2. Disclaimer The material that follows is a presentation of general background information about BR Properties S.A. and its subsidiaries (“BR Properties” or “BRP” or the “Company”) prepared as of the date of the presentation by BR Properties. This information is in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. Information contained in this material has not been independently verified. Certain information has been obtained from public sources. Information not obtained from public sources and contained herein was prepared solely based on information provided by the Company. No representation or warranty, either express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment advice. It is not targeted to the specific investment objectives, financial situation or particular needs of any recipient. It is not intended to provide the basis for any third party evaluation of any securities or any offering of them and should not be considered as a recommendation that any investor should subscribe for or purchase any securities Although BR Properties believes that the expectations and assumptions reflected in the forward-looking statements are reasonably based on information currently available to BRP’s management, BR Properties cannot guarantee future results or events. BR Properties expressly disclaims a duty to update any of the forward-looking statement. Neither this material nor its content shall be deemed to constitute an offer of or an invitation, or solicitation of an offer to subscribe for or purchase any securities. The information contained herein is subject to change without notice and neither the Company past performance is not indicative of future results. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. No person is authorized to give any information or to make any representation not contained in and not consistent with this material and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Company. These materials are strictly confidential and are being submitted to selected recipients only. They may not be reproduced (in whole or in part), distributed or transmitted to any other person without the prior written consent of the Company. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
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4. BR Properties was founded in Dec/06 by an experienced team of executives, aiming at acquiring, managing, developing and leasing high quality commercial properties in Brazil
5. Company’s portfolio currently holds 94 properties, with 1.15 million sqm of GLA and estimated market value of over R$ 4 billion
6. 4 greenfield projects, with approximately 148.3 thousand sqm of gross leasable area (GLA)
7. Fully integrated and experienced in-house teams: acquisitions, financing, legal and engineering
9. Market recognition: proven ability to source deals and execute transactions makes BR Properties the partner of choice for co-development and built-to-suit operations
63. A unique vehicle, exposed exclusively to Brazilian commercial real estate, extremely well positioned to benefit from the bullish fundamentals of the sector in Brazil Favorable Macro-Economic Scenario World-Class Sponsorship and Tier 1 Management Team 1 Attractive Sector Dynamics 2 5 3 4 Broad Growth Potential: Natural Industry Consolidator Unique Business Model Investment Case
67. Increasing demand for industrial and distribution space5.95% Source: Santander and Brazilian Central Bank Note: 1 Adjusted Seasonally
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69. The inflation increase, on the other hand, would have a positive effect on the Company’s results, given that 100% of our lease contracts are indexed to inflation rates
70. Our cash reserves are invested exclusively in bank notes indexed to the Brazilian inter-bank rate (CDI), which would cause an increase in our financial revenues with the forecast increase in the SELIC rateEffects of the Nominal Interest Rate Increase (SELIC vs. TR) Expected Positive Effects of the Growth of Inflation Indexes (TR vs. IPCA vs. BRPR Inflation basket) Source: Santander research and Central Bank
71. Attractive Sector Dynamics 2 Low vacancy combined with steady demand and short supply in the near term allow for solid growth potential in the commercial properties sector Vacancy Rate (in %) in SP + RJ Rental Rate (in R$/sqm/month) in SP + RJ Net Absorption (in ´000 sqm) in SP + RJ New Inventory (in ´000 sqm) in SP + RJ Source: CBRE and BRPR
72. Unique Business Model 3 BR Properties benefits from its strong expertise to add value throughout the whole Real Estate investment chain… Value Creation Pro-active Deal Sourcing Lease / Property Management Selective Developments Retrofit Divestment Conservative Use of Leverage
86. Broad Growth Potential: Natural Industry Consolidator 4 Ample market fragmentation and lack of professional competitors creates a unique environment for market consolidators Acquisition Pipeline (R$ MM) Fragmented Industry (in terms of GLA – sqm) Addressable Market * : 36.3 MM sqm R$3,842 R$2,566 Total Acquisition Pipeline Current Portfolio Non – Organized Market91% Organized Companies9% 10 Organized Companies * Does not include retail properties
89. ADTV (30d): R$ 7.9 million* As of January 31st, 2011
90. Management Team Biography 5 BR Properties is managed by a team of seasoned professionals, highly motivated and fully aligned with stockholders through long term stock options plans Claudio Bruni CEO Mr. Bruni’s whole career was dedicated to real estate development and management. From 1979 to 1989, Mr. Bruni worked for Multiplan, Brazil’s largest real estate developer, where he was in charge of market research, construction management, commercial and residential planning, and development. From 1983 to 1985, Mr. Bruni was the Managing Director of Renasce, Brazil’s first shopping center management company, a joint venture of Multiplan and Brazilian investment bank Bozano, Simonsen. From 1986 to 1994 Mr. Bruni co-partnered in Visor, a real estate development company dedicated to low income residential housing, where he helped develop 4,000 residential units, generating revenues of US$128 million. In 1988, Mr. Bruni founded Deico, Brazil´s largest independent real estate services company, where he was the CEO until December of 2006. Mr. Bruni served as Executive Vice-President of ABRASCE, Brazil’s shopping center association for 3 years. Mr. Bruni served as a member of the Retail and Commercial Development Council of the Urban Land Institute. Claudio Bruni is a civil engineer, with a graduate degree from The Polytechnic School of Engineering at the University of São Paulo (class of 1978). Industry Experience: 31 Years Martin Jaco CIO Mr. Jaco started his career in Andrade Gutierrez and Metodo Engenharia and joined CB Richard Ellis in 1996 with the objective of developing the investment consultancy operations of the company in Brazil. Mr. Jaco had direct responsibility and involvement in all investment activities of the company in the country in the last 10 years, especially in advising investments for institutional investors, pension funds, property companies and foreign institutions. Martin Jaco graduated as a civil engineer from the Polytechnic School of Engineering at the University of São Paulo, Brazil, MBA from the College of Estate Management, Reading University, UK and a Postgraduate Diploma in Project Management from the Royal Institute of Chartered Surveyors, UK. Industry Experience: 17 Years Marco Antônio Cordeiro COO Mr. Cordeiro was in charge of construction and project management at Schahin Cury and Metodo Engenharia (general contractors) for 15 years. While at Deico, Mr. Cordeiro was in charge of planning, market studies, feasibility analysis and appraisals. Mr. Cordeiro has also been in charge of the consulting division, advising the vast majority of Brazilian pension funds. Mr. Cordeiro has assisted pension funds in over US$350 million of real estate transactions in the last 2 years. Marco Cordeiro is a civil engineer, with a graduate degree from the Polytechnic School of Engineering at the University of São Paulo and specialization at the Business School of Fundação Getúlio Vargas. Industry Experience: 30 Years Pedro Daltro CFO Mr. Daltro started his career in Banco Marka as a Corporate Finance Manager and a Deputy Director. Later, he worked as a VP in the Credit Risk Management department of Citigroup and Treasurer and Financial Manager in Gafisa, the second largest real estate developer in Brazil. After Gafisa, he went back to Citigroup as Director of the Public Sector, Infrastructure and Real Estate division. Pedro Daltro has a bachelor´s degree in Business Administration from Unifacs, Brazil, and MBA from the Owen Graduate School of Management, Vanderbilt University, U.S. Industry Experience: 16 Years
92. Solid Balance Sheet Net Debt 3Q10* (R$ MM) Debt Profile 3Q10* (Index) * Not including the perpetual bond Debt Service Schedule 3Q10* (R$ MM) * Excluding the R$ 240 MM short-term debt fully paid in Nov/10
