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  • 1. 2Q12 Earnings Release Presentation
  • 2. Highlights 2Q12 HIGHLIGHTS  2Q12 net revenues totaled R$160.9 million, an increase of 93% over 2Q11, when net revenues came in at R$83.6 million. The significant growth resulted from rental revenues of properties merged from One Properties;  2Q12 adjusted EBITDA of R$144.6 million, a 90% increase over 2Q11 and adjusted EBITDA margin of 90%. 2Q12 non- adjusted EBITDA reached R$135.8 million, and EBITDA margin of 84% (adjusted EBITDA excludes non-cash and non-recurring expenses);  2Q12 net income totaled R$332.4 million, impacted by the net gain on appraisal of investment properties and by the net operating profit of the quarter;  2Q12 adjusted FFO excluding merger expenses totaled R$8.5 million, and adjusted FFO margin of 5%. It is worth mentioning that BR Properties already incurred the financial expenses related to properties under development, which are not generating any additional revenue;  During 2Q12, the Company reached leasing spreads (net of inflation) of 14.6% on new leases signed in office buildings and 34.4% in the industrial properties. On market alignments of existing contracts, real gains were 16.3% in office buildings;  The financial vacancy rate was 1.3%, while physical vacancy rate came in at 1.9%. In terms of area, office, industrial, and retail properties were 98.2%, 97.9%, and 100.0% occupied at the end of the quarter, respectively;  On April 30th, the Company executed the acquisition of Ed. Ventura - East Tower for R$746.3 million. With the acquisition, BR Properties strengthens its presence in Rio de Janeiro’s “triple A” office market, by holding 217 thousand sqm of GLA (Ventura - East and West Tower, Manchete, CES Petrobrás, Sylvio Fraga and Bolsa do RJ);  The Company sold three properties in the quarter: Ed. Olympic Tower was sold for R$14.0 million, which represented an exit cap rate of 8.9%, Ed. Paulista Plaza was sold for R$20.0 million, resulting in an exit cap rate of 10.0%; and Cetenco Plaza was sold for R$21.6 resulting in an exit cap rate of 9.0%. In all of these buildings BR Properties held partial ownership. During 6M12, R$86.0 million in asset sales were executed resulting in a rental loss of R$1.9 million in the period;  During 2Q12, the Company paid R$227.4 million of debt merged from One Properties, which had a weighted average cost of CDI + 2.9% p.a.; 2Q12 2
  • 3. Highlights  Regarding dividend distribution, the Company paid R$60 million to shareholders, in April 2012, which is approximately four times as large as the amount paid in 2011;  In May, BR Properties executed the first issuance of commercial papers, raising R$400.0 million in one tranche at 104% of CDI p.a., maturing in 120 days;  Also in May, the Company took on a short-term loan (CCB) of R$130.0 million at CDI + 0.4% p.a., maturing in 120 days. The debt was prepaid on July 23th, 2012;  In June, BR Properties contracted an R$141.0 million 12 year term real estate loan related to the Paulista Building. The cost is TR + 10% p.a.;  On June 1st, 2012, BR Properties was included in the MSCI (Morgan Stanley Capital International) Brazil Index, one of the most recognized worldwide and widely used as benchmark by institutional investors;  On