1q12 presentation

1Q12 Earnings Release Presentation

BRProperties

BRProperties 1Q12

Highlights

2

Financial

Highlights

Operating

Highlights

On March 29th, One Properties was incorporated by BR Properties;

During 1Q12, the Company reached leasing spreads (net of inflation) of 34,0% on new leases signed, and 36.1% in

office buildings and 13.1% in the industrial properties in market alignments of existing contracts;

The financial vacancy rate was reduced to 1.1%, while physical vacancy rate came in at 1.0%. In terms of area,

our office, industrial, and retail properties were 98.4%, 99.2%, and 100.0% occupied at the end of the quarter,

respectively;

The Company sold two properties in April, 2012. Ed. Olympic Tower was sold by R$14.0 million, which

represented an exit cap rate of 8.9%, while Ed. Paulista Plaza was sold by R$20.0 million, resulting in an exit cap

rate of 10.0%;

On April 11th, the municipality of Rio de Janeiro granted the move-in permits (Habite-se) to Ed. Manchete. The

property is 100% leased and will begin generating rent revenues on 2Q12;

On April 30th, the acquisition of an 87% stake of Ed. Ventura - East Tower was approved in the Extraordinary

Shareholders’ Meeting. With the acquisition, BR Properties strengthens its presence in Rio de Janeiro’s triple A

office market, by holding 213.5 thousand m² of GLA (Ventura - East and West Tower, Manchete, CES

Petrobrás, Sylvio Fraga).

1Q12 Net Revenues totaled R$101.2 million, an increase of 30% over 1Q11, when net revenues came in at R$77.8

million. It is worth mentioning that the recently incorporated properties from One Properties had no impact on the

quarter’s revenues;

1Q12 Adjusted EBITDA of R$91.8 million, a 34% increase over 1Q11 and adjusted EBITDA margin of 91%; 1Q12

no adjustments EBITDA reached R$87.3 million, with EBITDA margin of 86% (adjusted EBITDA excludes non cash

and non recurring expenses);

1Q12 Net Income totaled R$452.7 million, impacted by the net gain on appraisal of investment properties (includes

gains on appraisal of properties that came with One Properties’ portfolio) and by the net operating profit of the quarter;

1Q12 Adjusted FFO totaled R$51.8 million, with adjusted FFO margin of 51%;

BRProperties 1Q12

Portfolio

1Q12 Revenue Breakdown

Portfolio Breakdown

(% market value)

Portfolio Breakdown

(% GLA)

3

Leasing94%

Services2%

Straight-line4% 51%

39%

10%

Office

Industrial

Retail

Portfolio Market Value

1Q12 1Q11 Var %

Portfolio Market Value (R$ million)

11,715 5,254 123%

39%

24%

7%

30%

Office Industrial Retail Development

19%

56%

6%

19%

Office Industrial Retail Development

BRProperties 1Q12

Financial Highlights

4

Net Revenues (R$ thousand) Net Income* (R$ thousand)

* Impacted by the net gain on appraisal of investment

properties

1Q11 1Q12

77.777

101.192

30%

1Q11 1Q12

22.356

452.713

1625%

BRProperties 1Q12 5


1Q12 Income Statement

Income Statement 1Q12 1Q11 var %

Gross Revenues 108.587 84.860 28%

Taxes (PIS/Cofins and ISS) (7.192) (6.844) 5%

Deductions (203) (239) -15%

Net Revenues 101.192 77.777 30%

Cost of Leased Properties - - n/a

Gross Profit 101.192 77.777 30%

General and Administrative Expenses (13.884) (10.679) 30%

Net Financial Result (15.880) (40.630) -61%

Financial Income 86.110 62.700 37%

Financial Expenses (101.990) (103.331) -1%

Other Operating Income 470 (101) -564%

Gain (loss) on Sale of Properties - (1.516) -100%

Gain on Appraisal of Investment Properties 729.906 - n/a

Income (loss) before taxes 801.804 24.850 3127%

Income and Social Contribution taxes (4.985) (7.270) -31%

Deferred taxes (344.107) 4.777 -7304%

Net Income (loss) 452.713 22.356 1925%

BRProperties 1Q12 6


Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand)

86%86%

EBITDA Margin

1Q11 1Q12

67.097

87.309

30%

1Q11 1Q12

68.368

91.778

34%

88%

91%

Adjusted EBITDA Margin

Adjusted EBITDA Breakdown 1Q12 1Q11 var %

Net Income (loss) 452.713 22.356 1925%

(+) Income and Social Contribution taxes 349.092 2.493 13900%

(-) Gain on Appraisal of Investment Properties (729.906) - n/a

(-) Gain (loss) on Sale of Properties - 1.516 -100%

(-) Other Operating Income (470) 101 -564%

(-) Net Financial Result 15.880 40.630 -61%

EBITDA 87.309 67.097 30%

EBITDA Margin 86% 86% 0 p.p.

