2. 2Q08 Highlights
Excellent operating and financial results
Our NOI reached R$65.5 million, a 102.2% growth over 2Q07 with NOI margin of 90.7%
Same-property NOI increased 20.9% year-on-year
EBITDA reached R$54.1 million in the 2Q08, an increase of 96.6% y-o-y with EBITDA margin of 74.9%
FFO reached R$48.3 million, with a 66.9% margin; a 48.0% increase over 2Q07 FFO
Strong Performance from our malls
Same Store Sales/m² growth of 10.8% in the quarter and of 10.7% year-to-date
Same Store Rent/m² growth of 9.5% in the quarter and of 8.9% year-to-date
Intense commercial activities demonstrate that our store-owners are continuing to grow
352 leasing agreements signed this quarter including renewals and new contracts (more than 50,000 m2 )
Renewals leasing spreads above 13% and new contracts leasing spreads above 20%
Solid Financial position
Long-Term Debt Profile, with duration of more than 6 years and only 17% indexed to CDI and IGP-M
R$911 million cash position invested at approximately 102% of CDI
Disciplined approach towards New Businesses
In the 2Q08, we concluded 6 acquisitions, and 3 additional ones subsequent to the end of the quarter, adding 3
new malls to our portfolio and increasing our owned GLA by 52,300 m²
2
3. Operating Activities
Despite going through a less favorable macroeconomic scenario, the shopping mall industry gives clear signs
of continuing good health…
Same Store Sales/m² Same Store Rent/m²
9.5%
10.8%
Late Payments (30 days) Occupancy Rate
13.0%
96% 96%
11.1%
95%
8.6% 94% 94%
6.4% 6.8%
4.7% 92%
3
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
4. Operating Activities (cont.)
Same Property NOI growth NOI/m²
63.2
52.3 20.8%
36.6
27.7
32.1%
8.1%
24.6 26.6
2Q07 2Q08
Acquired Portfolio Original Portfolio
4
5. Commercial Activities
...and while analyzing the performance of our malls between 2000 and 2007, we noticed a continuous real
growth, even during periods of high inflation, increased interest rates and slow economic growth
IGP-M (% p.a.)
25.3
Above Inflation (IGP-M) NOI Growth
Real NOI CAGR for our
12.42
9.95 10.37 9.7% malls between 2000 and
8.69 7.75
2007
3.85
5.9%
1.2
2000 2001 2002 2003 2004 2005 2006 2007
GDP growth (% p.a.)
5.71
5.42
4.31
3.75
3.3% 3.16
2.66
1.31 1.15
2000 2001 2002 2003 2004 2005 2006 2007
5
6. Commercial Activities (cont.)
Intense commercial activity from our store owners demonstrating the desire to continue the current growth pace
Number of Contracts Negotiated GLA (m²)
37.5% 50,298
352 101.9%
88.2%
256
237.0%
5.7% 24,916
58.5%
59.6%
43.0%
New Contracts in Greenfields & Expansions Renewals in Existing Shoppings Malls New Contracts in Existing Shoppings Malls
Anchor Stores (Rent/m²) Satelitte Stores (Rent/m²)
27.3% 12.9%
6
7. Solid Financial Position
The current decrease in market liquidity confirms our that our fund raising strategy last year was assertive
Debt Cash Position
Diversified Profile R$911 million at the close of 2Q08
Low exposure to the IGP-M index and to interest rate Financial Investments paying between 101% and
increases 102% of CDI rate
Long term debt with duration of 6.8 years
Well distributed amortization schedule
Well distributed Amortization Schedule (principal + interest) Debt Indexes
US$
23%
292,828
IPCA
23% IGP-M
13%
156,977
137,972
122,000 118,687
73,252 81,786 78,194
57,218 66,068
48,333 45,721 37,882
CDI
4%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *
R$
0% TR
37%
* Assuming perpetual bonds expiring in 2020 * Excluding hedge transaction
7
8. New Developments
Greenfield Projects Status Acquisitions Status
Granja Vianna Expected unleveraged IRR of
Ongoing Construction acquired asssets during 2008
12.7%
31% already leased
Mooca Additional Owned GLA ( m²)
Executive Projects under way
Rent agreements already accepted by several anchor stores 13.9%
Cabo Frio
Architects already hired
Project Management Company already hired
52.3
CBTU
Installation License – Project Management Company hired 429.1
Initial project already approved by the municipal authorities, but
will be re-submitted following certain minor changes
Sete Lagoas
376.8
Initial project already approved by the municipal authorities, but
will be re-submitted following certain minor changes
Owned GLA 1Q08 Acquired GLA Owned GLA 2Q08
Expansions Status Acquired portfolio performance (NOI in millions of R$)
67.0
6.3%
11 expansions underway
Increment of 73,400 m² of owned GLA by
2010, raising the company’s current GLA by
17.1%
Plaza Niterói
Niteró
R$60 million of stabilized NOI (as of the third 63.1
year)
Plaza Niterói: increase of 10,000 m² of
owned GLA + commercial towers
West Shopping: increase of 9,900 m² of Projected NOI Jan-Jun/08 Actual NOI Jan-Jun/08
total GLA. BRMALLS not responsible for
construction costs West Shopping 8
9. Highlights – Shopping Tamboré
In only 12 months of the mall in our portfolio, Shopping Tamboré already posts significant improvements in its
operating results
Shopping Tamboré Operating Results
46.5%
26.0%
16.3% 18.9
92.5%
15.0
Acquisition Expected Returns
92.5%
Jul 07 Actual
12.9
Unleveraged Real IRR 12.0% 13.3%
86.9%
Operating Results
Jul 07 – Jun 07 Jan 08 – Jun 08 chg %
NOI Margin 86.7% 93.5% 6.7 bps
SSS 6.2% 32.0% 25.8 bps
SSR 3.5% 14.6% 11.1 bps
Total Rent/m² 34.9 44.3 27.0%
Jul 06-Jun 07 Jul 07-Jun 08 Jul 07-Jun 08
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