2Q14 Earnings Release

Presentation

2Q14 Highlights

• 2Q14 net revenues totaled R$223.4 million, a decrease of 6% versus 2Q13, when net revenues came in at R$238.2 million. This reduction

is explained by the loss of rental revenues resulting from property sales occurring in the past 12 months. It is worth highlighting that the

average rent per square meter of the same properties grew 6.2% over the last 12 months.

• 2Q14 net income reached R$182.9 million, an increase of 267% over 2Q13.

• 2Q14 adjusted EBITDA of R$205.6 million, and adjusted EBITDA margin of 92%.

• 2Q14 adjusted FFO totaled R$65.3 million, and adjusted FFO margin of 29%.

• Throughout the quarter, 14,665 sqm of GLA were leased by the Company, representing an increment of R$1.1 million in the monthly rent

revenues.

• The Company signed with AIG Seguros Brasil a lease agreement for the occupancy of 5 floors of JK Complex Tower E. The lease has a

term of 64 months and involves the lease-up of 6,038 sqm of gross leasable area.

• In addition, a 10-year long lease agreement was signed with Indra Brasil, involving 75% of Panamérica Green Park’s total GLA.

• During the 2Q14 the Company’s office portfolio financial and physical vacancy rates fell by 190 and 130 bps, respectively. 2Q14 is the 4th

consecutive quarter in which BR Properties records an improvement in this indicator.

• The Company finalized the 1st tranche of the sale of its industrial portfolio to GLP for the amount of R$2,345.1 million – equivalent to 73.7%

of total transaction. The remaining assets, which account for R$834.9 million, will be posteriorly transferred, subject to the fulfillment of

certain precedent conditions relating to such assets.

• BR Properties renegotiated R$217.3 million of loans, reducing its average cost by 69 bps.

• In May, the Company distributed R$160.0 million – R$0.54/share – of ordinary dividends to its shareholders, representing a dividend yield of

3.0%.

• In addition, upon receipt of cash from the sale of its industrial portfolio to GLP, the Company paid out in June an extraordinary dividend of

R$1,636.5 billion – R$5.50/share – representing a dividend yield of 29.2%.

• In July, the Company signed a Quotas Sale Agreement with Capital Brasileiro de Empreendimentos Imobiliários Ltda. involving the sale of

totality of quotas held by BR Properties in the Comercial Progressivo II Real Estate Investment Fund for the amount of R$606.7 million. The

consummation of the transaction as provided for in the agreement is subject, among other conditions, to the approval of antitrust authorities.

2

Portfolio

3

2Q14 Revenue Breakdown

Portfolio Breakdown

(% market value)

Portfolio Breakdown

(% GLA)

Portfolio Market Value

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

12.968 13.552 13.840 14.031 14.096 13.759 13.423 13.538

11.248

Asset sales in the amount of R$482.1 million Sale of Industrial

Portfolio – 1st Tranche

R$ 2.3 billion

Services 1.5%

Straight-line 1.2% Leasing 97.3%

68%

27%

6%

Office

Industrial

Retail

60%

26%

9%5%

Off ice AAA Off ice Industrial Retail

29%

23%

39%

9%

Off ice AAA Off ice Industrial Retail

Portfolio Recycling

4

Sale of Industrial Portfolio – 1st Tranche

Total Number of Shares after Repurchase 297.538.945

Special Dividend 1.636.464.197,50R$

Special Dividend per Share 5,50R$

Dividend Yield * 29,1%

* Share Price: R$ 18,90 (06/11/2014)

Capital Allocation

Sale of FII Comercial Progressivo II

Sold GLA 112.503

Sale Price: Cash + Debt 606.651R$

Cash Payment 418.580R$

Debt Assumed by the Buyer 188.072R$

Sale of CPII Real Estate Fund (thousand)

Sold Properties Type City StateAcquisition

Date

# of

Properties

Owned GLA

(sqm)

