2. 2
Disclaimer
► The material that follows is a presentation of general background information about BR Properties S.A. and its subsidiaries (“BR
Properties” or “BRP” or the “Company”) prepared as of the date of the presentation by BR Properties.
► This information is in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential
investors. Information contained in this material has not been independently verified. Certain information has been obtained from
public sources. Information not obtained from public sources and contained herein was prepared solely based on information
provided by the Company. No representation or warranty, either express or implied, is made concerning, and no reliance should be
placed on, the accuracy, fairness, or completeness of the information presented herein. This material has been prepared solely for
informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated
as giving investment advice. It is not targeted to the specific investment objectives, financial situation or particular needs of any
recipient. It is not intended to provide the basis for any third party evaluation of any securities or any offering of them and should not
be considered as a recommendation that any investor should subscribe for or purchase any securities
► Although BR Properties believes that the expectations and assumptions reflected in the forward-looking statements are reasonably
based on information currently available to BRP’s management, BR Properties cannot guarantee future results or events. BR
Properties expressly disclaims a duty to update any of the forward-looking statement.
► Neither this material nor its content shall be deemed to constitute an offer of or an invitation, or solicitation of an offer to subscribe
for or purchase any securities. The information contained herein is subject to change without notice and neither the Company past
performance is not indicative of future results. Neither this presentation nor anything contained herein shall form the basis of any
contract or commitment whatsoever.
► No person is authorized to give any information or to make any representation not contained in and not consistent with this material
and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the
Company.
► These materials are strictly confidential and are being submitted to selected recipients only. They may not be reproduced (in whole
or in part), distributed or transmitted to any other person without the prior written consent of the Company. These materials are not
intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be
contrary to local law or regulation.
3. 3
Company Overview
The largest and most complete commercial properties company in Brazil
Office
Industrial
Developments
► Jacarandá Bldg.► Ventura Towers ► Manchete Build.
► Cidade Jardim Bldg. ► Panamérica Park II ► Souza Aranha Build.
► DP Louveira Industrial Complex ► DP Araucária
Company Profile Segments of Activity
► Largest public commercial properties company in
Brazil
► BR Properties was founded in Dec/06 by an
experienced team of executives, aiming at acquiring,
managing, developing and leasing high quality
commercial properties in Brazil
► Company’s portfolio currently holds 62 properties,
with more than 1 million sq m of GLA and estimated
market value of R$ 3.33 billion
► 4 greenfield projects, with approximately 150.4
thousand sq m of gross leasable area (GLA)
► Fully integrated and experienced in-house teams:
acquisitions, financing, legal and engineering
► Pro active, value added investment strategy, “hands-
on” approach
► 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
4. 4
GLA by Property Type (sq m)
Portfolio Overview: Breakdown and Tenant Base
Market Value of the Portfolio (R$ mm)
A top-notch portfolio comprised of office buildings and warehouses, located in the most dynamic
regions of Brazil
BR Properties tenant base entails some of the best known Companies
in the country, spanning wide industry diversification
► Over 150 high quality tenants
Main Tenants Tenant Breakdown by Industry
Logistics
Financial
Services
Industrial
Technology
Consumer
Goods
Energy
Other
Telecom
Storage
Consulting
Construction
Publishing
Media
60%
40% Office
Warehouse
27%
73%
Office
Warehouse
5. 5
Ventura Towers II
Location: Rio de Janeiro / RJ
GLA: 21,493 sqm
CAPEX: R$ 340 mm
Owned: 41%
Portfolio Overview: Recent Acquisitions
Our recent acquisitions were in accordance with our strategy to acquire properties of exceptional
quality, leased to large tenants, and located in the main economic regions of Brazil
Manchete Building
Location: Rio de Janeiro / RJ
GLA: 26,439 sqm
CAPEX: R$ 260 mm
Owned: 100%
DP Louveira 1 - 9
Location: Louveira / SP
GLA: 339,548 sqm
CAPEX: R$ 539,5 mm
Owned: 100%
6. 6
Rio de Janeiro
Portfolio Overview: Geographic Presence
Our portfolio is based mainly in the southeastern and southern regions of Brazil, where the major
productive regions, high concentration of the GDP, and the more liquid commercial property
markets are located
Together, the two regions represent approximately 73% of the GDP, and 57%
of the country’s population.
