Highlights 2012

1Q12

• Net revenue grew by 36.0% in 1Q12 totaling R$243.6 million.
• Net operating income (NOI) totaled R$217.8 million in 1Q12, 37.3% higher than 1Q11, accompanied by a NOI margin of 90.5%. Same-property NOI climbed by 14.8% over 1Q11.
• Adjusted EBITDA totaled R$203.1 million in 1Q12, 44.5% up on the same period last year, accompanied by an adjusted EBITDA margin of 83.4%, up by 4.1 p.p.
• FFO came to R$116.1 million in 1Q12, a 93.2% improvement over 1Q11. Adjusted FFO totaled R$90.2 million, 59.9% above the R$56.4 million recorded in 1Q11.
• Same-store rent moved up by 11.3% in the first quarter, while same-store sales grew by 9.1%.
• Our renewal and new contract leasing spreads averaged 24.9% and 20.3%, respectively.
• In 1Q12, we acquired a 33.0% interest in Shopping Itaú Power. The acquisition is expected to contribute with an NOI over the next 12 months of R$9.8 million, representing an IRR of 14.2%. Moreover, in April, the Company also acquired a 50.0% interest in Shopping Rio Anil.
• In February 2012, we concluded our 2nd issuance of non-convertible debentures, raising R$405.0 million in two tranches, R$165.8 million at CDI + 0.94% p.a. maturing in five years and R$239.3 million at the IPCA +6.4% p.a., maturing in seven years.
• Moody’s gave BRMALLS a corporate and debenture rating of Aa2.br on the domestic scale and Ba1 on the global scale, both with a stable outlook.
• We were informed by the CEO of the Company, Carlos Medeiros, that he no longer is a part of GP Investments neither as a shareholder nor as an executive. Carlos Medeiros, therefore, reinforces his long term commitment with BRMALLS, remaining President of the Company for indefinite time.

2Q12

• Net revenue grew by 33.3% in 2Q12 totaling R$265.8 million. In 1H12 net revenues totaled R$509.4 million, an increase of 34.6% over 1H11.
• Net operating income (NOI) totaled R$245.0 million, 39.2% higher than 2Q11, accompanied by a NOI margin of 91.5%. Same-property NOI climbed by 16.6% over 2Q11. In 1H12, NOI grew by 38.4%, totaling R$462.8 million.
• Adjusted EBITDA totaled R$217.1 million in 2Q12, 35.3% up on the same period last year, with an adjusted EBITDA margin of 81.7%, up by 1.2 p.p. In 1H12, adjusted EBITDA totaled R$420.2 million, a 39.6% increase over 1H11.
• FFO came to R$464.6 million, a 290.6% improvement over 2Q11. Adjusted FFO totaled R$113.0 million, 32.0% more than the R$85.6 million recorded in 2Q11. In 1H12, adjusted FFO grew 43.1%, totaling R$203.2 million.
• Recognition of the fair value of our investment properties led to a non-cash revenue of R$737.5 million in 2Q12, increasing the total value of our investment properties to R$13.7 billion. On the other hand, the recognition of deferred taxes had a negative non-cash impact of R$266.9 million.
• The exchange variation generated a net financial expense of R$103.8 million, on the principal of our perpetual debt (non-cash effect).
• Same-store rent increased by 8.1% in the second quarter, while same-store sales grew by 7.0%.
• Our renewal and new contract leasing spreads averaged 25.6% and 23.3%, respectively.
• The Company acquired a 50.0% interest in Rio Anil Shopping, an additional 18.7% of the total GLA of Shopping Villa-Lobos and a 45.0% interest in Shopping Plaza Macaé. We expect these acquisitions to increase our NOI in the next 12 months (including service revenue) by R$27.2 million and expand owned GLA by 28.4 thousand m².
• On April 9, the Company announced a joint venture with Simon Property Group to develop "Premium Outlets" in Brazil. The first project shall be in the state of São Paulo.
• On May 24, we inaugurated Shopping Estação BH, increasing owned GLA by 20,400 m² and adding an estimated R$26.4 million in stabilized NOI.
• On April 19, we inaugurated the expansion of Shopping Recife, adding 7,548.0 m² of total GLA, which is expected to generate stabilized NOI of R$4.8 million.
• After the close of the quarter we concluded the distribution of shares of the Shopping Jardim Sul Real Estate fund and announced the offering of R$500 million in promissory notes with a maturity of 180 days and a rate of CDI + 0.7%, in line with our liability management policy.

3Q12

• In the third quarter of 2012, net revenue reached R$278.4 million, increasing 26.9%, while net revenue in the first nine months of the year grew by 31.8% to R$787.8 million.
• Net operating income (NOI) was R$257.1 million in 3Q12, increasing 30.9% from 3Q11, with NOI margin of 91.3% in the period. In 9M12, NOI was R$719.9 million, or 35.6% higher than in the year-ago period. Same mall NOI grew 16.4% compared to 3Q11.
• Adjusted EBITDA was R$223.1 million in 3Q12, increasing 27.1% on the year-ago period. In 9M12, adjusted EBITDA amounted to R$643.2 million, increasing 35.0% on the same nine-month period of 2011.
• Net income reached R$100.7 million on 3Q12, growing 979.5% compared to 3Q11. In the 9M12 net income reached R$675.9 million, up 271.5%.
• FFO in the quarter was R$98.8 million, increasing 817.8% from 3Q11. Adjusted FFO was R$95.3 million, growing 1.9% from R$93.5 million in 3Q11.
• Same-store rent increased 9.0% in 3Q12, while same-store sales grew 6.2%. Total sales in the quarter reached R$4.7 billion.
• In 3Q12, the renewal leasing spread increased 27.0%, while the new contract leasing spread rose 19.9%.
• Occupancy reached 97.9%, the best rate in the last 6 quarters. Late payments was 3.7%, representing a downfall for the third consecutive quarter.
• During the quarter, we announced the acquisition of a 45.0% interest in Shopping Plaza Macaé, which added 10.2 thousand m² of owned GLA and will generate a stabilized NOI of R$4.8 million.