June 18th, 2012, Standard & Poor’s Rating Services assigned BB global scale and brAA national scale issuer credit ratings to BR Properties. SUBSEQUENT EVENTS  July: first issuance of non-convertible local debentures, raising R$600.0 million in two tranches: R$369.0 million at CDI + 1.08% p.a. maturing in five years and R$231.0 million at IPCA + 5.85% p.a. maturing in seven years;  July: the Company prepaid/refinanced R$364.5 million of debt merged from One Properties, which had a weighted average cost of CDI + 3.7% p.a.;  August: the Company prepaid commercial papers issued in 2Q12, utilizing part of the proceeds from its first issuance of non-convertible local debentures;  August: the Company executed the sale of additional units of Cetenco Plaza for R$47.2 million, resulting in an exit cap rate of 6.5%. BR Properties’ current stake in the building represents 534 sqm of GLA. 2Q12 3
  • 4. Portfolio Portfolio Market Value 6M12 Revenue Breakdown 55% Straight-line 1% Leasing 98% 12.968 Services 1% 11.715 8% 37% 4.751 4.918 5.142 5.254 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Portfolio Breakdown Portfolio Breakdown (% market value) (% GLA) 5% 6% 18% 24% 49% 15% 62% 21% Of f ice AAA Of f ice Industrial Retail Of f ice AAA Of f ice Industrial Retail 2Q12 4
  • 5. Financial Highlights Net Revenues (R$ thousand) 62% Net Income* (R$ thousand) 93% 262.128 160.935 161.353 83.576 333% 2Q11 2Q12 6M11 6M12 785.103 109% Pro-forma Net Revenues (R$ thousand) 332.390 Manchete & Ventura – Full Period 158.809 181.166 2Q11 2Q12 6M11 6M12 173.935 108% * Impacted by the net gain on appraisal of investment 13.000 properties 160.935 83.576 2Q11 2Q12 2Q12 5
  • 6. Financial Highlights Adjusted EBITDA (R$ thousand) Non-adjusted EBITDA (R$ thousand) 91% 90% 90% 90% 86% 84% 86% 85% 60% 64% 88% 90% 223.061 236.346 144.568 144.454 135.752 139.375 75.982 72.174 2Q11 2Q12 6M11 6M12 2Q11 2Q12 6M11 6M12 Adjusted EBITDA Margin EBITDA Margin Adjusted EBITDA Breakdown 2Q12 2Q11 var % 6M12 6M11 var % Net Income (loss) 332.390 158.809 109% 785.103 181.166 333% (+) Income and Social Contribution taxes 166.019 53.812 209% 515.111 56.305 815% (-) Gain (Loss) on Sale of Investment Properties 8.525 (179) -4863% 8.525 1.341 536% (-) Gain on Appraisal of Investment Properties (554.489) (167.941) 230% (1.284.395) (167.941) 665% (-) Other Operating Income (1.646) 617 -367% (2.116) 715 -396% (-) Net Financial Result 184.952 27.056 584% 200.832 67.790 196% EBITDA 135.752 72.174 88% 223.061 139.375 60% EBITDA Margin 84% 86% -2 p.p. 85% 86% -1 p.p. (+) Bonus Provision 1.149 1.149 0% 2.298 2.298 0% (+) Stock Option Provision 773 4.259 -82% 2.061 4.381 -53% (+) Merger Expenses 6.894 - n/a 8.927 - n/a (-) Reversal of 2010 Bonus provision - (1.600) -100% - (1.600) n/a Adjusted EBITDA 144.568 75.982 90% 236.346 144.454 64% Adjusted EBITDA Margin 90% 91% -1 p.p. 90% 90% 1 p.p. 2Q12 6
  • 7. Financial Highlights Pro-forma adjusted EBITDA (R$ thousand) Pro-forma non-adjusted EBITDA (R$ thousand) Manchete & Ventura – Full Period Manchete & Ventura – Full Period 148.752 157.568 106% 13.000 107% 13.000 135.752 144.568 72.174 75.982 2Q11 2Q12 2Q11 2Q12 2Q12 7
