1Q17 Conference Call

Transcription

1 1Q17 Conference Call

2 1 Highlights & Portfolio

3 1Q17 Highlights BR Properties registered Adjusted Net Income (FFO) of R$20.4 million in 1Q17, with 18% margin BR Properties registered in 1Q17 net revenues of R$114.0 million, meaning a decrease of 5% in comparison against 1Q16, considering the same properties' revenues. This reduction is explained by the increase in vacancy rates in 2016 and by the reduction in rent prices of specific contracts. 1Q17 adjusted EBITDA was R$89.3 million, with a margin of 78%, one of the highest in the sector. BR Properties registered a net income of R$182.8 million in the end of the quarter, mainly impacted by the gain on the sale of "Galpão SBC". 1Q17 Adjusted Net Income (FFO) totaled R$20.4 million, with a margin of 18%, representing an increase of 94% in comparison to 1Q16. The company registered a net debt of R$2,136.9 million and a 12.9% p.a., or 106% of CDI average cost of debt by the end of 1Q17. BR Properties' cash position at the end of the quarter was R$1,196.4 million. In 1Q17, BR Properties concluded the sale of "Galpão SBC" to GLP for the total amount of R$240.2 million, according to an arbitral sentence favorable to the Company, ending a discussion initiated in November The Company s portfolio ended the quarter with consolidated financial and physical vacancy rates of 12.8% and 22.0%, respectively. The increase, if compared to 1Q16, is mainly explained by the effect of the sale of "Galpão SBC" (47,353 sqm), in February. Disregarding this effect, vacancy rates remain stable. The Company has signed with Petrobrás an amendment to the lease agreement relative to the readjustment in the rent price of Ed. Ventura's Towers, effective as of May The conditions of the amendment, already mentioned by the Company since the conclusion of the negotiations in December 2015, were not changed. 3

4 1Q17 Highlights The Company's Share Buyback Program was launched in March. Up to now, BR Properties has already bought back 1.1 million of shares or 38% of the total announced (2.9 million of shares). Subsequent Events In April, BR Properties entered into a Deed of Purchase and Sale of Real Estate ( CCV ) with "MORRO VERDE INCORPORAÇÃO IMOBILIÁRIA" aiming the acquisition of the Logistic/Industrial Warehouse denominated "Edifício Imbuia", located in the city of Jarinú, State of São Paulo, with Gross Leasable Area (GLA) of 22,986 sqm for the total amount of R$49.4 million. The property is already partially leased and the effectiveness of the acquisition is still subject to the fulfillment of certain conditions pre-established by both parties. 4

5 Portfolio Portfolio Value 1Q17 Revenues Breakdown Services 3% Rent 97% Industrial 1% 99% Office 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Portfolio Breakdown (Value) 0,2% Portfolio Breakdown (GLA) 1% 5% 35% 47% 65% 47% Office AAA Office Industrial Office AAA Office Industrial Retail 5

6 2 Financial Highlights

7 Revenues and Profit Net Revenues (R$ k) Net Income (R$ k) (10%) 71% (5%) Q16 1Q16 - Same Properties 1Q17 1Q16 1Q17 7

8 General and Administrative Expenses SG&A (R$ k) 11% 12% (8%) Q16 % Net Revenues General and Administrative Expenses 1Q17 1Q16 var % SG&A (59.086) (28.176) 110% Operating Expenses (9.328) (7.762) 20% Taxes (31.095) (5.492) 466% Personnel Expenses (6.437) (5.002) 29% Management Fees (1.122) (2.758) -59% Stock Options / LTIP (2.283) (363) 528% Vacancy Expenses (8.821) (6.798) 30% Adjusted SG&A (13.294) (14.374) -8% (+) Stock Options / LTIP % (+) Vacancy Expenses % (+) Taxes % (+) Arbitration Fees n/a (+) Bonus Provision % Percentage: G&A / Net Revenues 12% 11% 1 p.p. 1Q17 8

