4 q11 br properties   earnings release presentation
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4 q11 br properties   earnings release presentation 4 q11 br properties earnings release presentation Presentation Transcript

  • BRProperties4Q11 Earnings Release Presentation
  • Highlights  4Q11 Net Revenues totaled R$90.3 million, an increase of 25% in relation to 4Q10, when net revenues came in at R$72.1 million;  Adjusted EBITDA of R$81.1 million in 4Q11, an increase of 33% over 4Q10 and an adjusted EBITDA margin of 90%. 4Q11 EBITDA without adjustments totaled R$75.0 million, with an EBITDA margin of 83%; Financial  Net Income totaled R$70.5 million at the end of 4Q11, impacted by a gain on appraisal of investment Highlights properties of R$95.7 million (R$77.3 million net of taxes) and a non-cash financial expense resulting from the FX variation of the principal on our dollar denominated perpetual debt of R$7.3 million. Therefore, a reduction of 91% in relation to 4Q10;  Adjusted FFO (excluding non-cash net financial expenses) totaled R$35.3 million in 4Q11, with an FFO margin of 39%;  Leasing spreads (net of inflation) for renegotiations and new leases reached 33.7% and 39.3% in office properties, respectively;  The financial vacancy totaled 1.7% at the end of 4Q11. Physical vacancy represented 0.9% of GLA at the end of quarter. In terms of area, our office, industrial, and retail properties were 97.0%, 99.9%, and 100.0% occupied at the end of the quarter, respectively;  On December 12th, 2011, BR Properties concluded with BP Energy do Brasil Ltda. a lease contract for Operating the partial occupancy of Edifício Manchete. The Lease has a term of 60 months, and comprises 9.2 Highlights thousand m² of GLA, including 142 parking spaces.  As part of its portfolio recycling strategy, the Company concluded 11 sales throughout the year, which totaled R$87.9 million. The loss of rental income in the year with the sales is of R$5.5 million;  On January 14th, 2012, BR Properties S.A. signed a Merger Agreement and Other Covenants, related to the incorporation of One Properties by the Company. The merger was approved by BR Properties’ shareholders at the Company’s Extraordinary Shareholders’ Meeting, held on March 29th, 2012;BRProperties 2 4Q11
  • Portfolio 2011 Revenue Breakdown Straight-line 14% 1% Office Services 44% 2% Leasing Industrial 97% 42% Retail Portfolio Breakdown Portfolio Breakdown (% market value) (% GLA) 4% 9% 13% 22% 7% 32% 55% 57% Of f ice Industrial Retail Development Of f ice Industrial Retail DevelopmentBRProperties 3 4Q11
  • 2011 Portfolio Appraisal Composition of the BRPR’s Portfolio in Market Value (R$ mn) 212 5.254 426 1.723 2.892 Of f ice Industrial Retail Development Total Same Properties Appreciation Asset Class 2010 x 2011 Office 15% Industrial 11% Retail 5% Developments 27% Total 13%BRProperties 4 4Q11
  • Portfolio Recycling As part of its recycling strategy, the Company concluded 11 sales throughout the year, which totaled R$87.9 million. The loss of rental income in the year with the sales is of R$5.5 million Acquisition Rental loss in 2011 Sold Property Type Quality Sale Date Date (R$ thousand) Athenas Escritório A Aug-07 Jan-11 R$ 3.468 Joaquim Floriano Escritório A Aug-07 Mar-11 R$ 1.719 Number One (cj. 32) Escritório A Aug-07 May-11 R$ 51 Number One (cj. 122) Escritório A Aug-07 Jun-11 R$ 33 Number One (cj. 123) Escritório A Aug-07 Jul-11 R$ 39 Berrini Escritório A Aug-07 Aug-11 R$ 107 Piraporinha Varejo B Jul-07 