  • 8. Financial Highlights Adjusted FFO (R$ thousand) Pro-forma FFO (R$ thousand) Manchete & Ventura – Full Period 19% 22% 24% 5% 21.482 74% 33% 62.365 13.000 (47%) 35.797 16.101 8.482 16.101 8.482 2Q11 2Q12 6M11 6M12 2Q11 2Q12 Adjusted FFO Margin Adjusted FFO Breakdown 2Q12 2Q11 var % 6M12 6M11 var % Net Income (loss) 332.390 158.809 109% 785.103 181.166 333% (-) Gain (Loss) on Sale of Investment Properties 8.525 (179) -4863% 8.525 1.341 536% (-) Gain on Appraisal of Investment Properties (554.489) (167.941) 230% (1.284.395) (167.941) 665% (+) Deferred Taxes 153.916 45.134 241% 498.023 45.134 1003% (+) Taxes on Property Sales 3.905 184 2019% 3.905 6.480 -40% (+) Cost of Leased Properties - - n/a - - n/a (+) Non-cash Losses on Exchange Rate Variation 57.794 1.484 3795% 90.858 7.947 1043% (-) Non-cash Gains on Exchange Rate Variation (453) (21.390) -98% (48.581) (38.330) 27% (+) Merger Expenses 6.894 - n/a 8.927 - n/a Adjusted FFO 8.482 16.101 -47% 62.365 35.797 74% Adjusted FFO Margin 5% 19% -14 p.p. 24% 22% 2 p.p. 2Q12 8
  • 9. Financial Highlights: FFO Evolution 2Q12 Monthly FFO Evolution 14.800 8.482 2.643 (8.961) April / 12 May / 12 June / 12 2Q12 2Q12 9
  • 10. Non-income producing properties Months of Generated Potential Annual Non-Income Producing Properties Type Delivery Date Owned GLA Rent / sqm / Month ¹ Income in 2Q12 Revenue (R$ mm) ² Ed. Manchete * Office AAA 1 month Delivered 27.658 R$ 161,35 R$ 54 million Ed. Ventura - Torre Leste ** Office AAA 1 month Delivered 45.577 R$150 - R$200 R$ 82 million Ed. Paulista Office 0 month 3Q12 22.855 R$110 - R$135 R$ 30 million Centro Empresarial Senado - CES *** Office AAA 0 month 3Q12 95.174 R$ 87,39 R$ 100 million Cidade Jardim Office AAA 0 month 4Q12 6.792 R$150 - R$170 R$ 12 million Complexo JK - Bloco D&E Office AAA 0 month 1Q13 34.583 R$150 - R$170 R$ 62 million Panamérica Green Park Office 0 month 1Q13 5.185 R$50 - R$60 R$ 3 million Varejo Petrobrás Retail 0 month 1Q13 2.881 R$170 - R$220 R$ 6 million WTNU - Torre III Office AAA 0 month 1Q13 14.868 R$120 - R$140 R$ 21 million DP Louveira 7 Warehouse 0 month 2Q13 30.122 R$19 - R$24 R$ 7 million Gaia Terra Warehouse 0 month 2Q13 23.017 R$19 - R$24 R$ 5 million Complexo JK - Bloco B Office AAA 0 month 1Q14 29.539 R$150 - R$170 R$ 53 million Souza Aranha Office 0 month 2Q14 2.019 R$65 - R$85 R$ 2 million TOTAL R$ 437 million * Property fully leased ** Property fully leased and under market realignment negotiation *** Property fully pre-leased ¹ Internal Estimate ² Considering the bottom of the estimated range Potential Annual Revenue (R$ million) 53 2 437 21 7 5 62 3 6 12 100 30 82 54 Ed. Ed. Ventura - Ed. Paulista Centro Cidade JK Complex Panamérica Retail WTNU - DP Louveira Gaia Terra JK Complex Souza Total Manchete East Empresarial Jardim - D&E Green Park Petrobrás Tower III 7 -B Aranha Additional Senado Revenue 2Q12 10
  • 11. Debt Restructuring New Debt taken in 2Q12 Debt Type Institution Index Cupon Term Maturity 2Q12 Balance 1Q12 Balance BR Properties (holding) Commercial Paper Debt Capital Market CDI 104,00% 3 months 03/08/12 404.242 - BR Properties (holding) CCB Santander CDI 0,40% 2 months 23/07/12 131.190 - Ed. Paulista CCV Santander TR 10,00% 144 months 28/06/24 141.037 - Subtotal 676.469 - 2Q12 Prepaid Debt 2Q12 Prepaid Debt Type Institution Index Cupon Term Maturity 2Q12 Balance 1Q12 Balance BR Properties (holding) CCB Banco do Brasil CDI 119,00% 