2. Company Overview
The largest commercial property company in the country, with a portfolio of approximately
R$12 billion in market value and over 2 million m² of GLA
Company Profile
2
Diversified portfolio, comprised of 120 properties,
with 2,13 million m² of gross leasable area (GLA)
and estimated market value of R$11.7 billion
Diversified tenant base, composed by high credit-
quality multinational companies
Present in 14 states of Brazil
14 greenfield projects, with approximately 396
thousand m² of GLA
Fully integrated and experienced in-house teams:
acquisitions, financing, legal and engineering
Value creation management strategy through re-
tenanting, market realignments, retrofit, and
improvements to technical installations
Market recognition: proven ability to source deals
and execute transactions makes BR Properties the
partner of choice for co-development and built-to-suit
operations
Fully owned Property Management Company
Segments of Activity
OfficeIndustrialRetail
C&A Portfolio
TNU
DP Louveira
Ventura Complex CES - Petrobrás
VW Vinhedo
Tok & Stok Portfolio
3. Extraordinary Growth
3
Commitment to over-delivering results to its shareholders
IPO
(March 2010)
Current
(March 2012)
Growth
(Current / IPO)
613,499 1,694,016 2.8x
150,473 395,793 2.6x
7.4% 1.0% Reduction of 640 bps
93.9
(2009)
367.1
(Annualized 1Q12)
3.9x
45.0
(2009)
207.4
(Annualized 1Q12)
4.6x
Existing Portfolio
GLA
(m²)
Under Development
GLA(m²)
Physical Vacancy
Adjusted EBITDA
(R$ mm)
Adjusted FFO
(R$ mm)
83%
(2009)
91%
(1Q12)
Most Profitable Player in the
Sector
Adjusted EBITDA
Margin
1,719
(2009)
11.714
(March 2012)
6.8x
Total Portfolio
(R$ mm)
4. BR Properties’ stock has outperformed the Bovespa index and the other players in the sector,
given its more defensive profile in an uncertain economic outlook
4
BRPR vs. Real Estate Sector
Performance of BRPR since its IPO vs. Ibovespa
Value Creation Since The IPO
Source: Bloomberg (05/14/2012)
82%
-16%
-40%
-20%
0%
20%
40%
60%
80%
100%
mar-10 jun-10 set-10 dez-10 mar-11 jun-11 set-11 dez-11 mar-12
BRPR3
IBOV
82%
-9%
-40%
-20%
0%
20%
40%
60%
80%
100%
mar-10 jun-10 set-10 dez-10 mar-11 jun-11 set-11 dez-11 mar-12
BRPR3
IMOB
5. Great Potential for Market Consolidation
5
The Company has a proven track record as the consolidator of a highly fragmented market
Addressable Market1: 36.3 mm m2
BRProperties
10 Organized
Companies
58%
Organized
Companies
11%
Non-Organized
Market
89%
42%
Fragmented Industry (in terms of GLA - m2)
1 Including existing properties only
1 Not including retail properties
BRPR vs Competitors
(Market Cap – R$ MM)
3.9x 4.1x
Source: Bloomberg (05/14/2012)
7.264
1.848 1.785
BR Properties São Carlos CCP
7. Portfolio: Strategic Positioning
7
Irreplicable portfolio, present in 14 states, and mainly concentrated in the best and
most liquid regions of the country
— Office: 39
— Warehouse: 35
— Developments: 14
— Retail: 30
— Landbank: 2
Number of Properties : 120
Total Properties GLA: 2,133,798 m2
— Office: 435,511 m²
— Warehouse: 1,144,451 m²
— Developments: 395,793 m²
— Retail: 114,054 m²
— Landbank: 43,989 m²
Portfolio Breakdown – Market Value Portfolio Breakdown – Existing Properties/Development (%GLA)
Office
Warehouse
BRPR
Retail
Portfolio Breakdown – Footprint
80%
20%
Developments
87%
13%
Existing Properties
67%
21%
12%
São Paulo Rio de Janeiro Others
Pre-Merger Post-Merger
% GLA
67%
26%
7%
Office
Warehouse
Retail
8. 8
Tenant base entails some of the most recognized Companies in the country,
spanning wide industry diversification
Main
Tenants
Tenants Composition by Sector
Portfolio: High Credit-Quality Tenant
23%
20% 19%
14%
10%
7%
6%
1%
Oil & Gas Other Consumer Goods Financial Services Telecom Logistics Industrial Tech
9. Average office lease term: 3-5 years
Average warehouse lease term: 5-10 years
Expiration Schedule
(% revenues)
Market Alignment Schedule
(% revenues)
Inflation Adjustment Indices
Portfolio: Lease Contract Characteristics
Lease contracts in place allow for stable, predictable cash flows, while creating a very low
