Company Presentation

Transcription

1 Company Presentation

2 1 Overview

3 Quick Facts 3 0.3% Delinquency Rate R$ 7.3 Billion Porfolio Value 8.7 years Debt Duration¹ 33% Loan-to-Value² 100% Inflation-linked Leases 43 Properties 4 5 years Average Lease Term 87,2% Financial Occupancy Rate³ 2006 Founded 2010 IPO 607,439 Square Meters 4 1. In Years / Considering the expiration of the Perpetual Bond in Net Debt / Portfolio Value (4Q16) 3. Considering 4Q16 Financial Vacancy (Excluding Ed. Passeio Corporate ) 4. Considering the sale of Galpão SBC in January 2017

4 Winning Strategy: The 3 Pillars 4 Operating Strategy Growth Value-added Strategy Financing Strategy Focus on top quality properties, located in the most dynamic and liquid markets Defensive portfolio, with high occupancy and very low delinquency rates Diversified tenant base, comprised of excellent creditquality names Long-term and inflationprotected leases Proven track record as consolidator of Brazil s commercial property market Value-added investment strategy through re-tenanting, market alignments, retrofit, and property management Opportunistic recycling from mature assets into higher yielding projects Selective developments and expansions, with risk-adjusted returns Conservative capital structure: 30% - 40% LTV 64% of total debt is linked to CDI, being positively impacted by the ongoing interest rate reduction in Brazil Covenant-light balance sheet Refinancing efforts ahead of maturity 82% of debt in local currency

5 5 Portfolio Unique portfolio, primarily concentrated in São Paulo and Rio de Janeiro, the most liquid and resilient regions in the country Brasília (DF) Office: 1 GLA: 15,501 Revenues: 1% Minas Gerais Office: 1 GLA: 8,932 Revenues: 1% São Paulo Office: 23 Industrial: 1 GLA: 276,376 Revenues: 37% DF Rio de Janeiro Office: 15 Retail: 1 GLA: 302,209 Revenues: 60% Total Properties: 43 Total GLA: 607,439 sqm - Office: 37 - Retail: 1 - Landbanks: 5 - Office: 527,045 - Retail: 6,099 - Landbanks: 74,294 RS SP MG RJ Rio Grande do Sul Office: 1 GLA: 4,421 Revenues: 1%

6 São Paulo Main Office Regions 6 Alphaville Ed. Barra Funda Alphaville Jacarandá Paulista Downtown Henrique Schaumann Jardins JK Bloco B Marginal Celebration Chácara Sto. Antonio Alexandre Dumas TNU S. Pedro BRPR s Central Office Area Panamérica Park Chucri Zaidan Souza Aranha I & II Sto. Antonio S. José

7 Rio de Janeiro Main Office Regions Icomap Porto Maravilha Ventura Towers Vargas RB 115 Bolsa RJ Downtown Ouvidor 107 Cidade Nova Glória Passeio Manchete Flamengo Botafogo Ed. Barra da Tijuca Barra da Tijuca Zona Sul 7 7

8 Rio de Janeiro Office Market Icomap 6 Glória 2 Vargas 7 Passeio Corporte 3 Bolsa do Rio 8 Ventura 4 RB Manchete 5 Ouvidor Barra da Tijuca 10 BEING IN THE RIGHT PLACE IS THE SMART THING TO DO 8

9 Passeio Corporate - Specifications 9 FACADE: Semi-reflective Guardian laminated glass coating. LOBBY: The lobbies of all three sectors provide access through the Mall and the VIP parking area. ROOM: Office Ceiling Height of 2.50m; area with 12 cm elevated plate floors, with a 400 kgf/m² charge; modular liners installed; and Central Air- Conditioning. RETAIL: The project includes a m² mall with ground floor access and excellent integration between all shops and access to the towers.

10 Passeio Corporate - Specifications 10 RIACHUELO THEATER: The project includes a large multipurpose space with approximately seats. BICICLETARY AND PARKING SPACES: Bicycle parking with changing rooms for cyclists; Charging points for electric vehicles; and three underground floors with over three hundred parking spaces. DOCK: Modern dock space. LOCATION: Downtown Rio de Janeiro - Urban Mobility, Infrastructure and Entertainment.

