3Q14 Earnings Release

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3Q14 Highlights

• 3Q14 net revenues totaled R$191.2 million, a decrease of 19% versus 3Q13, when net revenues came in at R$236.6 million. This reduction is explained by the loss of rental revenues resulting from property sales occurring in the past 12 months. It is worth highlighting that during this period the average rent per sqm of the same properties grew 4.4% – 10 bps above inflation – while the portfolio’s consolidated financial vacancy rate dropped by 220 bps, reaching 8.3% at the end of 3Q14.

• 3Q14 adjusted EBITDA of R$170.7 million, and adjusted EBITDA margin of 89%.

• 3Q14 net income reached R$107.9 million, an increase of 21% over 3Q13.

• 3Q14 adjusted FFO totaled R$62.4 million with margin of 33%, representing an increment of 4 percentage points over the previous quarter.

• BR Properties signed with Johnson & Johnson do Brasil a lease agreement for the occupancy of 5 floors of JK Complex Tower B, to be delivered in 4Q14. The lease has a term of 5 years and involves an area of 24,972 sqm or 85% of the building. Since the property has not yet been delivered, its lease will (favorably) impact the Company’s vacancy rate only from the 1Q15 on.

• The Company signed a 10-year lease contract with Banco ABC, involving 2,256 sqm of the Cidade Jardim Building. The building is currently 91% leased.

• Keeping the trend seen in previous quarters, financial vacancy rates in offices and warehouses declined by 40 and 110 bps, reaching 9.2% and 0.1%, respectively.

• BR Properties finalized the 2nd tranche of the sale of its industrial portfolio to GLP for the amount of R$92.1 million, representing a GLA of 31,155 sqm. The remaining assets that account for 361,793 sqm – including the recently-delivered Gaia Ar Tucano warehouse – will be kept in the Company’s portfolio.

• Additionally, the Company finalized the sale of Comercial Progressivo II Real Estate Investment Fund to Capital Brasileiro de Empreendimentos Imobiliários Ltda. for the amount of R$606.7 million. The Fund is comprised of 98,714 sqm of retail stores and 13,789 sqm of office space.

• Finally, BR Properties prepaid a R$500.0 million debenture (local bond) expiring this December with the proceeds received from the sale of Comercial Progressivo II Real Estate Investment Fund. In addition, the Company took on R$28.8 million of project financing related to the development of Gaia Ar Tucano Warehouse.

 

2

BR Properties leases 64 k sqm of GLA in 3Q14 andfinancial vacancy in offices declines for the 5th quarter in a row

Portfolio

3

3Q14 Revenue Breakdown

Portfolio Breakdown (% market value)

Portfolio Breakdown (% GLA)

Portfolio Market Value

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

13.840 14.031 14.096 13.759 13.423 13.53811.248 10.594

Asset sales in the amount of R$482

million

Sale of Industrial Portfolio – 1st Tranche

R$ 2.3 billion Sale of Industrial Portfolio (2nd Tranche)

and FII CPII - R$ 698 million

Services 2.2%

Straight-line 1.1% Leasing 96.7%

85%

10%

6%

Office

Industrial

Retail

63%

27%

8%

1%

Off ice AAA Off ice Industrial Retail

32%

25%

41%

2%

Off ice AAA Off ice Industrial Retail

Portfolio Recycling

4

Sale of Industrial Portfolio – 2nd Tranche

Sold GLA 31.155

Sale Price 92.055.000R$

Sale of Industrial Portfolio - 2nd Tranche

Sold Properties Type City StateAcquisition

Date# of

Properties Owned GLA

(sqm)

BBP - CEA - Cristal Industrial Atibaia SP 26/02/10 1 6.453

BBP - Barão de Mauá - Beethoven Industrial Atibaia SP 26/02/10 1 3.919

BBP - Barão de Mauá - Brahms Industrial Atibaia SP 26/02/10 1 6.317

BBP - Barão de Mauá - Mozart Industrial Atibaia SP 26/02/10 1 14.467

Total 4 31.155

Financial Highlights

5

Net Income (R$ thousand)Net Revenues (R$ thousand)

3Q13 3Q14 9M13 9M14

89.555 107.932

230.295

350.291 21%

52%

3Q13 3Q14 9M13 9M14

236.575 191.193

700.716 647.413

(19%)

(8%)

Financial Highlights

6

Adjusted EBITDA (R$ thousand)

91% 89% 93% 90%

Adjusted EBITDA Margin

3Q13 3Q14 9M13 9M14

215.065

170.671

654.999 585.579

(21%)

(11%)

EBITDA Composition 3Q14 3Q13 var % 9M14 9M13 var %Net Income (loss) before Minority Interest 108.567 92.641 17% 350.691 226.785 55%(+) Deferred Taxes (146.032) (18.278) 699% (164.253) 29.469 -657%(+) Income and Social Contribution Taxes 89.376 29.125 207% 254.605 50.821 401%(-) Minority Interest (634) (3.086) -79% (400) 3.511 -111%(+) Depreciation 128 50 157% 229 274 -17%(+) Net Financial Result 174.817 139.526 25% 407.212 450.567 -10%EBITDA 226.222 239.979 -6% 848.084 761.427 11%EBITDA Margin 118% 101% 17 p.p. 131% 109% 22 p.p.

