BRProperties1Q12 Earnings Release Presentation
Highlights                 1Q12 Net Revenues totaled R$101.2 million, an increase of 30% over 1Q11, when net revenues cam...
Portfolio            Portfolio Market Value                                         1Q12 Revenue Breakdown       Portfolio...
Financial Highlights       Net Revenues (R$ thousand)                Net Income* (R$ thousand)                  30%       ...
Financial Highlights                                           1Q12 Income Statement               Income Statement       ...
Financial Highlights     Adjusted EBITDA (R$ thousand)                                       EBITDA (no adjustments) (R$ t...
Financial Highlights                                    Adjusted FFO (R$ thousand)                                        ...
Debt                     1Q12 Net Debt (R$ mn)                                                   1Q12 Debt Index Breakdown...
Debt                                                          Debt Service Schedule (R$ million)                          ...
Operating Highlights                                    Leasing Spreads               Leasing Spread - Market Alignments  ...
Operating Highlights                   Portfolio – Financial and Physical vacancy of 1.1% and 1.0%, respectively          ...
Operating Highlights                              Lease Contract Expiration Schedule               % Revenues             ...
Operating Highlights        Number of Managed Properties                Property Management - BRPRA                       ...
Capital Markets                              Performance BRPR3 VS IBOVESPA                                                ...
IR Contacts                     Investor Relations                       Pedro Daltro               CFO & Investor Relatio...
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1Q12 Presentation

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1Q12 Presentation

  1. 1. BRProperties1Q12 Earnings Release Presentation
  2. 2. Highlights  1Q12 Net Revenues totaled R$101.2 million, an increase of 30% over 1Q11, when net revenues came in at R$77.8 million. It is worth mentioning that the recently incorporated properties from One Properties had no impact on the quarter’s revenues;  1Q12 Adjusted EBITDA of R$91.8 million, a 34% increase over 1Q11 and adjusted EBITDA margin of 91%; 1Q12 Financial no adjustments EBITDA reached R$87.3 million, with EBITDA margin of 86% (adjusted EBITDA excludes non cash Highlights and non recurring expenses);  1Q12 Net Income totaled R$452.7 million, impacted by the net gain on appraisal of investment properties (includes gains on appraisal of properties that came with One Properties’ portfolio) and by the net operating profit of the quarter;  1Q12 Adjusted FFO totaled R$51.8 million, with adjusted FFO margin of 51%;  On March 29th, One Properties was incorporated by BR Properties;  During 1Q12, the Company reached leasing spreads (net of inflation) of 34,0% on new leases signed, and 36.1% in office buildings and 13.1% in the industrial properties in market alignments of existing contracts;  The financial vacancy rate was reduced to 1.1%, while physical vacancy rate came in at 1.0%. In terms of area, our office, industrial, and retail properties were 98.4%, 99.2%, and 100.0% occupied at the end of the quarter, respectively; Operating  The Company sold two properties in April, 2012. Ed. Olympic Tower was sold by R$14.0 million, which Highlights represented an exit cap rate of 8.9%, while Ed. Paulista Plaza was sold by R$20.0 million, resulting in an exit cap rate of 10.0%;  On April 11th, the municipality of Rio de Janeiro granted the move-in permits (Habite-se) to Ed. Manchete. The property is 100% leased and will begin generating rent revenues on 2Q12;  On April 30th, the acquisition of an 87% stake of Ed. Ventura - East Tower was approved in the Extraordinary Shareholders’ Meeting. With the acquisition, BR Properties strengthens its presence in Rio de Janeiro’s triple A office market, by holding 213.5 thousand m² of GLA (Ventura - East and West Tower, Manchete, CES Petrobrás, Sylvio Fraga).BRProperties 2 1Q12
