Investors looking at the Brazilian market are seeing unusually high annual dividend yields from the country’s Real Estate Investment Trusts, known locally as FIIs, with many funds distributing 10-13% and specialized funds offering even more. This remarkable payout is not primarily a sign of an overheating property market, but rather a structural consequence of the high benchmark interest rate, or Selic rate, currently maintained by the Central Bank of Brazil (BCB) at 14.00% per annum. The elevated Selic rate acts as a forcing mechanism that compels these real estate funds to distribute nearly all their cash profits to quotaholders.