Date post: | 29-May-2015 |
Category: |
Documents |
Upload: | brproperties |
View: | 445 times |
Download: | 0 times |
4Q12 Earnings Release Presentation
4Q12
Highlights
2
4Q12 AND 2012 HIGHLIGHTS
• 4Q12 net revenues totaled R$200.7 million, an increase of 122% over 4Q11, when net revenues came in at R$90.3 million. Net revenues for the 12-
month period ended in December 2012 reached R$630.8 million. The significant growth resulted from additional rental revenues of the new properties;
• 4Q12 adjusted EBITDA of R$176.1 million, a 117% increase over 4Q11 and adjusted EBITDA margin of 88%. In 2012, adjusted EBITDA reached
R$568.8 million and margin of 90%. It is worth highlighting that 4Q12 adjusted EBITDA was impacted by a R$10.5 million PIS and COFINS tax
expense resulting from the distribution of interest on equity of the subsidiaries (JCP – Juros Sobre Capital Próprio);
• Considering the methodology determined by the CVM Instruction No. 527/12, 4Q12 EBITDA reached R$235.5 million and margin of 117%, while the 12-month
accumulated EBITDA came in at R$2,267.4 and margin of 359%;
• 4Q12 net income totaled R$183.1 million, impacted by the net gain on appraisal of investment properties and by the net operating profit of the quarter. Net
income for the full year 2012 were R$1,227.4 million;
• 4Q12 adjusted FFO excluding non-cash and non-recurring expenses totaled R$64.7 million, and adjusted FFO margin of 32%. The 12-month
accumulated adjusted FFO totaled R$154.2 million and margin of 24%;
• During 4Q12, the Company obtained leasing spreads (net of inflation) of 8.5% on new leases signed in office buildings and 10.2% in industrial
properties. On market alignments of existing contracts, real gains were 34.7% in office buildings and 24.1% in industrial properties;
• The financial vacancy rate was 4.0%, while physical vacancy rate came in at 2.6%. Excluding the recently delivered Paulista Building, currently under
lease-up, financial vacancy drops to 1.1%;
• In November, the Company acquired the CD Anhanguera distribution center for R$105.0 million, at an 11.2% cap rate. On the same date, the Company
signed a 10-year lease agreement, compounding an area of 45,242sqm;
• In December, BR Properties concluded its second issuance of non-convertible unsecured local debentures, raising R$500.0 million in a single tranche
at CDI + 0.64% p.a. maturing in two years;
• In December, the Company pre-paid a R$223.1 million loan whose cost was CDI + 3.5% p.a. During 2012, R$1,061.2 million of debt has been
amortized;
• In December, the Company received an acceptance term from Petróleo Brasileiro S.A – Petrobrás, regarding the Tower B of Centro Empresarial
Senado, located in the city and state of Rio de Janeiro. Once the acceptance term is received, the property begins to generate rent revenues;
• Also in December, the Company’s portfolio underwent a full appraisal by CB Richard Ellis (CBRE), resulting in increases in market value of the properties. The
Company’s portfolio was appraised at a 9.98% average cap rate.
4Q12
Highlights
3
SUBSEQUENT EVENTS
• January: the Company received an acceptance term from Petróleo Brasileiro S.A – Petrobrás, regarding the Tower A of Centro Empresarial
Senado, located in the city and state of Rio de Janeiro. Once the acceptance term is received, the property begins to generate rent revenues.
• January: Certificate of Occupancy (Habite-se) was granted to the JK Complex – Tower D and E, located in the city and state of São Paulo.
• January: Certificate of Occupancy (Habite-se) was granted to the Cidade Jardim, located in the city and state of São Paulo.
