Company presentation october 2012

R: 143 G: 168 B: 160

R: 79

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R: 33 G: 65 B: 99

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R: 165 G: 178 B: 198

Company Presentation

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

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B: 255

R: 165 G: 178 B: 198

Company Overview

The largest commercial property company in the country, with a portfolio of approximately

R$13.6 billion in market value and over 2 million sqm of GLA

Company Profile

2

Diversified portfolio, comprised of 122 properties, with 2.2 million sqm of gross leasable area (GLA) and estimated market value of R$13.6 billion

Diversified tenant base, composed of high credit-quality national and multinational companies

Present in 14 Brazilian states

16 greenfield projects, with approximately 451 thousand sqm of GLA

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

Value creation management strategy through re-tenanting, market realignments, retrofit, and improvements to technical installations

Market recognition: proven ability to source deals and execute complex transactions

Wholly owned property management subsidiary – BRPR A

Segments of Activity

Off

ice

In

du

str

ial

Re

tail

C&A Portfolio

TNU

DP Louveira

Ventura Complex CES - Petrobrás

VW Vinhedo

Tok & Stok Portfolio

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Properties Average Shopping Malls Average

69%

14%

30%

Properties Average Shopping Malls Average

96%

28%23%

Properties Average Shopping Malls Average

57%

27% 27%

Properties Average Shopping Malls Average

32%

-4%

14%

Highest Growth in Sector…

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

GLA CAGR 2008 - 2011 Net Revenues CAGR 2008 - 2011

FFO CAGR 2008 - 2011 EBITDA CAGR 2008 – 2011

3

Source: Companies

Notes:

1 Malls Average: Considering BR Malls, Multiplan, and Iguatemi

2 Properties Average: Considering São Carlos and CCP

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

CCP São Carlos

8.722

2.199 2.595

Largest and Most Efficient Company…

BR Properties has the highest EBITDA margin among all players in the properties and malls

sectors

4

Source: Companies

Notes:

1 Considering BR Malls, Multiplan, and Iguatemi – 2Q12

2 Considering São Carlos and CCP – 2Q12

4.0x 3.4x

Source: Bloomberg (10/22/2012)

3Q12 EBITDA Margin BRPR vs Competitors

(Market Cap – R$ mm)

Properties Average

Shopping Malls Average

93%

86%

76%

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Ibovespa MSCI Brasil

41%

-2%

4%

Ibovespa MSCI Brasil

10%

-15%

-21%

BR Properties’ stock has outperformed the most relevant indices over the last years, given its

more defensive profile in an uncertain economic outlook

5

Value Creation Since IPO…

Source: Bloomberg

Stock Performance

2010

Stock Performance

2011

Stock Performance

9M12

Ibovespa MSCI Brasil

43%

4%

-6%

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Oil & Gas Other Consumer Goods

Financial Services

Telecom Logistics Industrial Tech

23%20% 19%

14%10%

7% 6%

1%

6

Tenant base entails some of the most recognized companies in the country, spanning wide

industry diversification

Tenants Composition by Sector

High Credit-Quality Tenants…

Main Tenants

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

0,9%

0,0% 0,0% 0,3%

1,1%

0,1%0,3%

0,0%

0,5%

0,0% 0,0% 0,0%

1,1%

0,2%0,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

7

Most Defensive and Resilient Business…

Delinquency Rate

Vacancy Rate

Despite having experienced several cycles throughout the last years, the Company’s delinquency

rate is insignificant

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

1,5%

0,9% 0,9%

1,9% 1,9%

3,2%

2,3%

1,5% 1,7%1,3% 1,3%

4,5%Physical

Financial

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Portfolio: Strategic Positioning

8

Irreplicable portfolio, present in 14 states, and mainly concentrated in the best and

most liquid regions of the country

— Office: 41

— Warehouse: 35

— Developments: 16

— Retail: 30

Number of Properties : 122

Total Properties GLA: 2,181,854 sqm

— Office: 472,089 sqm

— Warehouse: 1,144,451 sqm

— Developments: 451,260 sqm

— Retail: 114,054 sqm

Portfolio Breakdown – Market Value Existing Properties/Development (%GLA)

