2. BRProperties
1
2Q10
BRPR3
INDEX
Page
2Q10 Highlights 2
Management Report 3
Recent Acquisitions 4
RB 115 Building
DP Louveira 8 & 9
Manchete Building
Tables 6
Financial Highlights
Operating Highlights
Stock Performance
Management Comments of 2Q10 Results 7
Gross Revenues 7
Net Revenues 8
Depreciation 8
SG&A 8
Vacancy Expenses 9
Net Financial Expense 9
Net Income 9
Adjusted EBITDA 10
FFO (Funds from Operations) 10
Gross Debt and Available Cash 11
Operating Indicators 13
Property Management 13
Portfolio Vacancy 14
Property Leasing 15
Acquisition Schedule 17
Acquisition CAPEX Schedule Post IPO
Post IPO Acquisition
Portfolio Area Growth
Development Projects 18
Estimated Development CAPEX Schedule 18
- Cidade Jardim Building 18
- PP II Building 19
- Souza Aranha Building 19
- Tech Park SJC 19
Our Portfolio 20
Glossary 21
Income Statement 22
Balance Sheet 23
Cash Flow Statement 24
Section
3. BRProperties
2
2Q10
BRPR3
BR PROPERTIES ANNOUNCES R$ 872 MILLION IN ACQUISITIONS
IN 2Q10 (60% OF THE POST-IPO ACQUISITION GOAL)
São Paulo, August 11th
, 2010 – BR Properties S.A. (Bovespa: BRPR3), one of Brazil´s largest real
estate investment companies, announces today its Earnings Release of the second quarter of 2010
(2Q10). Currently, BR Properties holds 61 commercial properties, which total 993.143 sq m of Gross
Leasable Area (GLA), and also 4 development projects of which, once finalized, will add 150.473 sq m of
GLA to our portfolio. The Company also manages properties of its portfolio through the subsidiary BRPR
A.
The following financial and operational information will be presented in R$, except where it is indicated,
and follow the same standards put forth by the Corporations Law (Lei das S/A) and the Comissão de
Valores Mobiliários (CVM).
Contacts
Pedro Daltro
CFO and IR Officer
Leonardo Fernandes
IR Manager
Marcos Oliveira
IR Analyst
ri@brpr.com.br
t: +55 11 3201-1000
f: +55 11 3201-1001
Stock (08/11/2010)
Ticker: BRPR3
Stock price: R$13.70
# of shares: 139,391,381
Market Value:
R$ 1,909.7 million
US$ 1,078.9 million
Corporate Governance
Highlights of 2Q10 and Recent Events
2Q10 Gross Revenues of R$ 49.2 million, a 39% increase compared
to 2Q09. Estimated pro-forma gross revenues of R$58.6 million in
2Q10 and R$ 121.1 million in 6M10
Adjusted EBITDA of R$ 38.2 million at the end of 2Q10, an increase
of 43% over 2Q09 and an adjusted EBITDA margin of 85%. In 2Q10
and 6M10, we estimated an pro-forma adjusted EBITDA of R$ 46.5
million and R$ 97.9 million, with an 87% and 88% margin,
respectively
At the end of 2Q10, Net Income totaled R$19.3 million, an increase of
83% over 2Q09.
Consolidated FFO in 2Q10 totaled R$ 25.6 million, with an FFO
margin of 57%
We have reached 60% of the acquisition goal proposed in the capital
budget in just 4 months after the Company’s IPO. During the period,
we acquired the following properties: CBOP – Ed. Jacarandá, DP
Louveira 3, 4, 5, 6, 8 & 9, RB 115 and Ed. Manchete for a total
investment value of R$ 872 million
During 2Q10, we raised approximately R$ 168 million in real estate
financing linked to TR with an average term of 120 months,
consolidating the strategy of utilizing real estate financing. This type
of credit represents 92% of the total Company debt, and protects us
in the higher interest rate scenario
4. BRProperties
3
2Q10
BRPR3
MANAGEMENT REPORT
The financial and operating results observed in the 2nd
quarter of 2010 demonstrate our ability to
maintain our rapid portfolio growth through acquisitions, and how our constant search for excellence has
positively influenced our results and margins.
At the end of the period, we have completed 60% of the acquisition goal stipulated in our capital budget,
by acquiring properties with a total investment value of R$ 872 million, and approximately 265 thousand
sq m of gross leasable area (GLA). It is important to state that these acquisitions were completed in just
4 months after the Company’s IPO. During the quarter, we acquired the following properties: CBOP –
Ed. Jacarandá, DP Louveira 3, 4, 5, 6, 8 & 9, RB 115 and Edifício Manchete. It is also worth mentioning
that BR Properties uses its own contacts and seasoned investment team to seek out unique investment
opportunities.
Our gross revenues grew by 39% in 2Q10, when compared to the same period of 2009. By utilizing an
estimated pro-forma revenue, in which we assume that all properties had been generating revenues in
our portfolio since the beginning of the respective periods, we reached an estimate of R$ 58.0 million in
2Q10 and R$ 121.1 million in 6M10. These estimates would represent a 63% and 84% growth when
compared to the result in 2Q09 and 6M09, respectively, demonstrating the Company’s strong revenue
growth potential.
We also experienced significant growth in our adjusted EBITDA, and adjusted EBITDA margin. Our
adjusted EBITDA totaled R$ 38.2 million at the end of 2Q10, a 43% increase over 2Q09 and an adjusted
EBITDA margin of 85%. Our adjusted pro-forma EBITDA estimates were of R$ 46.5 million in 2Q10 and
R$ 97.9 million in 6M10, with 87% and 88% margins, respectively, the highest in the industry.
The acquisitions made during 2Q10 were in accordance with our strategy to acquire properties of
exceptional quality, leased to large tenants and located in the main economic regions of Brasil.
Properties such as RB 115, Ed. Jacarandá, TNU and Ed. Manchete, acquired during their final stages of
delivery or retrofit, are already in advanced tenanting processes, and due to their unique locations and
the favorable market dynamic, should be fully leased by year end 2010, with the exception of Ed.
Manchete of which delivery is expected in 3Q11.
Since the end of the information “black-out” period imposed by the 30 day stabilization after our IPO, we
have actively exercised our policy to maintain constant communication with not only our shareholders,
but also other members of the investment community in our sector through the attendance of non-deal
roadshows and conferences, hosted by the main financial institutions, and interviews and online chats
with the main Brazilian brokerage firms. We believe that, by participating in these events, we will
generate more demand for our shares and consequently greater liquidity for our shareholders.
