Br properties 2010 earnings release presentation
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Transcript of Br properties 2010 earnings release presentation
2010 Earnings Release Presentation
BRProperties
BRProperties 2010
Highlights
2
Financial
Highlights
Operating
Highlights
The Company’s portfolio was appraised by CBRE, resulting in a 22% appreciation in its market
value;
With the acquisition of 100% of FII Comercial Progressivo II, BR Properties invested over $ 1.7
billion after the IPO in March, 2010, and exceeded in 18% the acquisitions target under a capital
budget approved by its shareholders for 2010. The Company invested over R$ 2.0 billion in 2010;
At the end of 2010, our portfolio had 1,159,756 sqm of gross leasable area (GLA), a 89% increase
compared to the same period of last year;
During 2010, we raised approximately R$ 864.7 million in real estate long term financing linked to
TR; this type of credit represents 73% of the total Company debt;
In October 2010, the Company concluded an additional perpetual bond issuance in the amount of
US$ 200 million, offered to qualified institutional investors. In January 2011, the perpetual bond was
re-opened, and the Company raised another US$ 85 million.
2010 gross revenues increased 78% compared to 2009, totaling R$ 223.4 million;
Adjusted EBITDA of R$ 177.5 million at the end of 2010, an increase of 89% over 2009;
In 2010, we estimated a pro-forma adjusted EBITDA of R$ 316.9 million, with a 92% EBITDA
margin;
Net income of R$ 813.4 million, a 388% increase over 2009 and consolidated FFO excluding the
portfolio appraisal effects of R$ 92.2 million with a 45% FFO margin.
BRProperties 2010
2010 Portfolio Appraisal
3
Portfolio Market Value: R$ 4.78 bi
Total portfolio appreciation of 22%
Revaluated at a yield of 9.33%
considers revenues of 2011 budget;
excludes non-operational properties
CB Richard Ellis Appraisal
Net Asset Value (NAV)
NAV: R$ 3.1 bi
NAV per share: R$ 22.14
Current Price per share: R$ 17.28
Discount of: 22%
Type2009 Portfolio &
2010 acquisitions
2010 Property
Appraisal2009 x 2010
Office 2.132.954 2.646.453 24%
Industrial 1.350.799 1.573.600 16%
Retail 335.309 402.692 20%
Development 94.275 160.900 71%
Total 3.913.337 4.783.645 22%
2009 Portfolio & 2010 acquisitions
2010 PropertyAppraisal
3.913.337
4.783.645
22%
BRProperties 2010
Portfolio Appraisal 2010
4
Office Industrial
Retail Developments
2009 Portfolio& 2010
Acquisitions
2009 Portfolio 2010Acquisitions
2010 PropertyAppraisal
2.132.954
2.646.453
218.257
295.242
2009 Portfolio& 2010
Acquisitions
2009 Portfolio 2010Acquisitions
2010 PropertyAppraisal
1.350.799
1.573.600
119.884
102.917
2010 Acquisitions Appreciation 2010 PropertyAppraisal
335.309
402.692 67.383
2009Developments
Appreciation 2010 PropertyAppraisal
94.275
160.900 66.625
BRProperties 2010
Recent Acquisitions
5
Type: Office AAA
GLA: 21,493 sqm
% Owned: 41%
Floors: 17
Capex: R$ 340 MM
In December 2010, we acquired a portfolio of
commercial properties, comprised of 29 retail
properties and 4 office buildings, for the total amount
of R$ 477.2 million. The portfolio holds 122,146 sqm
of gross leasable area (GLA) and is 99% leased;
The acquisition marked the Company’s entry into
the segment of street and shopping mall retail
stores, in line with its original business plan. The
retail segment is a very dynamic market, and is
another front for new acquisitions and future growth
for BR Properties;
This acquisition also marks the expansion of BR
Properties’ presence beyond the Southeastern and
Southern regions, with stores in all regions of the
country.
