2. Highlights
4Q11 Net Revenues totaled R$90.3 million, an increase of 25% in relation to 4Q10, when net revenues
came in at R$72.1 million;
Adjusted EBITDA of R$81.1 million in 4Q11, an increase of 33% over 4Q10 and an adjusted EBITDA
margin of 90%. 4Q11 EBITDA without adjustments totaled R$75.0 million, with an EBITDA margin of 83%;
Financial
Net Income totaled R$70.5 million at the end of 4Q11, impacted by a gain on appraisal of investment
Highlights properties of R$95.7 million (R$77.3 million net of taxes) and a non-cash financial expense resulting from
the FX variation of the principal on our dollar denominated perpetual debt of R$7.3 million. Therefore, a
reduction of 91% in relation to 4Q10;
Adjusted FFO (excluding non-cash net financial expenses) totaled R$35.3 million in 4Q11, with an FFO
margin of 39%;
Leasing spreads (net of inflation) for renegotiations and new leases reached 33.7% and 39.3% in office
properties, respectively;
The financial vacancy totaled 1.7% at the end of 4Q11. Physical vacancy represented 0.9% of GLA at
the end of quarter. In terms of area, our office, industrial, and retail properties were 97.0%, 99.9%, and
100.0% occupied at the end of the quarter, respectively;
On December 12th, 2011, BR Properties concluded with BP Energy do Brasil Ltda. a lease contract for
Operating
the partial occupancy of Edifício Manchete. The Lease has a term of 60 months, and comprises 9.2
Highlights thousand m² of GLA, including 142 parking spaces.
As part of its portfolio recycling strategy, the Company concluded 11 sales throughout the year, which
totaled R$87.9 million. The loss of rental income in the year with the sales is of R$5.5 million;
On January 14th, 2012, BR Properties S.A. signed a Merger Agreement and Other Covenants, related to
the incorporation of One Properties by the Company. The merger was approved by BR Properties’
shareholders at the Company’s Extraordinary Shareholders’ Meeting, held on March 29th, 2012;
BRProperties 2 4Q11
3. Portfolio
2011 Revenue Breakdown
Straight-line
14%
1%
Office
Services 44%
2% Leasing Industrial
97% 42% Retail
Portfolio Breakdown Portfolio Breakdown
(% market value) (% GLA)
4%
9% 13%
22%
7%
32% 55%
57%
Of f ice Industrial Retail Development Of f ice Industrial Retail Development
BRProperties 3 4Q11
4. 2011 Portfolio Appraisal
Composition of the BRPR’s Portfolio in Market Value (R$ mn)
212 5.254
426
1.723
2.892
Of f ice Industrial Retail Development Total
Same Properties Appreciation
Asset Class
2010 x 2011
Office 15%
Industrial 11%
Retail 5%
Developments 27%
Total 13%
BRProperties 4 4Q11
5. Portfolio Recycling
As part of its recycling strategy, the Company concluded 11 sales throughout the year, which totaled
R$87.9 million. The loss of rental income in the year with the sales is of R$5.5 million
Acquisition Rental loss in 2011
Sold Properties Type Quality Sale Date
Date (R$ thousand)
Athenas Office A Aug-07 Jan-11 R$ 3.468
Joaquim Floriano Office A Aug-07 Mar-11 R$ 1.719
Number One (cj. 32) Office A Aug-07 May-11 R$ 51
Number One (cj. 122) Office A Aug-07 Jun-11 R$ 33
Number One (cj. 123) Office A Aug-07 Jul-11 R$ 39
Berrini Office A Aug-07 Aug-11 R$ 107
Piraporinha Retail B Jul-07 Aug-11 R$ 41
Number One (cj. 101 e 102) Office A Aug-07 Nov-11 R$ 20
Midas Office A Aug-07 Dec-11 R$ 36
Network Empresarial Office A Aug-07 Dec-11 R$ 13
Number One(cj. 22 e 23) Office A Aug-07 Dec-11 R$ 10
TOTAL R$ 5.537
Total Revenue from Sales Average Exit
(R$ thousand) Cap Rate
R$ 87.916 9,2%
In addition to the aforementioned sales, on March 12th, 2012, the Company completed the sale of Shopping
Paço do Ouvidor, acquired in December, 2010, as part of its strategy of portfolio recycling. The sale value of the
property was R$25.0 million, representing an exit cap rate of 9.5%.
BRProperties 5 4Q11
6. Financial Highlights
Net Revenues (R$ thousand) Net Income* (R$ thousand)
68% (59%)
(91%)
764.248
25% 343.464 813.368
204.464
335.408
72.078 90.309
70.500
4Q10 4Q11 2010 2011 4Q10 4Q11 2010 2011
* Impacted in 4Q11 by a net gain on appraisal of investment
properties of R$77.3 million, and a non-cash financial expense
resulting from the FX variation of the principal on our dollar
denominated perpetual debt of R$7.3 million.
BRProperties 6 4Q11
8. Debt
4Q11 Net Debt (R$ mn) 4Q11 Debt Index Breakdown
1.938 2.137 1.032
1.105 27%
TR
IGPM
185 14 2%
71% CDI
ST Debt Obligations LT Debt Total Debt Cash Net Debt
f or
Acquisitions
Net Debt 4Q11 3Q11 var %
Short Term Loans and Financing 198.731 186.751 6%
Loans and Financing 128.902 114.606 12%
Perpetual Bond 54.988 54.360 1%
Derivative Instruments 836 2.771 -70%
Payables for Acquisition of Real Estate 14.006 15.013 -7%
Long Term Loans and Financing 1.938.406 1.981.595 -2%
Loans and Financing 1.445.960 1.479.887 -2%
Perpetual Bond 492.446 501.708 -2%
Gross Debt 2.137.137 2.168.346 -1%
Cash and Cash Equivalents 1.032.350 1.072.533 -4%
Net Debt 1.104.787 1.095.813 1%
Portfolio Value 5.253.543 5.142.182 2%
Gross Debt / Portfolio Value (Loan to Value) 41% 42% -4%
Net Debt / Portfolio Value (Loan to Value) 21% 21% -1%
Net Debt / Annualized Adjusted EBITDA 3,4x 3,2x 6%
Adjusted EBITDA / Net Financial Expenses * 2,5x 2,7x -8%
Duration (years) ** 5,7 5,9 -2%
* Considers Net Financial Expenses (ex. non-cash variations)
** Considers the amortization of the perpetual bond in 2023
BRProperties 8 4Q11
