4 q11 br properties earnings release presentation
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TRANSCRIPT
4Q11 Earnings Release Presentation
BRProperties
BRProperties 4Q11
Highlights
2
Financial
Highlights
Operating
Highlights
Leasing spreads (net of inflation) for renegotiations and new leases reached 33.7% and 39.3% in office
properties, respectively;
The financial vacancy totaled 1.7% at the end of 4Q11. Physical vacancy represented 0.9% of GLA at
the end of quarter. In terms of area, our office, industrial, and retail properties were 97.0%, 99.9%, and
100.0% occupied at the end of the quarter, respectively;
On December 12th, 2011, BR Properties concluded with BP Energy do Brasil Ltda. a lease contract for
the partial occupancy of Edifício Manchete. The Lease has a term of 60 months, and comprises 9.2
thousand m² of GLA, including 142 parking spaces.
As part of its portfolio recycling strategy, the Company concluded 11 sales throughout the year, which
totaled R$87.9 million. The loss of rental income in the year with the sales is of R$5.5 million;
On January 14th, 2012, BR Properties S.A. signed a Merger Agreement and Other Covenants, related to
the incorporation of One Properties by the Company. The merger was approved by BR Properties’
shareholders at the Company’s Extraordinary Shareholders’ Meeting, held on March 29th, 2012;
4Q11 Net Revenues totaled R$90.3 million, an increase of 25% in relation to 4Q10, when net revenues
came in at R$72.1 million;
Adjusted EBITDA of R$81.1 million in 4Q11, an increase of 33% over 4Q10 and an adjusted EBITDA
margin of 90%. 4Q11 EBITDA without adjustments totaled R$75.0 million, with an EBITDA margin of 83%;
Net Income totaled R$70.5 million at the end of 4Q11, impacted by a gain on appraisal of investment
properties of R$95.7 million (R$77.3 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$7.3 million. Therefore, a
reduction of 91% in relation to 4Q10;
Adjusted FFO (excluding non-cash net financial expenses) totaled R$35.3 million in 4Q11, with an FFO
margin of 39%;
BRProperties 4Q11
Portfolio
2011 Revenue Breakdown
Portfolio Breakdown
(% market value)
Portfolio Breakdown
(% GLA)
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Leasing97%
Services2%
Straight-line1%
44%
42%
14%
Office
Industrial
Retail
55%32%
9%4%
Off ice Industrial Retail Development
22%
57%
7%
13%
Off ice Industrial Retail Development
BRProperties 4Q11
2011 Portfolio Appraisal
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Composition of the BRPR’s Portfolio in Market Value (R$ mn)
Off ice Industrial Retail Development Total
2.892
5.254
1.723
426 212
Asset ClassSame Properties Appreciation
2010 x 2011
Office 15%
Industrial 11%
Retail 5%
Developments 27%
Total 13%
BRProperties 4Q11
Portfolio Recycling
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As part of its recycling strategy, the Company concluded 11 sales throughout the year, which totaled
R$87.9 million. The loss of rental income in the year with the sales is of R$5.5 million
Sold Property Type QualityAcquisition
DateSale Date
Rental loss in 2011
(R$ thousand)
Athenas Escritório A Aug-07 Jan-11 3.468R$
Joaquim Floriano Escritório A Aug-07 Mar-11 1.719R$
Number One (cj. 32) Escritório A Aug-07 May-11 51R$
Number One (cj. 122) Escritório A Aug-07 Jun-11 33R$
Number One (cj. 123) Escritório A Aug-07 Jul-11 39R$
Berrini Escritório A Aug-07 Aug-11 107R$
Piraporinha Varejo B Jul-07 Aug-11 41R$
Number One (cj. 101 e 102) Escritório A Aug-07 Nov-11 20R$
Midas Escritório A Aug-07 Dec-11 36R$
Network Empresarial Escritório A Aug-07 Dec-11 13R$
Number One(cj. 22 e 23) Escritório A Aug-07 Dec-11 10R$
TOTAL 5.537R$
Total Revenue from Sales
(R$ thousand)
Average Exit
Cap Rate
87.916R$ 9,2%
In addition to the aforementioned sales, on March 12th, 2012, the Company completed the sale of Shopping
Paço do Ouvidor, acquired in December, 2010, as part of its strategy of portfolio recycling. The sale value of the
property was R$25.0 million, representing an exit cap rate of 9.5%.