  3. 3. Portfolio Portfolio Market Value 1Q12 Revenue Breakdown Portfolio Market Value (R$ million) 1Q12 1Q11 Var % 10% Leasing Office 11,715 5,254 123% Straight-line 94% 4% 51% Industrial 39% Services Retail 2% Portfolio Breakdown Portfolio Breakdown (% market value) (% GLA) 19% 19% 30% 39% 6% 7% 24% 56% Office Industrial Retail Development Office Industrial Retail DevelopmentBRProperties 3 1Q12
  4. 4. Financial Highlights Net Revenues (R$ thousand) Net Income* (R$ thousand) 30% 1625% 101.192 452.713 77.777 22.356 1Q11 1Q12 1Q11 1Q12 * Impacted by the net gain on appraisal of investment propertiesBRProperties 4 1Q12
  5. 5. Financial Highlights 1Q12 Income Statement Income Statement 1Q12 1Q11 var % Gross Revenues 108.587 84.860 28% Taxes (PIS/Cofins and ISS) (7.192) (6.844) 5% Deductions (203) (239) -15% Net Revenues 101.192 77.777 30% Cost of Leased Properties - - n/a Gross Profit 101.192 77.777 30% General and Administrative Expenses (13.884) (10.679) 30% Net Financial Result (15.880) (40.630) -61% Financial Income 86.110 62.700 37% Financial Expenses (101.990) (103.331) -1% Other Operating Income 470 (101) -564% Gain (loss) on Sale of Properties - (1.516) -100% Gain on Appraisal of Investment Properties 729.906 - n/a Income (loss) before taxes 801.804 24.850 3127% Income and Social Contribution taxes (4.985) (7.270) -31% Deferred taxes (344.107) 4.777 -7304% Net Income (loss) 452.713 22.356 1925%BRProperties 5 1Q12
  6. 6. Financial Highlights Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand) 91% 86% 86% 88% 30% 34% 87.309 91.778 67.097 68.368 1Q11 1Q12 1Q11 1Q12 Adjusted EBITDA Margin EBITDA Margin Adjusted EBITDA Breakdown 1Q12 1Q11 var % Net Income (loss) 452.713 22.356 1925% (+) Income and Social Contribution taxes 349.092 2.493 13900% (-) Gain on Appraisal of Investment Properties (729.906) - n/a (-) Gain (loss) on Sale of Properties - 1.516 -100% (-) Other Operating Income (470) 101 -564% (-) Net Financial Result 15.880 40.630 -61% EBITDA 87.309 67.097 30% EBITDA Margin 86% 86% 0 p.p. (+) Bonus Provision 1.149 1.149 0% (+) Stock Option Provision 1.288 122 957% (+) Merger Expenses 2.033 - n/a Adjusted EBITDA 91.778 68.368 34% Adjusted EBITDA Margin 91% 88% 3 p.p.BRProperties 6 1Q12
  7. 7. Financial Highlights Adjusted FFO (R$ thousand) 51% 11% 502% 51.849 8.619 1Q11 1Q12 Adjusted FFO Margin Adjusted FFO Breakdown 1Q12 1Q11 var % Net Income (loss) 452.713 22.356 1925% (-) Gain (loss) on Sale of Properties - 1.516 -100% (-) Gain on Appraisal of Investment Properties (729.906) - n/a (+) Deferred Taxes 344.107 (4.777) -7304% (+) Cost of Leased Properties - - n/a (+) Non-cash Losses on Exchange Rate Variation 33.064 6.463 412% (-) Non-cash Gains on Exchange Rate Variation (48.128) (16.940) 184% Adjusted FFO 51.849 8.619 502% Adjusted FFO Margin 51% 11% 40 p.p. Adjusted FFO per Share (Annualized) R$ 0,67 R$ 0,25 171%BRProperties 7 1Q12
  8. 8. Debt 1Q12 Net Debt (R$ mn) 1Q12 Debt Index Breakdown 3.803 4.664 1.104 1% 3.560 16% TR 47% CDI 14 IGPM 847 35% INPC ST Debt Obligations LT Debt Total Debt Cash Net Debt for Acquisitions Net Debt 1Q12 4Q11 var % Short Term Loans and Financing 861.508 198.731 334% Loans and Financing 793.883 128.902 516% Perpetual Bond 53.414 54.988 -3% Derivative Instruments (43) 836 -105% Payables for Acquisition of Real Estate 14.254 14.006 2% Long Term Loans and Financing 3.802.561 1.938.406 96% Loans and Financing 3.324.361 1.445.960 130% Perpetual Bond 478.200 492.446 -3% Gross Debt 4.664.069 2.137.137 118% Cash and Cash Equivalents 1.104.247 1.032.350 7% Net Debt 3.559.822 1.104.787 222% Portfolio Value 11.714.853 5.253.543 123% Gross Debt / Portfolio Value (Loan to Value) 40% 41% -2% Net Debt / Portfolio Value (Loan to Value) 30% 21% 44% Adjusted EBITDA / Net Financial Expenses * 3,0x 2,5x 19% Duration (years) ** 4,3 5,7 -24% * Considers Net Financial Expenses (ex. non-cash variations) ** Considers the amortization of the perpetual bond in 2023BRProperties 8 1Q12
