2. 2Q14 Highlights
• 2Q14 net revenues totaled R$223.4 million, a decrease of 6% versus 2Q13, when net revenues came in at R$238.2 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 the
average rent per square meter of the same properties grew 6.2% over the last 12 months.
• 2Q14 net income reached R$182.9 million, an increase of 267% over 2Q13.
• 2Q14 adjusted EBITDA of R$205.6 million, and adjusted EBITDA margin of 92%.
• 2Q14 adjusted FFO totaled R$65.3 million, and adjusted FFO margin of 29%.
• Throughout the quarter, 14,665 sqm of GLA were leased by the Company, representing an increment of R$1.1 million in the monthly rent
revenues.
• The Company signed with AIG Seguros Brasil a lease agreement for the occupancy of 5 floors of JK Complex Tower E. The lease has a
term of 64 months and involves the lease-up of 6,038 sqm of gross leasable area.
• In addition, a 10-year long lease agreement was signed with Indra Brasil, involving 75% of Panamérica Green Park’s total GLA.
• During the 2Q14 the Company’s office portfolio financial and physical vacancy rates fell by 190 and 130 bps, respectively. 2Q14 is the 4th
consecutive quarter in which BR Properties records an improvement in this indicator.
• The Company finalized the 1st tranche of the sale of its industrial portfolio to GLP for the amount of R$2,345.1 million – equivalent to 73.7%
of total transaction. The remaining assets, which account for R$834.9 million, will be posteriorly transferred, subject to the fulfillment of
certain precedent conditions relating to such assets.
• BR Properties renegotiated R$217.3 million of loans, reducing its average cost by 69 bps.
• In May, the Company distributed R$160.0 million – R$0.54/share – of ordinary dividends to its shareholders, representing a dividend yield of
3.0%.
• In addition, upon receipt of cash from the sale of its industrial portfolio to GLP, the Company paid out in June an extraordinary dividend of
R$1,636.5 billion – R$5.50/share – representing a dividend yield of 29.2%.
• In July, the Company signed a Quotas Sale Agreement with Capital Brasileiro de Empreendimentos Imobiliários Ltda. involving the sale of
totality of quotas held by BR Properties in the Comercial Progressivo II Real Estate Investment Fund for the amount of R$606.7 million. The
consummation of the transaction as provided for in the agreement is subject, among other conditions, to the approval of antitrust authorities.
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4. Portfolio Recycling
4
Sale of Industrial Portfolio – 1st Tranche
Total Number of Shares after Repurchase 297.538.945
Special Dividend 1.636.464.197,50R$
Special Dividend per Share 5,50R$
Dividend Yield * 29,1%
* Share Price: R$ 18,90 (06/11/2014)
Capital Allocation
Sale of FII Comercial Progressivo II
Sold GLA 112.503
Sale Price: Cash + Debt 606.651R$
Cash Payment 418.580R$
Debt Assumed by the Buyer 188.072R$
Sale of CPII Real Estate Fund (thousand)
Sold Properties Type City State
Acquisition
Date
# of
Properties
Owned GLA
(sqm)
Portfolio C&A Retail Several n/a 29/12/10 28 98.714
Alphaville - Araguaia Office Barueri SP 29/12/10 1 8.084
Call Center Conexão Office São Paulo SP 29/12/10 1 1.448
Ed. Santa Catarina Office AAA São Paulo SP 29/12/10 1 4.257
Total 31 112.503
Sold GLA 859.055
Sale Price 2.345.147R$
Sale Price - Readjusted by Inflation 2.377.055R$
Pre-Paid Debt in the Transaction 445.221R$
Sale of Industrial Portfolio (thousand)