BRProperties 4Q11
Financial Highlights
6
Net Revenues (R$ thousand) Net Income* (R$ thousand)
4Q10 4Q11 2010 2011
764.248
70.500
813.368
335.408
(91%)
(59%)
4Q10 4Q11 2010 2011
72.078 90.309
204.464
343.464 25%
68%
* Impacted in 4Q11 by a net gain on appraisal of investment
properties of R$77.3 million, and a non-cash financial expense
resulting from the FX variation of the principal on our dollar
denominated perpetual debt of R$7.3 million.
BRProperties 4Q11 7
Financial Highlights
Adjusted FFO (R$ thousand)
Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand)
4Q10 4Q11 2010 2011
61.006 81.119
178.660
310.495
74%
33%
85%
90%
87%
90%
Adjusted EBITDA Margin
82%
83% 84% 86%
EBITDA Margin4Q10 4Q11 2010 2011
58.883 74.961
172.493
294.405
71%
27%
4Q10 4Q11 2010 2011
23.999 35.289
71.982
106.013
47%
47%
33% 39% 35%31%
Adjusted FFO Margin
BRProperties 4Q11
Debt
4Q11 Net Debt (R$ mn) 4Q11 Debt Index Breakdown
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71%2%
27%TR
IGPM
CDI
Net Debt 4Q11 3Q11 var %
Short Term Loans and Financing 198.731 186.751 6%
Loans and Financing 128.902 114.606 12%
Perpetual Bond 54.988 54.360 1%
Derivative Instruments 836 2.771 -70%
Payables for Acquisition of Real Estate 14.006 15.013 -7%
Long Term Loans and Financing 1.938.406 1.981.595 -2%
Loans and Financing 1.445.960 1.479.887 -2%
Perpetual Bond 492.446 501.708 -2%
Gross Debt 2.137.137 2.168.346 -1%
Cash and Cash Equivalents 1.032.350 1.072.533 -4%
Net Debt 1.104.787 1.095.813 1%
Portfolio Value 5.253.543 5.142.182 2%
Gross Debt / Portfolio Value (Loan to Value) 41% 42% -4%
Net Debt / Portfolio Value (Loan to Value) 21% 21% -1%
Net Debt / Annualized Adjusted EBITDA 3,4x 3,2x 6%
Adjusted EBITDA / Net Financial Expenses * 2,5x 2,7x -8%
Duration (years) ** 5,7 5,9 -2%
* 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
185
2.137
1.105
14
1.938 1.032
BRProperties 4Q11
Debt
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Debt Service Schedule (R$ million)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
128 130159 163 180
334
157 156128
26 14
199 186174 156 140
117
92 78
63
5552
Interest
Principal
Loan to Value: Gross and Net Adjusted EBITDA/ Net Financial Expenses
& Net Debt/ Adjusted EBITDA
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
2,5x
3,5x
2,4x2,1x
1,4x1,6x
2,7x 2,5x
0,6x
3,7x
4,9x
7,0x
6,0x5,5x
3,2x3,4x
DSC ratio ND/EBITDA
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
38% 40%
24%
40%45% 43% 42% 41%
4%23% 21%
36% 36%35%
21% 21%
LTV Gross Debt LTV Net Debt
BRProperties 4Q11 10
Operating Highlights
Market Alignments New Leases
Leasing Spread - Market Alignments* 4Q11 4Q10 var % 2011 2010 var %
Leasing Spread - Office 33,7% 7,6% 342% 26,5% 12,8% 108%
Leasing Spread - Warehouse n/a n/a n/a 20,6% 7,1% 192%
Leasing Spread - Retail n/a n/a n/a 15,8% n/a n/a
Renegotiated Area - Office (sqm) 25.696 331 7670% 75.800 3.820 1884%
Renegotiated Area - Warehouse (sqm) - - n/a 15.581 17.899 -13%
Renegotiated Area - Retail (sqm) - - n/a 97.435 - n/a
Leasing Spread - New Leases* 4Q11 4Q10 var % 2011 2010 var %
Leasing Spread - Office 39,3% 10,1% 287% 28,9% 9,1% 219%
Leasing Spread - Warehouse n/a n/a n/a 15,6% 13,6% 15%
Leasing Spread - Retail n/a n/a n/a n/a n/a n/a
Leased Area - Office (sqm) 25.429 20.805 22% 52.473 45.760 15%
Leased Area - Warehouse (sqm) - - n/a 18.019 26.919 -33%
Leased Area - Retail (sqm) - - n/a - - n/a
* Leasing spreads are net of inflation
4Q10 4Q11 2010 2011
7,6%
33,7%
12,8%
26,5%
n/a n/a
7,1%
20,6%
n/a n/a n/a
15,8% Office
Industrial
Retail
4Q10 4Q11 2010 2011
10,1%
39,3%
9,1%
28,9%
n/a n/a
13,6%15,6%
n/a n/a n/a n/a
Office
Industrial
Retail
BRProperties 4Q11
Operating Highlights
11
Financial Vacancy per Segment
We registered a financial vacancy of 1.7% and a physical vacancy of 0.9%.
