2. Highlights
2010 gross revenues increased 78% compared to 2009, totaling R$ 223.4 million;
Adjusted EBITDA of R$ 177.5 million at the end of 2010, an increase of 89% over 2009;
Financial In 2010, we estimated a pro-forma adjusted EBITDA of R$ 316.9 million, with a 92% EBITDA
Highlights margin;
Net income of R$ 813.4 million, a 388% increase over 2009 and consolidated FFO excluding the
portfolio appraisal effects of R$ 92.2 million with a 45% FFO margin.
The Company’s portfolio was appraised by CBRE, resulting in a 22% appreciation in its market
value;
With the acquisition of 100% of FII Comercial Progressivo II, BR Properties invested over $ 1.7
billion after the IPO in March, 2010, and exceeded in 18% the acquisitions target under a capital
budget approved by its shareholders for 2010. The Company invested over R$ 2.0 billion in 2010;
Operating At the end of 2010, our portfolio had 1,159,756 sqm of gross leasable area (GLA), a 89% increase
Highlights compared to the same period of last year;
During 2010, we raised approximately R$ 864.7 million in real estate long term financing linked to
TR; this type of credit represents 73% of the total Company debt;
In October 2010, the Company concluded an additional perpetual bond issuance in the amount of
US$ 200 million, offered to qualified institutional investors. In January 2011, the perpetual bond was
re-opened, and the Company raised another US$ 85 million.
BRProperties 2 2010
3. 2010 Portfolio Appraisal
CB Richard Ellis Appraisal
Portfolio Market Value: R$ 4.78 bi
Total portfolio appreciation of 22%
Revaluated at a yield of 9.33% 22%
considers revenues of 2011 budget;
excludes non-operational properties
4.783.645
Net Asset Value (NAV) 3.913.337
NAV: R$ 3.1 bi
NAV per share: R$ 22.14
Current Price per share: R$ 17.28 2009 Portf olio & 2010 Property
2010 acquisitions Appraisal
Discount of: 22%
2009 Portfolio & 2010 Property
Type 2009 x 2010
2010 acquisitions Appraisal
Office 2.132.954 2.646.453 24%
Industrial 1.350.799 1.573.600 16%
Retail 335.309 402.692 20%
Development 94.275 160.900 71%
Total 3.913.337 4.783.645 22%
BRProperties 3 2010
5. Recent Acquisitions
Comercial Progressivo II Real Estate Investment Fund In December 2010, we acquired a portfolio of
commercial properties, comprised of 29 retail
Ed. Santa Catarina Ed. Cetenco Portfolio C&A properties and 4 office buildings, for the total amount
of R$ 477.2 million. The portfolio holds 122,146 sqm
of gross leasable area (GLA) and is 99% leased;
The acquisition marked the Company’s entry into
the segment of street and shopping mall retail
stores, in line with its original business plan. The
retail segment is a very dynamic market, and is
another front for new acquisitions and future growth
for BR Properties;
This acquisition also marks the expansion of BR
Properties’ presence beyond the Southeastern and
Southern regions, with stores in all regions of the
country.
Area Vacancy CBRE Estimate
Properties Type City State Tenants # % Owned
(sqm) % per region
Portfólio C&A Retail n/a n/a C&A / other 28 98,714 100% 0% n/a
Multi 1 2,171 51% 0% n/a
Paço do Ouvidor Retail Rio de Janeiro RJ Type: Office AAA
Alphaville - Araguaia Office Barueri SP C&A Corporate 1 8,084 100% 0% R$30 - R$60/sqm
Multi
GLA: 21,493 sqm
1 7,472 23% 0% R$75 - R$110/sqm
Ed. Cetenco Plaza Office São Paulo SP
Ed. Santa Catarina Office São Paulo SP Multi % Owned: 41% 27%
1 4,257 0% R$75 - R$110/sqm
Call Center Conexão Office São Paulo SP Conexão Floors: 171,448 100%
1 0% R$14 - R$27/sqm
Capex: R$ 340 MM
33 122,146
BRProperties 5 2010
6. Acquisitions
BR Properties invested over $ 1.7 billion after the IPO in March, 2010, and exceeded in 18% the
acquisitions target under a capital budget approved by its shareholders for 2010;
The Company invested over R$ 2.0 billion in 2010.