Aug-11 R$ 41 Number One (cj. 101 e 102) Escritório A Aug-07 Nov-11 R$ 20 Midas Escritório A Aug-07 Dec-11 R$ 36 Network Empresarial Escritório A Aug-07 Dec-11 R$ 13 Number One(cj. 22 e 23) Escritório A Aug-07 Dec-11 R$ 10 TOTAL R$ 5.537 Total Revenue from Sales Average Exit (R$ thousand) Cap Rate R$ 87.916 9,2% In addition to the aforementioned sales, on March 12th, 2012, the Company completed the sale of Shopping Paço do Ouvidor, acquired in December, 2010, as part of its strategy of portfolio recycling. The sale value of the property was R$25.0 million, representing an exit cap rate of 9.5%.BRProperties 5 4Q11
  • Financial Highlights Net Revenues (R$ thousand) Net Income* (R$ thousand) 68% (59%) (91%) 764.248 25% 343.464 813.368 204.464 335.408 72.078 90.309 70.500 4Q10 4Q11 2010 2011 4Q10 4Q11 2010 2011 * Impacted in 4Q11 by a net gain on appraisal of investment properties of R$77.3 million, and a non-cash financial expense resulting from the FX variation of the principal on our dollar denominated perpetual debt of R$7.3 million.BRProperties 6 4Q11
  • Financial Highlights Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand) 90% 90% 84% 86% 83% 87% 82% 85% 74% 71% 310.495 294.405 27% 33% 178.660 172.493 61.006 81.119 58.883 74.961 4Q10 4Q11 2010 2011 4Q10 4Q11 2010 2011 Adjusted EBITDA Margin EBITDA Margin Adjusted FFO (R$ thousand) 33% 39% 35% 31% 47% 106.013 47% 71.982 35.289 23.999 4Q10 4Q11 2010 2011 Adjusted FFO MarginBRProperties 7 4Q11
  • Debt 4Q11 Net Debt (R$ mn) 4Q11 Debt Index Breakdown 1.938 2.137 1.032 1.105 27% TR IGPM 185 14 2% 71% CDI ST Debt Obligations LT Debt Total Debt Cash Net Debt f or Acquisitions Net Debt 4Q11 3Q11 var % Short Term Loans and Financing 198.731 186.751 6% Loans and Financing 128.902 114.606 12% Perpetual Bond 54.988 54.360 1% Derivative Instruments 836 2.771 -70% Payables for Acquisition of Real Estate 14.006 15.013 -7% Long Term Loans and Financing 1.938.406 1.981.595 -2% Loans and Financing 1.445.960 1.479.887 -2% Perpetual Bond 492.446 501.708 -2% Gross Debt 2.137.137 2.168.346 -1% Cash and Cash Equivalents 1.032.350 1.072.533 -4% Net Debt 1.104.787 1.095.813 1% Portfolio Value 5.253.543 5.142.182 2% Gross Debt / Portfolio Value (Loan to Value) 41% 42% -4% Net Debt / Portfolio Value (Loan to Value) 21% 21% -1% Net Debt / Annualized Adjusted EBITDA 3,4x 3,2x 6% Adjusted EBITDA / Net Financial Expenses * 2,5x 2,7x -8% Duration (years) ** 5,7 5,9 -2% * Considers Net Financial Expenses (ex. non-cash variations) ** Considers the amortization of the perpetual bond in 2023BRProperties 8 4Q11
  • Debt Debt Service Schedule (R$ million) 117 Interest Principal 174 156 140 199 186 92 78 334 63 159 163 180 157 156 128 130 128 55 52 26 14 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adjusted EBITDA/ Net Financial Expenses & Net Debt/ Adjusted EBITDA Loan to Value: Gross and Net 7,0x 6,0x 5,5x 4,9x 45% 43% 40% 40% 42% 41% 38% 3,5x 3,7x 3,4x 3,2x 24% 2,7x 36% 36% 2,5x 2,4x 2,5x 2,1x 35% 1,6x 23% 1,4x 21% 21% 21% 4% 0,6x 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 DSC ratio ND/EBITDA LTV Gross Debt LTV Net DebtBRProperties 9 4Q11
