3 q11 presentation
- 1. BRProperties 3Q11 Earnings Release Presentation
- 2. Highlights 3Q11 Net Revenues totaled R$91.8 million, an increase of 71% in relation to 3Q10, when net revenues came in at R$53.7 million; Adjusted EBITDA of R$84.9 million in 3Q11, an increase of 87% over 3Q10 and an adjusted EBITDA margin of 93%. 3Q11 EBITDA without adjustments totaled R$80.1 million, with an EBITDA margin of 87%; Financial Net Income totaled R$83.7 million at the end of 3Q11, impacted by a gain on appraisal of investment Highlights properties of R$180.3 million (R$125.8 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$85.0 million. Therefore, an increase of 622% in relation to 3Q10, when our net income totaled R$11.6 million; Adjusted FFO (excluding non-cash net financial expenses) totaled R$42.5 million in 3Q11, with an FFO margin of 46%; Leasing spreads (net of inflation) for renegotiations reached 24.1% and 17.1% in office and retail properties, respectively, while leasing spreads for new lease up of vacant areas reached 12.0% for office properties; We experienced a significant decrease in the portfolio’s vacancy level, where financial vacancy totaled 1.5% at the end of 3Q11, a 35% reduction when compared to 2Q11, which totaled 2.3%. Physical vacancy represented 0.9% of GLA at the end of quarter. In terms of area, our office, industrial, and retail Operating properties were 99.2%, 99.9%, and 100.0% occupied at the end of the quarter, respectively; Highlights On September 14th, 2011, BR Properties S.A. signed a Memorandum of Understanding (MoU), related to the incorporation of BTG/WTORRE Properties by the Company, through the issuance of new ordinary shares of BR Properties; On October 27th, 2011, BR Properties concluded with Statoil Brasil Óleo e Gás Ltda. a lease contract for the partial occupancy of Edifício Manchete. The Lease has a term of 120 months, and comprises 14.4 thousand m² of GLA, including 132 parking spaces. BRProperties 2 3Q11
- 3. Portfolio 3Q11 Revenue Breakdown Straight-line 12% 0% Services Of f ice 46% 2% Leasing Industrial 98% 42% Retail Portfolio Breakdown Portfolio Breakdown (% market value) (% GLA) 8% 13% 7% 22% 7% 55% 29% 57% Of f ice Industrial Retail Development Of f ice Industrial Retail Development BRProperties 3 3Q11
- 4. Financial Highlights Net Revenues (R$ thousand) Net Income* (R$ thousand) 521% 91% 622% 71% 264.909 253.156 132.386 91.803 83.744 53.689 11.598 42.670 3Q10 3Q11 9M10 9M11 3Q10 3Q11 9M10 9M11 * Impacted by a net gain on appraisal of investment properties of R$122.8 million, and a non-cash financial expense resulting from the FX variation of the principal on our dollar denominated perpetual debt of R$85.0 million. BRProperties 4 3Q11
- 5. Financial Highlights Adjusted EBITDA (R$ thousand) EBITDA (no adjustments) (R$ thousand) 93% 87% 91% 87% 82% 84% 84% 81% 106% 105% 229.376 219.445 87% 82% 111.204 107.160 84.923 80.070 45.357 44.009 3Q10 3Q11 9M10 9M11 3Q10 3Q11 9M10 9M11 Adjusted EBITDA Margin EBITDA Margin Adjusted FFO (R$ thousand) 46% 35% 22% 27% 49% 266% 68.308 42.486 45.988 11.598 3Q10 3Q11 9M10 9M11 Adjusted FFO Margin BRProperties 5 3Q11
- 6. Debt 3Q11 Net Debt (R$ mn) 3Q11 Debt Index Breakdown 1.982 2.168 1.073 27% 1.096 TR IGPM 2% 172 15 71% CDI ST Debt Obligations LT Debt Total Debt Cash Net Debt f or Acquisitions Net Debt 3Q11 2Q11 var % Short Term Loans and Financing 186.751 222.535 -16% Loans and Financing 114.606 111.069 3% Perpetual Bond 54.360 45.763 19% Derivative Instruments 2.771 42.116 -93% Payables for Acquisition of Real Estate 15.013 23.588 -36% Long Term Loans and Financing 1.981.595 1.887.296 5% Loans and Financing 1.479.887 1.516.091 -2% Perpetual Bond 501.708 371.205 35% Gross Debt 2.168.346 2.109.831 3% Cash and Cash Equivalents 1.072.533 410.464 161% Net Debt 1.095.813 1.699.367 -36% Net Debt / Annualized Adjusted EBITDA 3,2x 5,5x -41% Adjusted EBITDA / Net Financial Expenses * 2,7x 1,6x 65% Duration (years) ** 5,9 5,7 3% * Considers Net Financial Expenses (ex. non-cash variations) ** Considers the amortization of the perpetual bond in 2023 BRProperties 6 3Q11