Portfolio C&A Retail Several n/a 29/12/10 28 98.714

Alphaville - Araguaia Office Barueri SP 29/12/10 1 8.084

Call Center Conexão Office São Paulo SP 29/12/10 1 1.448

Ed. Santa Catarina Office AAA São Paulo SP 29/12/10 1 4.257

Total 31 112.503

Sold GLA 859.055

Sale Price 2.345.147R$

Sale Price - Readjusted by Inflation 2.377.055R$

Pre-Paid Debt in the Transaction 445.221R$

Sale of Industrial Portfolio (thousand)

Financial Highlights

5

Net Income (R$ thousand) Net Revenues (R$ thousand)

2Q13 2Q14 6M13 6M14

238.214 223.361

464.141 456.220

(6%)

(2%)

2Q13 2Q14 6M13 6M14

49.847

182.892 140.740

242.359

267%

72%

Financial Highlights

6

Adjusted EBITDA (R$ thousand)

93%90%

92%

Adjusted EBITDA Margin

2Q13 1Q14 2Q14

221.849 209.269 205.639

(2%)

(7%)

EBITDA Composition 2Q14 2Q13 var % 6M14 6M13 var %

Net Income (loss) before Minority Interest 183.451 49.245 273% 242.124 134.144 80%

(+) Deferred Taxes (66.162) 16.911 -491% (18.221) 47.747 -138%

(+) Income and Social Contribution Taxes 153.291 18.083 748% 165.229 21.695 662%

(-) Minority Interest (559) 603 -193% 234 6.596 -96%

(+) Depreciation 95 224 -58% 101 224 -55%

(+) Net Financial Result 111.617 176.179 -37% 232.394 311.041 -25%

EBITDA 381.732 261.245 46% 621.862 521.448 19%

EBITDA Margin 171% 110% 61 p.p. 136% 112% 24 p.p.

Adjusted EBITDA Composition 2Q14 2Q13 var % 6M14 6M13 var %

EBITDA 381.732 261.245 46% 621.862 521.448 19%

(-) Gain (Loss) on Appraisal of Investment Properties (56.303) (39.944) 41% (92.542) (88.820) 4%

(-) Gain (Loss) on Sale of Investment Properties (377) (2.250) -83% (377) (2.250) -83%

(+) Other Operating Income (120.753) 1.263 -9661% (116.877) 6.211 -1982%

(+) Stock options 190 387 -51% 544 1.048 -48%

(+) Bonus Provision 1.149 1.149 0% 2.298 2.298 0%

Adjusted EBITDA 205.639 221.849 -7% 414.907 439.934 -6%

Adjusted EBITDA Margin 92% 93% -1 p.p. 91% 95% -4 p.p.

Financial Highlights

7

Adjusted FFO (R$ thousand)

35%

25%29%

Adjusted FFO Margin

2Q13 1Q14 2Q14

83.799

57.312 65.289

(22%)

14%

Adjusted FFO Composition 2Q14 2Q13 var % 6M14 6M13 var %

Net Income (loss) 182.892 49.847 267% 242.359 140.740 72%

(+) Deferred Taxes (66.162) 16.911 -491% (18.221) 47.747 -138%

(+) Income Taxes on Property Sales 145.524 820 17637% 145.524 820 17637%

(+) PIS/Cofins (Revenue Taxes) on Property Sales - - n/a - - n/a

(-) Gain (Loss) on Appraisal of Investment Properties (56.303) (39.944) 41% (92.542) (88.820) 4%

(-) Gain (Loss) on Sale of Investment Properties (377) (2.250) -83% (377) (2.250) -83%

(+) Non-cash Losses on Exchange Rate Variation 935 62.107 -98% 25.187 73.310 -66%

(-) Non-cash Gains on Exchange Rate Variation (18.343) (3.543) 418% (65.747) (23.014) 186%

(+) Non-cash Variations on Derivative Instruments (650) (149) 335% 8.647 24.070 -64%

(-) Other Operating Income/Expense (Sale of Assets) (122.228) - n/a (122.228) - n/a

Adjusted FFO 65.289 83.799 -22% 122.602 172.604 -29%

Adjusted FFO Margin 29% 35% -6 p.p. 27% 37% -10 p.p.

