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.
2
3. Company Overview
The largest and most complete commercial properties company in Brazil
Company Profile Segments of Activity
► Largest public commercial properties company in Office
Brazil
► 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
► Company’s portfolio currently holds 62 properties,
with more than 1 million sq m of GLA and estimated
market value of R$ 3.33 billion ► Ventura Towers ► Jacarandá Bldg. ► Manchete Build.
Industrial
► 4 greenfield projects, with approximately 150.4
thousand sq m of gross leasable area (GLA)
► Fully integrated and experienced in-house teams:
acquisitions, financing, legal and engineering
► Pro active, value added investment strategy, “hands-
on” approach ► DP Louveira Industrial Complex ► DP Araucária
Developments
► 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
► Fully owned Property Management Company
► Cidade Jardim Bldg. ► Panamérica Park II ► Souza Aranha Build.
3
4. Portfolio Overview: Breakdown and Tenant Base
A top-notch portfolio comprised of office buildings and warehouses, located in the most dynamic
regions of Brazil
Market Value of the Portfolio (R$ mm) GLA by Property Type (sq m)
27%
40% Of f ice Of f ice
Warehouse Warehouse
60%
73%
Main Tenants Tenant Breakdown by Industry
Publishing
► Over 150 high quality tenants Construction Media
Consulting
Storage
Telecom Logistics
Other
Energy
Consumer
Goods
Financial
Services
Technology
Industrial
BR Properties tenant base entails some of the best known Companies
4
in the country, spanning wide industry diversification
5. Portfolio Overview: Recent Acquisitions
Our recent acquisitions were in accordance with our strategy to acquire properties of exceptional
quality, leased to large tenants, and located in the main economic regions of Brazil
Manchete Building
Location: Rio de Janeiro / RJ
GLA: 26,439 sqm
CAPEX: R$ 260 mm
Owned: 100%
DP Louveira 1 - 9
Location: Louveira / SP
GLA: 339,548 sqm
CAPEX: R$ 539,5 mm
Owned: 100%
Ventura Towers II
Location: Rio de Janeiro / RJ
GLA: 21,493 sqm
CAPEX: R$ 340 mm
Owned: 41%
5
6. Portfolio Overview: Geographic Presence
Our portfolio is based mainly in the southeastern and southern regions of Brazil, where the major
productive regions, high concentration of the GDP, and the more liquid commercial property
markets are located
São Paulo Rio de Janeiro
Total GLA: 836,008 sqm Total GLA: 111,188 sqm
Office: 155,583 sqm Office: 111,188 sqm
Warehouse: 680,425 sqm Warehouse: -
Paraná Minas Gerais
Total GLA: 60,273 sqm Total GLA: 7,166 sqm
Office: 3,366 sqm Office: 7,166 sqm
Warehouse: 56,907 sqm Warehouse: -
Lease Revenues GLA
PR MG PR MG
4% 1% RJ 6% 1%
11%
BRPR footprint
RJ
32%
Office
Warehouse SP
63%
SP
82%
Source: IBGE
Together, the two regions represent approximately 73% of the GDP, and 57%
of the country’s population. 6
7. Portfolio Overview: Developments
The Company currently holds 4 greenfield projects, of which 3 are office buildings and one is an
industrial condominium, that once finalized, will add 150 thousand sqm of GLA to the portfolio
Cidade Jardim
Type: Office AAA
Location: São Paulo / SP
Delivery Date: Jun/2012
GLA: 6,792 sqm
Forecast Rent (R$/sqm): R$ 125.00
Owned: 50%
Pre-certified Building
Panamérica Park II
Type: Office
Location: São Paulo / SP
Delivery Date: Dec/2011
GLA: 14,502 sqm
Forecast Rent (R$/sqm): R$ 48.00
Owned: 50%
Pre-certified Building
7
8. Portfolio Overview: Developments
BR Properties will have invested approximately R$ 8.7 mm in these projects by the end of 2010
Souza Aranha
Type: Office
Location: São Paulo / SP
Delivery Date: Dec/2012
GLA: 4,037 sqm
Forecast Rent (R$/sqm): R$ 57.00
Owned: 50%
Tech Park SJC
Type: Industrial
Location: São José dos Campos / SP
Delivery Date: n/a*
GLA: 125,000 sqm
Forecast Rent (R$/sqm): R$ 13.00
* Delivery in several phases
8
9. Investment Case
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
1
Sponsorship Attractive Sector
and Tier 1 Dynamics
5 2
Management Team
4 3
Broad Growth Potential:
Natural Industry Unique Business Model
Consolidator
9
10. 1 Favorable Macro-Economic Conditions
Growing industrial production and GDP, declining unemployment rates and single-digit interest
rates are fueling sectors exposed to domestic market
Real GDP Growth (%) Unemployment Rate (%)¹
► Pent-up demand for commercial properties ► Emerging middle class
12.4%
6.3%
5.7% 5.7% 11.9% 11.0%
5.1% 9.7% 9.7%
4.5% 8.7%
4.0%
7.9%
3.2%
2.7% 6.5%
6.8%
1.3% 1.1%
-0.2%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Industrial Production Growth (%)¹ NTN-B (% aa.)