São Paulo
Minas GeraisParaná
Total GLA: 836,008 sqm
Office: 155,583 sqm
Warehouse: 680,425 sqm
Source: IBGE
Office
Warehouse
BRPR footprint
Total GLA: 60,273 sqm
Office: 3,366 sqm
Warehouse: 56,907 sqm
Total GLA: 111,188 sqm
Office: 111,188 sqm
Warehouse: -
Total GLA: 7,166 sqm
Office: 7,166 sqm
Warehouse: -
SP
82%
RJ
11%
PR
6%
MG
1%
SP
63%
RJ
32%
PR
4%
MG
1%
Lease Revenues GLA
7. 7
Portfolio Overview: Developments
The Company currently holds 4 greenfield projects, of which 3 are office buildings and one is an
industrial condominium, that once finalized, will add 150 thousand sqm of GLA to the portfolio
Cidade Jardim
Panamérica Park II
Type: Office AAA
Location: São Paulo / SP
Delivery Date: Jun/2012
GLA: 6,792 sqm
Forecast Rent (R$/sqm): R$ 125.00
Owned: 50%
Type: Office
Location: São Paulo / SP
Delivery Date: Dec/2011
GLA: 14,502 sqm
Forecast Rent (R$/sqm): R$ 48.00
Owned: 50%
Pre-certified Building
Pre-certified Building
8. 8
Portfolio Overview: Developments
BR Properties will have invested approximately R$ 8.7 mm in these projects by the end of 2010
Tech Park SJC
Type: Office
Location: São Paulo / SP
Delivery Date: Dec/2012
GLA: 4,037 sqm
Forecast Rent (R$/sqm): R$ 57.00
Owned: 50%
Type: Industrial
Location: São José dos Campos / SP
Delivery Date: n/a*
GLA: 125,000 sqm
Forecast Rent (R$/sqm): R$ 13.00
* Delivery in several phases
Souza Aranha
9. 9
A unique vehicle, exposed exclusively to Brazilian commercial real estate, extremely well
positioned to benefit from the bullish fundamentals of the sector in Brazil
1
2
34
5
Favorable
Macro-Economic
Scenario
Attractive Sector
Dynamics
Unique Business Model
Broad Growth Potential:
Natural Industry
Consolidator
World-Class
Sponsorship
and Tier 1
Management Team
Investment Case
10. 10
NTN-B (% aa.)
Real GDP Growth (%)
► Lower interest Rates
► Increased credit availability
► Increasing demand for industrial and distribution space
Unemployment Rate (%)¹
Favorable Macro-Economic Conditions
Industrial Production Growth (%)¹
1
Growing industrial production and GDP, declining unemployment rates and single-digit interest
rates are fueling sectors exposed to domestic market
Source: Brazilian Central Bank
Note:
1 Adjusted Seasonally
► Emerging middle class► Pent-up demand for commercial properties
2002 2003 2004 2005 2006 2007 2008 2009 2010E
11.9%
12.4%
11.0%
9.7% 9.7%
8.7%
7.9%
6.8%
6.5%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E
1.3%
2.7%
1.1%
5.7%
3.2%
4.0%
5.7%
5.1%
-0.2%
6.3%
4.5%
2005 2006 2007 2008 2009 2010E
3.8% 3.8%
6.2%
-17.7%
-5.5%
10.5%
5.6%
4%
5%
6%
7%
8%
9%
10%
11%
12%
Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10
11. 11
Effects of the Nominal
Interest Rate Increase
(SELIC vs. TR)
Expected Positive Effects of the Growth
of Inflation Indexes
(TR vs. IPCA vs. BRPR Inflation basket)
Source: Santander research
Favorable Macro-Economic Conditions1
0,00%
7,08%
0,82% 1,03%
4,31%
5,48%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
2009 2010e
BRPR Basket of lease contract
inflation readjustment indices
TR
IPCA (CPI)
8,75%
10,75%
0,82% 1,03%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
2009 2010e
Forecast SELIC
TR
► The potential increase in the nominal interest rate until the end of the year would result in a small increase in the
TR, main index that readjusts our financing contracts
► The inflation increase, on the other hand, would have a positive effect on the Company’s results, given that
100% of our lease contracts are indexed to inflation rates
► Our cash reserves are invested exclusively in bank notes indexed to the Brazilian inter-bank rate (CDI), which
would cause an increase in our financial revenues with the forecast increase in the SELIC rate