- 7. Debt Debt Service Schedule (R$ million) Principal 333 Interest 129 129 159 162 180 157 155 179 128 166 152 24 134 117 95 68 26 14 48 54 39 32 29 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Debt/ Adjusted EBITDA Adjusted EBITDA/ Net Financial Expenses* 7,0x 4,0x 7,0x 6,0x 3,5x 6,0x 3,5x 6,0x 5,5x 5,0x 5,2x 5,0x 4,9x 3,0x 5,0x 2,7x 2,5x 2,5x 2,3x 4,0x 3,7x 2,1x 2,0x 2,1x 3,2x 2,0x 2,0x 1,6x 3,0x 1,4x 1,4x 1,5x 2,0x 1,0x 1,0x 0,6x 0,5x 0,0x 0,0x 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 * Considers Net Financial Expenses (ex. non-cash variations) BRProperties 7 3Q11
- 8. Operating Highlights Market Alignments New Leases 24,1% 23,4% 15,6% 14,6% 13,7% 13,6% 20,6% 12,0% 17,1% 15,8% 13,6% 14,4% 13,4% 7,7% Office Office 6,6% Industrial Industrial 7,1% Retail Retail n/a n/a n/a n/a 0,0% n/a n/a n/a 3Q10 3Q11 9M10 9M11 3Q10 3Q11 9M10 9M11 Leasing Spread - Market Alignments* 3Q11 3Q10 var % 9M11 9M10 var % Leasing Spread - Office 24,1% 13,6% 77% 23,4% 13,4% 75% Leasing Spread - Warehouse 0,0% 14,4% -100% 20,6% 7,1% 192% Leasing Spread - Retail 17,1% - n/a 15,8% - n/a Renegotiated Area - Office (sqm) 26.099 2.545 925% 50.104 3.490 1336% Renegotiated Area - Warehouse (sqm) 783 1.107 -29% 15.581 17.899 -13% Renegotiated Area - Retail (sqm) 4 - n/a 97.435 - n/a Leasing Spread - New Leases* 3Q11 3Q10 var % 9M11 9M10 var % Leasing Spread - Office 12,0% 6,6% 82% 14,6% 7,7% 89% Leasing Spread - Warehouse - 13,7% -100% 15,6% 13,6% 15% Leasing Spread - Retail - - n/a - - n/a Leased Area - Office (sqm) 1.257 7.330 -83% 27.043 24.955 8% Leased Area - Warehouse (sqm) - 19.752 -100% 18.019 26.919 -33% Leased Area - Retail (sqm) - - n/a - - n/a * Leasing spreads are net of inflation BRProperties 8 3Q11
- 9. Operating Highlights We showed a financial vacancy of 1.5% for the period, a 35% decrease when compared to 2Q11. Vacancy Breakdown Financial Vacancy per Segment 6,2% 1,6% 1,5% Of f ice Industrial Physical Retail Financial 3,1% 0,7% 2,3% 1,5% 1,5% 0,9% 0,0% 0,0% 0,0% 1Q11 2Q11 3Q11 2Q11 3Q11 Vacancy per Property 3Q11 Property Type Financial Physical CBOP - Jacarandá Office 1,3% 0,7% Ventura II Office 0,1% 0,0% Total Office 1,5% 0,8% BP Jundiaí Industrial 0,0% 0,1% Total Industrial 0,0% 0,1% Total Portfolio 1,5% 0,9% BRProperties 9 3Q11
- 10. Operating Highlights Lease Contract Expiration Schedule % Revenues % GLA 73% 64% 5% 20% 29% 3% 2% 5% 2011 2012 2013 >2013 2011 2012 2013 >2013 Lease Contract 3 Year Market Alignment Schedule % Revenues % GLA 31% 24% 19% 27% 18% 14% 38% 28% 2011 2012 2013 >2013 2011 2012 2013 >2013 BRProperties 10 3Q11
- 11. Operating Highlights We maintained the same 29 properties under management throughout 3Q10 – 3Q11 Managed Properties Nº GLA Property Management Revenues Athenas 1 6.718 (R$ thousand) 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 82% Icomap 1 9.164 Vargas 1 14.809 Panamerica Park 9 45.020 113% 4.731 Ouvidor 1 6.284 Jacarandá 1 31.954 2.606 BP Jundiaí 1 53.343 1.904 Cond. Indl. São José dos Campos 1 73.382 894 BP Jandira 2 34.304 BP Itapevi 1 33.526 3Q10 3Q11 9M10 9M11 TNU 1 27.931 RB 115 1 11.516 Plaza Centenário 1 3.366 Indaiatuba 1 11.335 TOTAL 29 411.720 BRProperties 11 3Q11
- 12. Capital Markets 15% 10% 5% GIC 0% GP Schroder 7,0% 5,5% 5,1% -5% Laugar -10% 3,2% Board & -15% Management -20% 0,8% BRPR3 -25% IBOV -30% IMOB Other 78,3% -35% Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Current number of shares: 180,003,919 Market Value: R$ 3.3 billion Average Daily Vol. (30d): R$ 19.3 million * As of November 10th, 2011 Stock Performance (BRPR3) 3Q11 3Q10 var % 9M11 9M10 var % Total Number of Shares 180.003.919 139.403.585 29,1% 180.003.919 139.403.585 29,1% Free Float (%) 99% 99% 0,0% 99% 99% 0,0% Stock Price (average for the period) 17,23 13,89 24,0% 17,40 13,03 33,5% Stock Price (end of period) 17,08 16,30 4,8% 17,08 16,30 4,8% Market Cap end of period (R$ million) 3.074,5 2.272,0 35,3% 3.074,5 2.272,0 35,3% Average Daily Trading Volume (R$ million) 16,23 5,46 197,3% 11,94 5,11 133,7% Average Daily Traded Shares 941.962 385.519 144,3% 686.207 387.732 77,0% Average Daily negotiations 1.508 170 787,1% 896 148 505,4% BRProperties 12 3Q11
- 13. 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: ri@brpr.com.br www.brpr.com.br/ri BRProperties 13 3Q11