• With the receipt of the Certificates of Occupancy (Habite-se), the aforementioned properties can be immediately occupied, thus accelerating
the lease-up process
4Q12
Portfolio
2012 Revenue Breakdown
Portfolio Breakdown
(% market value) Portfolio Breakdown
(% GLA)
4
Portfolio Market Value
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
4.751 4.918 5.142 5.254
11.71512.968 13.552 13.840 Services 1,2%
Straight-line 0,3% Leasing 98,5%
60%
33%
7%
49%
21%
25%
5%
Off ice AAA Off ice Industrial Retail
18%
14%
63%
5%
Off ice AAA Off ice Industrial Retail
4Q12
Portfolio Appraisal
5
Breakdown of BRPR’s Portfolio in terms of Market Value (R$ mm)
Office Industrial Retail Development Total
8.598
3.318 586
1.337 13.840
Asset ClassSame Properties Appreciation
2011 x 2012
Office 16%
Industrial 23%
Retail 10%
Developments 54%
Total 20%
4Q12
6
Portfolio Recycling
The Company concluded 7 sales throughout 2012, totaling R$137.0 million
The rental loss in 2012 was R$7.2 million
Total Sales Volume (R$ K) Average Exit Cap Rate (%)
2011 2012
89.375
137.008
2011 2012
9,2%
8,4%
Sold Properties Type Sale DateSale Price
(R$ K)
Rental Loss
2012 (R$ K)
Paço do Ouvidor Retail Mar-12 25.000 1.878
Olympic Tower Office Apr-12 14.000 980
Paulista Plaza Office Apr-12 20.000 1.503
Cetenco Plaza (2 Units) Office Mar-12 5.448 410
Cetenco Plaza (8 Units) Office May-12 21.600 1.146
Cetenco Plaza (16 Units) Office Aug-12 47.210 1.270
Paulista Park (2 Units) Office Dec-12 3.750 16
TOTAL 137.008R$ 7.203R$
4Q12
Financial Highlights
7
Net Revenues (R$ thousand) Net Income* (R$ thousand)
* Impacted by the net gain on appraisal of investment
properties
4Q11 4Q12 2011 2012
90.309 200.666
343.464
630.825 122%
84%
4Q11 4Q12 2011 2012
70.500 183.092 335.408
1.227.429
266%
160%
4Q12
8
Financial Highlights
Adjusted EBITDA (R$ thousand) EBITDA (CVM Methodology) (R$ thousand) 90%
88%91% 90%
Adjusted EBITDA Margin
4Q11 4Q12 2011 2012
81.119 176.121
312.095
568.847
82%
117%
187% 117% 214% 359%
EBITDA Margin
4Q11 4Q12 2011 2012
168.607 235.496
733.344
2.267.375
209%
40%
EBITDA Composition 4Q12 4Q11 var % 2012 2011 var %
Net Income (loss) 183.092 70.500 160% 1.227.429 335.408 266%
Deferred Taxes 15.049 52.723 -71% 663.660 151.273 339%
Income and Social Contribution Taxes (11.694) 5.585 -309% 22.687 22.589 0%
Minority Interest (11.029) - n/a (11.029) - n/a
Depreciation 69 23 207% 279 270 3%
Net Financial Result 60.011 39.776 51% 364.350 223.803 63%
EBITDA 235.496 168.607 40% 2.267.375 733.344 209%
EBITDA Margin 117% 187% -69 p.p. 359% 214% 146 p.p.
Adjusted EBITDA Composition 4Q12 4Q11 var % 2012 2011 var %
Gross Profit 200.666 90.309 122% 630.825 343.464 84%
(-) General and Administrative Expenses (33.909) (15.348) 121% (93.974) (49.059) 92%
(+) Bonus Provision 8.648 6.553 32% 12.095 10.000 21%
(+) Merger Expenses - 3.088 -100% 8.927 3.088 189%
(+) Brokerage Fees (Ventura Building Acquisition) - - n/a 7.463 - n/a
(+) Stock options 716 (3.483) -121% 3.511 4.602 -24%
Adjusted EBITDA 176.121 81.119 117% 568.847 312.095 82%
Adjusted EBITDA Margin 88% 90% -2 p.p. 90% 91% -1 p.p.
4Q12
9
Financial Highlights
Adjusted FFO (R$ thousand)
46%3%
18% 32% 36%24%
Margem FFO Ajustado
4Q11 2Q12 3Q12 4Q12 2011 2012
41.327 4.892
30.492 64.679
124.863 154.225
24%
112%
57%
523%
Adjusted FFO 4Q12 4Q11 var % 2012 2011 var %
Net Income (loss) 183.092 70.500 160% 1.227.429 335.408 266%
Deferred Taxes 15.049 52.723 -71% 663.660 151.273 339%
Taxes on Property Sales 744 1.972 -62% 4.649 8.775 -47%
Gain (Loss) on Appraisal of Investment Properties (79.231) (95.653) -17% (1.746.275) (443.862) 293%
Gain (Loss) on Sale of Investment Properties (298) 398 -175% 6.071 1.254 384%
Non-cash Losses on Exchange Rate Variation 23.946 55.413 -57% 122.769 151.774 -19%
Non-cash Gains on Exchange Rate Variation (20.429) (48.091) -58% (74.623) (89.833) -17%
Variations MTM on Derivatives (58.194) 978 -6050% (65.843) 6.987 -1042%
Merger Expenses - 3.088 -100% 8.927 3.088 189%
Brokerage Fees (Ventura Building Acquisition) - - n/a 7.463 - n/a
Adjusted FFO 64.679 41.327 57% 154.225 124.863 24%
Adjusted FFO Margin 32% 46% -14 p.p. 24% 36% -12 p.p.