Vacancy Breakdown
2Q11 3Q11 4Q11
1,5%
0,9% 0,9%
2,3%
1,5%1,7%
Physical
Financial
3Q11 4Q11
1,5%1,6%
0,0% 0,0%0,0% 0,0%
Office
Industrial
Retail
Vacancy per Property 4Q11
Property Type Financial Physical
CBOP - Jacarandá Office 1,1% 0,6%
Bolsa do Rio Office 0,3% 0,1%
Ventura - Torre Oeste Office 0,1% 0,02%
Total Office 1,6% 0,8%
BP Jundiaí Industrial 0,04% 0,1%
Total Industrial 0,04% 0,1%
Total Portfolio 1,7% 0,9%
BRProperties 4Q11
% Revenues
% GLA
% GLA
% Revenues
12
Operating Highlights
2012 2013 2014 >2015
7% 16%
13%
64%
2012 2013 2014 >2015
6% 28%
19%
47%
2012 2013 2014 >2015
33%
24%
42%
1%
2012 2013 2014 >2015
52%
19%
28%
0%
Lease Contract 3 Year Market Alignment Schedule
Lease Contract Expiration Schedule
BRProperties 4Q11
Operating Highlights
13
Property Management Revenues
(R$ thousand)
Number of Managed Properties 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
CBOP - Ed. Jacarandá 1 31.954
TNU 1 27.931
BP Jundiaí 1 53.343
Cond. Indl. São José dos Campos 1 73.382
BP Jandira 2 34.304
BP Itapevi 1 33.526
RB 115 1 11.516
Plaza Centenário 1 3.366
Ed. Comercial Indaiatuba 1 11.335
TOTAL 29 411.720
4Q10 4Q11
26
29
+3
4Q10 4Q11 2010 2011
1.002 1.736
3.608
6.467 73%
79%
BRProperties 4Q11
Capital Markets
14
* As of March 28th, 2012
Current number of shares: 180,003,919
Market Value: R$ 4.2 billion
Average Daily Vol. (30d): R$ 27.4 million
Stock Performance (BRPR3) 4Q11 4Q10 var % 2011 2010 var %
Total Number of Shares 180.003.919 139.511.953 29,0% 180.003.919 139.511.953 29%
Free Float (%) 99% 99% 0,0% 99% 99% 0%
Stock Price (average for the period) 17,93 17,46 2,7% 17,54 14,36 22%
Stock Price (end of period) 18,50 18,16 1,9% 18,50 18,16 2%
Market Cap end of period (R$ million) 3.330,1 2.533,5 31,4% 3.330,1 2.533,5 31%
Average Daily Trading Volume (R$ million) 14,75 12,73 15,9% 12,63 7,38 71%
Average Daily Traded Shares 824.364 721.413 14,3% 720.685 486.667 48%
Average Daily negotiations 1.936 457 323,6% 1.152 240 380%
GIC6,4%
GP 5,6%
Schroders5,1%
Laugar3,3%
Management & Board
0,7%
Other79,0%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11 out-11 nov-11 dez-11 jan-12 fev-12
BRPR3
IBOV
IMOB
BRProperties 4Q11
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
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