Adjusted EBITDA Composition 3Q14 3Q13 var % 9M14 9M13 var %EBITDA 226.222 239.979 -6% 848.084 761.427 11%(-) Gain (Loss) on Appraisal of Investment Properties (92) (44.449) -100% (92.634) (133.269) -30%(-) Gain (Loss) on Sale of Investment Properties - 548 n/a (377) (1.702) -78%(+) Other Operating Income (56.798) 17.452 -425% (173.675) 23.662 -834%(+) Stock options 190 387 -51% 734 1.435 -49%(+) Bonus Provision 1.149 1.149 0% 3.447 3.447 0%Adjusted EBITDA 170.671 215.065 -21% 585.579 654.999 -11%Adjusted EBITDA Margin 89% 91% -2 p.p. 90% 93% -3 p.p.

Financial Highlights

7

Adjusted FFO (R$ thousand)

25%29%

33%

Adjusted FFO Margin

1Q14 2Q14 3Q14

57.312

65.289 62.380

14%

(4%)

Adjusted FFO Composition 3Q14 3Q13 var % 9M14 9M13 var %Net Income (loss) 107.932 89.555 21% 350.291 230.295 52%(+) Deferred Taxes (146.032) (18.278) 699% (164.253) 29.469 -657%(+) Income Taxes on Property Sales 77.821 15.821 392% 223.345 16.453 1258%(+) PIS/Cofins (Revenue Taxes) on Property Sales - 16.936 n/a - 17.125 n/a(-) Gain (Loss) on Appraisal of Investment Properties (92) (44.449) -100% (92.634) (133.269) -30%(-) Gain (Loss) on Sale of Investment Properties - 548 n/a (377) (1.702) -78%(+) Non-cash Losses on Exchange Rate Variation 80.434 45.463 77% 105.621 118.773 -11%(-) Non-cash Gains on Exchange Rate Variation (8.067) (41.590) -81% (73.814) (64.603) 14%(+) Non-cash Variations on Derivative Instruments (1.282) 7.581 -117% 7.365 31.651 -77%(-) Other Operating Income/Expense (Sale of Assets) (48.334) - n/a (170.563) - n/aAdjusted FFO 62.380 71.588 -13% 184.981 244.192 -24%Adjusted FFO Margin 33% 30% 2 p.p. 29% 35% -6 p.p.

Indebtedness

8

3Q14 Net Debt (R$ mn) 3Q14 Debt Profile

ST Debt Obligations for

Acquisitions

LT Debt Total Debt Cash Net Debt

322

4.182

3.575

15

3.845 607

Indebtedness 3Q14 2Q14 var %

Short Term Loans and Financing 336.216 863.514 -61%

Loans and Financing 249.865 779.717 -68%

Perpetual Bond 71.849 64.565 11%

Derivative Instruments - - n/a

Payables for Acquisition of Real Estate 14.501 19.233 -25%

Long Term Loans and Financing 3.845.446 4.147.019 -7%

Loans and Financing 3.201.822 3.568.825 -10%

Perpetual Bond 643.625 578.194 11%

Gross Debt 4.181.662 5.010.533 -17%

Cash and Cash Equivalents 606.736 790.672 -23%

Net Debt 3.574.926 4.219.862 -15%

Portfolio Value 10.594.395 11.247.509 -6%

Gross Debt / Portfolio Value (Loan to Value) 39% 45% -5 p.p.

Net Debt / Portfolio Value (Loan to Value) 34% 38% -4 p.p.

Adjusted EBITDA / Net Financial Expenses * 1,6x 1,6x 0%

Duration (years) 4,7 4,2 12%

Unsecured Debt / Total Debt 34% 40% -6 p.p.

* Considering Net Financial Expenses (ex. non-cash variations)

39%

26%

17%

11%

0,2%7% TR

CDI

CDI - Perpetual Bond

IGPM

INPC

IPCA

Indebtedness

9

Debt Amortization Schedule (R$ million)

Loan to Value: Gross and NetInterest Coverage Ratio

Net Debt / Adjusted EBITDA

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

64

165

1.012

379

237 248

143 103 94 96 84 66 71 82 94 108

Principal

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

2,7x2,5x

3,0x

1,1x

1,5x 1,5x1,7x

2,0x

1,7x1,6x 1,6x 1,6x 1,6x

EBITDA / Net Financial Expenses

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

3,2x 3,4x

9,7x

7,8x7,3x

6,7x

5,6x 5,7x5,2x 5,5x 5,7x

5,1x 5,2x

Net Debt/EBITDA

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

42%41% 40% 39%

37% 38% 39% 40% 39% 41% 41%45%

39%

21%21%

30% 35% 34%34% 34%

36% 33% 34% 35% 38% 34%

LTV Gross Debt LTV Net Debt

Operating Highlights

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Lease Contract Expiration Schedule (% Revenues)