We reinforce our belief in the solid outlook for the Company and the commercial real estate market in the
2nd
semester, by maintaining our current acquisition pace.
5. BRProperties
4
2Q10
BRPR3
RECENT ACQUISITIONS
RB 115
O June 2nd
, we acquired the RB 115 building, a
commercial office building located in the Downtown
region of Rio de Janeiro, close to the Santos Dumont
airport and the main business districts.
The region in which the property is located has reached
the highest lease rates in the city, – according to real
estate consulting firm Jones Lang LaSalle, the current
lease per sq m varies between R$ 90 and R$ 100 –
mainly due to the availability of mass transportation,
complete service infrastructure and the extremely low
supply of new stock coming in to the region.
The RB 115 building holds 11,345 sq m of gross
leasable area (GLA), high technical specifications, and
is currently undergoing a retrofit process with expected
delivery in October of 2010. The building, which will be
delivered in October of 2010, is currently under pre-
leasing.
DP Louveira 8 & 9
On June 17th
, we acquired 2 new warehouses used for
logistics operations: DP Louveira 8 & 9. The distribution
park is located in the city of Louveira, an important
industrial region in São Paulo state, where BR
Properties owns six other logistics warehouses. DP
Louveira 8 & 9 was acquired from the property portfolio
managed by Hines do Brasil.
The properties hold a total of 88,643 sq m of gross
leasable area (GLA), of which 80,888 sq m in DP
Louveira 8 and 7,755 sq m in DP Louveira 9. Currently,
DP Louveira 8 is fully leased to Ceva Logistica, a well
known logistics and distribution company, which will
provide us with immediate rental revenues from the
property. Delivered at the end of 2009, DP Louveira 9 is
currently under lease-up efforts. Considering this
acquisition, BR Properties currently holds 339,548 sq m
in GLA in the Louveira region, consolidating its
presence in one of the main logistics region in the
country.
According to CB Richard Ellis estimates, presented in
their quarterly industrial market report, the current lease
rates for the region where the properties are located are
between R$ 16.00 and R$ 18.00/ sq m per month.
Type: Office
Location: Rio de Janeiro/RJ
GLA: 11.345 sq m
% Owned: 90%
CAPEX: R$ 94,1 mm
Type: Warehouse
Location: Louveira/SP
GLA: 88.643 sq m
% Owned: 100%
CAPEX: R$ 157 mm
6. BRProperties
5
2Q10
BRPR3
Ed. Manchete
On June 30th, we acquired the Manchete Building and
assumed the execution of its complete retrofit, along
with the construction of a parking building with capacity
for 320 vehicles, which will provide more comfort and
convenience to its tenants and neighborhood. The
execution of the retrofit projects will preserve the
original conception of Oscar Niemeyer – author of the
Building’s project
The Manchete Building, which holds an excess of
26,500 sq m of gross leasable area (GLA), also offers
an auditorium, along with corporate rooms for meetings
and events. At the end of the retrofit process, the
Building can be leased by either a sole large company
or by multiple tenants, thanks to its flexible internal
area.
The property is located in front of Flamengo Beach, with
easy access to downtown and Santos Dumont Airport.
According to the latest market report released by the
real estate consulting firm CB Richard Ellis, – Market
View Rio de Janeiro Office 1Q 2010 – the rental prices
for offices in the Downtown, Flamengo, and Botafogo
areas range from R$ 90 to R$ 150 per sqm.
Type: Office
Location: Rio de Janeiro/RJ
GLA: 26.439 sq m
% Owned: 100%
CAPEX*: R$ 260 mm
* includes retrofit costs
7. BRProperties
6
2Q10
BRPR3
FINANCIAL AND OPERATING HIGHLIGHTS
PORTFOLIO BREAKDOWN
Portfolio Value Gross Leasable Area
Financial Highlights 2Q10 2Q09 var % 6M10 6M09 var %
2Q10
pro-forma*
6M10
pro-forma*
Net Revenues 44.889 31.989 40% 86.489 59.270 46% 53.223 110.701
General and Administrative Expenses (8.036) (6.305) 27% (15.546) (10.376) 50% (8.036) (15.546)
Adjusted EBITDA 38.202 26.735 43% 73.639 50.995 44% 46.536 97.851
Adjusted EBITDA Margin 85% 84% 2% 85% 86% -1% 87% 88%
Net Income 19.305 10.537 83% 31.064 17.553 77% - -
Net Margin 43% 33% 31% 36% 30% 21% - -
FFO 25.550 14.649 74% 42.187 25.786 64% - -
FFO Margin 57% 46% 24% 49% 44% 12% - -
* non-audited
Operating Highlights 2Q10 2Q09 var % 6M10 6M09 var %
GLA Current Portfolio (sq m) 993.143 424.573 133,9% 993.143 424.573 133,9%
- Office (sq m) 255.810 178.327 43,5% 255.810 178.327 43,5%
- Warehouse (sq m) 730.148 239.062 205,4% 730.148 239.062 205,4%
- Other (sq m) 7.184 7.184 0,0% 7.184 7.184 0,0%
GLA Properties Under Development 150.473 150.473 0,0% 150.473 150.473 0,0%
- Office (sq m) 25.473 25.473 0,0% 25.473 25.473 0,0%
- Warehouse (sq m) 125.000 125.000 0,0% 125.000 125.000 0,0%
Financial Vacancy 10,4% 3,0% 249,2% 10,4% 3,0% 249,2%
Financial Vacancy (Stabilized portfolio) 3,0% 3,0% 2,4% 3,0% 3,0% 2,4%
Physical Vacancy 6,6% 2,5% 164,1% 6,6% 2,5% 164,1%
Physical Vacancy (Stabilized portfolio) 3,7% 2,5% 48,8% 3,7% 2,5% 48,8%
Same Property Rent / sq m - Office R$ 43,57 R$ 40,12 8,6% R$ 43,57 R$ 40,12 8,6%
Same Property Rent / sq m - Warehouse R$ 15,95 R$ 14,02 13,7% R$ 15,95 R$ 14,02 13,7%
Leasing Spread (Renegotiations) - Office 12,7% 0,4% 3322,2% 12,6% 4,4% 187,0%
Leasing Spread (Renegotiations) - Warehouse 10,6% 5,3% 101,8% 6,6% 5,3% 26,1%
Leasing Spread (New Leases) - Office 13,8% 2,5% 455,3% 9,0% 3,4% 162,7%
Leasing Spread (New Leases) - Warehouse 14,0% -8,8% n/a 13,2% -8,8% n/a
Stock Performance (BRPR3) 2Q10 2Q09 var % 6M10 6M09 var %
Total Number of Shares * 139.391.381 60.258.675 131,3% 139.391.381 60.258.675 131,3%
Shares Outstanding 105.840.497 n/a n/a 105.840.497 n/a n/a
Free Float (%) 75,9% n/a n/a 75,9% n/a n/a
Stock Price (average for the period) 12,17 n/a n/a 12,35 n/a n/a
Stock Price (end of period) 12,85 n/a n/a 12,85 n/a n/a
Market Cap end of period (R$ million) 1.791 n/a n/a 1.791 n/a n/a
Average Daily Trading Volume (R$ million) 3,34 n/a n/a 4,84 n/a n/a
Average Daily Traded Shares 276.203 n/a n/a 389.503 n/a n/a
Average Daily negotiations 89 n/a n/a 131 n/a n/a
* Company began trading its shares on the Bovespa in March of 2010
54%
42%
1% 3%
Office Industrial Other Development
26%
74%
1%
Office Industrial Other
8. BRProperties
7
2Q10
BRPR3
MANAGEMENT COMMENTS OF 2Q10 RESULTS
With the objective of reflecting the real revenues the properties acquired during 2Q10 would have had on
our financial statements, we estimated, up to the level of adjusted EBITDA, the outcome of the revenues
of those properties assuming they had been in our portfolio since January 1st
– pro-forma. The chart
below describes the revenue gains achieved if those properties had been in the portfolio since the
beginning of the year. It is important to state that such results were estimated by the Company,
therefore, they were not reviewed nor audited by our independent auditors.