24 months 07/05/12 - 120.284 BR Properties (holding) CCB ABC CDI 3,90% 22 months 11/06/12 - 839 BR Properties (holding) CCB ABC CDI 3,25% 9 months 07/05/12 - 16.273 BR Properties (holding) CCB ABC CDI 3,50% 8 months 07/05/12 - 9.154 BR Properties (holding) CCB ABC CDI 4,45% 8 months 07/05/12 - 15.256 BR Properties (holding) CCB Indusval CDI 4,28% 2 months 21/05/12 - 20.062 BR Properties (holding) CCB Pine CDI 4,75% 3 months 28/05/12 - 45.542 Prepaid Debt - Subtotal - 227.410 During 2Q12, the Company paid R$227.4 million of debt merged from One Properties, which the weighted average cost was CDI + 2.9% p.a. Post-2Q12 Prepaid Debt Post-2Q12 Prepaid Debt Type Institution Index Cupon Term Maturity 2Q12 Balance 1Q12 Balance BR Properties (holding) Debentures Banco do Nordeste CDI 145,00% 48 months 01/03/15 178.709 173.260 BR Properties (holding) CCB ABC CDI 3,90% 23 months 09/07/12 839 1.679 BR Properties (holding) CCB ABC CDI 3,90% 24 months 09/08/12 839 1.679 Prepaid Debt - Subtotal 180.387 176.618 Post-2Q12 Renegotiated Debt Renegotiated Debt Type Institution Index Cupon Term Maturity 2Q12 Balance 1Q12 Balance BR Properties (holding) Debentures Banco do Brasil CDI 130,00% 58 months 30/09/15 71.939 69.962 BR Properties (holding) CCB Santander CDI 3,25% 60 months 25/07/12 112.190 108.890 Debt - Renegotiated 184.130 178.852 In July, the Company prepaid/refinanced R$364.5 million of debt merged from One Properties, which had a weighted average cost of CDI + 3.7% p.a. 2Q12 11
  • 12. Debt 2Q12 Net Debt (R$ mn) 2Q12 Debt Index Breakdown 1% 1% 5.147 3.995 609 4.537 14% TR CDI 45% IGPM 1.138 39% INPC 14 IPCA ST Debt Obligations LT Debt Total Debt Cash Net Debt f or Acquisitions Net Debt 2Q12 1Q12 var % Short Term Loans and Financing 1.152.034 861.508 34% Loans and Financing 1.081.839 793.883 36% Perpetual Bond 59.253 53.414 11% Derivative Instruments (3.299) (43) 7647% Payables for Acquisition of Real Estate 14.242 14.254 0% - - Long Term Loans and Financing 3.994.751 3.802.561 5% Loans and Financing 3.464.272 3.324.361 4% Perpetual Bond 530.479 478.200 11% Gross Debt 5.146.785 4.664.069 10% Cash and Cash Equivalents 609.460 1.104.247 -45% Net Debt 4.537.325 3.559.822 27% Portfolio Value 12.968.469 11.714.853 11% Gross Debt / Portfolio Value (Loan to Value) 40% 40% 0% Net Debt / Portfolio Value (Loan to Value) 35% 30% 15% Adjusted EBITDA / Net Financial Expenses * 1,1x 3,0x -62% Duration (years) ** 4,9 4,3 13% * Considers Net Financial Expenses (ex. non-cash variations) ** Considers the amortization of the perpetual bond in 2023 2Q12 12
  • 13. Debt Debt Service Schedule (R$ million) 535 404 304 277 312 253 178 185 167 163 559 421 372 362 159 285 308 243 237 152 199 106 102 94 92 62 46 44 43 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Principal Interest Balance of Commercial Papers & Short-term CCB Subsequent to the end of 2Q12 R$404 million commercial papers were entirely paid with part of the proceeds from the local debentures issued in July, 2012. Additionally, the short-term CCB of R$132 million was also paid in July, 2012. Loan to Value: Gross and Net 45% 43% 38% 40% 40% 42% 41% 40% 40% 24% 35% 36% 36% 35% 30% 23% 21% 21% 21% 4% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 LTV Gross Debt LTV Net Debt 2Q12 13