Office

Warehouse

BRPR

Retail

Portfolio Breakdown – Footprint

67%

21%

12%

São Paulo Rio de Janeiro Others

% GLA

80%

20%

Existing Properties Developments

50%

21%

24%

5%

Off ice AAA Off ice Industrial Retail

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Average office lease term: 5-10 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

Triple Net Contracts

— Tenant is responsible for all operating property costs

— Costs include: taxes, insurance, and maintenance expenses

Next 3 Years

— 85% market alignment

— 26% 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

2012 2013 2014 >2015

2%8%

16%

74%

2012 2013 2014 >2015

24%

23%

38%

15%

87%

9%

4%

IGP-M

IPCA

Other

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Adding Value: Potential for Market Consolidation

10

The Company has a proven track record as the consolidator of the highly fragmented Brazilian

commercial properties market

Addressable Market1: 36.3 mm m2

BRProperties

10 Organized

Companies

58%

Organized

Companies

12%

Non-Organized

Market

88%

42%

Fragmented Industry¹ (in terms of GLA - m2)

1 Including existing properties only

Acquisition Pipeline (R$ million)

Off ice Industrial Retail Total

3.405

3.751

296

50

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Initial 3Q12

Initial 3Q12

Initial 3Q12Initial 3Q12

Initial 3Q12

11

Adding Value: Performance Improvement

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

the short and mid term

Ventura West (Acquired in Aug/2010) RB 115 (Acquired in Jun/2010) C&A Portfolio (Acquired in Dec/2010)

H. Schaumann (Acquired in 2007) Vargas (Acquired in 2007) TNU (Acquired in Mar/2010)

Cap Rate

+200 bps

10,3%

12,3%

Cap Rate

+230 bps

12,3%

14,6%

Cap Rate

+510 bps

10,5%

15,6%

+1215bps

11,1%

23,3%

+660 bps

13,9%

20,5%

Cap Rate

Initial 3 months later

+180 bps

10,6%

12,4%

Cap Rate Cap Rate

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Adding Value: Impressive Real Gains on Rental Prices

12

Leasing Spreads – New Leases

Company has built a successful track record on increasing spreads in both contract renegotiation

and new leases

Leasing Spreads – Lease Renewals and Market Alignments

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

7%10%

15% 14%12%

39%

34%

15%

27%

14%11%

28%

34%

46%

Off ice Industrial Retail

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

13,6%

8%

21%

24% 24%

34%36%

16%

21%

14,4%

23%

13%16%16% 17%

Off ice Industrial Retail

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Adding Value: Selective Developments

13

16 development projects, which once finalized, will correspond to 451 thousand sqm of GLA

Ed

. C

idad

e J

ard

im

Type: Office AAA

Location: São Paulo / SP

Delivery Date: 1Q13

Owned GLA: 34,583 sqm

Stake: 100%

Ed

. C

ES

Type: Office AAA

Location: São Paulo / SP

Delivery Date: 4Q12

Owned GLA: 6,792 sqm

Stake: 50%

Ongoing Projects

JK

Co

mp

lex –

To

wer

D&

E

Type: Office AAA

Location: São Paulo / SP

Delivery Date: 1Q13

Owned GLA: 14,868 sqm

Stake: 75%

CE

S:

Reta

il

Type: Office AAA

Location: Rio de Janeiro / RJ

Delivery Date: 4Q12

Owned GLA: 95,174 sqm

Stake: 100%

WT

NU

– T

ow

er

III

Type: Office A

Location: São Paulo / SP

Delivery Date: 1Q13 – Phase 1

Owned GLA: 14,502 sqm (3 towers)