  • Operating Highlights Market Alignments New Leases 39,3% 33,7% 26,5% 28,9% 20,6% Office Office 15,8% 15,6% 12,8% Industrial 13,6% Industrial Retail Retail 7,6% 10,1% 9,1% 7,1% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 4Q10 4Q11 2010 2011 4Q10 4Q11 2010 2011 Leasing Spread - Market Alignments* 4Q11 4Q10 var % 2011 2010 var % Leasing Spread - Office 33,7% 7,6% 342% 26,5% 12,8% 108% Leasing Spread - Warehouse n/a n/a n/a 20,6% 7,1% 192% Leasing Spread - Retail n/a n/a n/a 15,8% n/a n/a Renegotiated Area - Office (sqm) 25.696 331 7670% 75.800 3.820 1884% Renegotiated Area - Warehouse (sqm) - - n/a 15.581 17.899 -13% Renegotiated Area - Retail (sqm) - - n/a 97.435 - n/a Leasing Spread - New Leases* 4Q11 4Q10 var % 2011 2010 var % Leasing Spread - Office 39,3% 10,1% 287% 28,9% 9,1% 219% Leasing Spread - Warehouse n/a n/a n/a 15,6% 13,6% 15% Leasing Spread - Retail n/a n/a n/a n/a n/a n/a Leased Area - Office (sqm) 25.429 20.805 22% 52.473 45.760 15% Leased Area - Warehouse (sqm) - - n/a 18.019 26.919 -33% Leased Area - Retail (sqm) - - n/a - - n/a * Leasing spreads are net of inflationBRProperties 10 4Q11
  • Operating Highlights We registered a financial vacancy of 1.7% and a physical vacancy of 0.9%. Vacancy Breakdown Financial Vacancy per Segment 2,3% Physical 1,6% 1,5% Office Financial Industrial 1,7% 1,5% 1,5% Retail 0,9% 0,9% 0,0% 0,0% 0,0% 0,0% 2Q11 3Q11 4Q11 3Q11 4Q11 Vacancy per Property 4Q11 Property Type Financial Physical CBOP - Jacarandá Office 1,1% 0,6% Bolsa do Rio Office 0,3% 0,1% Ventura - Torre Oeste Office 0,1% 0,02% Total Office 1,6% 0,8% BP Jundiaí Industrial 0,04% 0,1% Total Industrial 0,04% 0,1% Total Portfolio 1,7% 0,9%BRProperties 11 4Q11
  • Operating Highlights Lease Contract Expiration Schedule % Revenues % GLA 47% 64% 19% 13% 7% 6% 28% 16% 2012 2013 2014 >2015 2012 2013 2014 >2015 Lease Contract 3 Year Market Alignment Schedule % Revenues % GLA 1% 0% 28% 42% 19% 24% 52% 33% 2012 2013 2014 >2015 2012 2013 2014 >2015BRProperties 12 4Q11
  • Operating Highlights Number of Managed Properties Managed Properties Nº GLA Athenas 1 6.718 Gloria 1 8.436 Henrique Schaumann 1 14.125 +3 Joaquim Floriano 1 3.899 Mairynk Veiga (MV9) 1 12.511 Santo Antonio 1 5.017 29 São José 1 5.080 Icomap 1 9.164 Vargas 1 14.809 26 Panamerica Park 9 45.020 Ouvidor 1 6.284 CBOP - Ed. Jacarandá 1 31.954 4Q10 4Q11 TNU 1 27.931 BP Jundiaí 1 53.343 Property Management Revenues Cond. Indl. São José dos Campos 1 73.382 (R$ thousand) BP Jandira 2 34.304 BP Itapevi 1 33.526 RB 115 1 11.516 79% Plaza Centenário 1 3.366 Ed. Comercial Indaiatuba 1 11.335 6.467 TOTAL 29 411.720 73% 3.608 1.736 1.002 4Q10 4Q11 2010 2011BRProperties 13 4Q11
  • Capital Markets50% BRPR340% IBOV30% IMOB GIC GP Schroders20% 6,4% 5,6% 5,1%10% Laugar 3,3% 0% Management-10% & Board-20% 0,7%-30%-40% Other mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12 fev-12 79,0%  Current number of shares: 180,003,919  Market Value: R$ 4.2 billion  Average Daily Vol. (30d): R$ 27.4 million * As of March 28th, 2012 Stock Performance (BRPR3) 4Q11 4Q10 var % 2011 2010 var % Total Number of Shares 180.003.919 139.511.953 29,0% 180.003.919 139.511.953 29% Free Float (%) 99% 99% 0,0% 99% 99% 0% Stock Price (average for the period) 17,93 17,46 2,7% 17,54 14,36 22% Stock Price (end of period) 18,50 18,16 1,9% 18,50 18,16 2% Market Cap end of period (R$ million) 3.330,1 2.533,5 31,4% 3.330,1 2.533,5 31% Average Daily Trading Volume (R$ million) 14,75 12,73 15,9% 12,63 7,38 71% Average Daily Traded Shares 824.364 721.413 14,3% 720.685 486.667 48% Average Daily negotiations 1.936 457 323,6% 1.152 240 380%BRProperties 14 4Q11
  • IR Contacts Investor Relations Pedro Daltro CFO & Investor Relations Officer Leonardo Fernandes Investor Relations Manager Marcos Haertel Investor Relations Analyst Phone: (55 11) 3201-1000 Email: ri@brpr.com.br www.brpr.com.br/riBRProperties 15 4Q11