Gross Revenues
Our Gross Revenues reached R$ 49.2 million at
the end of 2Q10, which resulted in an increase of
R$ 13.7 million, or 39%, compared to the end of
2Q09, when our gross revenues were R$ 35.5
million. The significant increase occurred mainly
from addition of new properties in our portfolio.
Gross Revenues Breakdown:
41.0%, or R$ 20.2 million resulted from
leasing revenues from offices
54.2% or R$ 26.7 million resulted from leasing
revenues from warehouses
3.0% or R$ 1.5 million resulted from
properties sale revenues
1.8% or R$ 0.9 million resulted from property
management revenues.
At the end of 2Q10 and 6M10, our pro-forma gross
revenues reached R$ 58.0 million and R$ 121,1
million, respectively.
Gross Revenue Growth (R$ thousand)
Additional Pro-forma Gross Revenues 2Q10 (R$ thousand)
Additional Pro-forma Gross Revenues 6M10 (R$ thousand)
35.491
49.237 57.987 65.929
95.435
121.111
2Q09 2Q10 2Q10 Pro Forma 6M09 6M10 6M10 Pro Forma
39%
18%
63%
84%
27%
45%
49.237
57.987
726
-
675
2.381
1.383
3.585
2Q10 Actual BBP DP
Araucária
TNU Ed.
Jacarandá
Louveira
3-6
Louveira
8-9
2Q10
Pro-forma
95.435
121.111
3.588 500
2.645
4.761
6.479
7.703
6M10
Actual
BBP DP
Araucária
TNU Ed.
Jacarandá
Louveira
3-6
Louveira
8-9
6M10
Pro-forma
9. BRProperties
8
2Q10
BRPR3
Net Revenues
Our Net Revenues reached R$ 44.9 million, an
increment of R$ 12.9 million, or 40%, compared to
the end of 2Q09, when our net revenues totaled
R$ 32.0 million.
At the end of 2Q10 and 6M10, our pro-forma net
revenues totaled R$53.2 million and R$ 110,7
million, respectively.
Net Revenue Growth (R$ thousand)
Depreciation
Our depreciation expenses totaled R$ 6.2 million
at the end of 2Q10, an increase of R$ 2.1 million,
or 52%, compared to 2Q09, which totaled R$ 4.1
million. The increase of our depreciation resulted
mainly from the addition of new properties to our
portfolio.
Depreciation (R$ thousand)
General and Administrative Expenses (ex-vacancy)
In 2Q10, our general and administrative expenses,
excluding vacancy expenses, totaled R$ 6.0
million, while in 2Q09, these expenses totaled R$
5.5 million, an increase of 8%.
During 6M10, the increase in expenses is mainly
explained by the increase in employee bonus
provisions and personnel expenses, due to the
allocation of employees that manage the
condominiums of the properties in our portfolio to
our subsidiary BRPR A. Prior to that, such
employees had their salaries allocated directly to
the properties which they managed. It is worth
mentioning that those expenses with personnel will
be refunded by the condominiums, and will have
no net effect on the Company’s net income.
G&A Expenses (R$ thousand)
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%
4.112
6.245
8.233
11.123
2Q09 2Q10 6M09 6M10
52%
35%
5.548 6.015
9.486
12.228
2Q09 2Q10 6M09 6M10
8%
29%
Expenses (ex-vacancy) 2Q10 2Q09 var % 6M10 6M09 var %
General and Administrative (6.015) (5.548) 8% (12.228) (9.486) 29%
Personnel (3.748) (3.446) 9% (7.938) (5.202) 53%
Administrative (1.557) (873) 78% (2.927) (3.030) -3%
Comercial (710) (1.229) -42% (1.363) (1.254) 9%
10. BRProperties
9
2Q10
BRPR3
Vacancy Expenses
Our vacancy expenses result from the obligation
imposed to the property’s owner of paying the pro-
rata expenses, such as administration fees, taxes,
insurance, among other property expenses, in
case there are vacant areas in the property.
In 2Q10, we had vacancy expenses of R$ 2.0
million, while in 2Q09, these expenses totaled R$
0.8 million, an increase of R$ 1.2 million.
The result is explained mainly by the acquisition of
two properties with high vacancy rates, and vacant
areas of properties already in our portfolio:
(i) Torre Nações Unidas – currently under retrofit,
is currently 55% leased; (ii) CBOP – delivered at
the beginning of 2010, is currently 50% leased;
and (iii) Panamérica Park – 100% leased at the
end of 2Q09, had 41% of its GLA vacant during
2Q10.