9 EBITDA Adjusted EBITDA (R$ k) 79% 78% * (12%) Q16 * R$ 1,149 of Bonus Provision in 1Q16 Adjusted EBITDA Margin EBITDA Composition 1Q17 1Q16 var % Net Income (loss) before Minority Interest % (+) Deferred Taxes (63.542) (12.441) 411% (+) Income and Social Contribution Taxes % (-) Minority Interest - (1.022) n/a (+) Depreciation % (+) Financial Result (41.760) -120% EBITDA % EBITDA Margin 122% 62% 60 p.p. 1Q17 Adjusted EBITDA Composition 1Q17 1Q16 var % EBITDA % (-) Gain (Loss) on Appraisal of Investment Properties n/a (-) Gain (Loss) on Sale of Investment Properties (65.423) (5.348) 1123% (+) Other Operating Income (18.241) % (+) Stock Options / LTIP % (+) Bonus Provision * - - n/a (+) PIS/Cofins (Revenue Taxes) on Property Sales (Galpão SBC ) n/a (+) Taxes on One Properties Incorporation (ITBI) n/a (+) PIS/Cofins (Revenue Taxes) on Non-cash Gains on the Perpetual s Buyback n/a Adjusted EBITDA % Adjusted EBITDA Margin 78% 79% -1 p.p. * From 2017 onwards, the adjustment of the "Bonus Provision" will not be considered in the Adjusted EBITDA calculation 9

10 Financial Results Adjusted Financial Results (R$ k) (1%) Q16 Financial Results 1Q17 1Q16 var % Financial Income % Return on Cash Reserves % Non-cash Variations (MTM - Perpetual Bond Swap and Interest) % Exchange Rate Variation % Other % Gains on the Perpetual s Buyback n/a Monetary Adjustment on "Galpão SBC " Sale n/a Monetary Adjustment of Tax Credits n/a Financial Expenses ( ) ( ) -3% Interest Expense on Company Debt ( ) ( ) 0% Non-cash Variations (MTM - Perpetual Bond Swap and Interest) (935) (3.588) -74% Exchange Rate Variation - - n/a Other (108) (14) 664% Expenses on the Perpetual s Buyback - (1.806) n/a Financial Results (8.305) % (-) Non-cash Gains on Exchange Rate Variation (16.906) (65.335) -74% (+) Non-cash Losses on Exchange Rate Variation - - n/a (-) Non-cash Gains (MTM - Perpetual Bond Swap and Interest) (6.159) (4.783) 29% (+) Non-cash Losses (MTM - Perpetual Bond Swap and Interest) % (-) Monetary adjustment on "Galpão SBC" Sale (49.503) - n/a (-) Non-cash Gains on the Perpetual s Buyback - (55.726) n/a Adjusted Financial Results (79.939) (80.496) -1% 1Q17 10

11 Adjusted Net Income (FFO) Adjusted Net Income (R$ k) 8% 18% 94% Q16 Adjusted Net Income Margin Adjusted Net Income Composition (FFO) 1Q17 1Q16 var % Net Income (loss) % (+) Deferred Taxes (63.542) (12.441) 411% (+) Income Taxes on Property Sales % (-) Gain (Loss) on Appraisal of Investment Properties n/a (-) Gain (Loss) on Sale of Investment Properties (65.423) (5.348) 1123% (+) Non-cash Losses on Exchange Rate Variation - - n/a (-) Non-cash Gains on Exchange Rate Variation (16.906) (65.335) -74% (+) Non-cash Variations (MTM - Perpetual Bond Swap and Interest) (5.225) (1.194) 337% (-) Monetary Adjustment on "Galpão SBC " Sale (49.503) - n/a (-) Non-cash Gains on the Perpetual s Buyback - (55.726) n/a (+) Stock Options / LTIP % (+) Other Operating Income/Expense (Non-Recurring) (18.241) % (+) PIS/Cofins (Revenue Taxes) on Property Sales (Galpão SBC ) n/a (+) Taxes on One Properties Incorporation (ITBI) n/a (+) PIS/Cofins (Revenue Taxes) on Non-cash Gains on the Perpetual s Buyback n/a Adjusted Net Income (FFO) % Adjusted Net Income Margin (FFO Margin) 18% 8% 10 p.p. 1Q17 11

12 Indebtedness 1Q17 Net Debt (R$ k) 1Q17 Debt Breakdown % 11% 20% % % ST Debt LT Debt Total Debt Cash Net Debt TR CDI USD Perpetual Bond IGPM IPCA Indebtedness 1Q17 4Q16 var % Short Term Loans and Financing % Loans and Financing % Perpetual Bond % Derivative Instruments n/a Long Term Loans and Financing % Loans and Financing % Perpetual Bond % Gross Debt % Cash and Cash Equivalents % Net Debt % Portfolio Value *** % Gross Loan to Value 47% 46% 1 p.p. Net Loan to Value 30% 33% -3 p.p. Adjusted EBITDA / Net Financial Expenses * 1,4x 1,4x -3% Duration (years) ** 8,4 8,7-3% Duration (years) Ex Perpetual Bond 4,4 4,0 10% Unsecured Debt / Total Debt 29% 29% 0 p.p. * Considering Adjusted Financial Results and Adjusted EBITDA (Last 12 months) ** Considering the expiration of the Perpetual Bond in 2050 *** Considering R$92MM related to CES II - Landbank (Off Balance) 12

