Starbucks’ CRIs Remain Safe Amid Legal Battle, Fund Reaffirms Earnings Forecast


Starbucks’ Commercial Real Estate Certificates (CRIs) have been deemed safe by a FII investor against a legal attempt to recover their value. In a comprehensive report, the fund also affirmed that the bonds are secure and maintained its earnings forecast. The fund’s management, under the leadership of Riza Akin (RZAK11), publicly addressed the status of the Starbucks CRIs held in the fund’s portfolio. This development comes in the wake of SouthRock Capital, the restaurant operator in Brazil, filing for judicial recovery and claiming a debt of R$1.8 billion. However, the court ruled against SouthRock Capital and requested further information about its financial health.

On Friday (March 3), managers of (RZAK11) reiterated their assertion that the company’s issued titles are not subject to the ongoing court recovery procedure and have been fully paid. The fund’s CRIs portfolio is exempt from the judicial recovery procedure and is not included in the competition. The document explicitly states, “All CRIs remain fully adimplent in their respective shares.” CRIs are frequently utilized by companies as a means of acquiring resources in the market. These debt instruments allow companies to bundle their future receipts and sell them to investors, such as real estate investment trusts. Typically, CRIs have a fixed monthly return and are adjusted based on an indicator, often the CDI (Certificate of Interbank Deposit) rate or the Broad Consumer Price Index (IPCA).

RZAK11’s portfolio includes three CRIs from SouthRock: Starbucks III, IV, and V. The total value of these titles amounts to R$814,000,000.00, which represents 6.51 percent of the fund’s liquid assets, according to the latest report from the trustee. As of October, the CRIs accounted for a total of R$50,189,000,000, as indicated in the document.

Despite the recent developments, the situation with Starbucks’ CRIs has had minimal impact on the projected returns of RZAK11 for 2023. Nevertheless, the shares of RZAK11 have experienced a drop of over 7% in the last two trading sessions, falling from a high of R$92.59 to a low of R$86.34 as of Friday’s close. The fund’s distributions are expected to continue at the current rate of R$1.30 per share until December, with a monthly range of between R$1.20 and R$1.40 anticipated.

The paragraph highlights the near recognition of a significant kicker within the catalog, which is responsible for the optimistic distribution forecast in the coming months. However, no further details about this development are provided. The government has promised that the winner will be announced as soon as the kicker is confirmed through official channels.

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