Vacancy Expenses (R$ thousand)
Net Financial Expense
In 2Q10, we had net financial expenses of R$ 10.8
million, which corresponds to an increase of 4% in
relation to 2Q09, in which our net financial
expense totaled R$ 10.5 million.
This small increase is explained mainly by the
increase in our financial income, derived from the
high cash reserves held during the period, which
were attained through the equity raising in March
of 2010. During the period, we took in new debt
related to the acquisition of the properties DP
Araucária, Ouvidor 107 and DP Louveira 3, 4, 5 &
6.
Net Financial Expense (R$ thousand)
Net Income
Our net income for 2Q10 was R$ 19.3 million, a
83% increase in comparison with 2Q09, when our
net income totaled R$ 10.5 million.
Net Income Growth (R$ thousand)
757
2.021
890
3.318
2Q09 2Q10 6M09 6M10
167%
273%
(10.462) (10.842)
(21.767)
(25.221)
2Q09 2Q10 6M09 6M10
4%
16%
10.537
19.305 17.553
31.064
2Q09 2Q10 6M09 6M10
83%
77%
11. BRProperties
10
2Q10
BRPR3
Adjusted EBITDA
Our adjusted EBITDA grew by 43% in the period, from R$ 26.7 million in 2Q09 to R$ 38.2 million in
2Q10. Our adjusted EBITDA margin for 2Q10 was 85%.
The adjustments made to EBITDA were: (i) adding back R$ 0.2 million from non-cash expenses
regarding the Company stock option plan; and (ii) adding back R$ 1.2 million in employee bonus
provisions.
Our pro-forma adjusted EBITDA totaled R$ 46.5 million, an increase of 22% in relation to 2Q10 adjusted
EBITDA. In order to estimate the adjusted EBITDA pro-forma, we assumed that the 2Q10 G&A
expenses would remain the same, given the fact that we would not incur further operating expenses with
the addition of the properties in our portfolio.
Our 2Q10 adjusted EBITDA pro-forma margin was 87%, 2% above the margin obtained in the period. It
is our understanding that the gains of scale obtained from the new acquisitions executed throughout the
year will allow the adjusted EBITDA margin to continue on its upward trend.
Adjusted EBITDA Growth
FFO
Our FFO for 2Q10 totaled R$ 25.5 million, which
corresponds to an increase of 74% in relation to
2Q09, in which our FFO was R$ 14.6 million.
FFO Growth
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%
14.649
25.550 25.786
42.187
2Q09 2Q10 6M09 6M10
74%
64%
12. BRProperties
11
2Q10
BRPR3
Gross Debt and Available Cash
Our gross debt, represented by loans and financing realized for the acquisition of our properties totaled
R$ 896.2 million at the end of 2Q10, an increase of R$ 166.6 million compared to the end of 1Q10. In the
same period, our net debt was increased by approximately R$ 468.3 million, mainly due to the cash used
for the acquisition of new properties, and from the new financing raised, related to the acquisitions
completed throughout 2010.
The change in our gross debt is explained mainly by the take in of new debt for the acquisition of the DP
Araucária, Ouvidor 107 and DP Louveira 3-6 properties.
Debt Amortization Schedule
Cash and Cash Equivalents
Our available cash resources totaled R$ 396.4 million at the end of the quarter, a decrease of R$ 301.7
million when compared to 1Q10. Our conservative stance in regards to our cash resources, along with
restrictions imposed by our short-term investment policy approved by our Board of Directors, makes it so
that we invest our cash resources exclusively in bank notes from top quality financial institutions. At the
end of 2Q10, the average yield on our short-term investments was 100.7% of CDI, the Brazilian inter-
bank loan rate.
Net Debt 2Q10 1Q10
Cash and Cash Equivalents 396.393 698.054
Loans and Financing 896.204 729.644
Payables for Acquisition of Real Estate 58.621 58.498
Net Debt 558.432 90.087
Net Debt / Annualized Adjusted EBITDA 3,7x 0,6x
Adjusted EBITDA / Net Financial Income 3,5x 2,5x
Duration (years) 5,5 5,3
Gross Debt Breakdown 2Q10
Gross Debt on 03/31/2010 729.644
New debt for the acquisition of DP Araucária 40.127
New debt for the acquisition of Ouvidor 107 20.000
New debt for the acquisition of DP Louveira 3, 4, 5, 6 109.075
Amortization in the period (2.641)
Gross Debt on 06/30/2010 896.204
41.886
59.665
75.989 70.399
93.016 89.560
99.408
242.290
59.921
48.411
14.632
1.027
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Cash and Cash Equivalents 2Q10 1Q10
Cash and Cash Equivalents 396.393 698.054
Average yield on short-term investments (% CDI) 100,7% 100,5%
13. BRProperties
12
2Q10
BRPR3
Loans and Financing
It is our strategy to take in new debt exclusively for
the acquisition of properties, preferably financing
them individually. Given the high levels of
operating cash generated in our business, we do
not utilize debt to finance our working capital
needs. Approximately 92% of our debt is linked to
the Referential Rate – TR. We believe that this
financing structure allows us to finance our
acquisitions competitively when compared to other
financing sources available in the market.