Lease Contract 3 Year Market Alignment Schedule (% Revenues)

Lease Contracts Duration

Rent / Sqm / Month – Same Properties

Rent / Sqm / Month - Same Properties * 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Office 16,0% 13,7% 11,4% 8,3% 8,6% 12,9% 7,9% 7,3% 5,6% 6,1% 4,1%

Industrial 6,4% 6,3% 5,4% 7,8% 8,8% 8,3% 6,9% 5,3% 3,8% 6,6% 6,7%

Retail 20,8% 5,1% 5,1% 5,1% 5,4% 6,5% 6,6% 6,6% 5,9% 6,2% 6,0%

Total 12,4% 9,9% 8,3% 7,9% 8,4% 10,9% 7,5% 6,7% 5,1% 6,2% 4,4%

IPCA (Inflation Indicator) 5,2% 4,9% 5,3% 5,8% 6,6% 6,7% 5,9% 5,9% 6,2% 6,5% 6,7%

IGP-M (Inflation Indicator) 3,2% 5,1% 8,1% 7,8% 8,1% 6,3% 4,4% 5,5% 7,3% 6,2% 3,5%

Weighted Average: IPCA x IGP-M (24% x 76%) 3,7% 5,1% 7,4% 7,4% 7,7% 6,4% 4,7% 5,6% 7,0% 6,3% 4,3%

* Comparison between: the average same property rent in the current period vs the average same property rent in equal period of last year

* Considering only occupied areas

* In nominal terms

Lease Contracts Duration

All Contracts 6.1 Years

Build-to-Suit Contracts 8.8 Years

2014 2015 2016 >2017

5%11%

10%

75%

2014 2015 2016 >2017

5%38%

12%

13%

Operating Highlights

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Office Vacancy Industrial Vacancy

Properties with Vacancy (Occupancy Rate per Asset)

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

12,6% 12,1%

10,2% 10,9%9,6% 9,9%

15,0% 14,7%

12,5% 11,5%

9,6% 9,2%

Physical

Financial

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

2,4% 2,5%

1,3%

1,9% 1,9%

0,2%

1,9% 1,9%

0,8%

1,3% 1,2%

0,1%

Physical

Financial

Occupancy per Asset Type GLA 2Q14 3Q14 ∆CBOP - Ed. Jacarandá Office 31.954 93% 90% -3 p.pEd. Ventura - West Tower Office 42.986 99% 99% 0 p.pIcomap Office 9.164 90% 90% 0 p.pRB 115 Office 11.516 90% 90% 0 p.pEd. Manchete Office 23.591 77% 77% 0 p.pJK Complex - Tower D&E Office 34.583 50% 51% 1 p.pCidade Jardim Office 6.792 43% 91% 48 p.pEd. Paulista Office 22.855 83% 62% -21 p.pTNU Office 27.931 95% 95% 0 p.pPanamérica Park Office 18.667 55% 40% -15 p.pPanamérica Green Park I Office 4.583 75% 75% 0 p.pRaja Hills Office 7.534 68% 59% -9 p.pBrasília Office 7.751 48% 65% 17 p.pSanto Antonio Office 5.017 89% 89% 0 p.pTotal - OfficeCondomínio Industrial SJC Industrial 73.382 94% 99% 5 p.pTotal - Industrial

Total - Portfolio

Capital Markets

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Stock Performance – 9M14

-

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

-30%

-20%

-10%

0%

10%

20%

30%

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14

ADTVBR PropertiesIbovespa

Stock Performance (BRPR3) 3Q14 3Q13 var % 9M14 9M13 var %

Total Number of Shares 298.228.434 312.653.445 -5% 298.228.434 312.653.445 -5%

Free Float (%) 99% 99% 0% 99% 99% 0%

Stock Price (average for the period) 14,11 13,42 5% 12,86 16,01 -20%

Stock Price (end of period) 13,00 14,20 -8% 13,00 14,20 -8%

Market Cap end of period (R$ million) 3.877 6.159 -37% 3.877 6.159 -37%

Average Daily Trading Volume (R$ million) 25,13 41,49 -39% 32,92 43,60 -25%Average Daily Traded Shares 1.780.366 2.207.791 -19% 2.029.218 2.103.783 -4%Average Daily negotiations 4.701 6.456 -27% 5.206 6.493 -20%* For comparative purposes, the historical stock price was ajusted according to the extraordinary dividends paid in June 2014 (R$5.50)

IR Contacts

13

Pedro DaltroCFO & Investor Relations Officer

Marcos HaertelInvestor Relations Manager

Gabriel BarcelosInvestor Relations Analyst

Phone: (55 11) 3201-1000Email: ri@brpr.com.br

www.brpr.com.br/ri

Investor Relations