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BRProperties2010 Earnings Release Presentation
Highlights                 2010 gross revenues increased 78% compared to 2009, totaling R$ 223.4 million;                ...
2010 Portfolio Appraisal       CB Richard Ellis Appraisal  Portfolio Market Value: R$ 4.78 bi  Total portfolio appreciat...
Portfolio Appraisal 2010                            Office                                                                ...
Recent Acquisitions      Comercial Progressivo II Real Estate Investment Fund                                      In Dec...
Acquisitions   BR Properties invested over $ 1.7 billion after the IPO in March, 2010, and exceeded in 18% the    acquisi...
Recent Sales                                                         Sales                                                ...
Portfolio                     Portfolio Breakdown                                                         Portfolio Breakd...
Operating Highlights                  Vacancy Breakdown                                      Financial Vacancy per Segment...
Operating Highlights      Leasing Spread                                               4Q10      4Q09       var %         ...
Operating Highlights                               Lease Contract Expiration Schedule               % Revenues            ...
Operating Highlights              Managed Properties          Property Management Revenues                                ...
Financial Highlights                                     Gross Revenues                                                   ...
Financial Highlights                                          Adjusted EBITDA                 92%                         ...
Debt                               2010 Net Debt                                                         2010 Debt Index B...
Stock Performance Currently, 99% of BR Properties’s shares are in free float                                              ...
Glossary  EBITDA (Earnings Before Income, Tax, Depreciation and Amortization): a non accounting measure which  measures th...
IR Contacts                     Investor Relations                       Pedro Daltro               CFO & Investor Relatio...
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Br properties 2010 earnings release presentation

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Br properties 2010 earnings release presentation

  1. 1. BRProperties2010 Earnings Release Presentation
  2. 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. 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
  4. 4. Portfolio Appraisal 2010 Office Industrial 2.646.453 102.917 1.573.600 295.242 218.257 119.884 2.132.954 1.350.799 2009 Portfolio 2009 Portfolio 2010 2010 Property 2009 Portfolio 2009 Portfolio 2010 2010 Property & 2010 Acquisitions Appraisal & 2010 Acquisitions Appraisal Acquisitions Acquisitions Retail Developments 66.625 160.900 67.383 402.692 335.309 94.275 2010 Acquisitions Appreciation 2010 Property 2009 Appreciation 2010 Property Appraisal Developments AppraisalBRProperties 4 2010
  5. 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 33 122,146BRProperties 5 2010
  6. 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-10BRProperties 6 2010
  7. 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. 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 OneBRProperties 8 2010
  9. 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
  10. 10. Operating Highlights Leasing Spread 4Q10 4Q09 var % 2010 2009 var % Leasing Spread (Renegotiations) - Office 7,6% -0,8% n/a 12,8% -0,4% n/a Leasing Spread (Renegotiations) - Warehouse 0,0% 13,7% -100% 7,1% 3,9% 83% Leasing Spread (Renegotiations) - Retail n/a n/a n/a n/a n/a n/a Renegotiated Area - Office (sqm) 331 4.064 -92% 3.820 12.887 -70% Renegotiated Area - Warehouse (sqm) - 8.640 -100% 17.899 13.604 32% Renegotiated Area - Retail (sqm) - - 0% - - n/a Leasing Spread (New Leases) - Office 10,1% 13,7% -26% 9,1% 1,8% 414% Leasing Spread (New Leases) - Warehouse 0,0% 6,8% -100% 13,6% -12,3% n/a Leasing Spread (New Leases) - Retail n/a n/a n/a n/a n/a n/a New Leased Area - Office (sqm) 20.805 2.054 913% 45.760 14.638 213% New Leased Area - Warehouse (sqm) - 7.147 -100% 26.919 17.962 50% New Leased Area - Retail (sqm) - - 0% - - n/a * Leasing spreads are net of inflation Renegotiations New Leases 13,7% 12,8% 13,6% 13,7% 10,1% 9,1% 6,8% 7,6% 7,1% 1,8% 0,0% Office 3,9% Office Industrial Industrial 0,0% -0,8% -0,4% -12,3% 4Q09 4Q10 2009 2010 4Q09 4Q10 2009 2010BRProperties 10 2010
  11. 11. Operating Highlights Lease Contract Expiration Schedule % Revenues % GLA 63% 57% 7% 25% 32% 5% 5% 6% 2011 2012 2013 >2013 2011 2012 2013 >2013 Lease Contract 3 Year Market Alignment Schedule % Revenues % GLA 2% 1% 15% 27% 20% 17% 54% 65% 2011 2012 2013 >2013 2011 2012 2013 >2013BRProperties 11 2010
  12. 12. Operating Highlights Managed Properties Property Management Revenues (R$ mil) 74% 8% 3.698 26 2.078 24 2009 2010 2009 2010BRProperties 12 2010
  13. 13. Financial Highlights Gross Revenues 194% 171% 369.028 223.437 125.703 71.451 91.293 33.697 4Q09 4Q10 4Q10 Pro Forma 2009 2010 2010 Pro Forma Net Revenues 205% 180% 343.867 204.464 112.748 66.198 84.900 30.364 4Q09 4Q10 4Q10 Pro 2009 2010 2010 Pro Forma FormaBRProperties 13 2010
  14. 14. Financial Highlights Adjusted EBITDA 92% 87% 83% 237% 316.947 177.545 93.945 2009 2010 2010 Pro-Forma Net Income FFO 388% 105% 813.368 92.195 44.961 166.703 2009 2010 2009 2010BRProperties 14 2010
  15. 15. Debt 2010 Net Debt 2010 Debt Index Breakdown 1.544.414 1.927.138 232.456 1.694.682 25% TR IGPM 303.109 79.615 2% CDI 73% Dívida CP Obrigações Dívida LP Dívida Total Caixa Dívida por Líquida Aquisição Debt Service Schedule Interest 377 Principal 88 166 134 121 107 427 j - 37 j - 26 156 145 65 304 53 p - 22 p - 14 190 137 139 152 112 110 127 122 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022BRProperties 15 2010
  16. 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, 2011BRProperties 16 2010
  17. 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 IPOBRProperties 17 2010
  18. 18. 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 18 2010

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