4Q12
Indebtedness
4Q12 Net Debt (R$ mn) 4Q12 Debt Index Breakdown
10
44%
36%
13%
1%
6%TR
CDI
IGPM
INPC
IPCA
ST Debt Obligations for
Acquisitions
LT Debt Total Debt Cash Net Debt
679
5.263 4.689
11
4.573 574
Net Debt 4Q12 3Q12 var %
Short Term Loans and Financing 689.778 679.382 2%
Loans and Financing 616.995 554.331 11%
Perpetual Bond 61.777 59.526 4%
Derivative Instruments - 52.787 -100%
Payables for Acquisition of Real Estate 11.006 12.739 -14%
Long Term Loans and Financing 4.573.133 4.278.954 7%
Loans and Financing 4.038.535 3.745.869 8%
Perpetual Bond 534.598 533.085 0%
Gross Debt 5.262.912 4.958.336 6%
Cash and Cash Equivalents 573.570 394.179 46%
Net Debt 4.689.342 4.564.157 3%
Portfolio Value 13.839.530 13.552.098 2%
Gross Debt / Portfolio Value (Loan to Value) 38% 37% 1 p.p.
Net Debt / Portfolio Value (Loan to Value) 34% 34% 0 p.p.
Adjusted EBITDA / Net Financial Expenses * 1,5x 1,5x -1%
Duration (years) 4,8 5,3 -9%
* Considering Net Financial Expenses (ex. non-cash variations)
4Q12
Indebtedness
11
Debt Amortization Schedule (R$ million)
Loan to Value: Gross and Net
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
38% 40%
24%
40%45% 43% 42% 41% 40% 39%
37%38%
4%23% 21%
36% 36%35%
21% 21%
30%
35% 34%34%
LTV Gross Debt LTV Net Debt
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
2,5x
3,5x
2,4x2,1x
1,4x1,6x
2,7x2,5x
3,0x
1,1x
1,5x 1,5x
DSC ratio
Debt Service Coverage (R$ million)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
467
835
313
469532
350 349
19597 77 72 74 62
Principal
4Q12
12
Operating Highlights
Leasing Spreads
Leasing Spread - Market Alignments 4Q12 4Q11 2012 2011
Leasing Spread - Office 34,7% 33,7% 32,2% 26,5%
Renegotiated GLA (m²) 48.474 25.696 89.880 75.800
% Office portfolio 8% 9% 15% 25%
Leasing Spread - Warehouse 24,1% n/a 20,0% 20,6%
Renegotiated GLA (m²) 33.406 - 63.006 15.581
% Warehouse portfolio 3% 0% 5% 2%
Leasing Spread - Retail n/a n/a n/a 15,8%
Renegotiated GLA (m²) - - - 97.435
% Retail portfolio 0% 0% 0% 99%
Leasing Spread - New Leases 4Q12 4Q11 2012 2011
Leasing Spread - Office 8,5% 39,3% 21,4% 28,9%
Leased GLA (m²) 1.612 25.429 15.658 52.473
% Office portfolio 0% 9% 3% 18%
Leasing Spread - Warehouse 10,2% n/a 4,5% 15,6%
Leased GLA (m²) 17.833 - 75.388 18.019
% Warehouse portfolio 1% 0% 6% 2%
Leasing Spread - Retail n/a n/a n/a n/a
Leased GLA (m²) - - - -
% Retail portfolio 0% 0% 0% 0%
4Q12
Operating Highlights
13
Financial Vacancy per Segment Vacancy Breakdown
1Q12 2Q12 3Q12 4Q12
1,0%
1,9%
3,2%
2,6%
1,1%1,3%
4,5%
4,0%
Physical
Financial
3Q12 4Q12
4,0%3,6%
0,5% 0,4%
0,0% 0,0%
Off ice
Industrial
Retail
Property Type Financial Physical
CBOP - Jacarandá Office 0,2% 0,1%
Ventura - West Tower Office 0,1% 0,02%
Icomap Office 0,02% 0,03%
Santa Catarina Office 0,2% 0,1%
Paulista Office 3,0% 0,9%
Brasília Office 0,2% 0,1%
Total Office 3,6% 1,3%
BP Jandira Industrial 0,2% 0,5%
BP Jundiaí Industrial 0,1% 0,3%
BBP CEA Topázio Industrial 0,1% 0,2%
BBP Barão de Mauá Industrial 0,0% 0,1%
Cond.Ind.SJC Industrial 0,1% 0,3%