Stake: 50%

Pan

am

éri

ca G

reen

Park

Type: Retail

Location: Rio de Janeiro / RJ

Data de Entrega: 1Q13

Owned GLA: 2,881 sqm

Stake: 100%

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

14

Type: Warehouse

Location: São José dos Campos / SP

Delivery Date: n/a

Owned GLA: 125,000 sqm

Stake: 100%

Tech

Park

SJC

G

aia

Terr

a

Type: Warehouse

Location: Jarinú / SP

Delivery Date: 2Q13 – Phase 1

Owned GLA: 51,791 sqm (3 Warehouses)

Stake: 67%

Ongoing Projects

Adding Value: Selective Developments

Type: Warehouse

Location: Louveira / SP

Delivery Date: 2Q13

Owned GLA: 30,122 sqm

Stake: 100%

DP

Lo

uv

eir

a 7

JK

Co

mp

lex –

To

wer

B

Type: Office A

Location: São Paulo / SP

Delivery Date: 2Q14

Owned GLA: 2.019 sqm

Stake: 50%

Ed

. S

ou

za A

ran

ha

Type: Office AAA

Location: São Paulo / SP

Data de Entrega: 1Q14

Owned GLA: 29,539 sqm

Stake: 100%

CE

S I

I B

ayv

iew

Landbank / Office

Rio de Janeiro/ RJ

22,000 sqm

Downtown

Landbank / Office

Rio de Janeiro/ RJ

21,989 sqm

Downtown

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Recycling: Sales of Non Core Properties

15

BR Properties maintains a constant portfolio recycling by selling properties that have reached

their maturity and full potential for value creation

Exit Cap Rates Sold Properties (R$ million)

Average

2009

Average

2010

Average

2011

Average

2012

11,4%

8,6%

9,2%

8,4%

2009 2010 2011 2012 Total

90

350

37

89

133

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

2009 2010 2011 9M11 9M12

42,4

72,0

106,0

77,5

97,2

2009 2010 2011 9M11 9M12

91,1

178,4

300,7

229,4

392,7

16

Net Revenues

(R$ mm)

Adjusted EBITDA and Margin

(R$ mm and %)

Adjusted FFO and Margin

(R$ mm and %)

205%

230%

70%

150%

Financial Highlights: P & L

71%

81%87% 90% 91% 91%

2009 2010 2011 9M11 9M12

112,7

204,5

343,5

253,2

430,2

25%

37% 34% 31% 31%23%

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

2009 2010 2011 1Q12 2Q12 3Q12

89

232

1.032 1.104

609

394

17

Cash and Cash Equivalents 3Q12 Debt Profile

Financial Highlights: Balance Sheet

Indebtedness

46%

33%

14%

1%

6%TR

CDI

IGPM

INPC

IPCA

2010 2011 1Q12 2Q12 3Q12

1.830 2.083

4.594

5.045 4.893

1.598

1.051

3.489

4.436 4.499

Gross Indebtedness Net Indebtedness

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

18

Loan-to-Value

3Q12 Debt Amortization Schedule (R$ million)

Financial Highlights: Indebtedness

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

86

525

387 367

517574

385 375

213

106 78 64 56 39

Principal

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

38% 40%

24%

40%45% 43% 42% 41% 40% 39%

37%

4% 23% 21%

36% 36%35%

21% 21%

30%35% 34%

LTV Gross Debt LTV Net Debt

R: 143 G: 168 B: 160

R: 79

G: 86

B: 92

R: 33 G: 65 B: 99

R: 65

G: 128

B: 193

R: 158 G: 158 B: 158

R: 220

G: 220

B: 220

R: 204

G: 236

B: 255

R: 165 G: 178 B: 198

Contact

Investor Relations

19

Pedro Daltro

CFO and Investor Relations Officer

Marcos Haertel

Investor Relations Manager

Gabriel Barcelos

Investor Relations Analyst

Phone: (55 11) 3201-1000

Email: [email protected]

www.brpr.com.br