2. Highlights
3Q12 HIGHLIGHTS AND SUBSEQUENT EVENTS
• 3Q12 results were significantly stronger than 2Q12, when One Properties was merged into BR Properties;
• 3Q12 net revenues totaled R$168.0 million, an increase of 83% over 3Q11, when net revenues came in at R$91.8 million. The significant growth
resulted from additional rental revenues of the new properties;
• 3Q12 adjusted EBITDA of R$156.4 million, an 84% increase over 3Q11 and adjusted EBITDA margin of 93%. 3Q12 non-adjusted EBITDA reached
R$147.0 million, and EBITDA margin of 88% (adjusted EBITDA excludes non-cash and non-recurring expenses);
• 3Q12 net income totaled R$259.2 million, impacted by the net gain on appraisal of investment properties and by the net operating profit of the quarter;
• 3Q12 adjusted FFO excluding non-cash and non-recurring expenses totaled R$34.8 million, and adjusted FFO margin of 21%. It is worth mentioning
that BR Properties already incurred financial expenses related to some properties under development, which are not generating any additional revenue;
• During 3Q12, the Company reached leasing spreads (net of inflation) of 27.0% on new leases signed in office buildings and 45.8% in industrial
properties. On market alignments of existing contracts, real gains were 20.8% in office buildings and 16.1% in industrial properties;
• The financial vacancy rate was 4.5%, while physical vacancy rate came in at 3.2%. Excluding the recently delivered Paulista Building, currently
under lease-up, financial vacancy drops to 1.4%. In terms of area, office, industrial, and retail properties were 95%, 97%, and 100% occupied at the end
of the quarter, respectively;
• In July, BR Properties concluded its first issuance of non-convertible local debentures, raising R$600.0 million in two tranches: R$369.0 million at CDI
+ 1.08% p.a. maturing in five years and R$231.0 million at IPCA + 5.85% p.a. maturing in seven years;
• Also in July, the Company prepaid/refinanced additional R$364.5 million of debt inherited from One Properties, which had a weighted average cost of
CDI + 3.7% p.a.;
• In August, the Company prepaid commercial papers issued in 2Q12, utilizing part of the proceeds from its first issuance of non-convertible local
debentures;
• Also in August, the Company executed the sale of units of the Cetenco Plaza Building for R$47.2 million, resulting in exit cap rate of 6.5%.
3Q12
2
3. Portfolio
Portfolio Market Value 9M12 Revenue Breakdown
56%
Straight-line 1% Leasing 98%
12.968 13.552 Services 1% 8%
11.715
36%
4.751 4.918 5.142 5.254
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Portfolio Breakdown Portfolio Breakdown
(% market value) (% GLA)
5% 5%
18%
24%
50% 15%
62%
21%
Of f ice AAA Of f ice Industrial Retail Of f ice AAA Of f ice Industrial Retail
3Q12
3
4. Financial Highlights
Net Revenues (R$ thousand) Net Income* (R$ thousand)
83% 70%
294%
4% 210% 1.044.337
75% 430.159
253.156
160.935 168.031 259.234 264.909
91.803
83.749
3Q11 2Q12 3Q12 9M11 9M12 3Q11 3Q12 9M11 9M12
* Impacted by the net gain on appraisal of investment
properties
3Q12
4
7. Non-income producing properties
Months of Generated Potential Annual
Non-Income Producing Properties Type Delivery Date Owned GLA Rent / sqm / Month ¹
Income in 3Q12 Revenue (R$ mm) ²
Ed. Paulista Office 0,5 month Delivered in 3Q12 22.855 R$110 - R$135 R$ 30 million
Centro Empresarial Senado - CES Office AAA 0 month 4Q12 95.174 R$ 87,39 R$ 100 million
Cidade Jardim Office AAA 0 month 4Q12 6.792 R$150 - R$170 R$ 12 million
JK Complex - Towers D&E Office AAA 0 month 1Q13 34.583 R$150 - R$170 R$ 62 million
