Company presentation november, 2011

Company Presentation

Company Overview

The largest and most complete commercial property company in Brazil

Segments of Activity

Off

ice

Ind

ustr

ial

Re

tail

Portfolio of Retail Properties

Torre Nações Unidas

DP Louveira

Ed. Ventura II Ed. Manchete

DP Araucária

Company Profile

2

Largest public commercial property company in Brazil

Diversified portfolio (55% office, 29% warehouse, 7% retail, 8% development) currently holds 91 properties, with 1.35 million m² of gross leasable area (GLA) and estimated market value of approximately R$5.2 billion

Diversified tenant base

Regional footprint

5 greenfield projects, with approximately 178 thousand m² of GLA

Fully integrated and experienced in-house teams: acquisitions, financing, legal and engineering

Pro active, value added investment strategy, “hands-on” approach

Market recognition: proven ability to source deals and execute transactions makes BR Properties the partner of choice for co-development and built-to-suit operations

Fully owned Property Management Company

Promised and Delivered

3

Commitment to over-delivering results to its shareholders

IPO (March 2010)

Current (November 2011)

Growth (Current / IPO)

613,499 1,168,183 1.9x

150,473 178,434 1.2x

7.4% 0.9% Reduction of 88%

93.9

(2009)

339.7

(3Q11 Annualized) 3.6x

45.0

(2009)

169.9

(3Q11 Annualized) 3.8x

Portfolio GLA (m²)

Under Development GLA (m²)

Physical Vacancy

Adjusted EBITDA (R$ mm)

Adjusted FFO (R$ mm)

83.3%

(2009)

92.5%

(3Q11 Annualized)

Most Profitable Player in the

Sector EBITDA Margin

1,719

(2009)

5,799

(November, 2011) 3.4x

Total Portfolio (R$ mm)

Highest Growth in the Sector…

Impressive growth rate, much higher than the average of its comparables…

GLA CAGR 2008 - 2010 Net Revenues CAGR 2008 - 2010

FFO CAGR 2008 - 2010 EBITDA CAGR 2008 – 2010

4

¹

¹

¹

¹

2

2

2

Source: Companies

Notes:

1 Considers BR Malls, Multiplan, Iguatemi and Alliansce

2 Considers São Carlos and CCP

53.6%

24.8%

7.9%

Shopping Malls' Average Properties' Average

64.4%

9.8%

-4.3%

Shopping Malls' Average Properties' Average

156.3%

50.7%

28.9%

Shopping Malls' Average Properties' Average

65.4%

29.4%

8.7%

Shopping Malls' Average Properties' Average2

Ample market fragmentation and little professional competition create a unique environment for

market consolidation

Significant Opportunities to Expand Current Portfolio

Addressable Market1: 36.3 mm m²

BRProperties

10 Organized

Companies

Source: BR Properties Estimates

Note:

1 Does not include retail properties

Organized

Companies

9%

Non-Organized

Market

91%

35%

65%

Fragmented Industry (in terms of GLA – m²) Acquisition Pipeline - In Negotiation (R$ mm)

5

4,783

9,395

762

180

3,220

450

Current

Portfolio

Office Built-to-Suit Retail Industrial Total

Portfolio Overview

SECTION 1

BR Properties tenant base entails some of the best known Companies

in the country, spanning wide industry diversification

A top-notch portfolio comprised of office buildings, industrial, and retail properties located in the

most dynamic regions of Brazil

Portfolio: Breakdown and Tenant Base

Market Value of the Portfolio (R$ mm)

GLA by Property Type (m²)

Tenant Breakdown (by Industry)