Debt Index Breakdown
92%
4%4%
TR
IGPM
CDI
Property Acquisition Financing Institution Index Cupon Term Maturity 06/30/2010 03/31/2010
Icomap Itaú BBA/ Unibanco IGPM 8,84% 120 months 16/04/17 11.129 11.108
Itapevi Itaú BBA/ Unibanco TR 9,90% 120 months 17/08/17 30.129 30.610
Piraporinha Itaú BBA/ Unibanco TR 9,90% 120 months 17/08/17 11.588 11.773
Jundiaí Itaú BBA/ Unibanco TR 9,90% 120 months 17/08/17 46.005 46.739
Alphaville Itaú BBA/ Unibanco TR 9,90% 120 months 17/08/17 20.279 20.603
Panamérica Park Itaú BBA/ Unibanco TR 9,90% 120 months 25/05/17 41.822 42.170
Plaza Centenário Itaú BBA/ Unibanco TR 9,90% 120 months 25/05/17 5.548 5.641
Henrique Schaumann Itaú BBA/ Unibanco TR 10,15% 120 months 17/10/17 29.784 29.938
Bolsa RJ Itaú BBA/ Unibanco TR 9,90% 120 months 17/08/17 11.990 12.224
Generali Itaú BBA/ Unibanco TR 9,90% 120 months 17/08/17 10.764 10.974
Glória Itaú BBA/ Unibanco TR 9,90% 120 months 17/07/17 22.921 23.150
Joaquim Floriano Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 9.293 9.355
Paulista Park Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 2.070 2.078
Paulista Plaza Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 7.972 8.005
Isabela Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 2.406 2.422
Olympic Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 4.200 4.218
Midas Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 3.031 3.051
Network Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 713 718
Number One Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 1.874 1.882
Berrini Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 1.149 1.157
Celebration Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 17.890 18.009
Athenas Itaú BBA/ Unibanco TR 10,15% 120 months 17/08/17 14.188 14.302
Raja Hills Brazilian Finance TR 10,00% 120 months 20/12/17 14.085 14.206
Ed. Comercial Indaiatuba Brazilian Finance TR 10,00% 120 months 20/12/17 26.491 26.717
Sylvio Fraga Brazilian Finance TR 10,00% 120 months 20/12/17 16.898 17.043
MV9 Brazilian Finance TR 10,00% 120 months 20/12/17 22.778 22.972
Galpão Industrial Paraná Brazilian Finance TR 10,00% 120 months 20/12/17 16.959 16.539
Jandira I & II Itaú BBA/ Unibanco CDI 1,28% 120 months 17/08/17 34.466 35.027
Ed. Vargas Itaú BBA/ Unibanco TR 10,15% 120 months 17/09/17 12.834 13.184
São Pedro Itaú BBA/ Unibanco TR 10,15% 120 months 17/09/17 10.515 10.643
São José & Santo Antônio Brazilian Finance IGPM 6,00% 120 months 17/01/18 26.288 25.954
Souza Aranha Itaú BBA/ Unibanco TR 10,15% 155 months 17/01/21 8.533 8.630
Cond. Ind. São José dos Campos Itaú BBA/ Unibanco TR 10,15% 120 months 17/01/18 26.851 27.500
Cond. Ind. Itapevi Itaú BBA/ Unibanco TR 10,15% 120 months 08/04/18 12.499 12.676
DP Louveira I & II Santander TR 10,50% 116 months 04/08/19 127.549 124.240
Galpão Ind. Sorocaba Itaú BBA/ Unibanco TR 10,15% 156 months 04/09/21 8.932 9.026
CD Castelo Bradesco TR 11,00% 99 months 27/02/18 38.259 39.012
Alexandre Dumas Santander TR 10,50% 120 months 05/03/20 15.934 16.149
DP Araucária Santander TR 10,50% 120 months 13/04/20 39.970 -
Ouvidor 107 Bradesco TR 10,50% 120 months 12/05/20 19.998 -
DP Louveira 3, 4, 5, 6 Santander TR 10,00% 120 months 13/06/20 109.618 -
Total 896.204 729.643
14. BRProperties
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2Q10
BRPR3
OPERATING INDICATORS
Property Management
We consider the pro-active stance we take on managing the properties in our portfolio as a vital part of
our operation. Through our wholly owned management subsidiary BRPR A, we focus on the property
value appreciation, reduction of our tenants’ common area costs, along with the alternative sources of
revenues such as parking lot fees. The reduction of common area costs is highly important, given that by
doing so, we are able to increase our rent revenues without increasing the total occupancy cost for the
tenant. Furthermore, the active management of our properties allows us to anticipate the maturity of the
property in terms of lease appreciation, allowing for a more precise analysis of the adequate holding
period for each property. Besides promoting structural improvements in our properties, we seek to
maintain a close relationship with all our tenants, in order to identify expansion needs and anticipating
tenant movements, thereby keeping financial vacancy rates low and increasing our revenue generating
potential with the existing tenants.
Managed Properties
There was an increase in the number of
properties managed by BR Properties.
Between 2Q09 and 2Q10, our
subsidiary BRPR A began managing
four new properties, increasing from 24
to 28 the number of managed properties
in our portfolio.
Common Area Costs (CAC)
During the period, there was a reduction in the average common area costs in our warehouse properties,
due to building management efficiencies and cost reduction strategy employed by the Company.
In regards to the managed office properties, there was an increase in the average common area costs
due to condominium employee salary readjustments, which is a benefit conceded through the unions.
Along with such increases, new stipulations in regards to the building fire brigades were imposed, which
also raised common area costs.
Common Area Costs Common Area Costs
Managed Warehouses (R$ / sq m) Managed Offices (R$ / sq m)
24
28
2Q09 2Q10
1,99
1,94
2Q09 2Q10
-3%
10,94
11,28
2Q09 2Q10
3%
15. BRProperties
14
2Q10
BRPR3
BRPR A Revenues
At the end of 2Q10, BRPR A’s
revenues totaled R$ 0.9 million,
approximately 1.8% of the
consolidated gross revenues obtained
by BR Properties. This represented an
increase of 63% in relation to the same
period of the previous year, where
BRPR A’s revenue was R$ 0.5 million.
BRPR A Revenue Growth (R$ thousand)
Portfolio Vacancy
When estimating the vacancy of our portfolio, we utilized two distinct metrics, the physical and financial
vacancy rates. Physical vacancy is estimated by dividing the total vacant area by the total GLA of the
portfolio. We believe that this metric does not accurately reflect the revenue loss generated by the
vacant areas in the portfolio, due to the fact that it does not reflect the potential rent per sqm for which
the vacant areas could be leased. The financial vacancy is utilized specifically to remedy such
distortions. By multiplying the average rent per sqm which could be charged in the buildings and their
respective vacant areas, and then dividing this result by the potential gross revenues of each property,
you calculate the percentage of potential revenue which is lost each month due to vacancy.
At the end of 2Q10, our financial vacancy was at 10.4%, an increase of 2% over 1Q10, mainly due to the
acquisition of properties with high vacancy rates. Portfolio vacancy does not take into account the vacant
areas of the RB 115 and Ed. Manchete buildings, as they are currently under retrofit, and therefore
cannot produce lease revenues.
Portfolio Vacancy
529
863 957
1.712
2T09 2T10 6M09 6M10
63%
79%
6,0%
6,6%
3,7%
8,3%
10,4%
3,0%
1Q10 2Q10 2Q10 Ex CBOP & TNU
Physical
Financial
16. BRProperties
15
2Q10
BRPR3
Current Vacancy Breakdown
2Q10
1Q10
At the end of 2Q10, the majority of our
financial vacancy was located in Torre Nações
Unidas and CBOP – Ed. Jacarandá, both of
them office buildings acquired in 2010. TNU is
currently under retrofit and modernization of
its installations, and is currently 50% leased.