13 Indebtedness Amortization Schedule (R$ MI) Net Debt / Adjusted EBITDA (x) vs Net Debt * 5,7x 5,1x 5,2x 5,4x 6,1x 6,2x 6,3x 4,4x 4,8x 5,0x 5,6x 6,5x 6,0x * Perpetual Bond 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Interest Rate Coverage (x) LTV: Gross and Net (%) 1,6x 1,6x 1,6x 1,5x 1,4x 1,3x 1,4x 1,2x 1,3x 1,4x 1,3x 1,4x 1,4x 41% 45% 39% 40% 41% 40% 44% 52% 46% 44% 45% 46% 47% 35% 38% 34% 34% 36% 37% 41% 34% 29% 29% 29% 33% 30% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 LTV Gross Debt LTV Net Debt 13

14 3 Operational Highlights

15 Lease Contracts Rent / Sqm / Month Same Properties Rent / Sqm / Month - Same Properties * 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Office 7,3% 5,6% 6,1% 4,1% -2,8% 3,2% 3,5% 2,0% 9,2% 1,8% 3,6% -0,3% -4,4% -5,5% Industrial 5,3% 3,8% 6,6% 6,7% 4,7% 4,7% 4,1% 4,6% 0,2% 0,2% 10,8% 10,6% 10,6% n/a Retail 6,6% 5,9% 6,2% 2,4% 6,0% 7,8% 5,3% 8,6% n/a n/a n/a n/a n/a n/a Total 6,7% 5,1% 6,2% 4,3% -2,0% 3,4% 3,6% 2,4% 8,8% 1,7% 3,9% 0,0% -4,0% -5,5% IPCA (Inflation Indicator) 5,9% 6,2% 6,5% 6,7% 6,4% 8,1% 8,9% 9,5% 10,7% 9,4% 8,8% 8,5% 6,3% 4,6% IGP-M (Inflation Indicator) 5,5% 7,3% 6,2% 3,5% 3,7% 3,2% 5,6% 8,4% 10,5% 11,6% 12,2% 10,7% 7,2% 4,9% Weighted Average: IPCA¹ x IGP-M (~ 5% x 95%) 5,6% 7,0% 6,3% 4,3% 4,4% 4,4% 6,4% 8,7% 10,6% 11,4% 11,9% 10,6% 7,1% 4,8% * Comparison between: the average same property rent in the current period vs the average same property rent in equal period of last year * Considering only rent prices of leased areas * In nominal terms ¹ IPCA and Other Lease Contracts Average Duration Existing Lease Contracts All Contracts Built-to-Suit Contracts Current Average Duration 5.0 Years 3.7 Years Expiration Schedule (% Revenues) 3rd Year Alignment Schedule (% Revenues) 9% 64% 36% 5% 4% 26% > % 27% >

16 Portfolio Vacancy Vacancy 22,6% 21,9% 22,0% 19,2% 19,8% 16,0% 8,3% 4,1% 8,6% 9,0% 8,0% 7,3% 14,3% 10,4% 11,2% 10,4% 10,0% 9,8% 9,7% 13,0% 14,5% 11,8% 12,2% 12,8% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 4Q16 Same Financial Physical Properties 1Q17 16

17 4 Capital Markets

18 Capital Markets 70% 60% 50% 40% 30% 20% 10% 0% -10% ADTV BR Properties Ibovespa Performance BRPR3 1Q17-20% - Dec-15 Feb-16 Apr-16 May-16 Jul-16 Sep-16 Oct-16 Dec-16 Feb-17 Mar Stock Performance (BRPR3) 1Q17 1Q16 var % Total Number of Shares % Free Float (%) 30% 99% -70% Stock Price (average for the period) 8,67 8,27 5% Stock Price (end of period) 9,16 8,80 4% Market Cap end of period (R$ million) % Average Daily Trading Volume (R$ million) 8,74 6,74 30% Average Daily Traded Shares % Average Daily negotiations % 18

19 Investor Relations IR Team André Bergstein CFO and IRO Gabriel Barcelos IR Manager Nelson Brazan IR Phone: (55 11) Ticker: BRPR3 19