3Q11 Earnings Release Presentation BRProperties
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3Q11 Earnings Release Presentation
BRProperties
BRProperties 3Q11
Highlights
2
Financial
Highlights
Operating
Highlights
Leasing spreads (net of inflation) for renegotiations reached 24.1% and 17.1% in office and retail
properties, respectively, while leasing spreads for new lease up of vacant areas reached 12.0% for office
properties;
We experienced a significant decrease in the portfolio’s vacancy level, where financial vacancy
totaled 1.5% at the end of 3Q11, a 35% reduction when compared to 2Q11, which totaled 2.3%. Physical
vacancy represented 0.9% of GLA at the end of quarter. In terms of area, our office, industrial, and retail
properties were 99.2%, 99.9%, and 100.0% occupied at the end of the quarter, respectively;
On September 14th, 2011, BR Properties S.A. signed a Memorandum of Understanding (MoU), related to
the incorporation of BTG/WTORRE Properties by the Company, through the issuance of new ordinary
shares of BR Properties;
On October 27th, 2011, BR Properties concluded with Statoil Brasil Óleo e Gás Ltda. a lease contract for
the partial occupancy of Edifício Manchete. The Lease has a term of 120 months, and comprises 14.4
thousand m² of GLA, including 132 parking spaces.
3Q11 Net Revenues totaled R$91.8 million, an increase of 71% in relation to 3Q10, when net revenues
came in at R$53.7 million;
Adjusted EBITDA of R$84.9 million in 3Q11, an increase of 87% over 3Q10 and an adjusted EBITDA
margin of 93%. 3Q11 EBITDA without adjustments totaled R$80.1 million, with an EBITDA margin of 87%;
Net Income totaled R$83.7 million at the end of 3Q11, impacted by a gain on appraisal of investment
properties of R$180.3 million (R$125.8 million net of taxes) and a non-cash financial expense resulting from
the FX variation of the principal on our dollar denominated perpetual debt of R$85.0 million. Therefore, an
increase of 622% in relation to 3Q10, when our net income totaled R$11.6 million;
Adjusted FFO (excluding non-cash net financial expenses) totaled R$42.5 million in 3Q11, with an FFO
margin of 46%;
BRProperties 3Q11
Portfolio
3Q11 Revenue Breakdown
Portfolio Breakdown
(% market value)
Portfolio Breakdown
(% GLA)
3
22%
57%
7%
13%
Off ice Industrial Retail Development
Leasing98%
Services2%
Straight-line0%
46%
42%
12%
Off ice
Industrial
Retail
55%29%
7%
8%
Off ice Industrial Retail Development
BRProperties 3Q11
Financial Highlights
4
Net Revenues (R$ thousand) Net Income* (R$ thousand)
* Impacted by a net gain on appraisal of investment properties
of R$122.8 million, and a non-cash financial expense resulting
from the FX variation of the principal on our dollar
denominated perpetual debt of R$85.0 million.
3Q10 3Q11 9M10 9M11
53.689 91.803
132.386
253.156 71%
91%
3Q10 3Q11 9M10 9M11
11.598 83.744 42.670
264.909 622%
521%
BRProperties 3Q11 5
Financial Highlights
Adjusted FFO (R$ thousand)
Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand)
3Q10 3Q11 9M10 9M11
45.357
84.923 111.204
229.376
106%
87%
84%
93%
84%
91%
Adjusted EBITDA Margin
82%
87%
81%
87%
EBITDA Margin
3Q10 3Q11 9M10 9M11
44.009
80.070 107.160
219.445
105%
82%
3Q10 3Q11 9M10 9M11
11.598
42.486 45.988
68.308
49%
266%
22%
46% 35%27%
Adjusted FFO Margin
BRProperties 3Q11
Debt
3Q11 Net Debt (R$ mn) 3Q11 Debt Index Breakdown
6
71%2%
27%TR
IGPM
CDI
Net Debt 3Q11 2Q11 var %
Short Term Loans and Financing 186.751 222.535 -16%
Loans and Financing 114.606 111.069 3%
Perpetual Bond 54.360 45.763 19%
Derivative Instruments 2.771 42.116 -93%
Payables for Acquisition of Real Estate 15.013 23.588 -36%
Long Term Loans and Financing 1.981.595 1.887.296 5%
Loans and Financing 1.479.887 1.516.091 -2%
Perpetual Bond 501.708 371.205 35%
Gross Debt 2.168.346 2.109.831 3%
Cash and Cash Equivalents 1.072.533 410.464 161%
Net Debt 1.095.813 1.699.367 -36%
Net Debt / Annualized Adjusted EBITDA 3,2x 5,5x -41%
Adjusted EBITDA / Net Financial Expenses * 2,7x 1,6x 65%
Duration (years) ** 5,9 5,7 3%
* Considers Net Financial Expenses (ex. non-cash variations)
** Considers the amortization of the perpetual bond in 2023
ST Debt Obligations for
Acquisitions
LT Debt Total Debt Cash Net Debt