CBOP – Ed. Jacarandá has not yet been
delivered by the developer, and is currently
under lease-up process of its vacant areas, at
the responsibility of the seller.
It is important to mention that the payment of
the remaining amount of the transaction value
is conditioned to the lease-up of at least 80%
of the building’s areas. We believe that, given
their technical specifications and privileged
locations, both properties will be fully leased
by the end of the year. If we exclude these
two properties, our portfolio vacancy would fall
considerably.
Property Leasing
We differentiate ourselves from the market in our ability to prospect and attract new tenants to the
properties in our portfolio, keeping our vacancy rates historically low. In order to do so, we established a
leasing department exclusively focused on keeping track of our lease contracts, which allows us to
anticipate vacancy trends within our portfolio and initiate re-tenanting efforts before our properties
become vacant.
Lease Contract Inflation Readjustment Indexes
4,1%
3,3%
1,0%
0,9%
0,6%
0,3%
0,2%0,1%
Castelo Branco Office
Park
TNU
Piraporinha
Cond.Ind.São José dos
Campos
DP Louveira 9
Raja Hills
Plaza Centenário
Vargas
4,2%
1,3%
1,0%
1,0%
0,3%
0,3%0,1%
TNU
Piraporinha
Panamérica Park
Cond.Ind.São José dos
Campos
Raja Hills
Plaza Centenário
Vargas
81%
15%
5%
1Q10
IGP-M
IPCA
Outros
76%
22%
2%
2Q10
17. BRProperties
16
2Q10
BRPR3
With the recent trend of appreciation of commercial property value, especially those located in the large
metropolitan regions of Brazil, along with the scarcity of properties with state of the art technical
specifications, we believe that having a large portion of our lease contracts expiring or becoming eligible
for market alignment in the next two years creates an opportunity to renegotiate such lease contracts
with real increases in lease values.
Lease Contract Expiration Schedule
Gross Revenues (%) Gross Leasable Area (%)
Lease Contract 3 Year Market Alignment Schedule
Gross Revenues (%) Gross Leasable Area (%)
1% 7%
9%
34%
51%
2010 2011 2012 2013 >2013
2% 5% 6%
37%
49%
2010 2011 2012 2013 >2013
20%
41%
24%
13%
1%
2010 2011 2012 2013 >2013
19%
47%
24%
9% 1%
2010 2011 2012 2013 >2013
18. BRProperties
17
2Q10
BRPR3
ACQUISITION SCHEDULE
We intend to take full advantage of the favorable market scenario, in order to quickly expand our
property portfolio. We believe that a significant portion of our future growth will come from our ability to
acquire new properties, consolidating our market share in the most attractive regions in Brazil. In order to
do so, we rely on an investment department, dedicated exclusively to the prospecting, analyzing and
acquiring of new properties, which allows us to focus primarily on identifying and evaluating of new
investment opportunities. There was no involvement of real estate brokers in 73% of the acquisitions
completed by the Company.
After the acquisitions announced in the 1st
quarter of 2010, along with the acquisition of the RB 115
building, Distribution Park Louveira 8 & 9 and the Manchete building, BR Properties has already invested
R$ 872 million, or 60%, of the total acquisition value outlined in the capital budget, and approved at the
Company’s General Shareholders Meeting held last April 23rd
. It is also important to mention that we are
currently 35% above the acquisition goal which was established for 2010, which demonstrates our ability
to execute deals and expand our portfolio under attractive conditions.
Acquisition CAPEX Schedule Post IPO Post IPO Acquisitions
(R$ million) (R$ million)
The chart below illustrates our portfolio growth in terms of GLA. With the recent acquisitions, including
those completed after the IPO, BR Properties has consolidated itself in the market as the largest
commercial property company in terms of GLA, with approximately 1,0 million sq m.
Portfolio Area Growth (GLA sq m)
872
mar/10 abr/10 mai/10 jun/10 jul/10 ago/10 set/10 out/10 nov/10 dez/10
Capital Budget
Actual
1.452
645
872
mar/10 abr/10 mai/10 jun/10 jul/10
Capital Budget
Actual
+35%
730.548
993.143
31.954
106.306 11.345
88.643
(2.091)
26.439
1Q10 Acquisition
Ed. Jacarandá
Acquisition
DP Louveira
3,4,5,6
Acquisition
RB 115
Acquisition
DP Louveira
8,9
Sale 50% Ed.
Souza Aranha
Acquisition
Ed. Manchete
2Q10
19. BRProperties
18
2Q10
BRPR3
DEVELOPMENT PROJECTS
Our portfolio currently holds four greenfield projects, of which three are commercial office buildings
located in the city of São Paulo and one is an industrial warehouse condominium located in the city of
São José dos Campos, in the state of São Paulo, which together will total approximately 150 thousand
sqm of GLA. BR Properties will invest a combined total of approximately R$ 22 million in these projects
by the end of 2010. BR Properties has co-investors in 50% of the following projects: Cidade Jardim,
Souza Aranha, and Panamérica Park II.
Estimated Development CAPEX Schedule
(R$ thousand)
Cidade Jardim building
The Cidade Jardim building, a AAA office project
has initiated construction, and its delivery is
scheduled for June of 2012. The property is
located in the corner of Cidade Jardim Avenue and
Mario Ferraz Street, on of the most valued
commercial regions in the city of São Paulo. The
region also has an extremely low forecast of new
supply of office space coming to the market, little
development land available, high lease rates per
sqm, high growth potential for property leases, and
strong demand for high quality office space.
41.961
256.608
3.700 8.666
67.202
59.135
25.315
25.315
25.315
Disbursed
up to 2009
6M10 2010(e) 2011(e) 2012(e) 2013(e) 2014(e) 2015(e) Total
Projects Type City / State Region
GLA
(sq m)
Forecast Rent
(R$ / sq m)
Investment
Completion (%)
Delivery
Cidade Jardim AAA Office São Paulo / SP Jardins 6.792 R$ 125,00 48% jun-12
Panamérica Park II Office São Paulo / SP Marginal 29.004 R$ 48,00 20% dec-11
Souza Aranha Office São Paulo / SP Marginal 4.037 R$ 57,00 28% dec-12
Tech Park SJC Warehouse São José dos Campos / SP Dutra highway 125.000 R$ 13,00 2% n/a*
* delivery will be made in several stages
20. BRProperties
19
2Q10
BRPR3
Panamérica Park II Buildings
The Panamérica Park II office buildings will be
developed in a site located in the Marginal
Pinheiro region, and its delivery is expected for the
second quarter of 2012. The development is part
of an expansion of the office condominium
adjacent to the site, of which BR Properties
currently owns 4 of the 9 existing buildings. This
will allow for a sharing of the in place
infrastructure, generating a reduction in occupancy
costs for its tenants.
