2 q10 results presentation


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2 q10 results presentation

  1. 1. 2Q10 Earnings ReleaseAugust 12th, 2010BRProperties
  2. 2. BRProperties 2Q10Highlights2FinancialHighlightsOperatingHighlights We have reached 60% of the acquisition goal proposed in the capital budget in just 4 months afterthe Company’s IPO. During the period, we acquired the following properties: CBOP – Ed.Jacarandá, DP Louveira 3, 4, 5, 6, 8 & 9, RB 115 and Ed. Manchete for a total investment value ofR$ 872 million At the end of 2Q10, our portfolio had 993.143 sq m of gross leasable area (GLA), a 36% increasecompared to the same period of 2009 Increase in the number of managed properties, from 24 in 2Q09 to 28 in 2Q10 Our property management revenues increased by 63% in 2Q10 compared to 2Q09 Consolidation of the financing strategy utilizing real estate financing, which represents 92% of ourtotal debt; R$ 168 million in new financing was raised during the quarter 2Q10 gross revenues increased by 39% compared to 2Q09 Adjusted EBITDA, excluding stock option plan expenses and bonus provision, of R$ 35.5 million atthe end of 2Q10, an increase of 43% over 2Q09 2Q10 adjusted EBITDA pro-forma of R$ 46,5 million, with an 87% EBITDA margin Net income of R$ 19,3 million, an 83% increase over 2Q09 Consolidated FFO totaled R$ 25,5 million, with a 57% FFO margin
  3. 3. BRProperties 2Q10Recent Acquisitions On June 2nd 2010, we acquired the commercial office building RB 115,located in the downtown region of Rio de Janeiro/RJ for R$ 94,1 millionProperty Overview:GLA: 11.345 sq m% Acquired: 90%# floors: 20Complete retrofit under way On June 17th 2010, we acquired, for R$ 157 million, 2 warehouseslocated in the logistics complex DP Louveira, where the Companyalready owned 6 other propertiesProperty Overview:GLA: 88.643 sq m% Acquired 100%# warehouses: 292% leased On June 30th 2010, we acquired, for R$ 260 million, the Manchete officebuilding in the Flamengo region of Rio de Janeiro/RJProperty Overview:GLA: 26.439 sq m% Acquired: 100%# floors: 12Complete retrofit under wayEdifício RB 115DP Louveira 8 & 9Edifício Manchete3
  4. 4. BRProperties 2Q10PortfolioPortfolio Growth (GLA sq m)Portfolio Breakdown(% market value)Portfolio Breakdown(% GLA)454%42%1% 3%Office Industrial Other Development26%74%1%Office Industrial Other730.548993.14331.954106.306 11.34588.643(2.091)26.4391Q10 AcquisitionEd. JacarandáAcquisitionDP Louveira3,4,5,6AcquisitionRB 115AcquisitionDP Louveira8,9Sale 50% Ed.Souza AranhaAcquisitionEd. Manchete2Q10
  5. 5. BRProperties 2Q10 BR Properties has already invested R$ 872 million, or 60%, of the total acquisition value outlined inthe capital budget It is also important to mention that we are currently 35% above the acquisition goal which wasestablished for 2010AcquisitionsAcquisition CAPEX Schedule Post IPO Post IPO Acquisitions5872mar/10 abr/10 mai/10 jun/10 jul/10 ago/10 set/10 out/10 nov/10 dez/10Capital BudgetActual1.452645872mar/10 abr/10 mai/10 jun/10 jul/10Capital BudgetActual+35%
  6. 6. BRProperties 2Q10 Our financial vacancy was 10.4% in the period; Excluding Ed. Jacarandá, of which we only paid anadvance of 18%, and TNU, which is currently under retrofit, our financial vacancy is currently 3.0%Operating HighlightsVacancy Breakdown Despite the recent increase in our portfolio vacancy, the lease-up outlook for the vacant areas isvery positive given the increased demand and most importantly the high quality of our properties We expect the portfolio vacancy to return to its historic levels in the short termVacancy per Property66,0%6,6%3,7%8,3%10,4%3,0%1Q10 2Q10 2Q10 Ex CBOP & TNUPhysicalFinancial4,1%3,3%1,0%0,9%0,6%0,3%0,2%0,1%Castelo Branco Office ParkTNUPiraporinhaCond.Ind.São José dosCamposDP Louveira 9Raja HillsPlaza Centenário