(+) Bonus Provision 1.149 1.149 0%

(+) Stock Option Provision 1.288 122 957%

(+) Merger Expenses 2.033 - n/a

Adjusted EBITDA 91.778 68.368 34%

Adjusted EBITDA Margin 91% 88% 3 p.p.

BRProperties 1Q12 7


Adjusted FFO (R$ thousand)

1Q11 1Q12

8.619

51.849

502%

11%

51%

Adjusted FFO Margin

Adjusted FFO Breakdown 1Q12 1Q11 var %

Net Income (loss) 452.713 22.356 1925%

(-) Gain (loss) on Sale of Properties - 1.516 -100%

(-) Gain on Appraisal of Investment Properties (729.906) - n/a

(+) Deferred Taxes 344.107 (4.777) -7304%

(+) Cost of Leased Properties - - n/a

(+) Non-cash Losses on Exchange Rate Variation 33.064 6.463 412%

(-) Non-cash Gains on Exchange Rate Variation (48.128) (16.940) 184%

Adjusted FFO 51.849 8.619 502%

Adjusted FFO Margin 51% 11% 40 p.p.

Adjusted FFO per Share (Annualized) 0,67R$ 0,25R$ 171%

BRProperties 1Q12

Debt

1Q12 Net Debt (R$ mn) 1Q12 Debt Index Breakdown

8

47%

35%

16%

1%

TR

CDI

IGPM

INPC

ST Debt Obligationsfor

Acquisitions

LT Debt Total Debt Cash Net Debt

847

4.664

3.560

14

3.803 1.104

Net Debt 1Q12 4Q11 var %

Short Term Loans and Financing 861.508 198.731 334%

Loans and Financing 793.883 128.902 516%

Perpetual Bond 53.414 54.988 -3%

Derivative Instruments (43) 836 -105%

Payables for Acquisition of Real Estate 14.254 14.006 2%

Long Term Loans and Financing 3.802.561 1.938.406 96%

Loans and Financing 3.324.361 1.445.960 130%

Perpetual Bond 478.200 492.446 -3%

Gross Debt 4.664.069 2.137.137 118%

Cash and Cash Equivalents 1.104.247 1.032.350 7%

Net Debt 3.559.822 1.104.787 222%

Portfolio Value 11.714.853 5.253.543 123%

Gross Debt / Portfolio Value (Loan to Value) 40% 41% -2%

Net Debt / Portfolio Value (Loan to Value) 30% 21% 44%

Adjusted EBITDA / Net Financial Expenses * 3,0x 2,5x 19%

Duration (years) ** 4,3 5,7 -24%

* Considers Net Financial Expenses (ex. non-cash variations)

** Considers the amortization of the perpetual bond in 2023

BRProperties 1Q12

Debt

9

Debt Service Schedule (R$ million)