Total Industrial 0,4% 1,3%
Total Portfolio 4,0% 2,6%
4Q12
% Revenues
% GLA
% GLA
% Revenues
14
Operating Highlights
Lease Contract 3 Year Market Alignment Schedule
Lease Contract Expiration Schedule
2012 2013 2014 >2015
1%6%
9%
84%
2012 2013 2014 >2015
2%14%
19%
66%
2012 2013 2014 >2015
7%
20%
25%
48%
2012 2013 2014 >2015
16%
16%
34%
34%
4Q12
15,00
17,00
19,00
21,00
23,00
25,00
27,00
29,00
-
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
Dec-11 Feb-12 Mar-12 May-12 Jun-12 Aug-12 Sep-12 Nov-12 Dec-12
Capital Markets
15
Gain of R$2.2
billion in 12
months
Shareholder Value Creation
Market Cap
3,330 million
Stock Price
R$18.50
Market Cap
7,946 million
Stock Price
R$25.50
Stock Performance (BRPR3) 4Q12 4Q11 var % 2012 2011 var %
Total Number of Shares 311.612.894 180.003.919 73% 311.612.894 180.003.919 73%
Free Float (%) 99% 99% 0% 99% 99% 0%
Stock Price (average for the period) 25,79 17,93 44% 23,27 17,54 33%
Stock Price (end of period) 25,50 18,50 38% 25,50 18,50 38%
Market Cap end of period (R$ million) 7.946 3.330 139% 7.946 3.330 139%
Average Daily Trading Volume (R$ million) 32,38 14,75 120% 29,04 12,63 130%
Average Daily Traded Shares 1.254.317 824.364 52% 1.241.830 720.685 72%
Average Daily negotiations 4.621 1.936 139% 3.834 1.152 233%
4Q12
Dividend
16
2010 2011 2012
R$ 0,108
R$ 0,193
R$ 0,513
79%
166%
Dividend per Share Dividend Yield
The Company’s Management has proposed ad referendum, of the Ordinary and Extraordinary
Shareholders' Meeting to be held on April 30th 2013, dividend distribution in the amount of R$160.0 million, related to the fiscal year ended on December 31st, 2012.
* Considering BRPR3’s closing price in 12/28/2012 – R$25.50
2010 2011 2012
0,6%
1,0%
2,0%
75%
93%
4Q12
17
Appendix - New Supply SP
Marginal
Jardins
Paulista
Downtown
Alphaville
Source: BRPR
93,550 sqm
New Faria Lima/JK
2013: 71,233 sqm
2014: 0 sqm
JK Towers – 34,583 sqm - BRPR
Cid. Jardim – 3,871 sqm - BRPR
Vila Olímpia/Bandeirantes
2013: 51,841 sqm
2014: 40,022 sqm
Marginal (New Berrini)
2013: 77,424 sqm
2014: 193,831 sqm
Vila Olímpia/JK
2013: 32,000 sqm
2014: 90,668 sqm
Note: In the areas of new supply described above are included only those which will be effectively vacant upon delivery. Therefore, the numbers aboveexclude pre-leased areas and new supply owned by BR Properties such as Cidade Jardim, the JK Towers, and Panamérica Green Park (PGP).
PGP – 9,392 sqm - BRPR
Marginal
4Q12
18
Appendix - New Supply SP
-100.000
0
100.000
200.000
300.000
400.000
500.000
600.000
2006 2007 2008 2009 2010 2011 2012(9M)
Net Absorption - São Paulo (sqm)
Jardins Marginal Paulista Downtown Others Alphaville
-
100.000
200.000
300.000
400.000
500.000
600.000
2005 2006 2007 2008 2009 2010 2011 2012(9M)
São Paulo - New Supply (sqm)
Source: CBRE
4Q12
IR Contacts
Pedro Daltro
CFO & Investor Relations Officer
Marcos Haertel
Investor Relations Manager
Gabriel Barcelos
Investor Relations Analyst
Phone: (55 11) 3201-1000
Email: [email protected]
www.brpr.com.br/ri
19
Investor Relations