  9. 9. Debt Debt Service Schedule (R$ million) 425 302 336 309 346 287 218 200 572 559 194 421 372 362 190 308 243 237 186 200 92 62 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Principal Interest Adjusted EBITDA / Net Financial Expenses Loan to Value: Gross and Net 3,5x 3,0x 2,7x 45% 43% 2,5x 2,5x 38% 40% 40% 42% 41% 2,4x 2,1x 40% 1,6x 24% 1,4x 36% 30% 36% 35% 4% 23% 21% 21% 21%1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 DSC ratio LTV Gross Debt LTV Net DebtBRProperties 9 1Q12
  10. 10. Operating Highlights Leasing Spreads Leasing Spread - Market Alignments 1Q12 1Q11 Leasing Spread - Office 36,1% 21,5% Renegotiated GLA (m²) 17.703 14.674 % Office portfolio 4% 5% Leasing Spread - Warehouse 13,1% 22,6% Renegotiated GLA (m²) 6.840 14.798 % Warehouse portfolio 1% 2% Leasing Spread - Retail n/a n/a Renegotiated GLA (m²) - - % Retail portfolio 0% 0% Leasing Spread - New Leases 1Q12 1Q11 Leasing Spread - Office 34,0% 15,5% Leased GLA (m²) 5.190 8.343 % Office portfolio 1% 3% Leasing Spread - Warehouse 0,4% 11,1% Leased GLA (m²) 52.924 12.889 % Warehouse portfolio 5% 2% Leasing Spread - Retail n/a n/a Leased GLA (m²) - - % Retail portfolio 0% 0%BRProperties 10 1Q12
  11. 11. Operating Highlights Portfolio – Financial and Physical vacancy of 1.1% and 1.0%, respectively Vacancy Breakdown Financial Vacancy per Segment 1,6% 1,7% Physical Office 1,5% Financial Industrial Retail 1,0% 1,1% 0,9% 0,8% 0,9% 0,2% 0,0% 0,0% 0,0% 3Q11 4Q11 1Q12 4Q11 1Q12 Vacancy per Property 1Q12 Property Type Financial Physical CBOP - Jacarandá Office 0,4% 0,2% Raja Hills Office 0,0% 0,0% Olympic Tower Office 0,0% 0,0% Ventura - Torre Oeste Office 0,1% 0,0% Brasília Office 0,3% 0,2% Total Office 0,8% 0,5% BBP Topázio Industrial 0,1% 0,1% BP Itapevi Industrial 0,1% 0,3% Cond.Ind.SJC Industrial 0,0% 0,1% Total Industrial 0,2% 0,6% Total Portfolio 1,1% 1,0%BRProperties 11 1Q12
  12. 12. Operating Highlights Lease Contract Expiration Schedule % Revenues % GLA 56% 76% 21% 3% 11% 3% 20% 10% 2012 2013 2014 >2015 2012 2013 2014 >2015 Lease Contract 3 Year Market Alignment Schedule % Revenues % GLA 10% 4% 41% 43% 21% 27% 35% 20% 2012 2013 2014 >2015 2012 2013 2014 >2015BRProperties 12 1Q12
  13. 13. Operating Highlights Number of Managed Properties Property Management - BRPRA Managed Properties Nº GLA Athenas 1 6.718 Gloria 1 8.436 Henrique Schaumann 1 14.125 29 29 Joaquim Floriano 1 3.899 Mairynk Veiga (MV9) 1 12.511 Santo Antonio 1 5.017 São José 1 5.080 Icomap 1 9.164 Vargas 1 14.809 1Q11 1Q12 Panamerica Park 9 45.020 Ouvidor 1 6.284 Property Management Revenues CBOP - Ed. Jacarandá 1 31.954 (R$ thousand) TNU 1 27.931 BP Jundiaí 1 53.343 Cond. Indl. São José dos Campos 1 73.382 73% BP Jandira 2 34.304 BP Itapevi 1 33.526 RB 115 1 11.516 Plaza Centenário 1 3.366 1.831 Ed. Comercial Indaiatuba 1 11.335 1.059 TOTAL 29 411.720 1Q11 1Q12BRProperties 13 1Q12
  14. 14. Capital Markets Performance BRPR3 VS IBOVESPA Shareholder Base40% BRPR3 IBOV30% IMOB20%10% BTG Pactual 28,2% 0%-10% Other 56,3% W Torre-20% 8,4%-30% mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12 fev-12 mar-12 abr-12 Laugar  Current number of shares: 310,307,396 GIC 1,9%  Market Value: R$ 7.3 billion 5,2%  Average Daily Vol. (30d): R$ 20.8 million * As of May 11th, 2012 Stock Performance (BRPR3) 1Q12 1Q11 var % Total Number of Shares 309.817.416 139.511.953 122,1% Free Float (%) 99% 99% 0,0% Stock Price (average for the period) 20,58 17,32 18,8% Stock Price (end of period) 23,44 17,15 36,7% Market Cap end of period (R$ million) 7.262,1 2.392,6 203,5% Average Daily Trading Volume (R$ million) 22,30 8,29 169,0% Average Daily Traded Shares 1.067.426 478.877 122,9% Average Daily negotiations 3.026 455 565,1%BRProperties 14 1Q12
  15. 15. 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 1Q12

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