2. Highlights
3Q13 HIGHLIGHTS AND SUBSEQUENT EVENTS
• 3Q13 net revenues totaled R$236.6 million, an increase of 41% over 3Q12, when net revenues came in at R$168.0 million. The significant
growth resulted from additional rental revenues of properties delivered throughout the last twelve months;
• 3Q13 adjusted EBITDA of R$218.2 million, a 47% increase over 3Q12, and adjusted EBITDA margin of 92%;
• 3Q13 net income totaled R$89.6 million, impacted by a gain on appraisal of investment properties of R$44.4 million;
• 3Q13 adjusted FFO, excluding non-cash expenses, totaled R$74.7 million, a 171% increase over 3Q12, and adjusted FFO margin of 32%;
• The Company ended 3Q13 with a 5.2x Net Debt/Adjusted EBITDA, a reduction of 29% relative to 3Q12, when the ratio was 7.3x. The cash
position totaled R$839.7 million, a 213% increase over the same period of last year;
• In August, the Company amortized a R$258 million loan which cost was CDI + 1.50% p.a.;
• Average net of inflation leasing spread (office + industrial) reached 1.7% in 3Q13, representing an increase of R$102 thousand a month in
rent revenues;
• At the end of October, financial and physical vacancy were at 9.7% and 4.9%, respectively. Excluding the recently delivered Paulista
Building and the JK Towers, currently under lease-up, stabilized financial and physical vacancy would drop to 3.2% and 2.8%, respectively;
• The Company leased-up 12,773 sqm throughout the quarter, representing a R$866 thousand increment in rent revenues on a monthly
basis;
• 3 asset sales were completed in 3Q13: Pateo Bandeirates Building was sold for R$442.0 million, representing a cap rate of 8.4%; Plaza
Centenário Building was sold for R$13.7 million, representing a cap rate of 9.6%; and Galpão (warehouse) Sorocaba was sold for R$26.4
million, representing 10.2% cap rate. BR Properties has sold its entire stake in the 3 properties;
• Lastly, the Company delivered DP Louveira 7, a high-quality fully leased major warehouse located 70km from São Paulo Capital.
3Q13
2
3. Portfolio
Portfolio Market Value
3Q13 Revenue Breakdown
Asset sales in the amount
of R$482.1 million
64%
Straight-line 4%
Leasing 95%
6%
Services 1%
11.715
1Q12
12.968
13.552
2Q12
3Q12
13.840
14.096
14.031
13.759
30%
4Q12
1Q13
2Q13
3Q13
Portfolio Breakdown
(% market value)
Portfolio Breakdown
(% GLA)
5%
5%
18%
25%
49%
14%
63%
21%
Of f ice AAA
Of f ice
Industrial
Of f ice AAA
Retail
3
Of f ice
Industrial
Retail
3Q13
4. Portfolio Recycling
The company completed 3 asset sales in the amount of R$482.1 million at an average cap rate of
8.5%
Pateo Bandeirantes
Type: Class AAA Office
City: São Paulo / SP
Gross Leasable Area: 17,458 sqm
Sale Price: R$442.0 million
Cap Rate: 8.4%
Galpão Sorocaba
Type: Industrial
City: Sorocaba / SP
Gross Leasable Area: 14,797 sqm
Sale Price: R$26.4 million
Cap Rate: 10.2%
Plaza Centenário
Type: Class A Office
City: Curitiba / SP
Gross Leasable Area: 3,366 sqm
Sale Price: R$13.7 million
Cap Rate: 9.6%
3Q13
4
5. Financial Highlights
Net Revenues (R$ thousand)
Net Income* (R$ thousand)
(78%)
63%
41%
(65%)
700.716
1.044.336
430.159
168.031
236.575
259.234
230.295
89.555
3Q12
3Q13
9M12
9M13
3Q12
3Q13
9M12
9M13
* 3Q12 Net Income was largely impacted by a gain on
appraisal of investment properties of R$382.7million, after the
acquisition of One Properties.
3Q13
5