1q11 earnings release presentation
DESCRIPTION
TRANSCRIPT
1Q11 Earnings Release Presentation
BRProperties
BRProperties 1Q11
Highlights
2
Financial
Highlights
Operating
Highlights
Leasing spreads for renegotiations totaled 21.5% and 22.6%, and for new lease up of vacant areas
totaled 15.5% and 11.1% in office and industrial properties, respectively;
Our financial vacancy decreased from 8.1% in 4Q10 to 6.2% at the end of 1Q11, whereas our
stabilized financial vacancy, which excludes Ed. Jacarandá, TNU, and Ventura II, came in at 1.5%;
We have included the “built to suit” project DP Louveira 7 property to our development pipeline, a
logistics and distribution warehouse located in the Louveira, one of the main distribution hubs in São
Paulo state. Delivery of the building is estimated for 2012;
On January 19th, 2011, the Company concluded an additional perpetual bond issuance in the amount
of US$ 85 million, offered to qualified institutional investors. The perpetual bond has a call option at par
after the 5th year, and will pay 9% interest per year, paid quarterly;
We raised approximately R$ 235.5 million in long term real estate financing linked to TR. This type of
financing represents 75% of the Company’s total debt;
After the most recent index rebalancing concluded by BM&F Bovespa, the Company has been
included in the portfolios of the Small Cap and Real Estate equity indexes.
1Q11 Net Revenues came in at R$ 77.8 million, an increase of 121% in relation to 1Q10, when it came
in at R$ 35.3 million;
Adjusted EBITDA of R$ 69.9 million at the end of 1Q11, an increase of 137% over the same period of
last year, and an Adjusted EBITDA margin of 90%;
Adjusted FFO in 1Q11 totaled R$ 23.9 million, with an Adjusted FFO margin of 31%;
BRProperties 1Q11
Portfolio
Portfolio Growth (GLA m²)
Portfolio Breakdown
(% market value)
Portfolio Breakdown
(% GLA)
3
55%33%
9%3%
Office Industrial Retail Development
22%
57%
8%
14%
Office Industrial Retail Development
1Q10 1Q11
730.402
1.150.799 58%
BRProperties 1Q11
Financial Highlights
4
Gross Revenues (R$ thousand)
Net Revenues (R$ thousand)
1Q10 1Q11
39.865
84.860
113%
1Q10 1Q11
35.267
77.777
121%
BRProperties 1Q11 5
Financial Highlights
Adjusted EBITDA (R$ thousand)
Adjusted FFO (R$ thousand)
84%
90%
1Q10 1Q11
29.515
69.861
137%
1Q10 1Q11
8.645
23.876
176%
25%
31%
BRProperties 1Q11
Debt
Debt Service Schedule (R$ mn)
1Q11 Net Debt (R$ mn) 1Q11 Debt Index Breakdown
6
75%
2%
23%
TR
IGPM
CDI
ST Debt Obligations for
Acquisitions
LT Debt Total Debt Cash Net Debt
140
2.114
1.668
26
1.948 446
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
118144 131 118 103 87 64
38 24 182 0
68
128 128 157161 178
331
156154 141
26 14
Principal
Interest
BRProperties 1Q11
Operating Highlights
7
Financial Vacancy per Segment
Our financial vacancy came in at 6.2% in the end of 1Q11; excluding the buildings CBOP - Jacarandá,
TNU, and Ventura Towers II, our financial vacancy would drop to 1.5%.
Vacancy Breakdown
4Q10 1Q11 1Q11 (Ex Ventura, CBOP & TNU)
3,8%
3,1%
1,4%
8,1%
6,2%
1,5%
Physical
Financial
4Q10 1Q11
6,9%
5,5%
1,2%0,72%
0,0% 0,0%
Off ice
Industrial
Retail
Vacancy per Property 1Q11
Property Type Financial Physical
Raja Hills Office 0,02% 0,02%
CBOP - Jacarandá Office 1,82% 0,93%
TNU Office 0,67% 0,30%
São José Office 0,12% 0,07%
Icomap Office 0,06% 0,06%
Ed. Com. Indaiatuba Office 0,61% 0,56%
Ventura II Office 2,20% 0,42%
Total Office 5,5% 2,4%
BP Jundiaí Industrial 0,04% 0,10%
Piraporinha Industrial 0,68% 0,59%
Total Industrial 0,72% 0,69%
Total Portfolio 6,2% 3,1%
BRProperties 1Q11 8
Operating Highlights
Renegotiations New Leases
1Q10 1Q11
5,2%
15,5%
12,8%
11,1%
Off ice
Industrial
1Q10 1Q11
0,0%
21,5%
2,0%
22,6%
Off ice
Industrial
Leasing Spread * 1Q11 1Q10 var %
Leasing Spread (Renegotiations) - Office 21,5% 0,0% -
Leasing Spread (Renegotiations) - Warehouse 22,6% 2,0% 1016%
Leasing Spread (Renegotiations) - Retail n/a n/a n/a
Renegotiated Area - Office (sqm) 14.674 - 0%
Renegotiated Area - Warehouse (sqm) 14.798 6.569 125%
Renegotiated Area - Retail (sqm) n/a n/a n/a
Leasing Spread (New Leases) - Office 15,5% 5,2% 197%
Leasing Spread (New Leases) - Warehouse 11,1% 12,8% -13%
Leasing Spread (New Leases) - Retail n/a n/a n/a
New Leased Area - Office (sqm) 8.343 8.523 -2%
New Leased Area - Warehouse (sqm) 12.889 5.283 144%
New Leased Area - Retail (sqm) n/a n/a n/a
* Leasing spreads are net of inflation
BRProperties 1Q11
% Revenues
% GLA
% GLA
% Revenues
Lease Contract 3 Year Market Alignment Schedule
Lease Contract Expiration Schedule
9
Operating Highlights
2011 2012 2013 >2013
3%7% 25%
65%
2011 2012 2013 >2013
4% 6%31%
59%
2011 2012 2013 >2013
51%
16%
27%
6%
2011 2012 2013 >2013
61%
19%
17%
3%
BRProperties 1Q11
Operating Highlights
10
Managed Properties Property Management Revenues
(R$ thousand)
1Q10 1Q11
25
29
+4
1Q10 1Q11
849
1.059
25%
BRProperties 1Q11
Stock Performance
11
* As of May 11th, 2011
Number of shares: 139,753,919
Market Value: R$ 2.5 billion
Average Daily Vol. (30d): R$ 12.2 million
Currently, 99% of BR Properties’s shares are in free float
GP Investments7,3% Wellington
Management5,4%
BlackRock5,1%
Laugar S.A.4,2%
Silverpeak1,3%
Management0,9%
Other75,9%
Stock Performance (BRPR3) 1Q11 1Q10 var %
Total Number of Shares * 139.511.953 139.107.272 0,3%
Free Float (%) 99% 52% 90,4%
Stock Price (average for the period) 17,32 12,97 33,5%
Stock Price (end of period) 17,15 12,92 32,7%
Market Cap end of period (R$ million) 2.393 1.797 33,1%
Average Daily Trading Volume (R$ million) 8,29 10,17 -18,5%
Average Daily Traded Shares 478.877 792.712 -39,6%
Average Daily negotiations 455 282 61,3%* Company began trading its shares on the Bovespa in 03/08/2010
39,31%
(7,00%)
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
BRPR3
Ibovespa
BRProperties 1Q11
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: [email protected]
www.brpr.com.br/ri
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