Loan to Value: Gross and Net Adjusted EBITDA / Net Financial Expenses

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

2,5x

3,5x

2,4x2,1x

1,4x1,6x

2,7x2,5x

3,0x

DSC ratio

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

38% 40%

24%

40%45% 43% 42% 41%

40%

4%23% 21%

36% 36%35%

21% 21%

30%

LTV Gross Debt LTV Net Debt

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

572 559421 372 308 362

243 237 20092 62

302425

336309

287346

218 200194

190 186

Principal Interest

BRProperties 1Q12 10

Operating Highlights

Leasing Spreads

Leasing Spread - Market Alignments 1Q12 1Q11

Leasing Spread - Office 36,1% 21,5%

Renegotiated GLA (m²) 17.703 14.674

% Office portfolio 4% 5%

Leasing Spread - Warehouse 13,1% 22,6%

Renegotiated GLA (m²) 6.840 14.798

% Warehouse portfolio 1% 2%

Leasing Spread - Retail n/a n/a

Renegotiated GLA (m²) - -

% Retail portfolio 0% 0%

Leasing Spread - New Leases 1Q12 1Q11

Leasing Spread - Office 34,0% 15,5%

Leased GLA (m²) 5.190 8.343

% Office portfolio 1% 3%

Leasing Spread - Warehouse 0,4% 11,1%

Leased GLA (m²) 52.924 12.889

% Warehouse portfolio 5% 2%

Leasing Spread - Retail n/a n/a

Leased GLA (m²) - -

% Retail portfolio 0% 0%

BRProperties 1Q12


11

Financial Vacancy per Segment Vacancy Breakdown

Portfolio – Financial and Physical vacancy of 1.1% and 1.0%, respectively

3Q11 4Q11 1Q12

0,9% 0,9%1,0%

1,5%1,7%

1,1%

Physical

Financial

4Q11 1Q12

1,6%

0,8%

0,0%

0,2%

0,0% 0,0%

Office

Industrial

Retail

Vacancy per Property 1Q12

Property Type Financial Physical

CBOP - Jacarandá Office 0,4% 0,2%

Raja Hills Office 0,0% 0,0%

Olympic Tower Office 0,0% 0,0%

Ventura - Torre Oeste Office 0,1% 0,0%

Brasília Office 0,3% 0,2%

Total Office 0,8% 0,5%

BBP Topázio Industrial 0,1% 0,1%

BP Itapevi Industrial 0,1% 0,3%

Cond.Ind.SJC Industrial 0,0% 0,1%

Total Industrial 0,2% 0,6%

Total Portfolio 1,1% 1,0%

BRProperties 1Q12

% Revenues

% GLA

% GLA

% Revenues

12


Lease Contract 3 Year Market Alignment Schedule

Lease Contract Expiration Schedule

2012 2013 2014 >2015

3%10%

11%

76%

2012 2013 2014 >2015

3%20%

21%

56%

2012 2013 2014 >2015

20%

27%

43%

10%

2012 2013 2014 >2015

35%

21%

41%

4%

BRProperties 1Q12


13

Property Management Revenues

(R$ thousand)

Number of Managed Properties

Managed Properties Nº GLA

Athenas 1 6.718

Gloria 1 8.436

Henrique Schaumann 1 14.125

Joaquim Floriano 1 3.899

Mairynk Veiga (MV9) 1 12.511

Santo Antonio 1 5.017

São José 1 5.080

Icomap 1 9.164

Vargas 1 14.809

Panamerica Park 9 45.020

Ouvidor 1 6.284

CBOP - Ed. Jacarandá 1 31.954

TNU 1 27.931

BP Jundiaí 1 53.343

Cond. Indl. São José dos Campos 1 73.382

BP Jandira 2 34.304

BP Itapevi 1 33.526

RB 115 1 11.516

Plaza Centenário 1 3.366

Ed. Comercial Indaiatuba 1 11.335

TOTAL 29 411.720

Property Management - BRPRA

1Q11 1Q12

29 29

1Q11 1Q12

1.059

1.831

73%

BRProperties 1Q12

Capital Markets

14

* As of May 11th, 2012

Current number of shares: 310,307,396

Market Value: R$ 7.3 billion

Average Daily Vol. (30d): R$ 20.8 million

Performance BRPR3 VS IBOVESPA

-30%

-20%

-10%

0%

10%

20%

30%

40%

mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12 fev-12 mar-12 abr-12

BRPR3

IBOV

IMOB

Shareholder Base

BTG Pactual28,2%

W Torre8,4%

Laugar1,9%GIC

5,2%

Other56,3%

Stock Performance (BRPR3) 1Q12 1Q11 var %

Total Number of Shares 309.817.416 139.511.953 122,1%

Free Float (%) 99% 99% 0,0%

Stock Price (average for the period) 20,58 17,32 18,8%

Stock Price (end of period) 23,44 17,15 36,7%

Market Cap end of period (R$ million) 7.262,1 2.392,6 203,5%

Average Daily Trading Volume (R$ million) 22,30 8,29 169,0%

Average Daily Traded Shares 1.067.426 478.877 122,9%

Average Daily negotiations 3.026 455 565,1%

BRProperties 1Q12

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: [email protected]

www.brpr.com.br/ri

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