The General Index for the Commercial Real Estate Market (IGMI-C) was developed by the Brazilian Institute of Economics (IBRE/FGV) in 2011 and has B3 as one of its sponsors. IGMI-C is the first profitability index of the Brazilian real estate sector. It seeks to be a profitability point of reference in commercial real estate (offices, hotels, shipping malls and others), granting investors greater transparency as regards buy, sell and rental price formation.
The index is calculated from information provided voluntarily by a group of participants involving institutional investors and companies linked to the real estate sector, such as professional associations, real estate portfolio administrators and managers, and developers. The index has been published since 2000 and is updated every quarter.
The IGMI-C is published in three versions, calculated thus:
ROL = Net Operating Revenue (total revenue of the enterprise less operating expenses)
V = Assessed value of the enterprise
I = Investment in building work and improvements
A = Partial or full divestitures.
This calculation methodology reproduces several similar international indicators, taking advantage of other countries’ experiences on the one hand and enabling the comparison of results on the other.
The index is published on a quarterly basis and in all three of its versions has an initial value of 100 for the first quarter of 2000, being updated every quarter in accordance with the following:
IGMIt = [IGMI t-1 × (1+ Returnt)].
The information used by FGV for calculating the index is offered voluntarily by institutions that are interested in contributing towards the formation of the index. IGMI-C is open to new participants, thus making the database grow and guaranteeing increasingly solid information.
Further information about the index and the history of quarterly results may be found at FGV - IBRE.