► Increasing demand for industrial and distribution space ► Lower interest Rates
► Increased credit availability
12%
10.5%
6.2% 11%
3.8% 3.8%
10%
9%
-5.5% 8%
7%
6%
-17.7% 5.6%
5%
2005 2006 2007 2008 2009 2010E
4%
Source: Brazilian Central Bank
Note: Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10
1 Adjusted Seasonally
10
11. 1 Favorable Macro-Economic Conditions
► 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 our 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
Effects of the Nominal Expected Positive Effects of the Growth
Interest Rate Increase of Inflation Indexes
(SELIC vs. TR) (TR vs. IPCA vs. BRPR Inflation basket)
12,0% 8,0% BRPR Basket of lease contract
10,75% inf lation readjustment indices
7,0% TR 7,08%
10,0%
8,75%
6,0% IPCA (CPI)
8,0% 5,48%
5,0% 4,31%
Forecast SELIC
6,0% 4,0%
TR
4,0%
3,0%
2,0%
2,0% 0,82% 1,03%
0,82% 1,03% 1,0%
0,0% 0,00%
0,0%
2009 2010e 2009 2010e
Source: Santander research
11
12. 2 Attractive Sector Dynamics
Low vacancy combined with steady demand and short supply in the near term allow for solid
growth potential in the commercial properties sector
Rental Rate (in R$/sqm/month) in SP + RJ Vacancy Rate (in %) in SP + RJ
140
123 18
120 16
95 14
100
12
80
10
60 8
5.9
6
40 3.7
4
20
2
0 0
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
Rental Rate SP Rental Rate RJ Vacancy Rate SP Vacancy Rate RJ
Net Absorption (in 000 sqm) in SP + RJ New Inventory (in 000 sqm) in SP + RJ
450 450
400 400
350 350
300 288 288 300
240
250 250
200 200
138
150 150 110 130
101 95
100 100
50 50
0 0
2004 2005 2006 2007 2008 2009 2010E 2011E 2004 2005 2006 2007 2008 2009 2010E 2011E
Net Absorption SP Net Absorption RJ New Inventory SP New Inventory RJ
Source: CBRE
12
13. 3 Unique Business Model
BR Properties benefits from its strong expertise to add value throughout the whole Real Estate
investment chain…
Value Creation
Pro-active Lease / Property
Deal Sourcing Management
Selective
Retrofit
Developments
Conservative
Divestment
Use of Leverage
13
14. 3 Fast Portfolio Growth with low vacancy level
More than 1 million sqm of leasable area acquired in 3.5 years
2007 2008 2009 2010
GLA
1,014,636 sqm
IPO
Private
Placement
Market Value
Private 3,421
340
Placement 865
Initial
Funding 295
807
-
105 91 14
337
- - (22)
507
82
2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Today
Oct/10
Stabilized Vacancy: 1,9%
Delinquency: 0,1%
14
15. 3 Lease Contract Characteristics
Lease contracts in place allow for stable, predictable cash flows, while creating a very low vacancy
risk scenario and considerable upside potential in revenues
Main Characteristics Inflation Readjustment Indices
► Annual Inflation Readjustments
► 100% of lease contracts are indexed to inflation
► Triple Net Contracts
2%
► Tenant is responsible for all operating property costs
► Costs include: taxes, insurance, and maintenance expenses 22%
► 3 Year Market Re-alignment
IGP-M
► Lessor can mark the leases to market every 3rd year of the
contract, independent of lease term IPCA
► Bank Guarantees on Leases Other
► Standard practice in Brazil
76%
► Protects against delinquencies from smaller tenants
► Tenant Delinquency
► Delinquency exceeding 30 days, lessor has right to break
the contract and remove the tenant
Expiration Schedule (% revenues) Market Re-alignment Schedule (% revenues)
► Average office lease term: 3-5 years
1%
► Average warehouse lease term: 5-10 years 13%
51% 24%
41%
9% 34%
7%
1% 20%
2010 2011 2012 2013 >2013 2010 2011 2012 2013 >2013
15
