- In 2013, BR Properties saw significant growth in key financial metrics such as net revenues (+46%), adjusted EBITDA (+76%), and adjusted FFO (+246%) due to additional rental revenues and properties delivered.
- The company delivered 6 new projects representing 205 thousand sqm of GLA in 2013, of which 84% was already leased. Average leasing spreads were 3.0% across 347 thousand sqm of renegotiated GLA.
- In November, the company agreed to sell its entire industrial/logistics portfolio to WTGoodman for R$3.18 billion, subject to approvals and due diligence, with proceeds to be used for debt reduction, share repurchases, and divid
2. 2013 Highlights
• 2013 net revenues totaled R$923.7 million, an increase of 46% over 2012, when net revenues came in at R$630.8 million. The
significant growth resulted from additional rental revenues of properties that were previously under development or lease-up;
• 2013 adjusted EBITDA of R$866.1 million, a 76% increase over 2012, and adjusted EBITDA margin of 94%;
• 2013 net income reached R$81.2 million;
• 2013 adjusted FFO, excluding non-cash expenses, totaled R$310.3 million, a 246% increase over 2012, and adjusted FFO
margin of 34%;
• The Company delivered 6 new projects throughout the year, representing a total GLA of 205 thousand sqm, and of which 84%
or 173 thousand sqm are already leased;
• The average net of inflation leasing spread of the portfolio reached 3.0% in 2013, which involved a total area of 347 thousand
sqm of GLA;
• At the end of the year financial and physical vacancy rates were at 8.6% and 4.1%, respectively. Excluding the JK Towers,
currently under lease-up, stabilized financial and physical vacancy would drop to 3.9% and 2.6%, respectively;
• In 2013 the Company renegotiated/pre-paid R$1,336.7 million in loans and issued R$850.0 million of non-secured
debentures, which resulted in a reduction of 88 bps in its annual average cost of debt;
• In line with the Company’s recycling strategy, 5 property sales were completed in 2013, totaling R$492.2 million at an average
cap rate of 8.6%. The rental loss resulting from the sale of properties reached R$13.2 million;
• In November the Company executed an agreement with WTGoodman for the sale of 100% of its existing industrial/logistics
portfolio. According to the agreement, WTGoodman will pay to BR Properties the amount of R$3,180.0 million, subject to
certain adjustments established in the agreement. The effectiveness of the acquisition of the real estate assets provided for in the
agreement is subject, among other conditions, to the applicable contractual approvals, to the negotiation of the definitive
agreements and to the satisfactory conclusion of the due diligence to be carried out by WTGoodman. The Company intends to use
the sale proceeds in order to reduce the net leverage, for the share repurchase program and for the payment of dividends to the
shareholders.
2
3. Portfolio
Portfolio Market Value
2013 Revenue Breakdown
Asset sales in the amount
of R$482.1 million
65%
11.715
12.968
13.552
13.840
14.031
14.096
13.759
13.423
Straight-line 3%
Leasing 96%
6%
Services 1%
29%
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
Portfolio Breakdown
(% market value)
4Q13
Portfolio Breakdown
(% GLA)
5%
4%
18%
25%
49%
14%
63%
22%
Of f ice AAA
Of f ice
Industrial
Retail
Of f ice AAA
Of f ice
Industrial
Retail
3
11. Operating Highlights
Vacancy Evolution
Financial Vacancy per Segment
10,0%
Physical
10,8%
Financial
10,5%
8,4%
8,9%
Of f ice
8,6%
Industrial
Retail
5,5%
4,0%
5,3%
4,7%
4,1%
2,6%
0,5%
4Q12
1Q13
2Q13
3Q13
4Q13
3Q13
0,0%
0,2%
0,0%
4Q13
Vacancy per Property
4Q13
Property
Type
Financial
Physical
Ed. Jacarandá
Office
0,1%
0,1%
Ventura - West Tower
Office
0,3%
0,1%
Icomap
Office
0,03%
0,05%
RB115
Office
0,1%
0,1%
Manchete
Office
1,0%
0,4%
JK Complex - Towers D&E
Office
4,6%
1,4%
Cidade Jardim
Office
0,6%
0,2%
Paulista
Office
1,0%
0,3%
TNU
Office
0,14%
0,10%
Panamérica Park
Office
0,1%
0,1%
Raja Hills
Office
0,1%
0,1%
Brasília
Office
0,3%
0,2%
Total Office
8,4%
BP Jandira
Industrial
3,2%
0,1%
0,2%
BP Jundiaí
Industrial
0,1%
0,4%
BBP Barão de Mauá-Brahms
Industrial
0,04%
0,1%
Cond.Ind.SJC
Industrial
0,0%
0,1%
Total Industrial
0,2%
0,8%
Total Portfolio
8,6%
4,1%
11
12. Portfolio Recycling
In line with the Company’s recycling strategy, 5 property sales were completed in 2013,
totaling R$492.2 million at an average cap rate of 8.6%. The rental loss resulting from the
sale of properties reached R$13.2 million
Sold Properties
Paulista Park (2 Units)
Cetenco Plaza (2 Units)
Plaza Centenário
Pateo Bandeirantes
Galpão Sorocaba
TOTAL
Type
Sale Date
Office
Office
Office
Office
Warehouse
Apr-13
May-13
Aug-13
Sep-13
Sep-13
Total Sales Volume (R$ thousand)
Sale Price
(R$ K)
4.000
6.100
13.700
442.000
26.400
R$
492.200
Exit Cap Rate
8,6%
7,9%
9,6%
8,4%
10,2%
8,6%
Rental Loss
2013 (R$ K)
258
283
471
11.485
740
R$
13.237
Average Exit Cap Rate (%)
492.200
8,6%
8,4%
137.008
2012
2013
2012
2013
12
13. Capital Markets
Stock Performance – 2013
ADTV
BR Properties
Ibovespa
15%
80.000.000
70.000.000
5%
60.000.000
50.000.000
-5%
40.000.000
-15%
30.000.000
20.000.000
-25%
10.000.000
-35%
Jan-13
Feb-13
Mar-13
Apr-13
Stock Performance (BRPR3)
Total Number of Shares
Free Float (%)
May-13
Jun-13
Jul-13
4Q13
Jul-13
4Q12
312.653.445
Aug-13
var %
311.612.894
0%
Oct-13
2013
Dec-13
Nov-13
2012
312.653.445
var %
311.612.894
0%
99%
99%
99%
99%
Stock Price (average for the period)
18,63
25,79
-28%
20,80
23,27
-11%
Stock Price (end of period)
18,60
25,50
-27%
18,60
25,50
-27%
Market Cap end of period (R$ million)
5.815
7.946
-27%
5.815
7.946
-27%
56,09
3.020.156
7.350
32,38
1.254.317
4.621
73%
141%
59%
46,67
2.329.181
6.694
29,04
1.241.830
3.834
61%
88%
75%
Average Daily Trading Volume (R$ million)
Average Daily Traded Shares
Average Daily negotiations
0%
Sep-13
0%
13
14. IR Contacts
Investor Relations
Pedro Daltro
CFO & Investor Relations Officer
Marcos Haertel
Investor Relations Manager
Gabriel Barcelos
Investor Relations Analyst
Phone: (55 11) 3201-1000
Email: ri@brpr.com.br
www.brpr.com.br/ri
14
