BR Properties S A : Notice to the Market - Response to CVM letter

To

Superintendency of Issuer Listing and Supervision

B3 S.A. - Brasil, Bolsa, Balcão

Attn: Ms. Ana Lucia da Costa Pereira

CVM - Brazilian Securities and Exchange Commission

Mr. Fernando Soares Vieira - Corporate Relations Superintendency

Mr. Francisco José Bastos Santos - Market and Intermediary Relations Superintendency

Ref: Letter No. 22/2023-SLS, of January 5th, 2023, requesting clarifications about news published in the press

BR Properties S.A. ("Company") hereby presents, in answer to the above-mentioned letter, whose contents are transcribed below, the requested clarifications:

"January 5th, 2023 22/2023-SLS

BR Properties S.A.

Mr. Andre Bergstein

Investor Relations Officer

Request for clarification on news published in the press

Dear Sir

The news published in Valor Econômico newspaper on January 5th, 2023, under the title "With capital reduction, BR Properties may leave the stock exchange" ("Com redução de capital, BR Properties pode sair da bolsa"), states, among other information, that if the company does not expand its portfolio, it "makes no sense" to be a publicly-held company.

We request clarification on the highlighted item, by January 6th, 2023, with its confirmation or not, as well as other information considered important."

On January 4th, 2023, the Company held a call with investors to clarify matters regarding the material fact disclosed on January 3rd, 2023, related to the Extraordinary General Meeting to be held on January 24th, 2023, to deliberate on the proposals of capital reduction and reverse stock split.

In the call with investors, the Company pointed out that its history has always been built according to the cycles of the corporate real estate market, with the clear objective of understanding the timing of Brazil and the market, and seeking to bring to the shareholder the greatest possible value creation. At the current moment, the management is evaluating strategic alternatives for the Company's next steps after the proposed capital reduction, if approved. The portfolio of logistic warehouses in prime locations continues to be the main focus, with potential new growth opportunities. In addition, with the proposed capital reduction, the Company has the opportunity to explore the consulting activity (FII), in addition to maintaining the building management activity. The Company has the mission to define the best way to explore these opportunities, equating its revenue, costs and obligations - which will be done

without financial cost pressure, given that the Company has paid off its financial debt issuances after the portfolio sale as disclosed in the material facts of May 18th, 2022 and July 20th and 22nd, 2022.

In this context, on the call, the Company was asked by one of its participants whether the possibility of the Company being delisted from the stock exchange was discarded beforehand. The press report took out of context a part of the CEO's answer in which he mentions that if the company does not expand its portfolio, it "makes no sense" to be a publicly held company. However, the complete answer given to the investor was in the sense that the Company does not discard the possibility of delisting if it does not see growth opportunities in the future, and, now the Company is, as already mentioned, studying potential growth opportunities in the logistics warehouses segment and in other activities.

Thus, in attention to the letter aforementioned, the Company clarifies that its management is continuously evaluating all the strategic alternatives available for its next steps. Although a possible delisting is one of the alternatives under continuous evaluation, management has no plans to execute a delisting at this time and is not adopting any measures towards a delisting.

The Company reiterates its commitment to keep its shareholders and the market in general informed in the event of any material fact.

We are at your disposal for any further clarifications that may be necessary.

São Paulo, January 6th, 2023

André Bergstein

Chief Financial and Investor Relations Officer

BR PROPERTIES S.A.