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2 q13 br properties earnings release presentation

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2 q13 br properties earnings release presentation

  1. 1. 2Q13 Earnings Release Presentation
  2. 2. 2Q13 Highlights 2 2Q13 HIGHLIGHTS • 2Q13 net revenues totaled R$238.2 million, an increase of 48% over 2Q12, when net revenues came in at R$160.9 million. The significant growth resulted from additional rental revenues of properties delivered throughout the last twelve months; • 2Q13 adjusted EBITDA of R$221.2 million, a 52% increase over 2Q12 and adjusted EBITDA margin of 93%; • 2Q13 net income totaled R$49.8 million, impacted by the net gain on appraisal of investment properties and other non cash items; • 2Q13 adjusted FFO excluding non-cash expenses totaled R$88.8 million, a 947% increase over 2Q12 and adjusted FFO margin of 37%; • During 2Q13, the Company obtained leasing spreads (net of inflation) of 15.3% in office buildings and 14.6% in industrial properties; • Financial vacancy rate was 10.8%, while physical vacancy rate came in at 5.5%. Excluding the recently delivered Ed. Paulista and the JK Towers, currently under lease-up, stabilized financial and physical vacancy would drop to 3.6% and 3.1%, respectively; • During 2Q13 the Company renegotiated R$983.6 million of TR-linked debt along the quarter, reducing its average cost from TR + 10.36% p.a. to TR + 9.39% p.a.; • Standard & Poor’s altered its outlook on BR Properties from neutral to positive; • In May, the company concluded its third issuance of non-convertible unsecured local debentures, raising R$450.0 million in a single tranche at CDI + 0.80% p.a. maturing in three years, and fully amortized at the end of the period; • Also in May, the company prepaid the R$260.0 million commercial papers issued in 2Q13, utilizing part of the proceeds from its third issuance of non-convertible local debentures; • In June, the Company delivered another major project of its portfolio, the first phase of Gaia Terra - Galpão Andiroba, located in Jarinu – SP, currently 75% let.
  3. 3. 2Q13 Portfolio 2Q13 Revenue Breakdown Portfolio Breakdown (% market value) Portfolio Breakdown (% GLA) 3 Portfolio Market Value 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 4.751 4.918 5.142 5.254 11.715 12.968 13.552 13.840 14.031 14.096 50% 20% 25% 4% Office AAA Office Industrial Retail 18% 14% 63% 5% Office AAA Office Industrial Retail Services 0,8% Straight-line 0,6% Leasing 98,5% 67% 27% 7%
  4. 4. 2Q13 Financial Highlights 4 Net Revenues (R$ thousand) Net Income* (R$ thousand) * 2Q12 Net Income was largely impacted by a gain on appraisal of investment properties of R$554.5million, after the acquisition of One Properties. 2Q12 2Q13 6M12 6M13 160.935 238.214 262.128 464.141 48% 77% 2Q12 2Q13 6M12 6M13 332.390 49.847 785.103 140.740 (85%) (82%)
  5. 5. 2Q13 5 Financial Highlights Adjusted EBITDA (R$ thousand) 90% 93% 90% 93% Adjusted EBITDA Margin 2Q12 2Q13 6M12 6M13 145.325 221.247 237.176 433.338 52% 83% EBITDA Composition 2Q13 2Q12 var % 6M13 6M12 var % Net Income (loss) 49.847 332.390 -85% 140.740 785.103 -82% (+) Deferred Taxes 16.911 153.916 -89% 47.747 498.023 -90% (+) Income and Social Contribution Taxes 18.083 12.104 49% 21.695 17.089 27% (-) Minority Interest (603) - n/a (6.596) - n/a (+) Depreciation 224 757 -70% 224 830 -73% (+) Net Financial Result 176.179 184.952 -5% 311.041 200.832 55% EBITDA 260.642 684.119 -62% 514.852 1.501.876 -66% EBITDA Margin 109% 425% -316 p.p. 111% 573% -462 p.p. Adjusted EBITDA Composition 2Q13 2Q12 var % 6M13 6M12 var % EBITDA 260.642 684.119 -62% 514.852 1.501.876 -66% (-) Gain (Loss) on Appraisal of Investment Properties (39.944) (554.489) -93% (88.820) (1.284.395) -93% (-) Gain (Loss) on Sale of Investment Properties (2.250) 8.525 -126% (2.250) 8.525 -126% (+) Other Operating Income 1.263 (1.646) -177% 6.211 (2.116) -393% (+) Stock options 387 773 -50% 1.048 2.061 -49% (+) Bonus Provision 1.149 1.149 0% 2.298 2.298 0% (+) Merger Expenses - 6.894 n/a - 8.927 n/a Adjusted EBITDA 221.247 145.325 52% 433.338 237.176 83% Adjusted EBITDA Margin 93% 90% 3 p.p. 93% 90% 3 p.p.