11 Cross-Section Diagram 11

12 Investment Analysis 12 Passeio Corporate Construction Year: 2016 Acquisition Date: December, 2016 Acquisition Value: R$ Down payment: R$ Seller financing: R$ Total GLA (sqm): Office Area (sqm) Retail Area (sqm) Debt Profile Term 12 years Instalments Monthly Grace Period 2 years Index IGPM Coupon 7% Cap Rate Sensitivity Average Rent Price (R$/sqm/month) R$ 85 R$ 90 R$ 95 R$ 100 R$ 105 R$ 110 Cap Rate (%) 11,6% 12,3% 13,0% 13,7% 14,3% 15,0%

13 2 Operating Strategy

14 Focus on Top Quality Properties Manchete Águas Claras JK Tower B Barra da Tijuca Triple-A Office Buildings Generates 60% Of Company s Total Lease Revenues Revenues Breakdown 40% 60% AAA Office Rest of the Portfolio Type: Office AAA Location: Rio de Janeiro/ RJ CBRE Region: Flamengo Owned GLA: 23,591 sqm Type: Office AAA Location: São Paulo / SP CBRE Region: Jardins Owned GLA: 29,539 sqm Build-to-Suit Contracts Leased to Triple-A Tenants Provide a Consistent Stream of Cash Flow Lease Contract Breakdown 8% 92% BTS Contracts Typical Contracts Type: Office Location: Nova Lima / MG CBRE Region: n/a Owned GLA: 8,932 sqm Type: Office Location: Rio de Janeiro/ RJ CBRE Region: Barra da Tijuca Owned GLA: 23,210 sqm 14

15 Defensive and Resilient Business Despite having experienced several cycles throughout the years, the Company has sustained high financial occupancy rates and very low delinquency rates Financial Occupancy Rate (%) 96% 91% 89% 90% 91% 92% 92% 92% 91% 91% 90% 90% 90% 89% 87% 85% 88% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Delinquency Rate (%) 0,0% 1,1% 0,2% 0,0% 0,2% 0,5% 0,4% 0,1% 0,0% 0,2% 0,8% 0,4% 0,4% 0,5% 0,1% 0,3% 2,2% 1,9% 0,9% 0,3% 0,3% 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 15

16 High Credit-Quality Tenants Premier portfolio attracts the best-credit tenants, providing a long-term, high-quality cash flow Tenants Breakdown by Sector 34% 15% 15% 11% 10% 5% 5% 3% 1% 1% Oil & Gas Telecom Other Financial Services Consumer Goods Utilities Tech Consulting Construction Mining Largest Tenants 16

17 Long-term, Inflation-Linked Contracts Lease contracts in place allow for stable, predictable cash flows, while creating a very low vacancy risk scenario and considerable upside potential in revenues Characteristics Inflation Adjustment Indices Annual Inflation Adjustments 100% of lease contracts are indexed to inflation Triple Net Contracts Tenant is responsible for all operating property costs Costs include: taxes, insurance, and maintenance expenses Mark-to-market opportunity every 3 rd year contract anniversary * Average Lease Terms Office and Industrial: 5 10 Years Retail: > 10 Years Bank Guarantees on Leases Standard practice in Brazil Protects against delinquencies from smaller tenants Tenant Delinquency Delinquency exceeding 30 days, lessor has right to break the contract and remove the tenant 4% 96% IGP-M IPCA Contract Expiration Schedule (% revenues) Average Duration of Current Lease Contracts Contract Renegotiations Schedule (% revenues) 89% Existing Lease Contracts All Contracts Built-to-Suit Contracts Current Average Duration 4.9 Years 3.9 Years 7% 28% 17% 1% 4% 5% 35% > >

18 3 Growth and Value- added Strategy

19 Market Consolidator The Company has a proven track record as the consolidator of the highly fragmented Brazilian commercial properties market Strong Execution Track Record (R$ millions) Fragmented Market Ability to source deals at attractive yields % Cap Rate 12.0% 12.2% 11.9% 12.3% 12.1% 11.6% 13.0% ¹ % Institutional Investors Private Investors Current Pipeline (R$ millions) Office Industrial Total 1. Gross Cap Rate assuming the property 100% leased at an average rent price of R$95 sqm / month 19

20 Performance Improvement Outstanding management leads to very fast operating improvements and impressive increases in the short and mid term Ventura East (Acquired in April/2012) Manchete (Acquired in Jun/2010) Cap Rate 8,5% +310bps 11,6% Cap Rate 12,0% +360bps 15,6% Initial 45 days later Underwrite 12 months later TNU (Acquired in Mar/2010) RB 115 (Delivered in Dec/2010) Cap Rate 10,5% +260 bps 13,1% Cap Rate +220 bps 14,5% 12,3% Initial 12 months later Underwrite 12 months later 20

