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4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
4 q12 br properties   earnings release presentation - final (1)
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4 q12 br properties earnings release presentation - final (1)

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  • 1. 4Q12 Earnings Release Presentation
  • 2. Highlights 4Q12 AND 2012 HIGHLIGHTS• 4Q12 net revenues totaled R$200.7 million, an increase of 122% over 4Q11, when net revenues came in at R$90.3 million. Net revenues for the 12- month period ended in December 2012 reached R$630.8 million. The significant growth resulted from additional rental revenues of the new properties;• 4Q12 adjusted EBITDA of R$176.1 million, a 117% increase over 4Q11 and adjusted EBITDA margin of 88%. In 2012, adjusted EBITDA reached R$568.8 million and margin of 90%. It is worth highlighting that 4Q12 adjusted EBITDA was impacted by a R$10.5 million PIS and COFINS tax expense resulting from the distribution of interest on equity of the subsidiaries (JCP – Juros Sobre Capital Próprio);• Considering the methodology determined by the CVM Instruction No. 527/12, 4Q12 EBITDA reached R$235.5 million and margin of 117%, while the 12-month accumulated EBITDA came in at R$2,267.4 and margin of 359%;• 4Q12 net income totaled R$183.1 million, impacted by the net gain on appraisal of investment properties and by the net operating profit of the quarter. Net income for the full year 2012 were R$1,227.4 million;• 4Q12 adjusted FFO excluding non-cash and non-recurring expenses totaled R$64.7 million, and adjusted FFO margin of 32%. The 12-month accumulated adjusted FFO totaled R$154.2 million and margin of 24%;• During 4Q12, the Company obtained leasing spreads (net of inflation) of 8.5% on new leases signed in office buildings and 10.2% in industrial properties. On market alignments of existing contracts, real gains were 34.7% in office buildings and 24.1% in industrial properties;• The financial vacancy rate was 4.0%, while physical vacancy rate came in at 2.6%. Excluding the recently delivered Paulista Building, currently under lease-up, financial vacancy drops to 1.1%;• In November, the Company acquired the CD Anhanguera distribution center for R$105.0 million, at an 11.2% cap rate. On the same date, the Company signed a 10-year lease agreement, compounding an area of 45,242sqm;• In December, BR Properties concluded its second issuance of non-convertible unsecured local debentures, raising R$500.0 million in a single tranche at CDI + 0.64% p.a. maturing in two years;• In December, the Company pre-paid a R$223.1 million loan whose cost was CDI + 3.5% p.a. During 2012, R$1,061.2 million of debt has been amortized;• In December, the Company received an acceptance term from Petróleo Brasileiro S.A – Petrobrás, regarding the Tower B of Centro Empresarial Senado, located in the city and state of Rio de Janeiro. Once the acceptance term is received, the property begins to generate rent revenues;• Also in December, the Company’s portfolio underwent a full appraisal by CB Richard Ellis (CBRE), resulting in increases in market value of the properties. The Company’s portfolio was appraised at a 9.98% average cap rate. 4Q12 2