vacancy risk scenario and considerable upside potential in revenues
9
Annual Inflation Adjustments
— 100% of lease contracts are indexed to inflation
Triple Net Contracts
— Tenant is responsible for all operating property costs
— Costs include: taxes, insurance, and maintenance
expenses
Next 3 Years
— 90% market alignment
— 24% expiration
Bank Guarantees on Leases
— Standard practice in Brazil
— Protects against delinquencies from smaller tenants
Tenant Delinquency
̶ Delinquency exceeding 30 days, lessor has right to
break the contract and remove the tenant
Main Characteristics
82%
14%
4%
IGP-M
IPCA
Other
2012 2013 2014 >2015
3%
10%
11%
76%
2012 2013 2014 >2015
20%
27%
43%
10%
11. Growth Drivers: Acquisitions and Recycling
11
Acquisition Pipeline (R$ million)
Acquisitions: Great acquisition opportunities given the high fragmentation of the market and low
competition
Sales: Maintain a constant portfolio recycling by selling properties that have reached their
maturity and full potential for value creation
Sold Properties (R$ million)
90
275
37
89
59
2009 2010 2011 2012 Total
11.714
13.431
1.099
601 17
Current Portfolio Office Retail Industrial Total
12. 12
Henrique Schaumann (Acquired in 2007) Presidente Vargas (Acquired in 2007)
Cap Rate Cap Rate
Mid-TermValueTrigger
Cap Rate
+450 bps
Cap Rate
+230 bps
Cap Rate
+150 bps
Long-TermValueTrigger
+1140 bps +610 bps
10,3%
11,8%
12,3%
14,6%
10,5%
15,0%
Growth Drivers: Performance Improvement
Outstanding management leads to very fast operating improvements and impressive increases in
the long run
RB 115 (Delivered in Dec/2010) TNU (Acquired in Mar/2010)Ventura (Acquired in Aug/2010)
Initial 1Q12 Initial 1Q12 Initial 1Q12
Initial 1Q12
11,1%
22,5%
Initial 1Q12
13,9%
20,0%
13. Growth Drivers: Performance Improvement (cont’d)
13
Leasing Spreads – New Leases
Company has been building a successful track record on increasing spreads in both contract
renegotiation and new leases
Leasing Spreads – Renegotiations
Case Study: Retail Tenant
Date of Acquisition Dec/2010
GLA 97.714 m²
Revenues @ Acquisition R$48.7 mm
Cap Rate @ Acquisition 10.2%
Revenues (post-
renegotiation)
R$59.4 mm
Cap Rate (6 months after
renegotiation)
12.4%
24,1%
33,7%
36,1%
n/a n/a
13,1%
17,1%
n/a n/a
3Q11 4Q11 1Q12
Office Industrial Retail
12,0%
39,3%
34,0%
n/a n/a 0,4%n/a n/a n/a
3Q11 4Q11 1Q12
Office Industrial Retail
14. Growth Drivers: Developments
14
The Company currently holds 14 development projects, which once finalized, will add 396
thousand m2 of GLA to the portfolio
Ed.CidadeJardim
Type: Office AAA
Location: São Paulo / SP
Delivery Date: 4Q12
Owned GLA: 6,792 m2
Stake: 50%
PateoBandeirantes
Type: Office AAA
Location: São Paulo / SP
Delivery Date: 2Q12
Owned GLA: 17,458 m2
Stake: 25%
Ongoing Projects
Ed.CES
Type: Office AAA
Location: Rio de Janeiro / RJ
Delivery Date: 3Q12
Owned GLA: 95,174 m2
Stake: 100%
JKComplex–TowerD&E
Type: Office AAA
Location: São Paulo / SP
Delivery Date: 3Q12
Owned GLA: 34,583 m2
Stake: 100%
Type: Office AAA
Location: São Paulo / SP
Data de Entrega: 1Q14
Owned GLA: 29,539 m2
Stake: 100%
JKComplex–TowerB
Type: Office AAA
Location: São Paulo / SP
Delivery Date: 3Q13
Owned GLA: 14,868 m2
Stake: 75%
WTNU–TowerIII
15. 15
Type: Retail
Location: Rio de Janeiro / RJ
Data de Entrega: 1Q13
Owned GLA: 2,881 m2
Stake: 100%
CES:Retail
Ed.Paulista
Type: Office A
Location: São Paulo / SP
Delivery Date: 3Q12
Owned GLA: 22,855 m2
Stake: 100%
Ongoing Projects
... And two landbanks with 44 thousand m² of GLA located in the downtown region of Rio de
Janeiro
Growth Drivers: Developments
Type: Warehouse
Location: Louveira / SP
Delivery Date: 4Q12
Owned GLA: 30,122 m2
Stake: 100%
DPLouveira7
PanaméricaGreenPark
Type: Office A
Location: São Paulo / SP
Delivery Date: 1Q13
Owned GLA: 14,502 m2 (3buildings)
Stake: 50%
Type: Office A
Location: São Paulo / SP
Delivery Date: 2Q14
Owned GLA: 2.019 m2
Stake: 50%
Type: Warehouse
Location: São José dos Campos / SP
Delivery Date: n/a
Owned GLA: 125,000 m2
Stake: 100%
Ed.SouzaAranha
TechParkSJC