After IPO Acquisitions
1.709
+18%
1.452
Budget Actual
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
BRProperties 6 2010
7. Recent Sales
Sales
4Q10
Ed. Isabella Plaza (units 31 and 32) Ed. Number One (unit 121)
Acquisition Value R$ 3.13 MM Acquisition Value R$ 466,775
Acquisition Date Aug/2007 Acquisition Date Aug/2007
Sale Value R$ 4,20 MM Sale Value R$ 650,000
Sale Date Dec/2010 Sale Date Dec/2010
Holding Period 39 months Holding Period 39 months
IRR 25.9% IRR 33.5%
1Q11
Ed. Athenas Ed. Joaquim Floriano
Acquisition Value R$ 27.0 MM Acquisition Value R$ 17.4 MM
Acquisition Date Aug/07 Acquisition Date Aug/07
Sale Value R$ 34.5 MM Sale Value R$ 22.4 MM
Sale Date Jan/11 Sale Date Mar/11
Holding Period 40 months Holding Period 42 months
IRR 20% IRR 19%
ROE 70% ROE 73%
BRProperties 7 2010
8. Portfolio
Portfolio Breakdown Portfolio Breakdown
(% market value) (% GLA)
3% 11%
9%
22%
8%
33% 55%
59%
Office Industrial Retail Development Office Industrial Retail Development
Portfolio Growth (GLA sqm)
145.120 1.159.756
1.014.636
3Q10 Acquisition of BBP Topázio & FII 4Q10
Comercial Progressivo II + Sale
of Ed. Isabella & Number One
BRProperties 8 2010
9. Operating Highlights
Vacancy Breakdown Financial Vacancy per Segment
12,3% 10,9%
Office
Industrial
8,1% Physical
6,9% Retail
Financial
5,2%
3,8%
1,6% 1,5% 1,4% 1,2%
0,0% 0,0%
3Q10 2010 2010 (Ex Ventura, 3Q10 2010
CBOP, TNU & RB115)
Vacancy per Property - 2010
Property Type Financial Physical
CBOP - Ed. Jacarandá Office 2,6% 0,9%
Ventura Towers Office 1,8% 0,5%
TNU Office 1,2% 0,4%
RB115 Office 0,9% 0,4%
Raja Hills Office 0,2% 0,1%
Santa Catarina Office 0,1% 0,0%
Number One Office 0,0% 0,0%
Total Office 6,9% 2,3%
DP Louveira 9 Industrial 0,4% 0,7%
BP Jundiaí Industrial 0,1% 0,2%
Piraporinha Industrial 0,7% 0,6%
Total Industrial 1,2% 1,5%
Total Portfólio 8,1% 3,8%
BRProperties 9 2010
16. Stock Performance
Currently, 99% of BR Properties’s shares are in free float
60%
GP
BRPR3
Investments 50%
11,5% Ibovespa
40% 36,15%
Wellington
Management 30%
5,8% 20%
BlackRock 10%
5,1%
0% -1,74%
Laugar S.A.
4,6% -10%
-20%
Silverpeak
2,6% -30%
Management
0,7%
Other
69,6%
Number of shares: 139,511,953
Market Value: R$ 2.5 billion
Average Daily Vol. (30d): R$ 7.5 million
* As of February 28th, 2011
BRProperties 16 2010
17. Glossary
EBITDA (Earnings Before Income, Tax, Depreciation and Amortization): a non accounting measure which
measures 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 and amortization
expenses for the period
(Gross Profit – General and Administrative Expenses + Depreciation + Amortization)
Adjusted EBITDA: adjustments made to EBITDA by excluding expenses pertaining to the Company’s Stock Option
Plan, along with the respective vacancy costs from the period
FFO (Funds From Operations): non accounting measure, which excludes the effect of the gain on the appraisal of
investment properties and the corresponding impact on the income and social contribution taxes from the net income,
in order to determine, using the income statement, the net cash generated in the period
Leasing spread: real gain (net of inflation) from the renegotiation of existing leases, and new leases of vacant areas
when compared to the previous in-place rent
Vacancy - Financial: estimated by multiplying the average rent per sqm which could be charged in the buildings and
their respective vacant areas, and then dividing this result by the potential gross revenues of each property. Indicates
the percentage of potential revenue which is lost each month due to vacancy
Vacancy - Physical: estimated by dividing the total vacant area by the total GLA of the portfolio
Stabilized Properties: properties acquired in 2009, plus properties acquired in 2010, before the IPO
BRProperties 17 2010