16. 3 Unique Business Model: Successful Cases
Sale Value Addition
Ed. Generali Henrique Schaumann
Acquisition Value R$ 16.6 mm Acquisition Value R$ 41.0 mm
Acquisition Date Aug/07 Acquisition Date Nov/07
Sale Value R$ 21.5 mm Re-tenanting R$ 6.5 mm / year (42%
increase on rental income)
Sale Date Jan/10
Retrofit Elevators/ Façade/Parking
Holding Period 29 months
IRR 36% 2009 Appraised Value R$ 78.0 mm
90,0 38.10 42,00
ROE*: 147%
80,0 37,00
26.97 32,00
70,0
27,00
60,0
22,00
50,0
21.5 78.0 17,00
40,0
12,00
16.6 30,0 7,00
41.0
20,0 2,00
10,0 -3,00
Acquisiton Value Sale Value At Acquisition Current
* Before taxes
Property Value Lease/sq m
Note:
1 CBRE’s independent appraisal, as of December 31st, 2009
16
17. 4 Broad Growth Potential: Natural Industry Consolidator
Ample market fragmentation and lack of professional competitors creates a unique environment
for market consolidators
Fragmented Industry (in terms of GLA – sq m) Acquisition Pipeline (R$ mm)
Addressable Market: 36.3 mm sq m
Current Portfolio R$3,326 Total Acquisition Pipeline R$2,573
Non – Organized
Market
92%
2.573
1.856
1.471
Organized 1.244
1.102
Companies
8% 716
612
490
226
In Negotiation In Analysis Total
Office Industrial Total
BRProperties
22%
10 Organized
Companies
78%
17
18. 5 Ownership Structure and Share Performance
BR Properties current ownership structure is highly fragmented, with no controlling shareholder,
no shareholders agreement, and over 77% of its shares in free float
30% 26,15%
BRPR3
GP Investments
14% 20% Ibovespa
10%
Laugar S.A. 3,06%
5%
0%
Silverpeak
4%
-10%
-20%
mar-10 abr-10 mai-10 jun-10 jul-10 ago-10 set-10 out-10
Total Shares: 139,403,585
Market Capo: R$ 2.4 billion
Free Float ADTV (30d): R$ 9.6 million
77%
* As of October 31st, 2010
18
19. 5 Management Team Biography
BR Properties is managed by a team of seasoned professionals, highly motivated and fully aligned
with stockholders through long term stock options plans
Mr. Bruni’s whole career was dedicated to real estate development and management. From 1979 to 1989, Mr. Bruni worked for
Claudio Bruni
Multiplan, Brazil’s largest real estate developer, where he was in charge of market research, construction management, commercial
CEO 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
Mr. Jaco started his career in Andrade Gutierrez and Metodo Engenharia and joined CB Richard Ellis in 1996 with the objective of
Martin Jaco
developing the investment consultancy operations of the company in Brazil. Mr. Jaco had direct responsibility and involvement in all
CIO 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
Mr. Cordeiro was in charge of construction and project management at Schahin Cury and Metodo Engenharia (general contractors)
Marco Antônio
Cordeiro 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
COO assisted pension funds in over US$350 million of real estate transactions in the last 2 years.
Marco Cordeiro is a civil engineer, with a graduate degree from the Polytechnic School of Engineering at the University of São
Paulo and specialization at the Business School of Fundação Getúlio Vargas. Industry Experience: 30 Years
Mr. Daltro started his career in Banco Marka as a Corporate Finance Manager and a Deputy Director. Later, he worked as a VP in
Pedro Daltro
the Credit Risk Management department of Citigroup and Treasurer and Financial Manager in Gafisa, the second largest real estate
CFO developer in Brazil. After Gafisa, he went back to Citigroup as Director of the Public Sector, Infrastructure and Real Estate division.
