2. Highlights
1Q12 Net Revenues totaled R$101.2 million, an increase of 30% over 1Q11, when net revenues came in at R$77.8
million. It is worth mentioning that the recently incorporated properties from One Properties had no impact on the
quarter’s revenues;
1Q12 Adjusted EBITDA of R$91.8 million, a 34% increase over 1Q11 and adjusted EBITDA margin of 91%; 1Q12
Financial no adjustments EBITDA reached R$87.3 million, with EBITDA margin of 86% (adjusted EBITDA excludes non cash
Highlights and non recurring expenses);
1Q12 Net Income totaled R$452.7 million, impacted by the net gain on appraisal of investment properties (includes
gains on appraisal of properties that came with One Properties’ portfolio) and by the net operating profit of the quarter;
1Q12 Adjusted FFO totaled R$51.8 million, with adjusted FFO margin of 51%;
On March 29th, One Properties was incorporated by BR Properties;
During 1Q12, the Company reached leasing spreads (net of inflation) of 34,0% on new leases signed, and 36.1% in
office buildings and 13.1% in the industrial properties in market alignments of existing contracts;
The financial vacancy rate was reduced to 1.1%, while physical vacancy rate came in at 1.0%. In terms of area,
our office, industrial, and retail properties were 98.4%, 99.2%, and 100.0% occupied at the end of the quarter,
respectively;
Operating The Company sold two properties in April, 2012. Ed. Olympic Tower was sold by R$14.0 million, which
Highlights represented an exit cap rate of 8.9%, while Ed. Paulista Plaza was sold by R$20.0 million, resulting in an exit cap
rate of 10.0%;
On April 11th, the municipality of Rio de Janeiro granted the move-in permits (Habite-se) to Ed. Manchete. The
property is 100% leased and will begin generating rent revenues on 2Q12;
On April 30th, the acquisition of an 87% stake of Ed. Ventura - East Tower was approved in the Extraordinary
Shareholders’ Meeting. With the acquisition, BR Properties strengthens its presence in Rio de Janeiro’s triple A
office market, by holding 213.5 thousand m² of GLA (Ventura - East and West Tower, Manchete, CES
Petrobrás, Sylvio Fraga).
BRProperties 2 1Q12
4. Financial Highlights
Net Revenues (R$ thousand) Net Income* (R$ thousand)
30%
1625%
101.192 452.713
77.777
22.356
1Q11 1Q12 1Q11 1Q12
* Impacted by the net gain on appraisal of investment
properties
BRProperties 4 1Q12
5. Financial Highlights
1Q12 Income Statement
Income Statement 1Q12 1Q11 var %
Gross Revenues 108.587 84.860 28%
Taxes (PIS/Cofins and ISS) (7.192) (6.844) 5%
Deductions (203) (239) -15%
Net Revenues 101.192 77.777 30%
Cost of Leased Properties - - n/a
Gross Profit 101.192 77.777 30%
General and Administrative Expenses (13.884) (10.679) 30%
Net Financial Result (15.880) (40.630) -61%
Financial Income 86.110 62.700 37%
Financial Expenses (101.990) (103.331) -1%
Other Operating Income 470 (101) -564%
Gain (loss) on Sale of Properties - (1.516) -100%
Gain on Appraisal of Investment Properties 729.906 - n/a
Income (loss) before taxes 801.804 24.850 3127%
Income and Social Contribution taxes (4.985) (7.270) -31%
Deferred taxes (344.107) 4.777 -7304%
Net Income (loss) 452.713 22.356 1925%
BRProperties 5 1Q12
6. Financial Highlights
Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand)
91%
86%
86%
88%
30%
34%
87.309
91.778
67.097
68.368
1Q11 1Q12 1Q11 1Q12
Adjusted EBITDA Margin EBITDA Margin
Adjusted EBITDA Breakdown 1Q12 1Q11 var %
Net Income (loss) 452.713 22.356 1925%
(+) Income and Social Contribution taxes 349.092 2.493 13900%
(-) Gain on Appraisal of Investment Properties (729.906) - n/a
(-) Gain (loss) on Sale of Properties - 1.516 -100%
(-) Other Operating Income (470) 101 -564%
(-) Net Financial Result 15.880 40.630 -61%
EBITDA 87.309 67.097 30%
EBITDA Margin 86% 86% 0 p.p.
(+) Bonus Provision 1.149 1.149 0%
(+) Stock Option Provision 1.288 122 957%
(+) Merger Expenses 2.033 - n/a
Adjusted EBITDA 91.778 68.368 34%
Adjusted EBITDA Margin 91% 88% 3 p.p.
BRProperties 6 1Q12
7. Financial Highlights
Adjusted FFO (R$ thousand)
51%
11%
502%
51.849
8.619
1Q11 1Q12
Adjusted FFO Margin
Adjusted FFO Breakdown 1Q12 1Q11 var %
Net Income (loss) 452.713 22.356 1925%
(-) Gain (loss) on Sale of Properties - 1.516 -100%
(-) Gain on Appraisal of Investment Properties (729.906) - n/a
(+) Deferred Taxes 344.107 (4.777) -7304%
(+) Cost of Leased Properties - - n/a
(+) Non-cash Losses on Exchange Rate Variation 33.064 6.463 412%
(-) Non-cash Gains on Exchange Rate Variation (48.128) (16.940) 184%
Adjusted FFO 51.849 8.619 502%
Adjusted FFO Margin 51% 11% 40 p.p.
Adjusted FFO per Share (Annualized) R$ 0,67 R$ 0,25 171%
BRProperties 7 1Q12
8. Debt
1Q12 Net Debt (R$ mn) 1Q12 Debt Index Breakdown
3.803 4.664 1.104
1%
3.560
16% TR
47% CDI
14 IGPM
847
35%
INPC
ST Debt Obligations LT Debt Total Debt Cash Net Debt
for
Acquisitions
Net Debt 1Q12 4Q11 var %
Short Term Loans and Financing 861.508 198.731 334%
Loans and Financing 793.883 128.902 516%
Perpetual Bond 53.414 54.988 -3%
Derivative Instruments (43) 836 -105%
Payables for Acquisition of Real Estate 14.254 14.006 2%
Long Term Loans and Financing 3.802.561 1.938.406 96%
Loans and Financing 3.324.361 1.445.960 130%
Perpetual Bond 478.200 492.446 -3%
Gross Debt 4.664.069 2.137.137 118%
Cash and Cash Equivalents 1.104.247 1.032.350 7%
Net Debt 3.559.822 1.104.787 222%
Portfolio Value 11.714.853 5.253.543 123%
Gross Debt / Portfolio Value (Loan to Value) 40% 41% -2%
Net Debt / Portfolio Value (Loan to Value) 30% 21% 44%
Adjusted EBITDA / Net Financial Expenses * 3,0x 2,5x 19%
Duration (years) ** 4,3 5,7 -24%
* Considers Net Financial Expenses (ex. non-cash variations)
** Considers the amortization of the perpetual bond in 2023
BRProperties 8 1Q12