2. 2012 Results
Highlights
• Lease revenue amounted R$ 200.3 million, up 23.7% from R$ 161.9 million in 2011
• 29.0% of the portfolio was renegotiated or started new leases, leading to a leasing spread of 38.5% in the period
• The highest vacancy rate during the year was 0.6%.
• FFO and Adjusted FFO was respectively R$ 114.4 million (R$ 10.40/share) e R$ 123.8 million (R$ 11.26/share), an increase of
29.6% and 27.4% vs. 2011
• Net income in the period amounted to R$ 347.7 million (R$ 31.61/share), and excluding the portfolio revaluation effects amounted
to R$ 121.9 million versus R$ 75.6 million in 2011, a 61.2% rise
• Dividends paid in 2012 amounted to R$ 109,9 million (R$ 10.00/share), an increase of 46,2% against 2011, when a total of R$
75.2 million (R$ 6.84/share) was paid
• Equity stood at R$1.9 Billion (R$ 176.08/share) at the close of 2012, a 13.0% rise vs. 2011 with R$ 1.7 Billion (R$ 155.77/share)
• In the 2Q12, the interest in the Ed. Leblon was sold with a Cap rate de 7% with gain 83% over the acquisition cost
• In Dec 12, three new assets were acquired for R$ 299.7 million (initial cap rate of 10.2% that may exceed 11.0% in the short
term). The acquisition was fully leveraged with an interest rate of 7% p.a. adjusted by IGP-M and a 12-month grace period.
• At the end of the period, the portfolio’s GLA was 263.6 mil m², a rise of 38,4% vs. 2011, and the average lease rate was R$
73.5/m² with a concentration of 72% of the lease revenue in Class AAA and A buildings
• The fair value of the real estate portfolio, according to Colliers International in 2012, was R$ 2.6 billion (R$ 9.881/m²),
representing a cap rate of 10% over the revenue at market prices
2
3. 2012 Results
Recent Events
• Jan / 2013: A new payout policy of R$ 11.52/share/year (R$ 0.96/share/month), a rise of 15.2% in relation to the 2012
payments
• Fev / 2013: conclusion of the primary public offering
ￚ New proceeds of R$ 1,3 Billion and 8,224,537 new shares
ￚ Pro-forma equity came to R$ 3.2 billion
ￚ The number of shares increased from 11.0 million to 19,2 million
ￚ The largest Fundo Imobiliário offering ever and attracted over 15,000 new investors to the BC Fund
ￚ New proceeds were invested in real estate fixed income, whose income is tax exempt for BC Fund, and the expected
returns above 7% per year
• Feb / 2013: payment in advance the debt originated from acquisition of Burity property, R$ 34.5 million with na interest rate of
IGP-M + 8.6% a.a.
• Increasing liquidity in the BMF&Bovespa from R$ 0.4 million (ADTV) to R$ 7.0 million post offering
3
4. Portfolio
GLA growth of 38.4%, reaching over 263,600 m2, being 72% of lease revenue from class AAA and A properties
GLA Evolution (m2) Por tipo de ativo
(em termos de receita contratada)
B
28.0%
AAA
+ 38.4% 42.7%
73,596 A
863 29.4%
(1,248)
Por tipo de ativo
(em termos de receita contratada)
263,646 Brasília
6,9%
Campinas
190,436 3,2%
Rio de
Janeiro
32,7%
São
Paulo
2011 Leblon BFC Oi Portfolio 2012 57,2%
4
5. Acquisition on Oi’s Portfolio
Transaction Highlights
On December 12, 2012, BC Fund acquired three new properties for R$ 299.7 million, adding 73 thousand m2 of leasable area
to the portfolio
Portfolio Per Asset GLA Monthly Lease
(in R$ '000, unless otherwise indicated) (m2) R$ '000 R$ / m2
Acquisition value 299,700 SIA Sul Complex 55,965 1,359 24.3
Lease 12 months 30,444 General Polidoro 10,660 1,066 100.0
Initial cap rate 10.2% Beneditinos 6,971 112 16.1
Total 73,596 2,537 34.5
Property Location Tenants Highlights
Sia Sul • A 150,000 m2 plot of land with a potential for an additional GLA of up to 100,000 m2.