  7. 7. BRProperties 2Q10% Revenues% GLA% GLA2% 5%6% 37%49%2010 2011 2012 2013 >20131% 7%9%34%51%2010 2011 2012 2013 >2013% Revenues20%41%24%13%1%2010 2011 2012 2013 >201319%47%24%9% 1%2010 2011 2012 2013 >2013Lease Contract 3 Year Market Alignment ScheduleLease Contract Expiration Schedule7Operating Highlights
  8. 8. BRProperties 2Q10Managed Properties Property Management Revenues24282T09 2T1016%5298632T09 2T1063%8Operating Highlights
  9. 9. BRProperties 2Q10Net Revenues Adjusted EBITDANet Income FFO9Financial Highlights31.98944.88953.223 59.27086.489110.7012Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma40%19%66%46%28%87%26.73538.20246.536 50.99573.63997.8512Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma43%22%44%33%74%92%10.53719.305 17.55331.0642Q09 2Q10 6M09 6M1083%77%14.64925.550 25.78642.1872Q09 2Q10 6M09 6M1074%64%
  10. 10. BRProperties 2Q10Pro-Forma EstimatesAdditional Pro-forma Gross Revenues(non audited)Adjusted EBITDA(non audited)Methodology Considers that the in place revenues for theproperties acquired throughout 2010 were incurredsince the beginning of the yearResults 2Q10 adjusted EBITDA pro-forma totaled R$46,5million, 22% above 2Q10 adjusted EBITDA 6M10 adjusted EBITDA pro-forma 6M10 totaledR$97,8 million, 33% above 6M10 adjusted EBITDA Adjusted EBITDA pro-forma margin of 87% and 88%in 2Q10 and 6M10, respectively1049.23757.987726-6752.3811.3833.5852Q10 Actual BBP DPAraucáriaTNU Ed.JacarandáLouveira3-6Louveira8-92Q10Pro-forma38.20146.53673.63997.85185%87%85%88%65%70%75%80%85%90%25.00035.00045.00055.00065.00075.00085.00095.000105.0002Q10 Actual 2Q10 Pro-forma6M10 Actual 6M10 Pro-formaEBITDA Margin
  11. 11. BRProperties 2Q10DebtDebt Amortization ScheduleNet Debt 2Q10 Debt Index Breakdown Comfortable amortization schedule in the next few years, with low refinancing risk92%4%4%TRIGPMCDI41.88659.66575.989 70.39993.016 89.560 99.408242.29059.921 48.41114.6321.0272010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20211111295555859784 396STDebt ObligationsforAcquisitionsLTDebt TotalDebt Cash NetDebt
  12. 12. BRProperties 2Q10GlossaryEBITDA (Earnings Before Income, Tax, Depreciation and Amortization): a non accounting measure whichmeasures the Company’s capacity to generate operational revenues, without considering its capital structure.Measured by excluding the operational expenses from Gross Profit and adding back the depreciation andamortization expenses for the period(Gross Profit – General and Administrative Expenses + Depreciation + Amortization)Adjusted EBITDA: adjustments made to EBITDA by excluding R$ 0.2 million from expenses regarding theCompany stock option plan, along with R$ 1.1 million in employee bonus provisionsFFO (Funds From Operations): non accounting measure, which adds back depreciation to net income in orderto determine, utilizing the income statement, the net cash generated in the period(Net Income + Depreciation)Vacancy - Financial: estimated by multiplying the average rent per sqm which could be charged in the buildingsand their respective vacant areas, and then dividing this result by the potential gross revenues of eachproperty. Indicates the percentage of potential revenue which is lost each month due to vacancyVacancy - Physical: estimated by dividing the total vacant area by the total GLA of the portfolio- 12 -
  13. 13. BRProperties 2Q10IR ContactsInvestor RelationsPedro DaltroCFO & Investor Relations OfficerLeonardo FernandesInvestor Relations ManagerMarcos OliveiraInvestor Relations AnalystPhone: (55 11) 3201-1000Email: ri@brpr.com.brwww.brpr.com.br/ri13