12. 12
Low vacancy combined with steady demand and short supply in the near term allow for solid
growth potential in the commercial properties sector
Attractive Sector Dynamics2
Source: CBRE
110
240
95
130
0
50
100
150
200
250
300
350
400
450
2004 2005 2006 2007 2008 2009 2010E 2011E
New Inventory SP New Inventory RJ
288 288
138
101
0
50
100
150
200
250
300
350
400
450
2004 2005 2006 2007 2008 2009 2010E 2011E
Net Absorption SP Net Absorption RJ
Net Absorption (in 000 sqm) in SP + RJ New Inventory (in 000 sqm) in SP + RJ
Rental Rate (in R$/sqm/month) in SP + RJ Vacancy Rate (in %) in SP + RJ
95
123
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010
Rental Rate SP Rental Rate RJ
5.9
3.7
0
2
4
6
8
10
12
14
16
18
2005 2006 2007 2008 2009 2010
Vacancy Rate SP Vacancy Rate RJ
13. 13
BR Properties benefits from its strong expertise to add value throughout the whole Real Estate
investment chain…
Unique Business Model3
Pro-active
Deal Sourcing
Value Creation
Selective
Developments
Divestment
Lease / Property
Management
Retrofit
Conservative
Use of Leverage
14. 14
Fast Portfolio Growth with low vacancy level
More than 1 million sqm of leasable area acquired in 3.5 years
4Q07 Today
2007 2008 2009
82
3,421
507
337
105 91 14
- - (22)
-
807
295
865
340
Market Value
GLA
1,014,636 sqm
2010
3Q072Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
3
IPO
Private
Placement
Private
Placement
Oct/10
Stabilized Vacancy: 1,9%
Delinquency: 0,1%
Initial
Funding
15. 15
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
20%
41%
24%
13%
1%
2010 2011 2012 2013 >2013
1%
7%
9% 34%
51%
2010 2011 2012 2013 >2013
Expiration Schedule (% revenues) Market Re-alignment Schedule (% revenues)
► Annual Inflation Readjustments
► 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
► 3 Year Market Re-alignment
► Lessor can mark the leases to market every 3rd year of the
contract, independent of lease term
► 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
► Average office lease term: 3-5 years
► Average warehouse lease term: 5-10 years
Inflation Readjustment IndicesMain Characteristics
76%
22%
2%
IGP-M
IPCA
Other
3
16. 16
3 Unique Business Model: Successful Cases
Note:
1 CBRE’s independent appraisal, as of December 31st, 2009
ROE*: 147%
Sale Value Addition
Henrique Schaumann
Acquisition Value R$ 41.0 mm
Acquisition Date Nov/07
Re-tenanting R$ 6.5 mm / year (42%
increase on rental income)
Retrofit Elevators/ Façade/Parking
2009 Appraised Value R$ 78.0 mm
Ed. Generali
Acquisition Value R$ 16.6 mm
Acquisition Date Aug/07
Sale Value R$ 21.5 mm
Sale Date Jan/10
Holding Period 29 months
IRR 36%
* Before taxes
16.6
21.5
Acquisiton Value Sale Value
41.0
78.0
26.97
38.10
-3,00
2,00
7,00
12,00
17,00
22,00
27,00
32,00
37,00
42,00
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
At Acquisition Current
Property Value Lease/sq m
17. 17
Fragmented Industry (in terms of GLA – sq m) Acquisition Pipeline (R$ mm)
Ample market fragmentation and lack of professional competitors creates a unique environment
for market consolidators
Broad Growth Potential: Natural Industry Consolidator4
Total Acquisition Pipeline R$2,573R$3,326Current Portfolio
Organized
Companies
8%
Addressable Market: 36.3 mm sq m
Non – Organized
Market
92%
BRProperties
22%
10 Organized
Companies
78%
226
490
716
1.244
612
1.856
1.471
1.102
2.573
In Negotiation In Analysis Total
Office Industrial Total
18. 18
Ownership Structure and Share Performance
BR Properties current ownership structure is highly fragmented, with no controlling shareholder,
no shareholders agreement, and over 77% of its shares in free float
5
GP Investments
14%
Laugar S.A.