4Q12

• Net revenue achieved R$335.9 million in the quarter, growing 27.4% when compared to the same quarter of last year. In 2012, net revenue grew 30.4% to R$1,123.6 million.
• NOI in 4Q12 was R$315.3 million, increasing 30.4% from 4Q11, with a margin of 91.6% in the quarter, the highest margin in the last 12 quarters. In 2012, NOI was R$1,035.2 million, increasing 34.0% on the prior-year. The NOI margin in 2012 reached 91.3%, the highest in the last 3 years. Same-mall NOI grew 20.0% in the quarter compared to 4Q11. In 2012 same mall NOI grew by 16.4% compared to 2011.
• Adjusted EBITDA was R$266.7 million in the quarter, increasing 28.1% from 4Q11, with adjusted EBITDA margin of 79.4% in the quarter. In 2012, adjusted EBITDA was R$910.0 million, increasing R$225.2 million, or 32.9% on 2011, with adjusted EBITDA margin of 81.0%, the highest margin in the last 3 years.
• Net Income totaled R$1,066.2 million in 4Q12, increasing 269.0% on the prior year. In 2012, net income was R$1,742.1 million an increase of 269.9% on the previous year.
• FFO was 269.0% higher than in the same quarter last year, reaching R$1,075.4 million, while in the year FFO was R$1,754.9 million, an increase of 264.7% over the previous year. Adjusted FFO in the quarter was R$121.7 million, 30.8% higher than in 4Q11, and in 2012 registered R$420.2 million, increasing in 27.0% compared to 2011.
• Recognition of the fair value of our investment properties led to a non-cash positive effect of R$1.0 billion in 4Q12, which increased the total value of our investment properties to R$16.1 billion, an increase of 28.0% in respect to 4Q11.
• After opening three greenfield projects in 2012, we registered a high occupancy rate in the fourth quarter of 2012, with 98.3% of GLA leased, 0.7p.p higher than in 4Q11, the highest rate in the last two years.
• Same-store rent increased 10.2%, while same-store sales grew 7.6% in 4Q12. In 2012, same-store rent increased 9.6% and same-store sales grew 7.4%. Late payments registered the best rate since 2010, ending the quarter at 3.2% and the year at 3.9%. Net late payments came at 0.9% in the quarter and 1.1% in the year.
• The renewal leasing spread increased 29.8% in 4Q12, the 11th consecutive quarter above 20%, while the new contract leasing spread increased 15.6%. In 2012 renewal and new contract leasing spread reached 27.1% and 19.7%, respectively.
• During the quarter, we acquired 100% interest in Shopping Capim Dourado in Palmas, TO and increased our interest by 16.2% and 20.0% in Amazonas Shopping and Maceió Shopping, respectively. These acquisitions added 41.2 thousand m² in owned GLA and an estimated additional 1st year NOI of R$28.0 million.
• We opened two greenfield projects in the last quarter of the year: Londrina Norte Shopping and São Bernardo Plaza Shopping. The projects expanded our owned GLA by 48.8 thousand m² and we expect them to generate R$47.7 million in stabilized NOI for the Company. In terms of expansions, we delivered the expansion of Center Shopping Uberlândia, which generated owned GLA of 1.0 thousand m² and stabilized NOI of R$2.0 million.
• In 2012 we developed 119.4 thousand m² of total GLA and 72.6 thousand m² of owned GLA in 3 greenfield projects and 2 expansions, being the main mall developer in the country. In the last 5 years we opened 8 greenfield projects and 10 expansions, adding a total GLA of 330.9 thousand m² and 188.6 thousand m² of owned GLA.
• In 4Q12, we announced the greenfield project Cuiabá Plaza Shopping, which will add 43.0 thousand m² of total GLA and stabilized NOI of R$41.2 million, with the opening scheduled for 2015. We also announced the expansion project at Shopping Piracicaba, which will add 6.0 thousand m² of owned GLA and stabilized NOI of R$6.5 million, with the opening scheduled for 2Q14.
• We announced the expansion of Rio Anil. The project will add 11.5 thousand m² of total GLA and 5.7 thousand m² of owned GLA to our portfolio. We estimate that the project will generate R$6.5 million of stabilized NOI for BRMALLS and a real and unleveraged IRR of 21.8%. The opening date is scheduled for 4Q13.
• We announced a land swap agreement of a commercial tower at Shopping Campo Grande. We will receive 13.3% of the potential sales value, with a minimum guaranteed of R$10.8 million. The commercial private area has 20,246 m² and there will be 381 rooms.
• On liability management, we re-financed our second perpetual bond issue, placing a total of US$175 million, above par, at 108.5 which represents a yield to maturity of 7.834% p.a. In February 2013, we paid down our first perpetual bond issuance by the same amount. We also issued another R$500 million through Real Estate Certificates (CRI) CVM 400 at rates of IPCA + 3.96% p.a. (term of 12 years) and IPCA + 4.27% p.a. (term of 15 years). These two re-financing generated a NPV of approximately R$63.5 million.
• The company will propose to shareholders, at the Annual General Meeting, the payment of R$215.5 million in dividends, which represent an increase of 215.7%, compared with the previous year. This amount represents approximately 57.0% of Adjusted FFO excluding maintenance capex in 2012. The company expects to maintain a similar percentage over the next years.