2. 1Q14 Highlights
• 1Q14 net revenues totaled R$232.9 million, an increase of 3% over 1Q13, when net revenues came in at R$225.9
million. The following assets – sold after 1Q13 – would have generated approximately R$14.0 million of revenues during
this quarter: Cetenco Plaza, Plaza Centenário, Pateo Bandeirantes and Galpão Sorocaba;
• 1Q14 adjusted EBITDA of R$209.3 million, and adjusted EBITDA margin of 90%;
• 1Q14 net income reached R$59.5 million;
• 1Q14 adjusted FFO, excluding non-cash expenses, totaled R$57.3 million, and adjusted FFO margin of 25%;
• Throughout the quarter, 20,320 sqm of GLA were leased by the Company, representing an increment of R$2,745
thousand in the monthly rent revenues;
• At the end of 1Q14, financial and physical vacancy rates were at 8.1% and 4.6%, respectively. Excluding the JK
Towers, currently under lease-up, stabilized financial and physical vacancy would reach 3.9% and 3.3%, respectively;
• In March, the Company executed a Share and Real Estate Purchase and Sale Agreement with GLP for the sale of
100% of its existing industrial/logistics portfolio. According to the agreement, GLP will pay BR Properties the
amount of R$3,180.0 million, subject to certain adjustments set forth in the agreement. The consummation of the
transaction, as provided for in the agreement, is still subject to the approval of the antitrust authorities;
• In March 28th, the Company acquired the Gaia Ar - Tucano warehouse for R$60.5 million, which includes the
amount of CAPEX yet to be disbursed on the project. Its delivery is expected for July 2014;
• During the quarter, BR Properties bought back 2.1 million of shares (R$36.6 million) of its own issuance. Since the
Program’s launch last November, the Company has repurchased 14.2 million of shares or 84% of the total announced
(17 million shares);
• In line with its recycling strategy, the Company signed in April a Real Estate Purchase and Sale Agreement with
Schattdecor do Brasil for the sale of the Galpão Industrial Paraná warehouse, amounting to R$20.5 million.
2
4. Financial Highlights
4
Net Income (R$ thousand)Net Revenues (R$ thousand)
1Q13 1Q14
225.927
232.858
3%
1Q13 1Q14
90.893
59.467
(35%)
It is worth highlighting that the following assets – sold after
1Q13 – would have generated approximately R$14.0 million
of revenues during this quarter: Cetenco Plaza, Plaza
Centenário, Pateo Bandeirantes and Galpão Sorocaba.
5. Financial Highlights
5
Adjusted EBITDA * (R$ thousand)
94%
90%
Adjusted EBITDA Margin
1Q13 1Q14
212.183 209.269
(1%)
EBITDA Composition 1Q14 1Q13 var %
Net Income (loss) before Minority Interest 58.674 84.899 -31%
(+) Deferred Taxes 47.941 30.837 55%
(+) Income and Social Contribution Taxes 11.938 3.612 230%
(-) Minority Interest 793 5.994 -87%
(+) Depreciation 6 - n/a
(+) Net Financial Result 120.777 134.862 -10%
EBITDA 240.129 260.203 -8%
EBITDA Margin 103% 115% -12 p.p.
Adjusted EBITDA Composition 1Q14 1Q13 var %
EBITDA 240.129 260.203 -8%
(-) Gain (Loss) on Appraisal of Investment Properties (36.240) (48.876) -26%
(-) Gain (Loss) on Sale of Investment Properties - - n/a
(+) Other Operating Income 3.876 (954) -506%
(+) Stock options 354 661 -46%
(+) Bonus Provision 1.149 1.149 0%
Adjusted EBITDA 209.269 212.183 -1%
Adjusted EBITDA Margin 90% 94% -4 p.p.
* Adjusted EBITDA was
impacted by the sale of
properties, which represented
a rental loss of approximately
R$14 million in 1Q14, and by
higher G&A and vacancy
expenses.
6. Financial Highlights
6
Adjusted FFO (R$ thousand)
37%
25%
Adjusted FFO Margin
1Q13 1Q14
83.229
57.312
(31%)
Adjusted FFO Composition 1Q14 1Q13 var %
Net Income (loss) 59.467 90.893 -35%
(+) Deferred Taxes 47.941 30.837 55%
(+) Income Taxes on Property Sales - - n/a
(+) PIS/Cofins (Revenue Taxes) on Property Sales - - n/a
(-) Gain (Loss) on Appraisal of Investment Properties (36.240) (48.876) -26%
(-) Gain (Loss) on Sale of Investment Properties - - n/a
(+) Non-cash Losses on Exchange Rate Variation 24.252 11.204 116%
(-) Non-cash Gains on Exchange Rate Variation (47.404) (19.471) 143%
(+) Non-cash Variations on Derivative Instruments 9.297 18.644 -50%
Adjusted FFO 57.312 83.229 -31%
Adjusted FFO Margin 25% 37% -12 p.p.
* Adjusted FFO was impacted
by the sale of properties,
which represented a rental
loss of approximately R$14
million in 1Q14, and by higher
G&A, vacancy and financial
expenses.
7. Indebtedness
7
1Q14 Net Debt (R$ mn) 1Q14 Debt Profile
39%
44%
10%
1%
6% TR
CDI
IGPM
INPC
IPCA
ST Debt Obligations
for
Acquisitions
LT Debt Total Debt Cash Net Debt
935
5.565
4.750
28
4.601 814
Indebtedness 1Q14 4Q13 var %
Short Term Loans and Financing 963.441 918.756 5%
Loans and Financing 868.994 840.294 3%
Perpetual Bond 66.338 68.672 -3%
Derivative Instruments - - n/a
Payables for Acquisition of Real Estate 28.109 9.791 187%
Long Term Loans and Financing 4.601.490 4.638.664 -1%
Loans and Financing 4.007.597 4.023.690 0%
Perpetual Bond 593.893 614.974 -3%
Gross Debt 5.564.931 5.557.420 0%
Cash and Cash Equivalents 814.467 950.864 -14%
Net Debt 4.750.464 4.606.556 3%
Portfolio Value 13.537.531 13.423.101 1%
Gross Debt / Portfolio Value (Loan to Value) 41% 41% 0 p.p.
Net Debt / Portfolio Value (Loan to Value) 35% 34% 1 p.p.
Adjusted EBITDA / Net Financial Expenses * 1,6x 1,6x 0%
Duration (years) 4,0 4,2 -5%
Unsecured Debt / Total Debt 37% 37% 0 p.p.
* Considering Net Financial Expenses (ex. non-cash variations)