5%
Silverpeak
4%
Free Float
77%
Total Shares: 139,403,585
Market Capo: R$ 2.4 billion
ADTV (30d): R$ 9.6 million
* As of October 31st, 2010
26,15%
3,06%
-20%
-10%
0%
10%
20%
30%
mar-10 abr-10 mai-10 jun-10 jul-10 ago-10 set-10 out-10
BRPR3
Ibovespa
19. 19
Management Team Biography
Claudio Bruni
CEO
Mr. Bruni’s whole career was dedicated to real estate development and management. From 1979 to 1989, Mr. Bruni worked for
Multiplan, Brazil’s largest real estate developer, where he was in charge of market research, construction management, commercial
and residential planning, and development. From 1983 to 1985, Mr. Bruni was the Managing Director of Renasce, Brazil’s first
shopping center management company, a joint venture of Multiplan and Brazilian investment bank Bozano, Simonsen.
From 1986 to 1994 Mr. Bruni co-partnered in Visor, a real estate development company dedicated to low income residential
housing, where he helped develop 4,000 residential units, generating revenues of US$128 million.
In 1988, Mr. Bruni founded Deico, Brazil s largest independent real estate services company, where he was the CEO until
December of 2006. Mr. Bruni served as Executive Vice-President of ABRASCE, Brazil’s shopping center association for 3 years.
Mr. Bruni served as a member of the Retail and Commercial Development Council of the Urban Land Institute.
Claudio Bruni is a civil engineer, with a graduate degree from The Polytechnic School of Engineering at the University of São Paulo
(class of 1978). Industry Experience: 31 Years
Martin Jaco
CIO
Mr. Jaco started his career in Andrade Gutierrez and Metodo Engenharia and joined CB Richard Ellis in 1996 with the objective of
developing the investment consultancy operations of the company in Brazil. Mr. Jaco had direct responsibility and involvement in all
investment activities of the company in the country in the last 10 years, especially in advising investments for institutional investors,
pension funds, property companies and foreign institutions.
Martin Jaco graduated as a civil engineer from the Polytechnic School of Engineering at the University of São Paulo, Brazil, MBA
from the College of Estate Management, Reading University, UK and a Postgraduate Diploma in Project Management from the
Royal Institute of Chartered Surveyors, UK. Industry Experience: 17 Years
Marco Antônio
Cordeiro
COO
Mr. Cordeiro was in charge of construction and project management at Schahin Cury and Metodo Engenharia (general contractors)
for 15 years. While at Deico, Mr. Cordeiro was in charge of planning, market studies, feasibility analysis and appraisals. Mr.
Cordeiro has also been in charge of the consulting division, advising the vast majority of Brazilian pension funds. Mr. Cordeiro has
assisted pension funds in over US$350 million of real estate transactions in the last 2 years.
Marco Cordeiro is a civil engineer, with a graduate degree from the Polytechnic School of Engineering at the University of São
Paulo and specialization at the Business School of Fundação Getúlio Vargas. Industry Experience: 30 Years
Pedro Daltro
CFO
Mr. Daltro started his career in Banco Marka as a Corporate Finance Manager and a Deputy Director. Later, he worked as a VP in
the Credit Risk Management department of Citigroup and Treasurer and Financial Manager in Gafisa, the second largest real estate
developer in Brazil. After Gafisa, he went back to Citigroup as Director of the Public Sector, Infrastructure and Real Estate division.
