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.
2
3. Company Overview
The largest and most complete commercial properties company in Brazil
Company Description Illustrated Portfolio – Recent Acquisitions
► Largest public commercial properties company in Brazil
► A GP sponsored company, BR Properties was founded in Dec/06
by an experienced team of executives, aiming at acquiring, Manchete Building
managing, developing and leasing high quality commercial 26,439 sqm
properties in Brazil Acquisition: Jun/10
► Company’s portfolio currently holds 61 properties, with
approximately 1 million sqm of GLA and estimated market value of
R$ 2.98 billion
► Experienced in-house teams: acquisitions, financing, legal and
engineering
DP Louveira 8 & 9
88,643 sqm
► Market recognition: proven ability to source deals and execute Acquisition: Jun/10
transactions makes BR Properties the partner of choice for co-
development and built-to-suit operations
► 4 greenfield projects, with approximately 150.4 thousand sq m
of gross leasable area (GLA)
RB 115
11,344 sqm
3
4. Portfolio Overview
A top-notch portfolio comprised of office buildings and warehouses, located in the most dynamic
regions of Brazil
Market Value of the Portfolio¹ (R$ mm) GLA Breakdown by Type of Property¹ sq m
# of Properties
36 24 1 61
730.148 7.184 993.143
1,311 22
22 2,988
2.988
1.311
1,655
1.655
255.810
Office
Escritórios Warehouse
Galpões Redevelopment
Redesenvolvimento Total Escritórios
Office Galpões
Warehouse Redesenvolvimento
Redevelopment Total
Main Tenants Tenant Base Breakdown by Industry
► 150 tenants
Other Storaging
Telecom Consumer
Goods
Tecnology
Credit Cards
Media Construction
Consulting
Publishing
Education
Energy
Pharma
Logistics
Industrial
Government Financial Inst.
Note:
1 As of June, 2010 BR Properties tenant base entails some of the best known Companies
4
in the country, spanning wide industry diversification
5. Investment Case
A unique vehicle, exposed exclusively to Brazilian commercial real estate, extremely well
positioned to benefit from the bullish fundamentals of the sector in Brazil
Favorable
Macro-Economic
Scenario
World-Class
1
Sponsorship Attractive Sector
and Tier 1 Dynamics
5 2
Management Team
4 3
Broad Growth Potential:
Natural Industry Unique Business Model
Consolidator
5
6. 1 Favorable Macro-Economic Conditions 1Q10
Growing industrial production and GDP, declining unemployment rates and single-digit interest
rates are fueling sectors exposed to domestic market
Real GDP Growth (%) Unemployment Rate (%)¹
► Pent-up demand for commercial properties ► Emerging middle class
12.4%
6.3% 11.9%
5.7% 5.7% 11.0%
5.1% 9.7% 9.7%
4.5% 8.7%
4.0% 7.9%
3.2%
2.7% 6.5%
6.8%
1.3% 1.1%
-0.2%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Industrial Production Growth (%)¹ NTN-B (% aa.) - July 15th 2010
► Increasing demand for industrial and distribution space ► Lower interest Rates
► Increased credit availability
12%
10.5%
6.2% 11%
3.8% 3.8%
10%
9%
-5.5% 8%
7%
6.2%
6%
-17.7%
5%
2005 2006 2007 2008 2009 2010E
4%
Source: Brazilian Central Bank
Note: Aug-06 Feb-07 Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10
1 Adjusted Seasonally
6
7. 1 Favorable Macro-Economic Conditions 1Q10
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
Effects of the Nominal Expected Positive Effects of the Growth
Interest Rate Increase of Inflation Indexes
(SELIC vs. TR) (TR vs. IPCA vs. BRPR Inflation basket)
14,0% 9,0% BRPR Basket of lease contract
inf lation readjustment indices
12,0% 12,00% 8,0% TR 7,95%
7,0%
10,0% IPCA (CPI)
8,75%
6,0%
8,0% 5,47%
Forecast SELIC 5,0% 4,31%
6,0% TR 4,0%
3,0%
4,0%
2,0%
2,0% 0,82% 0,97%
0,82% 0,97% 1,0%
0,0% 0,0% 0,00%
2009 2010e 2009 2010e
Source: Santander research
7
8. 2 Attractive Sector Dynamics
Low vacancy combined with steady demand and short supply in the near term allow for solid
growth potential in the commercial properties sector
São Paulo Rio de Janeiro
Rental Rate (R$/sq m/month) Vacancy Rate (%) Rental Rate (R$/sq m/month) Vacancy Rate (%)
120 20 12
150
95 123
16
120
90
8
12 90
60
8 60
5.9 4 3.7
30
4 30
0 0 0 0
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
New Offerings (‘000 sq m) Gross Absorption (‘000 sq m) New Offerings (‘000 sq m) Gross Absorption (‘000 sq m)
800 150 240
250
200
200 600
100 160
150
400 120
100
50 80
200 148
50 43 20 40 27
0 0 0 0
2005 2006 2007 2008 2009 1Q10 2005 2006 2007 2008 2009 1Q10 2005 2006 2007 2008 2009 1Q10 2005 2006 2007 2008 2009 1Q10
Source: CBRE
8
9. 3 Unique Business Model
BR Properties benefits from its strong expertise to add value throughout the whole Real Estate
investment chain…
Value Creation
Pro-active Lease / Property
Deal Sourcing Management
Selective
Retrofit
Developments
Conservative
Divestment
Use of Leverage
9
10. 3 2010 Gross Leasable Area Evolution
Out of 8 acquisitions finalized in 2010, 5 were concluded only three months after IPO
► GLA Acquired: 392,121 sqm ►► 2010 GLA Growth: 62% ano: 62%
Crescimento do ABL no
► Acquisitions’ market value: R$1,304 mm ►► Amountinvestido após IPO: R$ 873.8 mm
Valor invested after 873,8
► Amount invested: R$ 1,196 mm
► Concluded Acquisitions: 8
► Concluded Disinvestments: 3
993,143 sqm
IPO 260.0 1,196.2
1.196,2
157.0
157,0
94.1
94,1
182.7
182,7
613,645 sqm
180.0
180,0
151.2
151,2
101.2
101,2
69.8
69,8
DP Araucária BBP TNU Jacarandá DP Louveira RB 115 DP Louveira Manchete Total
Build. 3,4,5,6 8,9 Build.