Main Tenants Over 180 high quality tenants

7

Total: R$5.2 bn Total: 1,168 k m²

Logistics

20%

Consumer

Goods

19%

Financial

Services

13%

Industry

10%

Technology

7%

Others

26%Energy

5%

56% 29%

7% 8%

Office

Warehouse

Retail

Greenfield

22%

57%

8%

13%

Office

Warehouse

Retail

Greenfield

Portfolio Footprint

Office

Warehouse

BRPR

Retail

Number of existing properties: 91

— Office: 37

— Warehouse: 24

— Retail: 30

Total GLA of the properties: 1,168,183 m²

— Office: 300,205 m²

— Warehouse: 767,093 m²

— Retail: 100,885 m²

States Total GLA %

São Paulo 892,707 76.4%

Rio de Janeiro 154,385 13.2%

Paraná 63,120 5.4%

Minas Gerais 18,998 1.6%

Bahia 7,607 0.7%

Pernambuco 6,238 0.5%

Alagoas 4,678 0.4%

Maranhão 4,663 0.4%

Espírito Santo 3,989 0.3%

Pará 3,418 0.3%

Distrito Federal 2,989 0.3%

Goiás 2,814 0.2%

Ceará 2,577 0.2%

TOTAL 1,168,183 100%

BR Properties’ portfolio is present in 13 states, covering all 5 regions of Brazil

8

Average office lease term: 3-5 years

Average warehouse lease term: 5-10 years

Expiration Schedule (% revenues)

Market Alignment Schedule (% revenues)

Inflation Adjustment Indices

Portfolio: Lease Contract Characteristics

Lease contracts in place allow for stable, predictable cash flows, while creating a very low

vacancy risk scenario and considerable upside potential in revenues

9

Annual Inflation Adjustments

— 100% of lease contracts are indexed to inflation

— 72% IGP-M, 24% IPCA and 3% other

Triple Net Contracts

— Tenant is responsible for all operating property costs

— Costs include: taxes, insurance, and maintenance expenses

Next 3 Years

— 74% market alignment

— 32% expiration

Bank Guarantees on Leases

— Standard practice in Brazil

— Protects against delinquencies from smaller tenants

Tenant Delinquency

Delinquency exceeding 30 days, lessor has right to break the contract and remove the tenant

Main Characteristics

2011 2012 2013 >2013

3% 5% 20%

73%

2011 2012 2013 >2013

28%

14%

27%

31%

73%

24%

3%

IGP-M

IPCA

Other

Effects of the Nominal Interest Rate Increase (SELIC vs. TR)

Source: Santander research and Central Bank

Portfolio: Resilient Business Dynamics

Positive Effects of the Growth of Inflation Indices (TR vs. IPCA vs. BRPR Inflation basket)

The potential increase in the nominal interest

rate until the end of the year would result in a slight

increase in the TR, main index that readjusts our financing

contracts

The inflation increase, on the other hand, would

have a positive effect on the Company’s results, given that

100% of our lease contracts are indexed to inflation rates

Our cash reserves are invested exclusively in bank notes

indexed to the Brazilian inter-bank rate (CDI), which would

cause an increase in our financial revenues with the

forecast increase in the SELIC rate

10

Main Highlights

0,69% 1,23%

5,90% 6,48%

7,92%

0%

2%

4%

6%

8%

10%

12%

2010 2011e

TR

IPCA (CPI)

Avg. Basket Inflation pass through 2011

10,75% 11,00%

0,69% 1,23%

0%

2%

4%

6%

8%

10%

12%

2010 2011e

Forecast SELIC

TR

Growth Drivers

SECTION 2

Acquired Properties

Total CAPEX

(R$ billion)

103

3.4

Equity Raised

(R$ billion) 2.3

Growth Drivers: Acquisitions

GLA Growth (‘000 m²) 2

Average IRR on

Divestments (%)¹ 28%

Notes:

1 Considers all the divestments since Company’s inception, and it is gross and leveraged

2 Does not consider greenfield projects

Since 2007, BR Properties acquired stakes in 103 different properties with a total CAPEX of R$3.4

billion

12

Market Value of Current

Portfolio

(R$ billion)

5.2

294

1.168

143

203

531

(3)

2007 2008 2009 2010 2011 Current

RB 115 (Delivered in Dec/2010)

