

The Complete October 2025 FII Leaderboard

What's Driving the Brick Fund Revival?

Three factors stand out: 1) Inflation hedging - physical assets naturally appreciate with price increases, 2) Supply constraints - Brazil's logistics infrastructure hasn't kept pace with demand, and 3) Yield compression in paper funds as interest rate cuts loom. "You're essentially getting growth and income," observes a veteran fund manager who asked not to be named.

Methodology Matters

The survey incorporated recommendations from AndBank, BB Investimentos, BTG Pactual, Daycoval, Empiricus Research, EQI, Genial, Itaú BBA, Monte Bravo, RB Investimentos, Rico, Terra, and XP - representing a broad cross-section of Brazil's financial expertise. Data was compiled as of October 1, 2025.

Investor Takeaway

While receivables funds still play a role, October's recommendations suggest a balanced approach might be wisest. The brick vs. paper debate isn't either/or - it's about weighting. As one São Paulo-based portfolio manager quipped, "When even the paper pushers are buying bricks, maybe we should too."

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What are FIIs?

FIIs (Fundos de Investimento Imobiliário) are Brazilian real estate investment trusts that allow investors to participate in real estate markets without directly owning properties.

Why are brick funds outperforming now?

Brick funds benefit from physical asset appreciation during inflationary periods and specific supply-demand imbalances in Brazil's logistics and commercial real estate sectors.

How sensitive are paper funds to interest rate changes?

Extremely sensitive. Receivables funds like KNCR11 see immediate impacts from Central Bank rate decisions, as their assets are primarily tied to CDI/Selic rates.

What's the minimum investment for these FIIs?

Most trade on Brazil's B3 exchange for prices ranging from R$50-R$300 per share, making them accessible to retail investors.

Are these recommendations suitable for foreign investors?

While accessible, foreign investors should consider tax implications and currency risk when investing in Brazilian FIIs.