Dec/09 Mar/10 Jun/10 Jul/10
10
11. 3 Unique Business Model: Successful Cases
Sale Value Addition
Ed. Generali Henrique Schaumann
Acquisition Value R$ 16.6 mm Acquisition Value R$ 41.0 mm
Acquisition Date Aug/07 Acquisition Date Nov/07
Sale Value R$ 21.5 mm Re-tenanting R$ 6.5 mm / year (42%
increase on rental income)
Sale Date Jan/10
Retrofit Elevators/ Façade/Parking
Holding Period 29 months
IRR 36% 2009 Appraised Value R$ 78.0 mm
ROE*: 147% 90,0 45,00
38.10
80,0 40,00
70,0 35,00
26.97
30,00
60,0
25,00
50,0
21.5 78.0 20,00
40,0
15,00
16.6 30,0 10,00
41.0
20,0 5,00
10,0 -
Acquisiton Value Sale Value At Acquisition Current
* Before taxes Property Value
Lease/sq m
Note:
1 CBRE’s independent appraisal, as of December 31st, 2009
11
12. 4 Broad Growth Potential: Natural Industry Consolidator
Ample market fragmentation and lack of professional competitors creates a unique environment
for market consolidators
Fragmented Industry (in terms of GLA – sq m) Stages of Our Acquisition Pipeline Jun/10 (R$ mm)
Addressable Market: 36.3 mm sq m
Current Portfolio R$2,988 Total Acquisition Pipeline R$3,543
Non – Organized
Market
92% 3.543
2.390
2.114
1.476
1.429
1.153
914
Organized 638
515
Companies
8%
In Negotiation Under Analysis Total Pipeline
Office Industrial Retail Total
Br Properties
22%
10 Organized
Companies
78%
12
13. 5 Management Team Biography
BR Properties is managed by a team of seasoned professionals, highly motivated and fully aligned
with stockholders through long term stock options plans
Mr. Bruni’s whole career was dedicated to real estate development and management. From 1979 to 1989, Mr. Bruni worked for
Claudio Bruni
Multiplan, Brazil’s largest real estate developer, where he was in charge of market research, construction management, commercial
CEO 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
Mr. Jaco started his career in Andrade Gutierrez and Metodo Engenharia and joined CB Richard Ellis in 1996 with the objective of
Martin Jaco
developing the investment consultancy operations of the company in Brazil. Mr. Jaco had direct responsibility and involvement in all
CIO 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
Mr. Cordeiro was in charge of construction and project management at Schahin Cury and Metodo Engenharia (general contractors)
Marco Antônio
Cordeiro 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
COO assisted pension funds in over US$350 million of real estate transactions in the last 2 years.
Marco Cordeiro is a civil engineer, with a graduate degree from the Polytechnic School of Engineering at the University of São
Paulo and specialization at the Business School of Fundação Getúlio Vargas. Industry Experience: 30 Years
Mr. Daltro started his career in Banco Marka as a Corporate Finance Manager and a Deputy Director. Later, he worked as a VP in
Pedro Daltro
the Credit Risk Management department of Citigroup and Treasurer and Financial Manager in Gafisa, the second largest real estate
CFO developer in Brazil. After Gafisa, he went back to Citigroup as Director of the Public Sector, Infrastructure and Real Estate division.
Pedro Daltro has a bachelor´s degree in Business Administration from Unifacs, Brazil, and MBA from the Owen Graduate School of
Management, Vanderbilt University, U.S. Industry Experience: 16 Years
13
14. Financial Highlights 1Q10
Net Revenues 1Q10 (R$ mm) EBITDA (R$ mm) and EBITDA Margin (%)
85% 88%
85%
46.753
52.874
35.479
41.600
27.281
23.210
1Q09 1Q10 1Q10 Pro Forma 1Q09 1Q10 1Q10 Pro Forma
14
15. Solid Balance Sheet
Net Debt 1Q10 (R$ mm) Debt Profile 1Q10 (Index)
4.8%
5.1%
637 TR
698
788 IGPM
CDI
58
92 90
Short Term Obligations Long Term Total Debt Cash & Net Debt
Debt for Debt Equivalents 90.1%
Acquisitions
Debt Amortization Schedule 1Q10 (R$ mm)
221.818
77.812 72.846 81.006
63.496 56.650
42.008 48.312 37.904
24.025
2.738 1.027
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
15
16. Strategy Going Forward
► Deployment of the offering proceeds (R$726 million) over the next 9 to 12 months
► 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
16