Souza Aranha building
Tech Park - São José dos Campos
The land area where the SJC Tech Park will be
built is part of an industrial property acquired by
BR Properties in 2008. The common area
infrastructure will be shared among the new and
existing tenants, in order to reduce development
and occupancy costs. The land area is located
directly next to the Presidente Dutra highway, the
main connecting highways between São Paulo
and Rio de Janeiro state, in the São José dos
Campos municipality.
The Souza Aranha building is located in Chácara
Santo Antonio, a highly consolidated office region
of the city of São Paulo, with an increasingly
strong demand for high quality commercial office
space in which BR Properties holds 5 other
buildings. The project is being implemented on
remaining land space from another office building
that also belongs to BR Properties.
21. BRProperties
20
2Q10
BRPR3
OUR PORTFOLIO
Our portfolio currently holds 61 properties, located mainly in the metropolitan region of São Paulo, Rio de
Janeiro, Curitiba and Belo Horizonte, which total 993,143 sqm of GLA and a market value of R$ 2.9
billion according to CB Richard Ellis and our internal estimates. Our portfolio is highly diversified in terms
of geographic location and tenant profile, which we believe reduces the operating and financial risk to
which we are exposed. We intend to expand our activities, with the continuous diversification of our
property portfolio and with the acquisition and/or development of properties with characteristics
compatible to our yield requirements.
Property Type City State Acquisition Date # of Properties GLA (sq m) % Owned
Plaza Centenário Office Curitiba PR 25/05/07 1 3.366 100%
Panamérica Park Office São Paulo SP 29/05/07 4 18.667 100%
Glória Office Rio de Janeiro RJ 17/07/07 1 7.843 100%
Alphaville Office Barueri SP 31/07/07 1 9.292 100%
BP Jundiaí Warehouse Jundiaí SP 31/07/07 1 53.343 100%
BP Itapeví Warehouse Itapeví SP 31/07/07 1 33.526 100%
Jandira I (Vetco) Warehouse Barueri SP 31/07/07 1 16.314 100%
Jandira II (Interfile) Warehouse Barueri SP 31/07/07 1 17.990 100%
Piraporinha Redevolpment São Bernardo do Campo SP 31/07/07 1 7.184 100%
Bolsa RJ Office Rio de Janeiro RJ 27/08/07 1 3.224 21%
Athenas Office São Paulo SP 31/08/07 1 6.230 92%
Berrini Office São Paulo SP 31/08/07 1 331 4%
Isabela Plaza Office São Paulo SP 31/08/07 1 473 9%
Joaquim Floriano Office São Paulo SP 31/08/07 1 2.728 73%
Midas Office São Paulo SP 31/08/07 1 1.200 23%
Network Empresarial Office São Paulo SP 31/08/07 1 231 4%
Number One Office São Paulo SP 31/08/07 1 717 24%
Olympic Tower Office São Paulo SP 31/08/07 1 1.795 33%
Paulista Park Office São Paulo SP 31/08/07 1 784 25%
Paulista Plaza Office São Paulo SP 31/08/07 1 2.577 34%
Celebration Office São Paulo SP 03/09/07 1 5.590 100%
Icomap Office Rio de Janeiro RJ 12/09/07 1 8.695 100%
São Pedro Office São Paulo SP 28/09/07 1 3.575 100%
Vargas Office Rio de Janeiro RJ 28/09/07 1 11.413 100%
Henrique Schaumann Office São Paulo SP 14/11/07 1 14.125 100%
Raja Hills Office Belo Horizonte MG 20/12/07 1 7.166 70%
MV9 Office Rio de Janeiro RJ 20/12/07 1 12.300 100%
Galpão Ind. Paraná (Coveright) Warehouse São José dos Pinhais PR 20/12/07 1 7.748 100%
Ed. Comercial Indaiatuba Office Indaiatuba SP 20/12/07 1 11.335 100%
Sylvio Fraga Office Rio de Janeiro RJ 20/12/07 1 2.153 85%
Sto Antônio Office São Paulo SP 17/01/08 1 4.448 100%
São José Office São Paulo SP 17/01/08 1 4.997 100%
Galpão Ind. Araucária (Interbox) Warehouse Araucaria PR 31/01/08 1 6.462 100%
Souza Aranha Office São Paulo SP 31/01/08 1 2.091 100%
Cond. Ind. SJC Warehouse São José dos Campos SP 18/02/08 1 73.382 100%
Galpão Itapevi (Trisoft) Warehouse Itapevi SP 08/05/08 1 15.500 100%
Galpão Sorocaba (Tecsis) Warehouse Sorocaba SP 04/08/08 1 14.797 100%
CD Castelo Warehouse Itapevi SP 02/10/09 1 49.659 100%
Alexandre Dumas Office São Paulo SP 03/12/09 1 6.889 100%
Ouvidor 107 Office Rio de Janeiro RJ 10/12/09 1 6.284 100%
DP Louveira I (Unilever) Warehouse Louveira SP 30/12/09 1 138.095 100%
DP Louveira II (K&G) Warehouse Louveira SP 30/12/09 1 6.503 100%
DP Araucária Warehouse Araucaria PR 22/01/10 1 42.697 100%
Brazilian Business Park Warehouse Atibaia SP 26/02/10 5 59.182 100%
TNU Office São Paulo SP 16/03/10 1 25.555 100%
CBOP - Ed. Jacarandá Office Barueri SP 12/04/10 1 31.954 100%
DP Louveira 3, 4, 5/6 Warehouse Louveira SP 20/04/10 4 106.306 100%
RB 115 Office Rio de Janeiro RJ 02/06/10 1 11.345 90%
DP Louveira 8 e 9 Warehouse Louveira SP 17/06/10 2 88.643 100%
Manchete Office Rio de Janeiro RJ 30/06/10 1 26.439 100%
Total 61 993.143
22. BRProperties
21
2Q10
BRPR3
GLOSSARY
BRPR A: wholly owned property management subsidiary of BR Properties S/A. Currently manages 28
properties of the Company’s portfolio
CAPEX - Acquisition: capital expenditures utilized in the acquisition of new commercial properties for
the portfolio
CAPEX - Development: capital expenditures utilized in the development of new commercial properties
for the portfolio
EBITDA (Earnings Before Income, Tax, Depreciation and Amortization): a non accounting measure
which measures the Company’s capacity to generate operational revenues, without considering its
capital structure. Measured by excluding the operational expenses from Gross Profit and adding back