  6. 6. 2Q13 6 Financial Highlights Adjusted FFO (R$ thousand) Adjusted FFO Composition 2Q13 Net Income (loss) 49.847 (+) Deferred Taxes 16.911 (+) Taxes on Property Sales 820 (-) Gain (Loss) on Appraisal of Investment Properties (39.944) (-) Gain (Loss) on Sale of Investment Properties (2.250) (+) Non-cash Losses on Exchange Rate Variation 62.107 (-) Non-cash Gains on Exchange Rate Variation (3.543) (+) Non-cash Variations on Derivative Instruments 5.427 (-) Minority Interest (603) (+) Merger Expenses - Adjusted FFO 88.772 Adjusted FFO Margin 37% 5% 21% 32% 34% 37% Adjusted FFO Margin 19% 2Q12 3Q12 4Q12 1Q13 2Q13 8.482 34.830 64.679 77.236 88.772311% 86% 15%
  7. 7. 2Q13 Indebtedness 2Q13 Net Debt (R$ mn) 2Q13 Debt Profile 7 ST Debt Obligations for Acquisitions LT Debt Total Debt Cash Net Debt 668 5.684 5.023 12 5.004 661 41% 42% 11% 1% 6% TR CDI IGPM INPC IPCA Indebtedness 2Q13 1Q13 var % Short Term Loans and Financing 679.678 941.695 -28% Loans and Financing 603.183 871.586 -31% Perpetual Bond 64.949 59.033 10% Derivative Instruments - - n/a Payables for Acquisition of Real Estate 11.547 11.076 4% Long Term Loans and Financing 5.003.863 4.598.686 9% Loans and Financing 4.422.211 4.070.176 9% Perpetual Bond 581.652 528.510 10% Gross Debt 5.683.541 5.540.381 3% Cash and Cash Equivalents 660.598 771.193 -14% Net Debt 5.022.943 4.769.188 5% Portfolio Value 14.096.206 14.031.097 0% Gross Debt / Portfolio Value (Loan to Value) 40% 39% 1 p.p. Net Debt / Portfolio Value (Loan to Value) 36% 34% 2 p.p. Adjusted EBITDA / Net Financial Expenses * 2,0x 1,7x 16% Duration (years) 4,4 4,4 0% Unsecured Debt / Total Debt 28% 24% 4 p.p. * Considering Net Financial Expenses (ex. non-cash variations)
  8. 8. 2Q13 Indebtedness 8 Debt Amortization Schedule (R$ million) Loan to Value: Gross and NetInterest Coverage Ratio Net Debt / Adjusted EBITDA 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 288 784 265 887 511 332 336 187 94 75 70 72 60 Principal 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 0,6x 3,7x 4,9x 7,0x 6,0x 5,5x 3,2x 3,4x 9,7x 7,8x 7,3x 6,7x 5,6x 5,7x Net Debt/EBITDA 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 2,5x 3,5x 2,4x 2,1x 1,4x 1,6x 2,7x 2,5x 3,0x 1,1x 1,5x 1,5x 1,7x 2,0x EBITDA / Net Financial Expenses 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 38% 40% 24% 40% 45% 43% 42% 41% 40% 39% 37% 38% 39% 40% 4% 23% 21% 36% 36% 35% 21% 21% 30% 35% 34% 34% 34% 36% LTV Gross Debt LTV Net Debt