Panamérica Green Park Office 0 month 1Q13 5.185 R$50 - R$60 R$ 3 million
Retail Petrobrás Retail 0 month 1Q13 2.881 R$140 - R$170 R$ 5 million
WTNU - Tower III Office AAA 0 month 1Q13 14.868 R$120 - R$140 R$ 21 million
DP Louveira 7 Warehouse 0 month 2Q13 30.122 R$19 - R$24 R$ 7 million
Gaia Terra Warehouse 0 month 2Q13 23.017 R$18 - R$23 R$ 5 million
JK Complex - Tower B Office AAA 0 month 1Q14 29.539 R$150 - R$170 R$ 53 million
Souza Aranha Office 0 month 2Q14 2.019 R$65 - R$85 R$ 2 million
TOTAL R$ 300 million
¹ Internal Estimate
² Considering the bottom of the estimated range
Potential Annual Revenue (R$ million)
53 2 300
5
21 7
3 5
62
12
100
30
Ed. Paulista Centro Cidade JK Complex Panamérica Retail WTNU - DP Louveira Gaia Terra JK Complex Souza Total
Empresarial Jardim - D&E Green Park Petrobrás Tower III 7 -B Aranha Additional
Senado Revenue
3Q12
7
8. Portfolio Recycling
As part of its recycling strategy, the Company concluded 6 sales throughout 9M12 which totaled
R$133.3 million. The rental loss in 9M12 is R$4.4 million
Sale Price Rental Loss
Sold Properties Type Sale Date
(R$ K) 9M12 (R$ K)
Paço do Ouvidor Retail Mar-12 25.000 1.285
Olympic Tower Office Apr-12 14.000 653
Paulista Plaza Office Apr-12 20.000 1.002
Cetenco Plaza (2 Units) Office Mar-12 5.448 273
Cetenco Plaza (8 Units) Office May-12 21.600 655
Cetenco Plaza (16 Units) Office Aug-12 47.210 508
TOTAL R$ 133.258 R$ 4.376
Total Sales Volume (R$ K) Average Exit Cap Rate (%)
133.258 9,3%
77.290
8,4%
9M11 9M12 9M11 9M12
3Q12
8
9. Debt Reprofiling
3Q12 Prepaid Debt
3Q12 Prepaid Debt Type Institution Index Cupon Term Maturity 2Q12 Balance
BR Properties (holding) Debentures Banco do Nordeste CDI 145,00% 48 months 01/03/15 178.709
BR Properties (holding) CCB ABC CDI 3,90% 23 months 09/07/12 839
BR Properties (holding) CCB ABC CDI 3,90% 24 months 09/08/12 839
Prepaid Debt - Subtotal 180.387
3Q12 Renegotiated Debt
3Q12 Renegotiated Debt Type Institution Index Cupon Term Maturity 2Q12 Balance
BR Properties (holding) * Debentures Banco do Brasil CDI 113,83% 58 months 30/09/15 71.939
BR Properties (holding) ** CCB Santander CDI 1,14% 60 months 19/08/19 112.190
Debt - Renegotiated 184.130
* Renegotiated Debt (from 130,0% of CDI to 113,83% of CDI)
** Renegotiated and Extended Debt (from CDI+1,5% to CDI+1,14%)
During 3Q12, the Company prepaid/refinanced R$364.5 million of debt inherited from One Properties, which had a
weighted average cost of CDI + 3.7% p.a.
Since One Properties merger, BR Properties has reprofiled (paid/refinanced) R$591.9 million of inherited debt.
3Q12
9
10. Indebtedness
3Q12 Net Debt (R$ mn) 3Q12 Debt Index Breakdown
4.279 4.958 394
4.564 1%
6%
TR
14%
CDI
46%
IGPM
667
INPC
13 33%
IPCA
ST Debt Obligations LT Debt Total Debt Cash Net Debt
f or
Acquisitions
Net Debt 3Q12 2Q12 var %
Short Term Loans and Financing 679.382 1.115.598 -39%
Loans and Financing 554.331 991.441 -44%
Perpetual Bond 59.526 59.253 0%
Derivative Instruments 52.787 50.663 4%
Payables for Acquisition of Real Estate 12.739 14.242 -11%
Long Term Loans and Financing 4.278.954 3.994.751 7%
Loans and Financing 3.745.869 3.464.272 8%
Perpetual Bond 533.085 530.479 0%
Gross Debt 4.958.336 5.110.349 -3%
Cash and Cash Equivalents 394.179 609.460 -35%
Net Debt 4.564.157 4.500.889 1%
Portfolio Value 13.552.098 12.968.469 5%
Gross Debt / Portfolio Value (Loan to Value) 37% 39% -7%
Net Debt / Portfolio Value (Loan to Value) 34% 35% -3%
Adjusted EBITDA / Net Financial Expenses * 1,5x 1,1x 36%
Duration (years) 5,3 4,9 8%
* Considering Net Financial Expenses (ex. non-cash variations)
3Q12
10