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 (%)

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 3750 16

TOTAL 137.008R$ 7.203R$

2011 2012

89.375

137.008

2011 2012

9,2%

8,4%

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: ri@brpr.com.br

www.brpr.com.br/ri

19

Investor Relations