Growth Drivers: Performance Improvement

13

Lo

ng

-Te

rm V

alu

e T

rig

ge

r Henrique Schaumann (Acquired in 2007) Presidente Vargas (Acquired in 2007)

69.3% 49.6% Cap Rate Cap Rate

Sh

ort

-Te

rm V

alu

e T

rig

ge

r

Cap Rate

13.8%

Outstanding management leads to very fast operating improvements and impressive increases in

the long run

TNU (Acquired in Mar/2010)

Cap Rate

10.5%

Ventura (Acquired in Aug/2010)

Cap Rate

11.8%

10.3%

30.8%

13.8%

14.0% 12.2%

12.3%

Initial 3Q11 Initial 3Q11 Initial 3Q11

Initial 3Q11

11,1%

18,8%

Initial 3Q11

13,9%

20,4%

Growth Drivers: Performance Improvement (cont’d)

14

Leasing Spreads – New Leases

Company has been building a successful track record on increasing spreads in both contract

renegotiation and new leases

Leasing Spreads – Renegotiations

Case Study: Retail Tenant

Date of Acquisition Dec/2010

GLA 97.431 m²

Revenues @ Acquisition R$30.7 mm

Cap Rate @ Acquisition 10.2%

Current Revenues R$41.4 mm (post-

renegotiation)

Current Cap Rate 13.4% (11 months after

acquisition)

15,5% 14,3%

12,0% 11,1%

28,3%

0,0% n/a n/a n/a

1Q11 2Q11 3Q11

Office Industrial Retail

21,5% 24,5% 24,1%

22,6%

n/a n/a n/a

15,7% 17,1%

1Q11 2Q11 3Q11

Office Industrial Retail

Growth Drivers: Developments / Retrofit

Type: Office A

Location: São Paulo / SP

Delivery Date: 4Q12

GLA: 2,019 m²

Owned: 50%

Type: Warehouse

Location: São José dos Campos / SP

Delivery Date: n/a

GLA: 125,000 m²

Owned: 100%

Type: Warehouse

Location: Louveira / SP

Delivery Date: 2Q12

GLA: 30,122 m²

Owned: 100%

So

uza A

ran

ha

Tech

Park

SJC

DP

Lo

uv

eir

a 7

The Company currently holds 5 greenfield projects, that once finalized, will add 178 thousand m²

of GLA to the portfolio, along with Ed. Manchete, which is now in retrofit

15

Cid

ad

e J

ard

im

Pan

am

éri

ca G

reen

Park

Type: Office AAA

Location: São Paulo / SP

Delivery Date: 2Q12

GLA: 6,792 m²

Owned: 50%

Pre-certified Building

Type: Office A

Location: São Paulo / SP

Delivery Date: 1Q13

GLA: 14,502 m²

Owned: 50%

Pre-certified Building

Under Approval

Ongoing

Man

ch

ete

Type: Office

Location: Rio de Janeiro / RJ

Delivery Date: 4Q11

GLA: 27,658 m²

Owned: 100%

Financial Highlights

SECTION 3

Financial Highlights

17

Net Revenues (R$ mm)

Adjusted EBITDA and Margin (R$ mm and %)

Adjusted FFO and Margin (R$ mm and %)

53,7

91,8

132,4

253,2

3Q10 3Q11 9M10 9M11

45,4

84,9

111,2

229,4

3Q10 3Q11 9M10 9M11

84%

93%

84%

91% 22%

46% 35%

27%

11,6

42,5

46,0

68,3

3Q10 3Q11 9M10 9M11

Solid Balance Sheet

Net Debt* (R$ mm) Debt Profile (Index)

Debt Service Schedule (R$ mm)

18

ST Debt Obligations for

Acquisitions

LT Debt Total Debt Cash Net Debt

172

2.168

1.096

15

1.982 1.073

71%

2%

27%

TR

IGPM

CDI

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

129 129 159 162 180

333

157 155 128 26 14

Principal

Interest

APPENDIX

Appendix: São Paulo Office Market

20

Source: CBRE 2Q11 Market View Report

Note:

1 There are no class A buildings in this submarket. Lease rates apply to the best buildings in the area

Total Stock

Submarkets Total Stock Vacancy Rate Asking Lease Rate

Range (Class A)

(m²) (%) (R$/ m²/ month)

Downtown ¹ 362,400 2.1% R$ 15 - R$ 50*

Paulista 1,023,300 3.8% R$ 75 - R$ 125

Jardins 1,007,600 1.5% R$ 90 - R$ 170

Marginal 2,270,200 5.9% R$ 45 - R$ 130

Other 1,321,600 4.1% R$ 50 - R$ 70

Total Market 5,985,100 4.2% R$ 45 - R$ 170

Alphaville 472,200 20.3% R$ 30 - R$ 65

Marginal 35%

Other 20%

Paulista 16%

Jardins 16%

Alphaville 7%

Downtown 6%

Appendix: Rio de Janeiro Office Market

21

Source: CBRE 2Q11 Market View Report

Total Stock

Submarkets Total Stock Vacancy Rate Asking Lease Rate

Range (Class A)

(m²) (%) (R$/ m²/ month)

Downtown 1,794,100 1.6% R$ 115 - R$ 180

Botafogo 352,500 1.2% R$ 115 - R$ 160

Flamengo 51,500 0.0% R$ 100 - R$ 185

Barra da Tijuca 358,100 12.4% R$ 80 - R$ 120

South Zone 144,500 1.8% R$ 150 - R$ 250

Other 148,700 4.1% R$ 60 - R$ 100

Total Market 2,849,400 3.0% R$ 60 - R$ 250

Downtown 63%

Botafogo 12%

Barra da Tijuca 13%

Other 5%

South Zone 5%

Flamengo 2%

Appendix: São Paulo Industrial Market

22

Source: CBRE 2Q11 Market View Report

Total Stock

Submarkets Total Stock Vacancy

Rate

Asking Lease Rate

Range (Class A)

(m²) (%) (R$/ m²/ month)

ABCD * 129,000 0.0% R$ 12 - R$ 18

Atibaia * 129,100 14.7% R$ 20 - R$ 23

Barueri 437,200 5.1% R$ 21 - R$ 27

Cajamar * 482,800 3.2% R$ 21 - R$ 24

Cotia/ Embu * 304,600 0.5% R$ 18 - R$ 22

Greater Campinas 1,464,900 6.7% R$ 16 - R$ 28

Guarulhos * 183,700 19.3% R$ 18 - R$ 24

Jundiaí/ Itupeva * 487,500 8.6% R$ 13 - R$ 19

São Paulo 560,800 1.9% R$ 21 - R$ 25

Sorocaba/ Alumínio * 107,200 5.5% R$ 16 - R$ 20

Vale do Paraíba * 241,800 16.8% R$ 14 - R$ 17

Total Market 4,528,600 6.4% R$ 12 - R$ 28

* The eight submarkets that comprised the "Others" region in previous reports

Greater Campinas

32%

São Paulo 12%

Barueri 10%

Cajamar 11%

Jundiaí 11%

Cotia/ Embu 7%

Vale do Paraíba 5%

Guarulhos 4%

ABCD 3%

Atibaia 3%

Sorocaba 2%

Appendix: Historical Market Data

23

Fonte: CBRE 2T11 Market View Report

New Supply (in thousands) Net Absorption (in thousands)

Average Rent per m² (in R$) Vacancy Rate (in %)

134

40

0

100

200

300

400

500

2006 2007 2008 2009 2010 1S11

São Paulo Rio de Janeiro

94

60

0

50

100

150

200

250

2006 2007 2008 2009 2010 1S11

São Paulo Rio de Janeiro

130 140

0

30

60

90

120

150

2006 2007 2008 2009 2010 1S11

São Paulo Rio de Janeiro

4,2 3,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2006 2007 2008 2009 2010 1S11

São Paulo Rio de Janeiro

Contact

Investor Relations

24

Pedro Daltro

Chief Financial and 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