Indebtedness

8

2Q14 Net Debt (R$ mn) 2Q14 Debt Profile

ST Debt Obligations for

Acquisitions

LT Debt Total Debt Cash Net Debt

844

5.011

4.220

19

4.147 791

36%

48%

10%

0,2%

6% TR

CDI

IGPM

INPC

IPCA

Indebtedness 2Q14 1Q14 var %

Short Term Loans and Financing 863.514 963.441 -10%

Loans and Financing 779.717 868.994 -10%

Perpetual Bond 64.565 66.338 -3%

Derivative Instruments - - n/a

Payables for Acquisition of Real Estate 19.233 28.109 -32%

Long Term Loans and Financing 4.147.019 4.601.490 -10%

Loans and Financing 3.568.825 4.007.597 -11%

Perpetual Bond 578.194 593.893 -3%

Gross Debt 5.010.533 5.564.931 -10%

Cash and Cash Equivalents 790.672 814.467 -3%

Net Debt 4.219.862 4.750.464 -11%

Portfolio Value 11.247.509 13.537.531 -17%

Gross Debt / Portfolio Value (Loan to Value) 45% 41% 3 p.p.

Net Debt / Portfolio Value (Loan to Value) 38% 35% 2 p.p.

Adjusted EBITDA / Net Financial Expenses * 1,6x 1,6x 0%

Duration (years) 4,2 4,0 5%

Unsecured Debt / Total Debt 40% 37% 3 p.p.

* Considering Net Financial Expenses (ex. non-cash variations)

Indebtedness

9

Debt Amortization Schedule (R$ million)

Loan to Value: Gross and Net Interest Coverage Ratio

Net Debt / Adjusted EBITDA

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

613

186

1.036

400

266 279

177 106 93 95 83 66 71 82 94

Principal

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

6,0x5,5x

3,2x 3,4x

9,7x

7,8x7,3x

6,7x

5,6x 5,7x5,2x 5,5x 5,7x

5,1x

Net Debt/EBITDA

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

1,4x

1,6x

2,7x

2,5x

3,0x

1,1x

1,5x 1,5x1,7x

2,0x

1,7x1,6x 1,6x 1,6x

EBITDA / Net Financial Expenses

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

45%43% 42% 41%

40% 39%37%

38% 39% 40% 39% 41% 41%45%

36%35%

21%21%

30% 35% 34% 34% 34%36%

33% 34%35% 38%

LTV Gross Debt LTV Net Debt

Operating Highlights

10

Lease Contract Expiration Schedule

(% Revenues)

Lease Contract 3 Year Market Alignment

Schedule (% Revenues)

The schedules below exclude the industrial portfolio and Comercial

Progressivo II Real Estate Investment Fund

Lease Contracts Duration

Rent / Sqm / Month – Same Properties

2014 2015 2016 >2017

2%9%

11%

77%

2014 2015 2016 >2017

5%

46%

13%

6%

Lease Contracts Duration

All Contracts 6.7 Years

Build-to-Suit Contracts 10.3 Years

Rent / Sqm / Month - Same Properties * 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Office 16,0% 13,7% 11,4% 8,3% 8,6% 12,9% 7,9% 7,3% 5,6% 6,1%

