Risk Factors

An investment in BR Properties’ common shares involves a high degree of risk. Investors should carefully consider the risks described in the Reference Form before making an investment decision. Company’s business, financial condition, results of operations, cash flows and/or prospects could be adversely affected by any of these risks. The market price of BR Properties’ common shares could decline due to any of these risks or other factors, and investors may lose all or part of their investment. The risks described below are those that the Company currently believes may adversely affect its business.

Additional risks and factors not currently known to the Company, or those that are currently deem to be immaterial, may also adversely affect BR Properties’ business, financial condition, results of operations, cash flows, prospects and/or the market price of its common shares. In this section, when the Company states that a risk or uncertainty may, could or will have an “adverse effect” on or could or will “adversely affect”, the Company means that the risk or uncertainty could have an adverse effect on its business, financial condition, results of operations, cash flows, prospects and/or the market price of its common shares.

The Company is exposed to risks related to real estate development, construction, rental and sales of properties.

The Brazilian real estate industry is subject to extensive regulation, which may result in cost increases and restrict Company‘s development rate or otherwise adversely affect its business, financial condition or results of operations.

Launches of other new commercial real estate developments near those owned by BR Properties could impact its ability to renew its lease agreements or rent spaces to new tenants, which could require unexpected investments, adversely affecting Company‘s business, its financial condition and results of operations.

The real estate industry in Brazil is highly competitive, which may reduce Company‘s operational capacity.

Adverse conditions in the regions in which BR Properties operates may have a material adverse effect on its lease rates and in the market value of its properties, adversely affecting Company‘s business.

BR Properties may not be able to renew its lease agreements with its tenants on terms favorable to the Company, which may adversely affect its self-sufficient business model and, therefore, its results of operations.

The Company may incur unexpected costs and experience delays in its projects.

Discrepancies between the inflation adjustments of the Company’s lease agreements and those of its indebtedness could have a material adverse effect on its financial condition and results of operations.

BR Properties may not be able to fully implement its business strategy, which could have an adverse affect on its business.

The loss of members of BR Properties’ senior management or its failure to attract and retain qualified personnel could adversely affect Company’s financial condition and results of operations.

Br Properties future growth may require additional capital, which may not be available or, if available, may not be sufficient.

Acquisitions of commercial properties may subject the Company to unexpected liabilities that could adversely affect its business.

BR Properties lease agreements may be terminated or its tenants may default on their obligations under Company’s lease agreements, which may adversely affect its self-sufficient business model and its results of operations.

Financial agreements and other debt instruments subject the Company to obligations, the noncompliance with which could result in the acceleration of such indebtedness, which could adversely and materially affect BR Properties’ financial condition and its ability to carry out its business.

Damages not covered by BR Properties’ insurance policies may result in losses and generate adverse effects on its business.

The interests of BR Properties’ management and employees may become excessively linked to the price of its shares, since their compensation is based on a stock option plan.

BR Properties is a holding company and depend on the results of its subsidiaries and as such, cannot assure investors that its subsidiaries‘ results will be distributed to the Company.

BR Properties’ financial condition and reported financial results may be adversely affected by changes to Brazilian GAAP.

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