  • 14. Operating Highlights Leasing Spreads Leasing Spread - Market Alignments 2Q12 2Q11 6M12 6M11 Leasing Spread - Office 16,3% 24,5% 27,1% 22,7% Renegotiated GLA (m²) 12.883 9.330 30.587 24.004 % Office portfolio 3% 3% 8% 8% Leasing Spread - Warehouse n/a n/a 13,1% 22,6% Renegotiated GLA (m²) - - 6.840 14.798 % Warehouse portfolio 0% 0% 1% 2% Leasing Spread - Retail n/a 15,7% n/a 15,7% Renegotiated GLA (m²) - 97.431 - 97.431 % Retail portfolio 0% 97% 0% 97% Leasing Spread - New Leases 2Q12 2Q11 6M12 6M11 Leasing Spread - Office 14,6% 14,3% 25,4% 14,7% Leased GLA (m²) 4.264 17.444 9.454 25.787 % Office portfolio 1% 6% 2% 9% Leasing Spread - Warehouse 34,4% 28,3% 1,9% 15,6% Leased GLA (m²) 2.871 5.130 55.794 18.019 % Warehouse portfolio 0% 1% 5% 2% Leasing Spread - Retail n/a n/a n/a n/a Leased GLA (m²) - - - - % Retail portfolio 0% 0% 0% 0% 2Q12 14
  • 15. Operating Highlights Portfolio – financial and physical vacancy of 1.3% and 1.9%, respectively Vacancy Breakdown Financial Vacancy per Segment 2,3% Physical Financial 0,9% 0,9% 1,9% Of f ice 1,7% Industrial 1,5% 1,5% 1,3% Retail 1,1% 1,0% 0,4% 0,9% 0,9% 0,2% 0,0% 0,0% 2Q11 3Q11 4Q11 1Q12 2Q12 1Q12 2Q12 Property Type Financial Physical CBOP - Jacarandá Office 0,2% 0,1% Raja Hills Office 0,0% 0,0% Ventura - Torre Oeste Office 0,1% 0,0% Bolsa do Rio Office 0,2% 0,1% Icomap Office 0,0% 0,0% Santa Catarina Office 0,2% 0,1% Brasília Office 0,2% 0,1% Total Office 0,9% 0,5% BP Itapevi Industrial 0,1% 0,3% BBP Barão de Mauá Industrial 0,1% 0,2% Cond.Ind.SJC Industrial 0,2% 1,0% Total Industrial 0,4% 1,4% Total Portfolio 1,3% 1,9% 2Q12 15
  • 16. Operating Highlights Lease Contract Expiration Schedule % Revenues % GLA 56% 72% 23% 2% 17% 3% 19% 9% 2012 2013 2014 >2015 2012 2013 2014 >2015 Lease Contract 3 Year Market Alignment Schedule % Revenues % GLA 11% 6% 38% 39% 18% 24% 28% 37% 2012 2013 2014 >2015 2012 2013 2014 >2015 2Q12 16
  • 17. Capital Markets Performance BRPR3 Shareholder Base 40% BR Properties Ibovespa 34,2% 30% Imob MSCI Brasil BTG Pactual 20% 28% 10% Other 5,9% 56% W Torre 8% 0% -1,0% -7,2% -10% Laugar 2% GIC -20% 5% Jan-12 Jan-12 Feb-12 Mar-12 Mar-12 Apr-12 May-12 May-12 Jun-12 Jun-12 Jul-12 Index % BRPR  Current number of shares: 310,307,396 MSCI Brazil 0,45%  Market Value: R$ 7.5 billion IBrX 0,44%  Average Daily Vol. (30d): R$ 24.3 million IBrA 0,41% MLCX 0,45% * As of August 3th, 2012 IMOB 9,50% IGC 0,74% IGCT 0,55% ITAG 0,68% Stock Performance (BRPR3) 2Q12 2Q11 var % 6M12 6M11 var % Total Number of Shares 310.307.396 174.753.919 77,6% 310.307.396 174.753.919 77,6% Free Float (%) 99% 99% 0,0% 99% 99% 0,0% Stock Price (average for the period) 23,02 17,66 30,4% 21,80 17,49 24,6% Stock Price (end of period) 23,70 17,50 35,4% 23,70 17,50 35,4% Market Cap end of period (R$ million) 7.354,3 3.058,2 140,5% 7.354,3 3.058,2 140,5% Average Daily Trading Volume (R$ million) 36,51 10,85 236,5% 29,40 9,58 206,9% Average Daily Traded Shares 1.592.098 616.953 158,1% 1.329.762 548.476 142,4% Average Daily negotiations 4.074 688 492,3% 3.550 573 519,6% 2Q12 17
  • 18. IR Contacts Investor Relations Pedro Daltro CFO & Investor Relations Officer Marcos Haertel Investor Relations Manager Gabriel Barcelos Investor Relations Analyst Phone: (55 11) 3201-1000 Email: ri@brpr.com.br www.brpr.com.br/ri 2Q12 18