2Q11 Earnings Release Presentation
BRProperties
BRProperties 2Q11
Highlights
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Financial
Highlights
Operating
Highlights
Leasing spreads (net of inflation) for renegotiations reached 24.5% and 15.7% in office and retail
properties, respectively, while leasing spreads for new lease up of vacant areas reached 14.3%
and 28.3% in office and industrial properties, respectively;
We experienced a significant decrease in the portfolio’s vacancy level, where financial
vacancy totaled 2.3% at the end of 2Q11, a 63% reduction when compared to 1Q11, which
totaled 6.2%. Physical vacancy represented 1.5% of GLA at the end of quarter. It is important to
mention that our office, industrial, and retail properties were 99.2%, 99.3%, and 100.0%
occupied at the end of the quarter, respectively;
The company has concluded a R$690.3 million equity offering by issuing 40.3 million ordinary
shares – including greenshoe – at R$17.15 per share. The proceeds from the issuance will be
dedicated exclusively to the acquisition of commercial properties.
2Q11 Net Revenues totaled R$ 83.6 million, an increase of 92% in relation to 2Q10, when net
revenues came in at R$ 43.4 million;
Adjusted EBITDA of R$ 77.4 million in 2Q11, an increase of 104% over 2Q10 and an Adjusted
EBITDA margin of 93%, the highest ever recorded by the company;
Net Income totaled R$ 158.8 million at the end of 2Q11, impacted by a gain on appraisal of
investment properties of R$167.9 million (R$122.8 million net of taxes). Therefore, an increase of
484% in relation to 2Q10, when our net income totaled R$27.2 million;
Adjusted FFO totaled R$35.8 million in 2Q11, with an FFO margin of 43%.
BRProperties 2Q11
Portfolio
2Q11 Revenue Breakdown
Portfolio Breakdown
(% market value)
Portfolio Breakdown
(% GLA)
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55%33%
9%3%
Office Industrial Retail Development
22%
57%
8%
14%
Office Industrial Retail Development
Leasing95%
Services2%
Straight-line3%
45%
43%
11%
Off ice
Industrial
Retail
BRProperties 2Q11
Financial Highlights
4
Net Revenues (R$ thousand) Net Income* (R$ thousand)
2Q10 2Q11 6M10 6M11
43.430
83.576 78.697
161.353 92%
105%
2Q10 2Q11 6M10 6M11
27.204
158.809
31.072
181.166
484%
483%
* Impacted by a net gain on appraisal of investment properties
of R$122.8 million.
BRProperties 2Q11 5
Financial Highlights
Adjusted EBITDA (R$ thousand) Adjusted FFO (R$ thousand)
Adjusted FFO (R$ thousand) Adjusted EBITDA (R$ thousand)
90%
93%
Ajusted EBITDA Margin
1Q11 2Q11
69.861
77.395
11%
2Q10 2Q11 6M10 6M11
25.745
35.824 34.390
59.700
39%
74%
59%
43% 44%37%
FFO Margin
2Q10 2Q11 6M10 6M11
37.949
77.395 69.211
147.256
113%
104%
87%
93%
88%
91%
Adjusted EBITDA Margin
31%
43%
FFO Margin
1Q11 2Q11
23.876
35.824
50%
BRProperties 2Q11
Debt
Debt Service Schedule (R$ mn)
2Q11 Net Debt (R$ mn) 2Q11 Debt Index Breakdown
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ST Debt Obligations for
Acquisitions
LT Debt Total Debt Cash Net Debt
176
2.087
1.677
24
1.887 410
75%
2%
24%
TR
IGPM
CDI
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
99
183 171 153 134 117 9568 54 39 32 22
61
129 129 158161 179
332
156155
14126
14
Principal
Interest
BRProperties 2Q11 7
Operating Highlights
Market Alignments New Leases
2Q10 2Q11 6M10 6M11
12,7%
24,5%
12,6%
22,7%
10,6%
n/a
6,6%
22,6%
n/a
15,7%
n/a
15,7%
Office
Industrial
Retail
2Q10 2Q11 6M10 6M11
13,8%14,3% 14,7%
9,0%
14,0%
28,3%
15,6%
13,2%
n/a n/a n/a n/a
Office
Industrial
Retail
Leasing Spread - Market Alignments* 2Q11 2Q10 var % 6M11 6M10 var %
Leasing Spread - Office 24,5% 12,7% 92% 22,7% 12,6% 80%
Leasing Spread - Warehouse n/a 10,6% n/a 22,6% 6,6% 241%
Leasing Spread - Retail 15,7% n/a n/a 15,7% n/a n/a
Renegotiated Area - Office (sqm) 9.330 944 888% 24.004 944 2442%
Renegotiated Area - Warehouse (sqm) - 10.223 -100% 14.798 16.792 -12%
Renegotiated Area - Retail (sqm) 97.431 n/a n/a 97.431 n/a n/a
Leasing Spread - New Leases* 2Q11 2Q10 var % 6M11 6M10 var %
Leasing Spread - Office 14,3% 13,8% 4% 14,7% 9,0% 64%
Leasing Spread - Warehouse 28,3% 14,0% 102% 15,6% 13,2% 19%
Leasing Spread - Retail n/a n/a n/a n/a n/a n/a
Leased Area - Office (sqm) 17.444 9.102 92% 25.787 17.625 46%
Leased Area - Warehouse (sqm) 5.130 1.883 172% 18.019 7.167 151%
Leased Area - Retail (sqm) n/a n/a n/a n/a n/a n/a
* Leasing spreads are net of inflation
BRProperties 2Q11
Operating Highlights
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Financial Vacancy per Segment
We showed a financial vacancy of 2.3% for the period, a 63% decrease when compared to 1Q11.
