EXPLANATORY NOTES 1.Operational Context 2. Benefit Plans 3. Presentation of the Financial Statements 4. Relevant Fact
5. Main Accounting Practices 6. Receivables - Pension Program 7. Receivables - Investment Program 8. Fixed Income 9. Variable Income 10. Real Estate Investments 11. Operations with Participants
12. Investments - PREVI Futuro Plan 13. Investments - Annuity Portfolio - CAPEC 14. Operating Liabilities 15. Contingency Liabilities 16. Actuarial Liabilities 17. Mathematical Provisions - Benefit Plan 1 18. Mathematical Provisions - PREVI Futuro 19. Technical Balance 20. Found 21. Income Statement
REAL ESTATE INVESTMENTS
The assets in this segment amounted to R$ 2,866,699 thousand (R$ 2,652,495 thousand in 2005), distributed as shown in the chart contained in item 7 of these Notes.
CMN Resolution No. 3121, of 25/9/2003, determines that the real estates must be revaluated at least once every three years.
Of the 106 real estates that compose the PREVI portfolio, 58 were revaluated based on reports issued by independent companies, generating a positive equity variation in the portfolio of R$ 240,993 thousand, as shown in the chart below:
The provisions for losses and bad debts in this segment amounted to R$ 178,818 thousand (R$ 157.731 in 2005), as shown in the chart below:
The provision for losses related to the advances to be recovered from the Umberto I Foundation was reinforced by R$ 13.494 thousand, totaling R$ 95.795 thousand (R$ 82.301 thousand in 2005).
A provision for losses corresponding to the ordinary action for termination of the agreements of sale of the 7th floor and technical floor of Centro Empresarial Mourisco, filed by Brascan Imobiliária Incorporações S.A and by AC Lobato Engenharia S.A was reinforced by R$ 1.000 thousand, reaching R$ 23.000 thousand (R$ 22.000 thousand in 2005).
The provision for bad debts corresponds to the debts of minimum guarantee contracts and defaulting lessees. In 2006, the default amount reached R$ 60.023 (R$ 53.430 thousand in 2005).