  9. 9. 2Q13 9 Operating Highlights Leasing Spreads Lease Contract Expiration Schedule (% Revenues) Lease Contract 3 Year Market Alignment Schedule (% Revenues) 2013 2014 2015 >2016 7% 8% 12% 73% Leasing Spread 2Q13 2Q12 6M13 6M12 Leasing Spread - Office 15,3% 15,9% 16,7% 26,7% Renegotiated GLA (m²) 3.169 17.147 10.421 40.040 % Office portfolio 1% 4% 2% 10% Leasing Spread - Warehouse 14,6% 34,4% 9,7% 3,0% Renegotiated GLA (m²) 12.129 2.871 28.017 62.634 % Warehouse portfolio 1% 0% 2% 5% Leasing Spread - Retail n/a n/a n/a n/a Renegotiated GLA (m²) - - - - % Retail portfolio 0% 0% 0% 0% 2013 2014 2015 >2016 21% 26% 41% 12% Lease Contracts Duration All Contracts 6.1 Years Build-to-Suit Contracts 6.9 Years
  10. 10. 2Q13 Operating Highlights 10 Financial Vacancy per Segment Vacancy Evolution Impacted in 720 bps by the delivery of the JK Towers and Ed. Paulista 1Q13 2Q13 8,3% 10,3% 0,6% 0,5%0,0% 0,0% Office Industrial Retail * An area of ​​9,214 sqm for the Manchete Building was returned by the tenant in the second half of June/13. As a penalty fee for early termination of the contract, BR Properties received an amount of R$10.9 million, representing 6.3 monthly rents. The vacant area is currently under lease-up. Property Type Financial Physical Ed. Jacarandá Office 0,1% 0,1% Ventura - Torre Oeste Office 0,3% 0,1% Icomap Office 0,03% 0,05% RB115 Office 0,1% 0,1% Manchete * Office 1,2% 0,5% JK Complex - Towers D&E Office 5,5% 1,7% Cidade Jardim Office 0,6% 0,2% Paulista Office 1,8% 0,6% Santo Antonio Office 0,03% 0,03% Raja Hills Office 0,1% 0,2% Brasília Office 0,6% 0,4% Total Office 10,3% 4,0% BP Jandira Industrial 0,1% 0,2% BP Jundiaí Industrial 0,1% 0,3% DP Louveira #9 Industrial 0,1% 0,4% BBP CEA Topázio Industrial 0,05% 0,1% BBP Barão de Mauá-Brahms Industrial 0,04% 0,1% Gaia Terra Andiroba Industrial 0,1% 0,3% Cond.Ind.SJC Industrial 0,03% 0,1% Total Industrial 0,5% 1,5% Total Portfolio 10,8% 5,5% 3Q12 4Q12 1Q13 2Q13 3,2% 2,6% 4,7% 5,5% 4,5% 4,0% 8,9% 10,8%Physical Financial
  11. 11. 2Q13 Capital Markets 11 Stock Performance – 6M13 - 10.000.000 20.000.000 30.000.000 40.000.000 50.000.000 60.000.000 70.000.000 80.000.000 -35% -25% -15% -5% 5% 15% Jan-13 Jan-13 Feb-13 Feb-13 Mar-13 Mar-13 Apr-13 Apr-13 May-13 May-13 Jun-13 Jun-13 ADTV BR Properties Ibovespa Stock Performance (BRPR3) 2Q13 2Q12 var % 6M13 6M12 var % Total Number of Shares 312.653.445 310.307.396 1% 312.653.445 310.307.396 1% Free Float (%) 99% 99% 0% 99% 99% 0% Stock Price (average for the period) 20,91 23,02 -9% 22,89 21,80 5% Stock Price (end of period) 19,00 23,70 -20% 19,00 23,70 -20% Market Cap end of period (R$ million) 5.940 7.354 -19% 5.940 7.354 -19% Average Daily Trading Volume (R$ million) 55,14 36,51 51% 44,73 29,40 52% Average Daily Traded Shares 2.698.460 1.592.098 69% 2.048.370 1.329.762 54% Average Daily negotiations 7.594 4.074 86% 6.493 3.550 83%
  12. 12. 2Q13 IR Contacts 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 12 Investor Relations

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