21 Opportunistic Portfolio Recycling BR Properties maintains a consistent portfolio recycling by selling properties that have reached their maturity and full potential for value creation Divested Properties Exit Cap Rate 10.8% 9.2% 8.4% 8.6% 9.0% 9.5% 7.0% SELIC Rate 9.8% 11.7% 8.5% 8.2% 10.9% 13.4% 14.1% ¹ Sales Volume (in R$ millions) 1. Average Selic Rate in Total 21

22 Selective Developments & Expansions CES II Galpão Pirituba Panamérica Green Park Bayview 5 land banks, which once finalized, will correspond to 74.3 thousand sqm of GLA Type: Industrial / Land bank Location: São Paulo / SP Delivery Date: n/a Owned GLA: 32,987 sqm Stake: 100% Type: Office A / Land bank Location: São Paulo / SP Delivery Date: n/a Owned GLA: 9,318 sqm Phase 2 & 3 Stake: 50% Type: Office AAA / Land bank Location: Rio de Janeiro / RJ Data de Entrega: n/a Owned GLA: 10,000 sqm Stake: 100% Type: Office AAA / Land bank Location: Rio de Janeiro / RJ Data de Entrega: n/a Owned GLA: 21,989 sqm Stake: 100% 22

23 4 Financing Strategy

24 Conservative Balance Sheet Conservative Capital Structure Loan-to-Value Covenant-Light Balance Sheet 52% 41% 41% 45% 46% 44% 44% 45% 46% 39% 40% 41% 40% 34% 35% 38% 34% 34% 36% 37% 41% 34% 29% 29% 29% 33% 45% 55% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 LTV Gross Debt LTV Net Debt Covenant Debt Non Covenant Debt 4Q16 Debt Profile Perpetual Bond 11% 21% 5% 18% 46% TR CDI USD Perpetual Bond IGPM IPCA Balance (US$) $ Coupon (US$) 9% Hedge Strategy Swap to CDI Start Date 07/07/2016 End Date 09/04/2018 Cost (R$) 95,95% of CDI Exchange Rate R$ 3,58 24

25 Strong Liquidity Position Cash and Cash Equivalents Portfolio Value Indebtedness Q16 Debt Breakdown Índex Average Coupon Balance (R$MM) CDI % 2, TR + IGP-M % 9.45% IPCA % 368 Gross Indebtedness Net Indebtedness 25

26 Indebtedness Debt Amortization Schedule (R$ million) Net Debt / EBITDA * 5,5x 5,7x 5,1x 5,2x 5,4x 6,1x 6,2x 6,3x 4,4x ,8x 5,0x 5,6x 6,5x * Perpetual Bond Interest Coverage Ratio ¹ 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Other Indicators 1,6x 1,6x 1,6x 1,6x 1,5x 1,4x 1,3x 1,4x 1,2x 1,3x 1,4x 1,3x 1,4x Indicators Debt Duration ² Non-Secured/ Total Debt 37% 36% 50% 29% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Credit Rating Local AA- / braa Aa2.br AA- / braa Aa2.br AA- / bra Aa2.br A+ / bra - Aa2.br 1. Considering Adjusted Financial Results and Adjusted EBITDA (Last 12 months) 2. Considering the expiration of the Perpetual Bond in 2049 Credit Rating Global BB / BB / Ba2 BB / BB / Ba2 BB- / BB / Ba2 BB- / BB- / Ba2 26

27 Financial Highlights vs Real Estate Cycle Phase I & II: Recovery & Expansion + 2MM sqm of GLA in M&A transactions + R$800MM Private Placements + R$700MM IPO + R$600MM Follow-on Gross Leasable Area sqm (million) CAGR: +30% Phase III & IV: Oversupply & Recession + R$7 Billion in Properties Divestments + R$2 Billion returned via Dividends + R$300 MM shares buy back + R$2,5 Billion Debt Reduction Net Revenues (R$ million) CAGR: +57%