Vacancy Breakdown
2010 1Q11 2Q11
3,8%3,1%
1,5%
8,1%
6,2%
2,3%
Physical
Financial
1Q11 2Q11
5,5%
1,6%
0,7% 0,7%
0,0% 0,0%
Off ice
Industrial
Retail
Vacancy per Property 2Q11
Property Type Financial Physical
CBOP - Jacarandá Office 1,36% 0,73%
Midas Office 0,06% 0,04%
Ventura II Office 0,21% 0,03%
Total Office 1,6% 0,8%
BP Jundiaí Industrial 0,04% 0,10%
Piraporinha Industrial 0,65% 0,59%
Total Industrial 0,7% 0,7%
Total Portfolio 2,3% 1,5%
BRProperties 2Q11
% Revenues
% GLA
% GLA
% Revenues
Lease Contract 3 Year Market Alignment Schedule
Lease Contract Expiration Schedule
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Operating Highlights
2011 2012 2013 >2013
3%7% 22%
69%
2011 2012 2013 >2013
2% 5%31%
62%
2011 2012 2013 >2013
32%
15%
27%
26%
2011 2012 2013 >2013
42%
19%
20%
20%
BRProperties 2Q11
Operating Highlights
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Managed Properties
Property Management Revenues
(R$ thousand)
2Q10 2Q11 6M10 6M11
863
1.768 1.712
2.827 105%
65%
2Q10 2Q11
26
30
+4
36%
39%
% GLA Under Management
Managed Properties # Managed GLA
Athenas 1 6.718
Gloria 1 5.969
Henrique Schaumann 1 14.045
Joaquim Floriano 1 3.899
Mairynk Veiga (MV9) 1 12.511
Santo Antonio 1 4.009
São José 1 5.043
Icomap 1 8.802
Vargas 1 13.448
Panamerica Park 9 45.020
Ouvidor 1 7.802
Jacarandá 1 31.766
BP Jundiaí 1 53.345
Cond. Indl. São José dos Campos 1 73.199
BP Jandira 2 34.424
BP Itapevi 1 33.526
TNU 1 22.450
RB 115 1 13.500
Plaza Centenário 1 6.671
Indaiatuba 1 9.969
DP Araucária 1 42.697
TOTAL 30 448.812
BRProperties 2Q11
Stock Performance
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* As of August 11th, 2011
Current number of shares: 180,003,919
Market Value: R$ 2.9 billion
Average Daily Vol. (30d): R$ 12.3 million
Stock Performance (BRPR3) 2Q11 2Q10 var % 6M11 6M10 var %
Total Number of Shares * 174.753.919 139.391.381 25,4% 174.753.919 139.391.381 25,4%
Free Float (%) 99% 99% 0,0% 99% 99% 0,0%
Stock Price (average for the period) 17,66 12,16 45,2% 17,49 12,33 41,8%
Stock Price (end of period) 17,50 12,85 36,2% 17,50 12,85 36,2%
Market Cap end of period (R$ million) 3.058,2 1.791,2 70,7% 3.058,2 1.791,2 70,7%
Average Daily Trading Volume (R$ million) 10,85 3,34 224,9% 9,58 4,81 99,2%
Average Daily Traded Shares 616.953 276.203 123,4% 548.476 387.351 41,6%
Average Daily negotiations 688 89 672,9% 573 130 340,8%
GP5,6% Laugar
3,2%Silverpeak
1,0%
GIC6,4%
Management0,7%
Other83,0%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%BRPR3
IBOV
IMOB
BRProperties 2Q11
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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