Projects for new building are being developed to meet the current occupants’ needs
Brasília
General Polidoro • An office building in good condition after retrofitting. Botafogo is home to a large number
Rio de of service companies and is developing quickly. Large avenues provide easy access
Janeiro
Beneditinos • A commercial building located in the port area in downtown Rio de Janeiro, which is
Rio de being revitalized. The currently low lease amount of R$16/m2 can be increased since
Janeiro lease amounts in the area are about R$50/m2, and the contract will be renegotiated as
early as the first half of 2013
5
6. Portfolio
15 proprieties totaling over 263,000 m2 of GLA and average rental value of R$ 73,5/m²
Contracted
Property Type Ownership Location GLA(m²) lease R$/m² Tenants
(Dec-2012)
Brazilian
A 60% São Paulo 24,161 2,541,744 105.2
Financial Center
Burity B 100% São Paulo 10,550 559,100 53.0
Cargill A 100% São Paulo 9,104 772,181 84.8
CENESP B 24% São Paulo 45,505 1,848,485 40.6
Ed. Hicham B 100% Campinas 9,039 430,681 47.65
Ed. Hicham II B 100% Campinas 4,080 194,216 47.60
Eldorado
AAA 57% São Paulo 33,403 4,424,046 132.4
Business Tower
Flamengo A 100% Rio de Janeiro 7,085 945,335 133.4
Montreal A 100% Rio de Janeiro 5,679 373,069 65.7 Others Financial
20.2% 21.3%
Torre Almirante AAA 60% Rio de Janeiro 24,881 3,844,719 154.5
Transatlântico B 32% São Paulo 4,734 270,772 57.2
Auto
Volkswagen B 100% São Paulo 11,830 662,393 56.0 6.0%
Polidoro A 100% Rio de Janeiro 10,660 1,066,000 100.0
Telecom Oil&Gas
Beneditinos B 100% Rio de Janeiro 6,971 112,199 16.1 13.4% 21.2%
SIA Sul B 100% Brasília 55,965 1,340,395 24.0
Multi-sector
18.0%
TOTAL 263,646 19,385,334 73.5
6
7. Portfolio
Monthly lease contracted revenue Inflation adjustment timetable for 2013
(R$ million) (% of the portfolio)
+ 30.2%
40%
19.4
14.9
27%
16% 17%
Dec-11 Dec-12 1Q13 2Q13 3Q13 4Q13
Leasing Spread 2012 Renewals and Revisions
29% of the
portfolio
38.5% 144.8% 48%
85%
6.3%
100.0% 17%
14%
1% 4%
Leases under Inflation Real Gain Overall Growth Under In 3 monthsIn 6 months In 12 In 24 Total next
Negotiation review months months 24 months
7
8. Financial Highlights
Lease Revenue Financial Income
(R$ million) (R$ milhões)
Financial expenses Income from financial assets Net expenses
23.7% 200.3
161.9
15,4
7,0
-33,2
-50,2 -43,3 -48,7
2011 2012 2011 2012
Revenue Costs and Expenses
(in R$ million) 2011 2012 (in R$ million) 2011 2012
Revenue from properties 909.6 464.5 Cost of Investment properties (196.7) (37.5)
Rental income 161.9 200.3 Expenses over Properties (4.5) (4.3)
(-) Impairment of trade receivables (0.3) (0.3) Comissions (2.9) (1.7)
Revenue from recovered income 0.0 0.1 Management of properties expenses (1.0) (1.8)
Condominium expenses (0.6) (0.6)
Fines and interest received 0.4 0.4
Maintenance (0.0) (0.2)
Revenue from the sale of investment property
187.5 36.6
G&A (26.3) (32.8)
Discounts granted (0.4) 0.0
Management fee (19.1) (23.5)
Adjustment to fair value 560.5 227.4
Administration fee - Fund (3.3) (5.7)
Other operating expenses (3.9) (3.7)
8
9. Financial Highlights
Net Income and FFO
Net Income Net Income per share
(R$ million) (R$ / share)
624.3 Net income ex-fair value 56.75 Net income ex-fair value
Fair value Fair value
-44.3% -44.3%
347.7 31.61
548.6 49.88
225.8 20.53
+61.2% +61.2%
75.6 121.9 6.88 11.08
2011 2012 2011 2012
(in R$ '000, unless otherwise indicated) 2011 2012 Var %
Net income 624,272 347,697 -44.3%
(-) Adjustment at fair value (560,489) (227,396) -59.4%
(+) Adjustment at fair value (minorities) 11,856 1,597 -86.5%
(-) Gains in the sale of properties 9,219 920 -90.0%
(-) Gains on sale / MTM - CRI and other FII shares 0 (9,517) n/d
(+) Non-recurring expenses 3,380 1,065 -68.5%
(=) FFO 88,238 114,366 29.6%
FFO / share (R$ / share) 8.02 10.40 29.6%
(+) Non-cash financial expenses 8,931 9,454 5.9%
(=) Adjusted FFO 97,169 123,820 27.4%
Adjusted FFO / share (R$ / share) 8.83 11.26 27.4%
9
10. Financial Highlights
Indebtedness
(in R$ '000) Cost Term 2011 2012
Liabilities from acquisition of properties 237,617 537,339
Burity IGP-M + 8.6% 10 years 34,800 34,685
Brazilian Financial Center T R + 10.05% 5 years 76,691 73,998
Eldorado Business Center T R + 12.2% 10 years 126,127 126,539
Oi Portfolio IGP-M + 7.0% 17 years 0 302,117
Liabilities from funding 155,589 102,439
Hicham II IPCA + 8.74% 8 years 13,119 12,572
Brazilian Financial Center T R + 10.20% 10 years 97,219 89,867
CRI BC Fund IGP-M + 8.25% 5 years 45,251 0
Gross Debt 393,207 639,778
(-) Cash and Financial investments (72,526) (31,791)
(-) Shares of Other FIIs (Market) 0 (41,716)
Net Debt 320,681 566,271
LTV Amortization Schedule
(%) (R$ million)
32.2% 24.5% 499
18.5%
70
13 28 29
2011 2012 2013 2014 2015 2016 2017 +
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