28 Financial Highlights vs Real Estate Cycle Adjusted EBITDA (R$ million) Phase I & II: Recovery & Expansion + 2MM sqm of GLA in M&A transactions + R$800MM Private Placements + R$700MM IPO + R$600MM Follow-on CAGR: +68% Phase III & IV: Oversupply & Recession + R$7 Billion in Properties Divestments + R$2 Billion returned via Dividends + R$300 MM shares buy back + R$2,5 Billion Debt Reduction Adjusted Net Income - FFO (R$ million) CAGR: +86%

29 NAV Analysis 4Q16 Investment Properties ¹ R$ Net Debt R$ Net Asset Value R$ Total Shares NAV per Share R$ 16,45 Share Price² R$ 7,50 Discount to NAV 54% R$ 16,45 (54%) R$ 7,50 NAV per Share Share Price 1. Considering R$92MM related to CES II - Landbank (Off Balance) 2. Share Price on December 31,

30 Capital Markets Stock Performance / Liquidity Shareholder Distribution 50% 40% 30% 20% 10% 0% -10% ADTV BR Properties Ibovespa -20% Dec-15 Feb-16 Mar-16 Apr-16 May-16 Jul-16 Aug-16 Sep-16 Oct-16 Dec % 3% 82% 11% Brazil United States Canada Other Sell-side Coverage Stock Indexes Financial Institution Analyst Contact Itaú BBA Enrico Trotta enrico.trotta@itaubba.com BofA Merrill Lynch Daniel Gasparete daniel.gasparete@baml.com JP Morgan Marcelo Motta marcelo.motta@jpmorgan.com Citibank Dan McGoey dan.mcgoey@citi.com Bradesco Luiz Mauricio Garcia lmgarcia@bradescobbi.com.br Deutsche Bank Esteban Polidura esteban.polidura@db.com Santander Bruno Mendonça brmendoca@santander.com.br Credit Suisse Nicole Hirakawa nicole.hirakawa@credit-suisse.com Index Weight BRPR IBrX 0,06% IBrA 0,06% SMLL 0,57% IMOB 3,03% IGCX 0,09% IGCT 0,07% IGC-NM 0,14% ITAG 0,08% IDIV 0,33% 30

31 5 Sustainability

32 Sustainability BR Properties seeks to reduce the environmental impact and operating costs of its constructions, adding value to its own properties through certifications from LEED - Leadership in Energy & Environmental Design LEED NEW CONSTRUCTION (CORE & SHELL) Certification Ventura: Gold Passeio Corporate: Gold Manchete : Silver Panamérica Green Park: Silver JK Bloco B: Silver Águas Claras: Silver Souza Aranha II: Certificated About LEED LEED, or Leadership in Energy and Environmental Design, is changing the way we think about buildings and communities are designed, built and operated. Leaders from more than 160 countries using the certification, made LEED is the main platform used for green buildings, with over 170,000 m² certificates daily. 32

33 6 Portfolio

34 Portfolio Office - São Paulo Alphaville Region: Alphaville GLA: 9,292 sqm Chucri Zaidan Region: Marginal GLA: 21,906 sqm JK Complex Tower B Region: Jardins GLA: 29,539 sqm CBOP - Jacarandá Region: Alphaville GLA: 31,954 sqm Paulista Region: Paulista GLA: 22,855 sqm TNU Region: Marginal GLA: 27,931 sqm Celebration Region: Jardins GLA: 5,590 sqm Henrique Schaumann Region: Jardins GLA: 14,125 sqm 34

35 Portfolio Office - São Paulo São Pedro Region: Marginal / Chácara Sto. Antonio GLA: 3,575 sqm Santo Antonio Region: Marginal / Chácara Sto. Antonio GLA: 5,017 sqm São José Region: Marginal / Chácara Sto. Antonio GLA: 5,080 sqm Souza Aranha Region: Marginal / Chácara Sto. Antonio GLA: 2,329 sqm Alexandre Dumas Region: Marginal / Chácara Sto. Antonio GLA: 6,889 sqm Ed. Comercial Indaiatuba Region: Indaiatuba, São Paulo GLA: 11,335 sqm 35

36 Portfolio Office - São Paulo Panamérica Park Region: Marginal GLA: 18,667 sqm Barra Funda Region: Other GLA: 11,384 sqm Panamérica Green Park I Region: Marginal GLA: 4,583 sqm Souza Aranha II Region: Marginal / Chácara Sto. Antonio GLA: 2,019 sqm 36

