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1Q10 Earnings Release
May 14th, 2010
BRProperties
BRProperties 1Q10
Highlights
- 2 -
Financial
Highlights
Operational
Highlights
 Finalized the acquisition of seven remain...
BRProperties 1Q10
Recent Acquisitions
- 3 -
 On January 22nd, 2010, we acquired “DP Araucária”, a distribution park
locat...
BRProperties 1Q10
Recent Acquisitions
- 4 -
 On April 12th, 2010, we acquired for the amount of the
R$180.0 million, the ...
BRProperties 1Q10
Portfolio
- 5 -
Portfolio Growth (GLA sq m)
Portfolio Breakdown (% market value) Portfolio Breakdown (% ...
BRProperties 1Q10
Case Study
- 6 -
ROE*: 147%
Sale Value Addition
Henrique Schaumann
Acquisition Value R$ 41.0 mm
Acquisit...
BRProperties 1Q10- 7 -
 Financial Vacancy of 8,3% in 1Q10; Excluding the TNU building, acquired in march, our
financial v...
BRProperties 1Q10- 8 -
 In the quarter, we renegotiated
existing leases and signed new
leases in vacant areas with an
ave...
BRProperties 1Q10- 9 -
Operational Highlights
 Addition of three new properties under our management, which is performed ...
BRProperties 1Q10- 10 -
Financial Highlights
Net Revenues Adjusted EBITDA
Net Income FFO
27.281
41.600
52.874
1Q09 1Q10 1Q...
BRProperties 1Q10
Pro-Forma Estimates
Additional Pro-forma Gross Revenues
(non audited)
Adjusted EBITDA
(non audited)
- 11...
BRProperties 1Q10- 12 -
Financial Highlights
Expected Positive Effects of the Growth
of Inflation Indexes
(TR vs. Inflatio...
BRProperties 1Q10
Debt
42.008 48.312
63.496 56.650
77.812 72.846 81.006
221.818
37.904
24.025
2.738 1.027
2010 2011 2012 2...
BRProperties 1Q10
Glossary
EBITDA (Earnings Before Income, Tax, Depreciation and Amortization): a non accounting measure w...
BRProperties 1Q10
IR Contacts
Investor Relations
Pedro Daltro
CFO & Investor Relations Officer
Leonardo Fernandes
Investor...
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1Q10