Industrial 6,4% 6,3% 5,4% 7,8% 8,8% 8,3% 6,9% 5,3% 3,8% 6,6%

Retail 20,8% 5,1% 5,1% 5,1% 5,4% 6,5% 6,6% 6,6% 5,9% 6,2%

Total 12,4% 9,9% 8,3% 7,9% 8,4% 10,9% 7,5% 6,7% 5,1% 6,2%

IPCA (Inflation Indicator) 5,2% 4,9% 5,3% 5,8% 6,6% 6,7% 5,9% 5,9% 6,2% 6,5%

IGP-M (Inflation Indicator) 3,2% 5,1% 8,1% 7,8% 8,1% 6,3% 4,4% 5,5% 7,3% 6,2%

Weighted Average: IPCA x IGP-M (23% x 77%) 3,7% 5,1% 7,4% 7,4% 7,7% 6,4% 4,7% 5,6% 7,0% 6,3%

* 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 occupied areas

* In nominal terms

Operating Highlights

11

Office Vacancy Industrial Vacancy

Properties with Vacancy (Occupancy Rate per Asset)

2Q13 3Q13 4Q13 1Q14 2Q14

12,6% 12,1%

10,2% 10,9%9,6%

15,0% 14,7%

12,5%11,5%

9,6%

Physical

Financial

2Q13 3Q13 4Q13 1Q14 2Q14

2,4% 2,5%

1,3%

1,9% 1,9%1,9% 1,9%

0,8%

1,3%1,2%

Physical

Financial

Occupancy per Asset Type GLA 1Q14 2Q14 ∆

CBOP - Ed. Jacarandá Office 31.954 93% 93% 0 p.p

Ed. Ventura - West Tower Office 42.986 99% 99% 0 p.p

Icomap Office 9.164 90% 90% 0 p.p

RB 115 Office 11.516 90% 90% 0 p.p

Ed. Manchete Office 23.591 77% 77% 0 p.p

JK Complex - Tower D&E Office 34.583 27% 50% 23 p.p

Cidade Jardim Office 6.792 43% 43% 0 p.p

Ed. Paulista Office 22.855 83% 83% 0 p.p

TNU Office 27.931 95% 95% 0 p.p

Panamérica Park Office 18.667 68% 55% -13 p.p

Panamérica Green Park I Office 4.583 0% 75% 75 p.p

Raja Hills Office 7.534 75% 68% -7 p.p

Brasília Office 7.751 48% 48% 0 p.p

Santa Catarina Office 4.257 100% 75% -25 p.p

Santo Antonio Office 5.017 100% 89% -11 p.p

Total - Office

BBP - Barão de Mauá - Brahms Industrial 6.317 67% 67% 0 p.p

Condomínio Industrial SJC Industrial 73.382 94% 94% 0 p.p

Total - Industrial

Total - Portfolio

Capital Markets

12

Stock Performance – 6M14

-

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

ADTV

BR Properties

Ibovespa

Stock Performance (BRPR3) 2Q14 2Q13 var % 6M14 6M13 var %

Total Number of Shares 297.538.945 312.653.445 -5% 297.538.945 312.653.445 -5%

Free Float (%) 99% 99% 0% 99% 99% 0%

Stock Price (average for the period) 12,71 15,41 -18% 12,20 17,39 -30%

Stock Price (end of period) 13,31 13,50 -1% 13,31 13,50 -1%

Market Cap end of period (R$ million) 4.161 5.940 -30% 4.161 5.940 -30%

Average Daily Trading Volume (R$ million) 32,48 55,14 -41% 37,10 44,73 -17%

Average Daily Traded Shares 1.879.165 2.698.460 -30% 2.162.898 2.048.370 6%

Average Daily negotiations 5.145 7.594 -32% 5.478 6.493 -16%

* For comparative purposes, the historical stock price was ajusted according to the extraordinary dividends paid in June 2014 (R$5.50)

Volume (R$) 278.629.519R$ Stock Price (07/31/2014) 14,03R$

Repurchased Shares 15.114.500 Adjusted Price (Dividends) 20,07R$

Average Purchase Price 18,43R$ Gain per Share 1,63R$

Total Gain 24.658.038R$

Buyback Program Gain on Buyback Program

IR Contacts

13

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

Investor Relations