Pedro Daltro has a bachelor s degree in Business Administration from Unifacs, Brazil, and MBA from the Owen Graduate School of
Management, Vanderbilt University, U.S. Industry Experience: 16 Years
19
20. Financial Highlights 2Q10
Net Revenues (R$ mm)
87%
66%
28%
110.701
46% 86.489
19% 59.270
40% 44.889 53.223
31.989
2Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma
EBITDA (R$ mm) and EBITDA Margin (%)
85% 87% 86% 88%
84% 85%
92%
74%
33%
EBITDA
97.851 Margin
44% 73.639
22% 46.536 50.995
43% 38.202
26.735
2Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma
20
22. Strategy Going Forward
► Deployment of the remaining IPO proceeds (R$ 240 million) and the perpetual bond proceeds (R$340 million) over the
next 12 months
► Maintain Loan to Value of roughly 50%
► Maintain diversification levels of our current portfolio
► Keep development at a level equal to or below 15% of our portfolio
► Maintain focus on key regions of the country
22
23. Appendix: São Paulo Office Market
Asking Lease Rate
Submarkets Vacancy Rate Range (Class A)
(%) (R$/ sq m/ month)
Downtown 4.0% R$ 14.00 - R$ 27.00*
Paulista 3.8% R$ 75.00 - R$ 110.00
Jardins 3.9% R$ 85.00 - R$ 160.00
Marginal 7.5% R$ 45.00 - R$ 110.00
Other 2.3% R$ 50.00 - R$ 70.00
Total Market 4.9% R$ 45.00 - R$ 160.00
Alphaville 21.9% R$ 30.00 - R$ 60.00
* There are no class A buildings in this submarket. Lease
rates apply to the best buildings in the area
Total Stock
Alphaville Downtown
6% 6%
Paulista
Other 17%
20%
Jardins
15% Source: CBRE 3Q10 Market View Report
Marginal
36%
23
24. Appendix: Rio de Janeiro Office Market
Asking Lease Rate
Submarkets Vacancy Rate Range (Class A)
(%) (R$/ sq m/ month)
Downtown 2.4% R$ 100.00 - R$ 180.00
Botafogo 1.2% R$ 110.00 - R$ 150.00
Flamengo 0.9% R$ 90.00 - R$ 130.00
Barra da Tijuca 6.4% R$ 80.00 - R$ 115.00
South Zone 6.4% R$ 120.00 - R$ 180.00
Other 5.5% R$ 60.00 - R$ 90.00
Total Market 3.1% R$ 60.00 - R$ 180.00
Total Stock
South Zone Flamengo
Others 2%
5%
0%
Barra da
Tijuca
12%
Botafogo
14%
Downtown
67%
Source: CBRE 3Q10 Market View Report
24
25. Appendix: São Paulo Industrial Market
Asking Lease Rate
Submarkets Vacancy Rate Range (Class A)
(%) (R$/ sq m/ month)
ABCD * 0.0% R$ 12.00 - R$ 18.00
Atibaia * 24.4% R$ 18.00 - R$ 20.00
Barueri 8.5% R$ 21.00 - R$ 25.00
Cajamar * 3.1% R$ 17.00 - R$ 20.00
Cotia/ Embu * 0.0% R$ 18.00 - R$ 22.00
Greater Campinas 3.7% R$ 15.00 - R$ 25.00
Guarulhos * 2.2% R$ 18.00 - R$ 24.00
Jundiaí * 10.9% R$ 13.00 - R$ 18.00
São Paulo 1.6% R$ 18.00 - R$ 25.00
Sorocaba * 43.0% R$ 16.00 - R$ 20.00
Vale do Paraíba * 13.2% R$ 14.00 - R$ 17.00
Total Market 6.3% R$ 12.00 - R$ 25.00
* The eight submarkets that comprised the "Others" region
in previous reports
Total Stock
ABCD Atibaia Sorocaba
Guarulhos 3% 3%
3%
3%
Vale do
Paraíba Greater
6% Campinas
33%
Cotia/ Embu
7%
Source: CBRE 3Q10 Market View Report
Jundiaí
10%
Cajamar São Paulo
10% Barueri 11%
11% 25