37 Portfolio Office - Rio de Janeiro Ventura Towers Region: Downtown GLA: 88,563 sqm Manchete Region: Flamengo GLA: 23,591 sqm Bolsa do Rio de Janeiro Region: Downtown GLA: 3,224 sqm Passeio Corporate Region: Downtown GLA: 81,423 sqm Glória Region: Downtown GLA: 8,436 sqm Icomap Region: Downtown GLA: 9,164 sqm Ouvidor 107 Region: Downtown GLA: 6,284 sqm 37

38 Portfolio Office - Rio de Janeiro Barra da Tijuca Region: Barra da Tijuca GLA: 23,210 sqm RB 115 Region: Downtown GLA: 11,516 sqm Vargas Region: Downtown GLA: 14,809 sqm 38

39 Portfolio Office - Other Regions Águas Claras Region: Nova Lima, MG GLA: 8,932 sqm Brasília Region: Brasília, DF GLA: 15,501 sqm Porto Alegre Region: Porto Alegre, RS GLA: 4,421 sqm 39

40 7 Appendix

41 Real Estate Market New Supply (sqm) * Gross Absorption (sqm) * São Paulo Rio de Janeiro São Paulo Rio de Janeiro Average Rent / sqm / month * Vacancy Rate (%) * ,0% 17,0% 15,0% 13,0% 11,0% 9,0% 7,0% 5,0% 3,0% 1,0% São Paulo Rio de Janeiro * Not including: Alphaville (SP) and Barra da Tijuca (RJ) Regions CBRE Data São Paulo Rio de Janeiro 41

42 Quality Stock Historic per Region SP QSR: 48% QSR: 41% QSR: 63% QSR: 26% QSR: 14% QSR: 8% Quality Stock Ratio (QSR): New Stock (2010 3Q 2016) Total Stock (3Q 2016) Source: BRPR/CBRE 42

43 Lease Rates Evolution - SP Jardins - Avg. Asking Price Marginal - Avg. Asking Price AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL - IGPM) AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL - IGPM) ,5 97, ,50 82,41 86,00 122, , ,63 102,90 98,86 92,06 87, ,5 73,28 69, Q , , ,5 63,39 60,20 59,87 87,5 64, , ,61 62,32 87,5 87,5 49,33 47, Q 2016 Paulista - Avg. Asking Price Alphaville - Avg. Asking Price AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL - IGPM) AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL IGPM) , ,5 97, ,07 79,55 75,32 73,50 78, ,5 71,07 66, ,55 52, Q , , , ,5 47,83 50,41 45,86 42,50 41,13 38,71 33,35 30, Q 2016 Source: BRPR/CBRE 43

44 Quality Stock Historic per Region RJ QSR: 24% QSR: 39% QSR: 14% QSR: 23% QSR: 32% QSR: 12% QSR: 44% QSR: 6% - Zona Sul Flamengo Barra da Tijuca Downtown Cidade Nova Porto Maravilha Others Botafogo Source: BRPR/CBRE Quality Stock Ratio (QSR): New Stock (2010 3Q 2016) Total Stock (3Q 2016) 44

45 Lease Rates Evolution - RJ ,5 77,50 AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL - IGPM) ,5 86,64 Downtown - Avg. Asking Price ,89 108,15 110,25 102,26 109,83 93,47 78,92 76, Q Zona Sul - Avg. Asking Price AVG. ASKED PRICE (NOMINAL) ,00 101,43 120,39 115,87 AVG. ASKED PRICE (REAL - IGPM) ,03 146,58 138,90 133,98 121,20 117, Q 2016 Flamengo - Avg. Asking Price Barra da Tijuca - Avg. Asking Price AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL - IGPM) AVG. ASKED PRICE (NOMINAL) AVG. ASKED PRICE (REAL - IGPM) ,00 76,07 77, ,5 142, ,97 104,74 97,15 100,14 102,82 93,01 90, , ,50 71,84 97,5 97, ,85 75,32 73,50 68,18 64,61 65, ,19 57, Q Q 2016 Source: BRPR/CBRE 45