the depreciation and amortization expenses for the period
(Gross Profit – General and Administrative Expenses + Depreciation + Amortization)
Adjusted EBITDA: adjustments made to EBITDA by excluding R$ 0.2 million from expenses regarding
the Company stock option plan, along with R$ 1.1 million in employee bonus provisions
FFO (Funds From Operations): non accounting measure, which adds back depreciation to net income
in order to determine, utilizing the income statement, the net cash generated in the period
(Net Income + Depreciation)
Gross Leasable Area (GLA): refers to the area of a property owned by BR Properties which generates
revenues. Average rent per sq m, vacancy, and portfolio size are calculated utilizing this metric
Lease per square meter (R$ / sq m): refers to the amount charged per square meter of gross leasable
area in each property. Does not include the effects of revenue linearization
Leasing spread: real gain (net of inflation) from the renegotiation of existing leases, and new leases of
vacant areas when compared to the previous in-place rent
Same Property Rent / sq m (2Q10): refers to the most recent R$/sq m applied to the respective
properties which were in our portfolio in 2Q09
Same Property Rent / sq m (2Q09): refers to the average R$/sq practiced in the properties in our
portfolio in 2Q09
Vacancy - Financial: estimated by multiplying the average rent per sqm which could be charged in the
properties and their respective vacant areas, and then dividing this result by the potential gross revenues
of each property. Indicates the percentage of potential revenue which is lost each month due to vacancy
Vacancy – Financial (stabilized portfolio): portfolio financial vacancy excluding the effects of the
CBOP – Ed. Jacarandá and TNU properties
Vacancy - Physical: estimated by dividing the total vacant area by the total GLA of the portfolio
Vacancy – Physical (stabilized portfolio): portfolio physical vacancy excluding the effects of the CBOP
– Ed. Jacarandá and TNU properties
24. BRProperties
23
2Q10
BRPR3
BALANCE SHEET
ASSETS 06/30/2010 03/31/2010 var %
Current Assets 597.763 739.448 -19%
Cash and Cash Equivalents 396.393 698.054 -43%
Trade Accounts Receivable 35.937 17.790 102%
Recoverable Taxes 10.690 8.530 25%
Advances for Acquisition of Real Estate 148.674 966 15284%
Pre-paid Expenses 4.619 190 2337%
Properties Available for Sale* - 12.959 -100%
Other Accounts Receivable 1.450 960 51%
Non-Current Assets 2.104.664 1.775.164 19%
Judicial Deposits 93 93 0%
Intangible Assets 116.630 23.613 394%
Equipment 937 824 14%
Investment Properties 1.987.004 1.750.633 14%
Buildings 1.504.065 1.299.740 16%
Land and Land Bank 503.056 473.926 6%
Developments Under Way 34.580 24.335 42%
(-) Accumulated Depreciation (54.697) (47.368) 15%
Total Assets 2.702.427 2.514.612 7%
LIABILITIES 06/30/2010 03/31/2010 var %
Current Liabilities 188.554 167.110 13%
Loans and Financing 111.721 92.239 21%
Suppliers 1.817 2.309 -21%
Payables for Acquisition of Real Estate 58.621 58.498 0%
Provision for Salaries and Employee Contributions 1.076 4.266 -75%
Taxes Payable 2.229 1.387 61%
Deferred Short Term Income and Social Contribution tax Payable - - 100%
Provisions 6.850 3.146 118%
Client Advancements - - 100%
Dividends Payable - 3.576 -100%
Derivative Instruments 131 423 -69%
Other Accounts Payable 6.109 1.267 382%
Non-Current Liabilities 831.090 684.198 21%
Loans and Financing 784.484 637.405 23%
Deferred Income and Social Contribution taxes 46.606 46.793 0%
Shareholders Equity 1.682.783 1.663.304 1%
Capital 1.568.859 1.566.710 0%
(-) IPO Expenses (25.305) (23.129) 100%
Capital Reserves 3.894 3.695 5%
Revaluation Reserves - subsidiaries 90.467 90.832 0%
Income Reserves 44.868 25.196 78%
Total Liabilities 2.702.427 2.514.612 7%
25. BRProperties
24
2Q10
BRPR3
CASH FLOW STATEMENT
Fluxo de Caixa - Consolidado 2Q10 2Q09
Cash Flow from Operating Activities
Net Income (loss) for the period 19.305 10.741
Adjustments to reconcile net income 18.992 4.677
Depreciation 6.088 4.376
Interest and monetary variation on loans and financing 12.705 -
Stock option plan expenses 199 301
Reduction (increase) in assets (158.736) 2.112
Accounts receivable (18.046) (656)
Recoverable Taxes (2.160) -
Advances for the acquisition of real estate (147.708) -
Properties available for sale 12.959 -
Other assets (3.781) 2.768
Increase (reduction) in liabilities 1.776 (875)
Provision for employee and management bonuses 1.149 750
Payables for acquisition of real estate 123 (3.997)
Other liabilities 504 2.372
Net cash generated by (used in) operating activities (118.663) 16.655
Cash Flow from Investment Activities
Acquisition of real estate (244.038) -
(-) Payables for acquisition of real estate - -
Investments in subsidiaries (93.016) -
Net proceeds from sale of assets 226
Fixed asset purchases - (2.629)
Other 2 -
Net cash generated by (used in) investment activities (336.826) (2.629)
Cash Flow from Financing Activities
Capital increase 2.149 -
Loans and financing 169.201 3.640
Payment of loans and financing (15.345) -
Costs from Equity Raising (2.176) -
Net cash generated by (used in) financing activities 153.829 3.640
Increase (decrease) in cash and cash equivalents (301.660) 17.666
Cash and Cash Equivalents
At the beginning of the period 698.053 119.753
At the end of the period 396.393 137.419