  • 3. Highlights SUBSEQUENT EVENTS• January: the Company received an acceptance term from Petróleo Brasileiro S.A – Petrobrás, regarding the Tower A of Centro Empresarial Senado, located in the city and state of Rio de Janeiro. Once the acceptance term is received, the property begins to generate rent revenues.• January: Certificate of Occupancy (Habite-se) was granted to the JK Complex – Tower D and E, located in the city and state of São Paulo.• January: Certificate of Occupancy (Habite-se) was granted to the Cidade Jardim, located in the city and state of São Paulo.• With the receipt of the Certificates of Occupancy (Habite-se), the aforementioned properties can be immediately occupied, thus accelerating the lease-up process 4Q12 3
  • 4. Portfolio Portfolio Market Value 2012 Revenue Breakdown 60% Straight-line 0,3% Leasing 98,5% 12.968 13.552 13.840 Services 1,2% 7% 11.715 33% 4.751 4.918 5.142 5.254 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Portfolio Breakdown Portfolio Breakdown (% market value) (% GLA) 5% 5% 18% 25% 49% 14% 63% 21% Of f ice AAA Of f ice Industrial Retail Of f ice AAA Of f ice Industrial Retail 4Q12 4
  • 5. Portfolio Appraisal Breakdown of BRPR’s Portfolio in terms of Market Value (R$ mm) 1.337 13.840 586 3.318 8.598 Office Industrial Retail Development Total Same Properties Appreciation Asset Class 2011 x 2012 Office 16% Industrial 23% Retail 10% Developments 54% Total 20% 4Q12 5
  • 6. Portfolio Recycling The Company concluded 7 sales throughout 2012, totaling R$137.0 million The rental loss in 2012 was R$7.2 million Sale Price Rental Loss Sold Properties Type Sale Date (R$ K) 2012 (R$ K) Paço do Ouvidor Retail Mar-12 25.000 1.878 Olympic Tower Office Apr-12 14.000 980 Paulista Plaza Office Apr-12 20.000 1.503 Cetenco Plaza (2 Units) Office Mar-12 5.448 410 Cetenco Plaza (8 Units) Office May-12 21.600 1.146 Cetenco Plaza (16 Units) Office Aug-12 47.210 1.270 Paulista Park (2 Units) Office Dec-12 3.750 16 TOTAL R$ 137.008 R$ 7.203 Total Sales Volume (R$ K) Average Exit Cap Rate (%) 137.008 9,2% 89.375 8,4% 2011 2012 2011 2012 4Q12 6
  • 7. Financial Highlights Net Revenues (R$ thousand) Net Income* (R$ thousand) 84% 122% 266% 630.825 1.227.429 160% 343.464 200.666 335.408 90.309 70.500 183.092 4Q11 4Q12 2011 2012 4Q11 4Q12 2011 2012 * Impacted by the net gain on appraisal of investment properties 4Q12 7
  • 8. Financial Highlights Adjusted EBITDA (R$ thousand) EBITDA (CVM Methodology) (R$ thousand) 90% 91% 90% 88% 187% 117% 214% 359% 209% 82% 40% 2.267.375 117% 568.847 312.095 176.121 733.344 81.119 168.607 235.496 4Q11 4Q12 2011 2012 4Q11 4Q12 2011 2012 Adjusted EBITDA Margin EBITDA Margin EBITDA Composition 4Q12 4Q11 var % 2012 2011 var % Net Income (loss) 183.092 70.500 160% 1.227.429 335.408 266% Deferred Taxes 15.049 52.723 -71% 663.660 151.273 339% Income and Social Contribution Taxes (11.694) 5.585 -309% 22.687 22.589 0% Minority Interest (11.029) - n/a (11.029) - n/a Depreciation 69 23 207% 279 270 3% Net Financial Result 60.011 39.776 51% 364.350 223.803 63% EBITDA 235.496 168.607 40% 2.267.375 733.344 209% EBITDA Margin 117% 187% -69 p.p. 359% 214% 146 p.p. Adjusted EBITDA Composition 4Q12 4Q11 var % 2012 2011 var % Gross Profit 200.666 90.309 122% 630.825 343.464 84% (-) General and Administrative Expenses (33.909) (15.348) 121% (93.974) (49.059) 92% (+) Bonus Provision 8.648 6.553 32% 12.095 10.000 21% (+) Merger Expenses - 3.088 -100% 8.927 3.088 189% (+) Brokerage Fees (Ventura Building Acquisition) - - n/a 7.463 - n/a (+) Stock options 716 (3.483) -121% 3.511 4.602 -24% Adjusted EBITDA 176.121 81.119 117% 568.847 312.095 82% Adjusted EBITDA Margin 88% 90% -2 p.p. 90% 91% -1 p.p. 4Q12 8