Ed. Santa Catarina Ed. Cetenco Portfolio C&A
Comercial Progressivo II Real Estate Investment Fund
Properties
Type
City
State
Tenants
#
Area
(sqm) % Owned
Vacancy CBRE Estimate
% per region
Portfólio C&A Retail n/a n/a C&A / other 28 98,714 100% 0% n/a
Paço do Ouvidor Retail Rio de Janeiro RJ Multi 1 2,171 51% 0% n/a
Alphaville - Araguaia Office Barueri SP C&A Corporate 1 8,084 100% 0% R$30 - R$60/sqm
Ed. Cetenco Plaza Office São Paulo SP Multi 1 7,472 23% 0% R$75 - R$110/sqm
Ed. Santa Catarina Office São Paulo SP Multi 1 4,257 27% 0% R$75 - R$110/sqm
Call Center Conexão Office São Paulo SP Conexão 1 1,448 100% 0% R$14 - R$27/sqm
33 122,146
BRProperties 2010
Acquisitions
6
BR Properties invested over $ 1.7 billion after the IPO in March, 2010, and exceeded in 18% the
acquisitions target under a capital budget approved by its shareholders for 2010;
The Company invested over R$ 2.0 billion in 2010.
After IPO Acquisitions
1.452
Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
Budget Actual
1.709
+18%
BRProperties 2010
Recent Sales
7
Ed. Athenas
Acquisition Value R$ 27.0 MM
Acquisition Date Aug/07
Sale Value R$ 34.5 MM
Sale Date Jan/11
Holding Period 40 months
IRR 20%
ROE 70%
Ed. Isabella Plaza (units 31 and 32)
Acquisition Value R$ 3.13 MM
Acquisition Date Aug/2007
Sale Value R$ 4,20 MM
Sale Date Dec/2010
Holding Period 39 months
IRR 25.9%
Ed. Number One (unit 121)
Acquisition Value R$ 466,775
Acquisition Date Aug/2007
Sale Value R$ 650,000
Sale Date Dec/2010
Holding Period 39 months
IRR 33.5%
Sales
Ed. Joaquim Floriano
Acquisition Value R$ 17.4 MM
Acquisition Date Aug/07
Sale Value R$ 22.4 MM
Sale Date Mar/11
Holding Period 42 months
IRR 19%
ROE 73%
4Q10
1Q11
BRProperties 2010
Portfolio
Portfolio Growth (GLA sqm)
Portfolio Breakdown
(% market value)
Portfolio Breakdown
(% GLA)
8
55% 33%
9% 3%
Office Industrial Retail Development
22%
59%
8%
11%
Office Industrial Retail Development
3Q10 Acquisition of BBP Topázio & FIIComercial Progressivo II + Saleof Ed. Isabella & Number One
4Q10
1.014.636
1.159.756 145.120
BRProperties 2010
Operating Highlights
9
Vacancy Breakdown Financial Vacancy per Segment
3Q10 2010 2010 (Ex Ventura,CBOP, TNU & RB115)
5,2%
3,8%
1,6%
12,3%
8,1%
1,5%
Physical
Financial
3Q10 2010
10,9%
6,9%
1,4% 1,2% 0,0% 0,0%
Office
Industrial
Retail
Property Type Financial Physical
CBOP - Ed. Jacarandá Office 2,6% 0,9%
Ventura Towers Office 1,8% 0,5%
TNU Office 1,2% 0,4%
RB115 Office 0,9% 0,4%
Raja Hills Office 0,2% 0,1%
Santa Catarina Office 0,1% 0,0%
Number One Office 0,0% 0,0%
Total Office 6,9% 2,3%
DP Louveira 9 Industrial 0,4% 0,7%
BP Jundiaí Industrial 0,1% 0,2%
Piraporinha Industrial 0,7% 0,6%
Total Industrial 1,2% 1,5%
Total Portfólio 8,1% 3,8%
Vacancy per Property - 2010
BRProperties 2010 10
Operating Highlights
* Leasing spreads are net of inflation
Renegotiations New Leases
4Q09 4Q10 2009 2010
-0,8%
7,6%
-0,4%
12,8% 13,7%
0,0%
3,9%
7,1%
Office
Industrial
4Q09 4Q10 2009 2010
13,7%
10,1%
1,8%
9,1%
6,8%
0,0%
-12,3%
13,6%
Office
Industrial
Leasing Spread 4Q10 4Q09 var % 2010 2009 var %
Leasing Spread (Renegotiations) - Office 7,6% -0,8% n/a 12,8% -0,4% n/a
Leasing Spread (Renegotiations) - Warehouse 0,0% 13,7% -100% 7,1% 3,9% 83%
Leasing Spread (Renegotiations) - Retail n/a n/a n/a n/a n/a n/a
Renegotiated Area - Office (sqm) 331 4.064 -92% 3.820 12.887 -70%