Pedro Daltro has a bachelor s degree in Business Administration from Unifacs, Brazil, and MBA from the Owen Graduate School of
Management, Vanderbilt University, U.S. Industry Experience: 16 Years
BR Properties is managed by a team of seasoned professionals, highly motivated and fully aligned
with stockholders through long term stock options plans
5
20. 20
Financial Highlights 2Q10
EBITDA (R$ mm) and EBITDA Margin (%)
Net Revenues (R$ mm)
26.735
38.202 46.536 50.995
73.639
97.851
2Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma
43%
22%
44%
33%
74%
92%
31.989
44.889 53.223 59.270
86.489
110.701
2Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma
40%
19%
66%
46%
28%
87%
EBITDA
Margin
84% 85% 87% 86% 85%
88%
22. 22
Strategy Going Forward
► Maintain Loan to Value of roughly 50%
► Maintain diversification levels of our current portfolio
► Keep development at a level equal to or below 15% of our portfolio
► Maintain focus on key regions of the country
► Deployment of the remaining IPO proceeds (R$ 240 million) and the perpetual bond proceeds (R$340 million) over the
next 12 months
23. 23
Appendix: São Paulo Office Market
Source: CBRE 3Q10 Market View Report
Total Stock
Downtown
6%
Paulista
17%
Jardins
15%
Marginal
36%
Other
20%
Alphaville
6%
Submarkets Vacancy Rate
Asking Lease Rate
Range (Class A)
(%) (R$/ sq m/ month)
Downtown 4.0% R$ 14.00 - R$ 27.00*
Paulista 3.8% R$ 75.00 - R$ 110.00
Jardins 3.9% R$ 85.00 - R$ 160.00
Marginal 7.5% R$ 45.00 - R$ 110.00
Other 2.3% R$ 50.00 - R$ 70.00
Total Market 4.9% R$ 45.00 - R$ 160.00
Alphaville 21.9% R$ 30.00 - R$ 60.00
* There are no class A buildings in this submarket. Lease
rates apply to the best buildings in the area
24. 24
Appendix: Rio de Janeiro Office Market
Source: CBRE 3Q10 Market View Report
Total Stock
Downtown
67%
Botafogo
14%
Barrada
Tijuca
12%
Others
0%
South Zone
5%
Flamengo
2%
Submarkets Vacancy Rate
Asking Lease Rate
Range (Class A)
(%) (R$/ sq m/ month)
Downtown 2.4% R$ 100.00 - R$ 180.00
Botafogo 1.2% R$ 110.00 - R$ 150.00
Flamengo 0.9% R$ 90.00 - R$ 130.00
Barra da Tijuca 6.4% R$ 80.00 - R$ 115.00
South Zone 6.4% R$ 120.00 - R$ 180.00
Other 5.5% R$ 60.00 - R$ 90.00
Total Market 3.1% R$ 60.00 - R$ 180.00
25. 25
Appendix: São Paulo Industrial Market
Total Stock
Source: CBRE 3Q10 Market View Report
Submarkets Vacancy Rate
Asking Lease Rate
Range (Class A)
(%) (R$/ sq m/ month)
ABCD * 0.0% R$ 12.00 - R$ 18.00
Atibaia * 24.4% R$ 18.00 - R$ 20.00
Barueri 8.5% R$ 21.00 - R$ 25.00
Cajamar * 3.1% R$ 17.00 - R$ 20.00
Cotia/ Embu * 0.0% R$ 18.00 - R$ 22.00
Greater Campinas 3.7% R$ 15.00 - R$ 25.00
Guarulhos * 2.2% R$ 18.00 - R$ 24.00
Jundiaí * 10.9% R$ 13.00 - R$ 18.00
São Paulo 1.6% R$ 18.00 - R$ 25.00
Sorocaba * 43.0% R$ 16.00 - R$ 20.00
Vale do Paraíba * 13.2% R$ 14.00 - R$ 17.00
Total Market 6.3% R$ 12.00 - R$ 25.00
* The eight submarkets that comprised the "Others" region
in previous reports
Greater
Campinas
33%
São Paulo
11%Barueri
11%
Cajamar
10%
Jundiaí
10%
Cotia/ Embu
7%
Vale do
Paraíba
6%
Guarulhos
3%
ABCD
3%
Atibaia
3%
Sorocaba
3%