  • 9. Financial Highlights Adjusted FFO (R$ thousand) 46% 18% 32% 36% 3% 24% 24% 57% 112% 154.225 523% 124.863 64.679 41.327 30.492 4.892 4Q11 2Q12 3Q12 4Q12 2011 2012 Margem FFO Ajustado Adjusted FFO 4Q12 4Q11 var % 2012 2011 var % Net Income (loss) 183.092 70.500 160% 1.227.429 335.408 266% Deferred Taxes 15.049 52.723 -71% 663.660 151.273 339% Taxes on Property Sales 744 1.972 -62% 4.649 8.775 -47% Gain (Loss) on Appraisal of Investment Properties (79.231) (95.653) -17% (1.746.275) (443.862) 293% Gain (Loss) on Sale of Investment Properties (298) 398 -175% 6.071 1.254 384% Non-cash Losses on Exchange Rate Variation 23.946 55.413 -57% 122.769 151.774 -19% Non-cash Gains on Exchange Rate Variation (20.429) (48.091) -58% (74.623) (89.833) -17% Variations MTM on Derivatives (58.194) 978 -6050% (65.843) 6.987 -1042% Merger Expenses - 3.088 -100% 8.927 3.088 189% Brokerage Fees (Ventura Building Acquisition) - - n/a 7.463 - n/a Adjusted FFO 64.679 41.327 57% 154.225 124.863 24% Adjusted FFO Margin 32% 46% -14 p.p. 24% 36% -12 p.p. 4Q12 9
  • 10. Indebtedness 4Q12 Net Debt (R$ mn) 4Q12 Debt Index Breakdown 4.573 5.263 574 1% 4.689 6% TR 13% 44% CDI IGPM 679 INPC 11 36% IPCA ST Debt Obligations LT Debt Total Debt Cash Net Debt f or Acquisitions Net Debt 4Q12 3Q12 var % Short Term Loans and Financing 689.778 679.382 2% Loans and Financing 616.995 554.331 11% Perpetual Bond 61.777 59.526 4% Derivative Instruments - 52.787 -100% Payables for Acquisition of Real Estate 11.006 12.739 -14% Long Term Loans and Financing 4.573.133 4.278.954 7% Loans and Financing 4.038.535 3.745.869 8% Perpetual Bond 534.598 533.085 0% Gross Debt 5.262.912 4.958.336 6% Cash and Cash Equivalents 573.570 394.179 46% Net Debt 4.689.342 4.564.157 3% Portfolio Value 13.839.530 13.552.098 2% Gross Debt / Portfolio Value (Loan to Value) 38% 37% 1 p.p. Net Debt / Portfolio Value (Loan to Value) 34% 34% 0 p.p. Adjusted EBITDA / Net Financial Expenses * 1,5x 1,5x -1% Duration (years) 4,8 5,3 -9% * Considering Net Financial Expenses (ex. non-cash variations) 4Q12 10
  • 11. Indebtedness Debt Amortization Schedule (R$ million) 835 532 467 469 313 350 349 195 97 77 72 74 62 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Principal Debt Service Coverage (R$ million) Loan to Value: Gross and Net 3,5x 3,0x 2,7x 2,5x 2,5x 2,4x 45% 43% 40% 40% 42% 41% 2,1x 38% 40% 39% 37% 1,6x 38% 1,5x 1,5x 24% 34% 1,4x 36% 35% 34% 1,1x 36% 35% 30% 23% 21% 21% 4% 21% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q121Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 DSC ratio LTV Gross Debt LTV Net Debt 4Q12 11
  • 12. Operating Highlights Leasing Spreads Leasing Spread - Market Alignments 4Q12 4Q11 2012 2011 Leasing Spread - Office 34,7% 33,7% 32,2% 26,5% Renegotiated GLA (m²) 48.474 25.696 89.880 75.800 % Office portfolio 8% 9% 15% 25% Leasing Spread - Warehouse 24,1% n/a 20,0% 20,6% Renegotiated GLA (m²) 33.406 - 63.006 15.581 % Warehouse portfolio 3% 0% 5% 2% Leasing Spread - Retail n/a n/a n/a 15,8% Renegotiated GLA (m²) - - - 97.435 % Retail portfolio 0% 0% 0% 99% Leasing Spread - New Leases 4Q12 4Q11 2012 2011 Leasing Spread - Office 8,5% 39,3% 21,4% 28,9% Leased GLA (m²) 1.612 25.429 15.658 52.473 % Office portfolio 0% 9% 3% 18% Leasing Spread - Warehouse 10,2% n/a 4,5% 15,6% Leased GLA (m²) 17.833 - 75.388 18.019 % Warehouse portfolio 1% 0% 6% 2% Leasing Spread - Retail n/a n/a n/a n/a Leased GLA (m²) - - - - % Retail portfolio 0% 0% 0% 0% 4Q12 12