46 Income Statement Income Statement 4Q16 4Q15 var % var % Gross Revenues % % Leasing % % Office % % Industrial % % Retail n/a n/a Services Rendered % % Deductions from Gross Revenues (10.314) (13.326) -23% (39.576) (59.881) -34% Taxes (PIS/Cofins and ISS) (9.277) (13.002) -29% (35.970) (54.862) -34% Deductions (1.037) (324) 220% (3.606) (5.019) -28% Net Revenues % % Cost of Leased Properties - - n/a - - n/a Gross Profit % % General and Administrative Expenses (91.575) (50.688) 81% ( ) ( ) 39% Operating Expenses (17.917) (11.517) 56% (37.335) (29.528) 26% Taxes (53.849) (14.938) 260% (65.093) (17.458) 273% Personnel Expenses (7.088) (7.584) -7% (20.916) (23.586) -11% Management Fees (3.249) (7.645) -57% (11.428) (18.162) -37% Stock options (499) (360) 39% (1.806) (4.048) -55% Vacancy Expenses (8.972) (8.644) 4% (34.064) (29.733) 15% Financial Result (39.860) (97.887) -59% ( ) ( ) -83% Financial Income % % Financial Expenses ( ) ( ) -20% ( ) ( ) -47% Other Operating Income/Expense (12.358) ( ) -89% (3.283) ( ) -97% Gain (Loss) on Sale of Investment Properties n/a % Gain (Loss) on Appraisal of Investment Properties ( ) ( ) -66% ( ) ( ) -73% Income (loss) before taxes ( ) ( ) -63% (572) ( ) -100% Income and Social Contribution taxes (19.058) (16.514) 15% (49.238) (64.130) -23% Deferred taxes % % Income (loss) before Minoritary Interest (66.315) ( ) -82% ( ) -104% Minority Interest n/a (1.733) % Net Income (loss) (66.315) ( ) -81% ( ) -104% 46

47 EBITDA & FFO EBITDA Composition 4Q16 4Q15 var % var % Net Income (loss) before Minority Interest (66.315) ( ) -82% ( ) -104% (+) Deferred Taxes ( ) (60.245) 73% (80.389) ( ) -60% (+) Income and Social Contribution Taxes % % (-) Minority Interest n/a (1.733) % (+) Depreciation % n/a (+) Financial Result % % EBITDA ( ) ( ) -63% (68.123) -303% EBITDA Margin -104% -180% 76 p.p. 30% -10% 40 p.p. Adjusted EBITDA Composition 4Q16 4Q15 var % var % EBITDA ( ) ( ) -63% (68.123) -303% (-) Gain (Loss) on Appraisal of Investment Properties % % (-) Gain (Loss) on Sale of Investment Properties - (22.999) n/a (5.348) (22.710) -76% (+) Other Operating Income % % (+) Stock options % % (+) Bonus Provision % % (+) Non recurring Provision for Contingencies n/a n/a (+) PIS/Cofins on Non-cash Gains on the Perpetual s Buyback - - n/a n/a (+) Taxes on Corporate Restructuring (ITBI) n/a n/a Adjusted EBITDA % % Adjusted EBITDA Margin 75% 80% -5 p.p. 79% 86% -7 p.p. Adjusted Net Income Composition (FFO) 4Q16 4Q15 var % var % Net Income (loss) (66.315) ( ) -81% ( ) -104% (+) Deferred Taxes ( ) (60.245) 73% (80.389) ( ) -60% (+) Income Taxes on Property Sales n/a % (-) Gain (Loss) on Appraisal of Investment Properties % % (-) Gain (Loss) on Sale of Investment Properties - (22.999) n/a (5.348) (22.710) -76% (+) Non-cash Losses on Exchange Rate Variation - (20.190) n/a n/a (-) Non-cash Gains on Exchange Rate Variation n/a ( ) - n/a (+) Non-cash Variations on Derivative Instruments (4.702) % (7.054) % (+) Non recurring tax on dividends of Real Estate Funds (FII) - - n/a n/a (+) Stock options % % (+) Other Operating Income/Expense (Non-Recurring) % % (+) PIS/Cofins on Non-cash Gains on the Perpetual s Buyback - - n/a n/a (-) Non-cash Gains on the Perpetual s Buyback - - n/a (55.726) - n/a (+) Debt Renegotiation Results (Waiver) - - n/a n/a (+) Taxes on Corporate Restructuring (ITBI) n/a n/a (+) Income Taxes on Ventura Tower Sale (Corporate Restructuring) n/a n/a Adjusted Net Income (FFO) % % Adjusted Net Income Margin (FFO Margin) 15% 2% 13 p.p. 16% 13% 3 p.p. 47

48 Investor Relations 48 IR Team Andre Bergstein CFO and Investor Relations Officer Gabriel Barcelos Investor Relations Manager Nelson Brazan Investor Relations Phone: (55 11) Ticker: BRPR3