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1Q10

  1. 1. 1Q10 Earnings Release May 14th, 2010 BRProperties
  2. 2. BRProperties 1Q10 Highlights - 2 - Financial Highlights Operational Highlights  Finalized the acquisition of seven remaining properties from 2009: DP Araucária, five warehouses at Brazilian Business Park, and Nações Unidas Tower, for the amount of R$ 322 million  The number of properties managed by the Company increased from 23 in 1Q09 to 27 in 1Q10  Our revenues from services rendered grew by 98% in 1Q10 compared to 1Q09  Real growth of 5.4% in value of new leases/renegotiations in the 1° Quarter of 2010  Gross Revenues increased by 52% compared to 1Q09  Adjusted EBITDA, excluding stock option plan expenses and bonus provision, of R$ 35.5 million at the end of 1Q10, an increase of 53% compared to 1Q09  Pro-forma EBITDA of R$46.8 million in 1Q10, with an EBITDA Margin of 88%  Net Profit of R$11.8 million, an increase of 68% over 1Q09 Recent Events  In April, we acquired the office building “Ed. Jacarandá”, with approximately 32,000 sqm of GLA for R$180.0 million. The building was recently developed, and is already leased to Philips and Redecard.  Also in April, we acquired another 4 industrial warehouses in Louveira/SP for R$181.0 million. These warehouses reinforce the Company’s presence in the region, where we own over 250,000 sqm of GLA.  At the moment, we have already acquired 25% of the acquisitions outlined in the capital budget
  3. 3. BRProperties 1Q10 Recent Acquisitions - 3 -  On January 22nd, 2010, we acquired “DP Araucária”, a distribution park located in the city of Araucária/PR, for the amount of R$69.9 million Property Overview: GLA: 42,697 sq m % Acquired: 100% # Warehouses: 1 100% leased  On February 26th, 2010, we concluded the acquisition of “Brazilian Business Park” for R$101.2 million Property Overview: GLA: 59,182 sq m % Acquired: 100% # Warehouses: 5 100% leased  On March 16th, 2010, we acquired the office building “Torre Nações Unidas”, located in the Marginal do Rio Pinheiros region for R$151.2 million Property Overview: GLA: 25,555 sq m % Acquired: 100% # Floors: 18 Under retrofit, currently 50% leased Brazilian Business Park DP Araucária TNU
  4. 4. BRProperties 1Q10 Recent Acquisitions - 4 -  On April 12th, 2010, we acquired for the amount of the R$180.0 million, the office building “Edifício Jacarandá”, located in the Castelo Branco Office Park. Property Overview: GLA: 31,954 sq m % Acquired: 100% # Floors: 14 Recently developed – 50% leased to Philips and Redecard  On April 20th, 2010, we concluded the acquisition of 4 logistics warehouses located in the “DP Araucária” complex, where BR Properties already owns 2 other warehouses. The acquisition value was of R$181.0 million. Property Overview: GLA: 106,306 sq m % Acquired: 100% # Warehouses: 4 100% leased CBOP – Ed. Jacarandá DP Louveira 3, 4, 5 & 6
  5. 5. BRProperties 1Q10 Portfolio - 5 - Portfolio Growth (GLA sq m) Portfolio Breakdown (% market value) Portfolio Breakdown (% GLA) 51% 46% 4% Office Industrial Development 25% 75% Office Industrial 646.055 730.558 868.807 59.182 (235) 25.555 31.954 106.306 Portfolio at IPO Acquisition of BBP Sale of Isabela (cj. 41) Acquisition of TNU 1T10 Acquisition of Ed. Jacarandá Acquisition of DP Louveira 3-6 Current Portfolio
  6. 6. BRProperties 1Q10 Case Study - 6 - ROE*: 147% Sale Value Addition Henrique Schaumann Acquisition Value R$ 41.0 mm Acquisition Date Nov/07 Re-tenanting R$ 6.5 mm / year (42% increase on rental income) Retrofit Elevators/ Façade/Parking 2009 Appraised Value R$ 78.0 mm Ed. Generali Acquisition Value R$ 16.6 mm Acquisition Date Aug/07 Sale Value R$ 21.5 mm Sale Date Jan/10 Holding Period 29 months IRR 36% * Before taxes 41,0 78,0 26,97 38,10 - 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 At Acquisition Current Property Value Lease/sq m 16,6 21,5 Acquisiton Value Sale Value
  7. 7. BRProperties 1Q10- 7 -  Financial Vacancy of 8,3% in 1Q10; Excluding the TNU building, acquired in march, our financial vacancy was 4.1% Operational Highlights Vacancy Breakdown 7,3% 6,0% 4,7% 6,9% 8,3% 4,1% 2009 1Q10 1Q10 Ex - TNU Physical Financial  Despite the recent increase in the vacancy rate, the prospect of leasing the vacant areas is very positive given the forecast economic growth  We expect our vacancy rate to return to its historic low levels in the short term
  8. 8. BRProperties 1Q10- 8 -  In the quarter, we renegotiated existing leases and signed new leases in vacant areas with an average real gain of 5.4% 32% 34% 16% 10% 8% 2010 2011 2012 2013 >2013 21% 40% 25% 13% 1% 2010 2011 2012 2013 >2013 69% 28% 3% 1Q09 IGP-M IPCA Outros 81% 15% 5% 1Q10 Lease Contract Readjustment Indices Lease Contract Expiration Schedule (# of contracts) Lease Contract 3 Year Renegotiation Schedule (# of contracts) Operational Highlights
  9. 9. BRProperties 1Q10- 9 - Operational Highlights  Addition of three new properties under our management, which is performed by our subsidiary, BRPR A Administradora de Ativos Imobiliários Ltda. Managed Properties BRPR A Revenues 23 27 1Q09 1Q10 428 849 1Q09 1Q10
  10. 10. BRProperties 1Q10- 10 - Financial Highlights Net Revenues Adjusted EBITDA Net Income FFO 27.281 41.600 52.874 1Q09 1Q10 1Q10 Pro Forma 52% 27% 23.210 35.479 46.753 1Q09 1Q10 1Q10 Pro Forma 53% 32% 85% 85% 88% Adjusted EBITDA Margin 11.137 16.637 1Q09 1Q10 49% 7.016 11.759 1Q09 1Q10 26% 28% Net Margin 68%
  11. 11. BRProperties 1Q10 Pro-Forma Estimates Additional Pro-forma Gross Revenues (non audited) Adjusted EBITDA (non audited) - 11 - Methodology  Considers that the Company’s current revenues were incurred from January 1st 2010, until March 31st 2010 Results  Our pro forma gross revenues totaled R$58.6 million, 27% above 1Q10  Our adjusted EBITDA pro-forma margin was 88%, 3% above the 85% margin attained in the period 46.198 58.621 500 2.923 1.312 2.592 5.096 1Q10 Actual DP Araucária BBP TNU CBOP Louveira 1Q10 Pro- forma 27% 35.479 46.753 85% 88% 80% 81% 82% 83% 84% 85% 86% 87% 88% 89% 90% 25.000 30.000 35.000 40.000 45.000 50.000 55.000 1Q10 Actual 1Q10 Pro-forma Adjusted EBITDA Margin
  12. 12. BRProperties 1Q10- 12 - Financial Highlights Expected Positive Effects of the Growth of Inflation Indexes (TR vs. Inflation) Effects of the Nominal Interest Rate Increase (SELIC vs. TR) 8,75% 12,00% 0,82% 0,97% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 2009 2010e Forecast SELIC TR  The potential increase in the nominal interest rate until the end of the year would result in a small increase in the TR, main index that readjusts or financing contracts  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  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 rate 0,00% 7,95% 0,82% 0,97% 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 8,0% 9,0% 2009 2010e Basket of lease contract inflation readjustment indices TR
  13. 13. BRProperties 1Q10 Debt 42.008 48.312 63.496 56.650 77.812 72.846 81.006 221.818 37.904 24.025 2.738 1.027 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net Debt 90 Cash 698 Debt Amortization Schedule Short Term Debt 92 Obligations for Acquisitions 58 Long Term Debt 637 Total Debt 788 Shareholders Equity 1.664 Balance Sheet 1Q10 90,1% 5,1% 4,8% TR IGPM CDI Debt Breakdown - 13 -  Comfortable amortization schedule in the next few years, with low refinancing risk
  14. 14. BRProperties 1Q10 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 R$ 0.2 million from expenses regarding the Company stock option plan, along with R$ 1.2 million in employee bonus provisions FFO (Funds From Operations): non accounting measure, which adds back depreciation to net income in order to 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 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 - 14 -
  15. 15. BRProperties 1Q10 IR Contacts Investor Relations Pedro Daltro CFO & Investor Relations Officer Leonardo Fernandes Investor Relations Manager Marcos Oliveira Investor Relations Analyst Phone: (55 11) 3201-1000 Email: ri@brpr.com.br www.brpr.com.br/ri - 15 -

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