  • 13. Operating Highlights Vacancy Breakdown Financial Vacancy per Segment Physical 4,5% 4,0% 4,0% 3,6% Financial Of f ice 3,2% Industrial 2,6% Retail 1,9% 1,3% 1,0% 1,1% 0,5% 0,4% 0,0% 0,0% 1Q12 2Q12 3Q12 4Q12 3Q12 4Q12 Property Type Financial Physical CBOP - Jacarandá Office 0,2% 0,1% Ventura - West Tower Office 0,1% 0,02% Icomap Office 0,02% 0,03% Santa Catarina Office 0,2% 0,1% Paulista Office 3,0% 0,9% Brasília Office 0,2% 0,1% Total Office 3,6% 1,3% BP Jandira Industrial 0,2% 0,5% BP Jundiaí Industrial 0,1% 0,3% BBP CEA Topázio Industrial 0,1% 0,2% BBP Barão de Mauá Industrial 0,0% 0,1% Cond.Ind.SJC Industrial 0,1% 0,3% Total Industrial 0,4% 1,3% Total Portfolio 4,0% 2,6% 4Q12 13
  • 14. Operating Highlights Lease Contract Expiration Schedule % Revenues % GLA 66% 84% 19% 1% 2% 9% 14% 6% 2012 2013 2014 >2015 2012 2013 2014 >2015 Lease Contract 3 Year Market Alignment Schedule % Revenues % GLA 48% 34% 34% 25% 16% 20% 16% 7% 2012 2013 2014 >2015 2012 2013 2014 >2015 4Q12 14
  • 15. Capital Markets Shareholder Value Creation Gain of R$2.2 billion in 12 months 9.000 29,00 Market Cap 7,946 million 8.000 27,00 Stock Price 7.000 R$25.50 25,00 6.000 5.000 23,00 4.000 21,00 3.000 Market Cap 19,00 3,330 million 2.000 17,00 Stock Price 1.000 R$18.50 - 15,00 Dec-11 Feb-12 Mar-12 May-12 Jun-12 Aug-12 Sep-12 Nov-12 Dec-12 Stock Performance (BRPR3) 4Q12 4Q11 var % 2012 2011 var % Total Number of Shares 311.612.894 180.003.919 73% 311.612.894 180.003.919 73% Free Float (%) 99% 99% 0% 99% 99% 0% Stock Price (average for the period) 25,79 17,93 44% 23,27 17,54 33% Stock Price (end of period) 25,50 18,50 38% 25,50 18,50 38% Market Cap end of period (R$ million) 7.946 3.330 139% 7.946 3.330 139% Average Daily Trading Volume (R$ million) 32,38 14,75 120% 29,04 12,63 130% Average Daily Traded Shares 1.254.317 824.364 52% 1.241.830 720.685 72% Average Daily negotiations 4.621 1.936 139% 3.834 1.152 233% 4Q12 15
  • 16. Dividend The Company’s Management has proposed ad referendum, of the Ordinary and Extraordinary Shareholders Meeting to be held on April 30th 2013, dividend distribution in the amount of R$160.0 million, related to the fiscal year ended on December 31st, 2012. Dividend per Share Dividend Yield R$ 0,513 166% 2,0% 93% 75% 1,0% 79% R$ 0,193 0,6% R$ 0,108 2010 2011 2012 2010 2011 2012* Considering BRPR3’s closing price in 12/28/2012 – R$25.50 4Q12 16
  • 17. Appendix - New Supply SP Downtown 93,550 sqm Marginal Paulista Jardins Alphaville Vila Olímpia/JK 2013: 32,000 sqm Cid. Jardim – 3,871 sqm - BRPR 2014: 90,668 sqm JK Towers – 34,583 sqm - BRPR New Faria Lima/JK 2013: 71,233 sqm 2014: 0 sqm Vila Olímpia/Bandeirantes 2013: 51,841 sqm Marginal 2014: 40,022 sqm Marginal (New Berrini) 2013: 77,424 sqm 2014: 193,831 sqm PGP – 9,392 sqm - BRPRNote: In the areas of new supply described above are included only those which will be effectively vacant upon delivery. Therefore, the numbers aboveexclude pre-leased areas and new supply owned by BR Properties such as Cidade Jardim, the JK Towers, and Panamérica Green Park (PGP). Source: BRPR 4Q12 17
  • 18. Appendix - New Supply SP Net Absorption - São Paulo (sqm) 600.000 500.000 400.000 300.000 200.000 100.000 0 2006 2007 2008 2009 2010 2011 2012(9M) -100.000 Jardins Marginal Paulista Downtown Others Alphaville São Paulo - New Supply (sqm) 600.000 500.000 400.000 300.000 200.000 100.000 - 2005 2006 2007 2008 2009 2010 2011 2012(9M) Source: CBRE 4Q12 18
  • 19. 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 4Q12 19

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