Renegotiated Area - Warehouse (sqm) - 8.640 -100% 17.899 13.604 32%
Renegotiated Area - Retail (sqm) - - 0% - - n/a
Leasing Spread (New Leases) - Office 10,1% 13,7% -26% 9,1% 1,8% 414%
Leasing Spread (New Leases) - Warehouse 0,0% 6,8% -100% 13,6% -12,3% n/a
Leasing Spread (New Leases) - Retail n/a n/a n/a n/a n/a n/a
New Leased Area - Office (sqm) 20.805 2.054 913% 45.760 14.638 213%
New Leased Area - Warehouse (sqm) - 7.147 -100% 26.919 17.962 50%
New Leased Area - Retail (sqm) - - 0% - - n/a
BRProperties 2010
% Revenues
% GLA
% GLA
% Revenues
Lease Contract 3 Year Market Alignment Schedule
Lease Contract Expiration Schedule
11
Operating Highlights
2011 2012 2013 >2013
5%7% 25%
63%
2011 2012 2013 >2013
5%6%
32%
57%
2011 2012 2013 >2013
54%
17%
27%
2%
2011 2012 2013 >2013
65%
20%
15%
1%
BRProperties 2010
Operating Highlights
12
Managed Properties Property Management Revenues
(R$ mil)
2009 2010
24
26
8%
2009 2010
2.078
3.698
74%
BRProperties 2010
Financial Highlights
13
Gross Revenues
Net Revenues
4Q09 4Q10 4Q10 Pro Forma 2009 2010 2010 Pro Forma
33.697 71.451 91.293
125.703
223.437
369.028
171%
194%
4Q09 4Q10 4Q10 Pro Forma
2009 2010 2010 Pro Forma
30.364 66.198 84.900
112.748
204.464
343.867
180%
205%
BRProperties 2010 14
Financial Highlights
Adjusted EBITDA
Net Income FFO
83%
87%
92%
2009 2010 2010 Pro-Forma
93.945
177.545
316.947
237%
2009 2010
44.961
92.195
105%
2009 2010
166.703
813.368
388%
BRProperties 2010
Debt
Debt Service Schedule
2010 Net Debt 2010 Debt Index Breakdown
15
73%
2%
25%
TR
IGPM
CDI
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
190 112 110 137 139 152
304
127 122
427 166
156 145 134 121 107
88
65 53
377
j - 37 p - 22
j - 26p - 14
Interest
Principal
Dívida CP Obrigações por
Aquisição
Dívida LP Dívida Total Caixa Dívida Líquida
303.109
1.927.138
1.694.682
79.615
1.544.414 232.456
BRProperties 2010
Stock Performance
16
* As of February 28th, 2011
Number of shares: 139,511,953 Market Value: R$ 2.5 billion Average Daily Vol. (30d): R$ 7.5 million
Currently, 99% of BR Properties’s shares are in free float
36,15%
-1,74%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
BRPR3
Ibovespa
GP Investments
11,5%
Wellington Management
5,8%
BlackRock5,1%
Laugar S.A.4,6%
Silverpeak2,6%
Management0,7%
Other69,6%
BRProperties 2010
Glossary
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 expenses pertaining to the Company’s Stock Option
Plan, along with the respective vacancy costs from the period
FFO (Funds From Operations): non accounting measure, which excludes the effect of the gain on the appraisal of
investment properties and the corresponding impact on the income and social contribution taxes from the net income,
in order to determine, using the income statement, the net cash generated in the period
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
Vacancy - Financial: estimated 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. Indicates
the percentage of potential revenue which is lost each month due to vacancy
Vacancy - Physical: estimated by dividing the total vacant area by the total GLA of the portfolio
Stabilized Properties: properties acquired in 2009, plus properties acquired in 2010, before the IPO
17
BRProperties 2010
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
18