172
2.168
1.096
15
1.982 1.073
BRProperties 3Q11
Debt
7
Debt Service Schedule (R$ million)
Adjusted EBITDA/ Net Financial Expenses* Net Debt/ Adjusted EBITDA
* Considers Net Financial Expenses (ex. non-cash variations)
0,0x
0,5x
1,0x
1,5x
2,0x
2,5x
3,0x
3,5x
4,0x
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
2,1x 2,0x 2,0x
2,3x2,5x
3,5x
1,4x
2,1x
1,4x1,6x
2,7x
0,0x
1,0x
2,0x
3,0x
4,0x
5,0x
6,0x
7,0x
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
5,0x 5,2x 5,0x
6,0x
0,6x
3,7x
4,9x
7,0x
6,0x5,5x
3,2x
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
48
179 166 152 134 117 95 68 54 39 32 29
24
129 129 159162 180
333
157155
128
26 14
Principal
Interest
BRProperties 3Q11 8
Operating Highlights
Market Alignments New Leases
3Q10 3Q11 9M10 9M11
13,6%
24,1%
13,4%
23,4%
14,4%
n/a
7,1%
20,6%
n/a
17,1%
n/a
15,8%
Office
Industrial
Retail
3Q10 3Q11 9M10 9M11
6,6%
12,0%
14,6%
7,7%
13,7%
0,0%
15,6%
13,6%
n/a n/a n/a n/a
Office
Industrial
Retail
Leasing Spread - Market Alignments* 3Q11 3Q10 var % 9M11 9M10 var %
Leasing Spread - Office 24,1% 13,6% 77% 23,4% 13,4% 75%
Leasing Spread - Warehouse 0,0% 14,4% -100% 20,6% 7,1% 192%
Leasing Spread - Retail 17,1% - n/a 15,8% - n/a
Renegotiated Area - Office (sqm) 26.099 2.545 925% 50.104 3.490 1336%
Renegotiated Area - Warehouse (sqm) 783 1.107 -29% 15.581 17.899 -13%
Renegotiated Area - Retail (sqm) 4 - n/a 97.435 - n/a
Leasing Spread - New Leases* 3Q11 3Q10 var % 9M11 9M10 var %
Leasing Spread - Office 12,0% 6,6% 82% 14,6% 7,7% 89%
Leasing Spread - Warehouse - 13,7% -100% 15,6% 13,6% 15%
Leasing Spread - Retail - - n/a - - n/a
Leased Area - Office (sqm) 1.257 7.330 -83% 27.043 24.955 8%
Leased Area - Warehouse (sqm) - 19.752 -100% 18.019 26.919 -33%
Leased Area - Retail (sqm) - - n/a - - n/a
* Leasing spreads are net of inflation
BRProperties 3Q11
Operating Highlights
9
Financial Vacancy per Segment
We showed a financial vacancy of 1.5% for the period, a 35% decrease when compared to 2Q11.
Vacancy Breakdown
1Q11 2Q11 3Q11
3,1%
1,5%
0,9%
6,2%
2,3%
1,5%
Physical
Financial
2Q11 3Q11
1,6%1,5%
0,7%
0,0%0,0% 0,0%
Off ice
Industrial
Retail
Vacancy per Property 3Q11
Property Type Financial Physical
CBOP - Jacarandá Office 1,3% 0,7%
Ventura II Office 0,1% 0,0%
Total Office 1,5% 0,8%
BP Jundiaí Industrial 0,0% 0,1%
Total Industrial 0,0% 0,1%
Total Portfolio 1,5% 0,9%
BRProperties 3Q11
% Revenues
% GLA
% GLA
% Revenues
Lease Contract 3 Year Market Alignment Schedule
Lease Contract Expiration Schedule
10
Operating Highlights
2011 2012 2013 >2013
3%5% 20%
73%
2011 2012 2013 >2013
2% 5%29%
64%
2011 2012 2013 >2013
28%
14%
27%
31%
2011 2012 2013 >2013
38%
18%
19%
24%
BRProperties 3Q11
Operating Highlights
11
Property Management Revenues
(R$ thousand)
We maintained the same 29 properties under management throughout 3Q10 – 3Q11
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
Jacarandá 1 31.954
BP Jundiaí 1 53.343
Cond. Indl. São José dos Campos 1 73.382
BP Jandira 2 34.304
BP Itapevi 1 33.526
TNU 1 27.931
RB 115 1 11.516
Plaza Centenário 1 3.366
Indaiatuba 1 11.335
TOTAL 29 411.720
3Q10 3Q11 9M10 9M11
894
1.904 2.606
4.731 113%
82%
BRProperties 3Q11
Capital Markets
12
* As of November 10th, 2011
Current number of shares: 180,003,919
Market Value: R$ 3.3 billion
Average Daily Vol. (30d): R$ 19.3 million
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11
BRPR3
IBOV
IMOB
GIC7,0%
GP 5,5%
Schroder5,1%
Laugar3,2%
Board & Management
0,8%
Other78,3%
Stock Performance (BRPR3) 3Q11 3Q10 var % 9M11 9M10 var %
Total Number of Shares 180.003.919 139.403.585 29,1% 180.003.919 139.403.585 29,1%
Free Float (%) 99% 99% 0,0% 99% 99% 0,0%
Stock Price (average for the period) 17,23 13,89 24,0% 17,40 13,03 33,5%
Stock Price (end of period) 17,08 16,30 4,8% 17,08 16,30 4,8%
Market Cap end of period (R$ million) 3.074,5 2.272,0 35,3% 3.074,5 2.272,0 35,3%
Average Daily Trading Volume (R$ million) 16,23 5,46 197,3% 11,94 5,11 133,7%
Average Daily Traded Shares 941.962 385.519 144,3% 686.207 387.732 77,0%
Average Daily negotiations 1.508 170 787,1% 896 148 505,4%
BRProperties 3Q11
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
13
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