IRSA Inversiones y Representaciones S.A announces its results for the third quarter of Fiscal Year 2025 ended March 31, 2025

Rhea-AI Summary

IRSA Inversiones y Representaciones (NYSE: IRS), Argentina's leading real estate company, reported a significant turnaround with a profit of ARS 35,063 million for the nine-month period of FY2025, compared to a loss of ARS 174,216 million in the previous year. The company's shopping malls segment showed strong performance with tenant sales growing 13.4% year-over-year and reaching 98.1% occupancy. The premium office portfolio maintained full occupancy, while the Hotels segment experienced lower revenues. IRSA secured agreements for eleven lots in the Ramblas del Plata project worth USD 66.1 million and issued Series XXIV Notes for USD 300 million maturing in 2035. The company's market capitalization stood at approximately USD 977 million as of March 31, 2025.

Positive

• Turned a profit of ARS 35,063 million compared to previous year's loss
• Shopping mall tenant sales increased by 13.4% YoY with 98.1% occupancy
• Maintained 100% occupancy in premium office portfolio
• Secured USD 66.1 million in lot sales for Ramblas del Plata project
• Successfully raised USD 300 million through international bond issuance

Negative

• Hotels segment experienced declining revenues and occupancy
• Net result from changes in fair value of investment properties showed a loss of ARS 141,903 million
• Consolidated Result from Operations remained negative at ARS 5,458 million

Insights

Financial Analyst

IRSA shows improved profitability despite ongoing operational challenges, with mixed performance across real estate segments and new capital raising.

IRSA Inversiones y Representaciones shows a significant financial turnaround with a profit of ARS 35,063 million for the nine-month period of FY 2025, compared to a loss of ARS 174,216 million in the same period last year. This represents a positive swing of over ARS 209 billion. However, it's important to note that the consolidated result from operations remains negative at ARS -5,458 million, though substantially improved from the previous year's ARS -430,212 million operational loss.

The shopping mall segment demonstrates continued recovery with tenant sales growing 13.4% compared to the same quarter last year and occupancy increasing to 98.1%. The segment's adjusted EBITDA reached ARS 147,914 million, 9.7% higher than the same period in 2024. Meanwhile, the premium office portfolio maintained 100% occupancy during Q3 FY25.

The hotels segment experienced lower revenues and occupancy, which the company attributes to the appreciation of the Argentine peso against the dollar. This currency dynamic appears to have negatively impacted this particular segment's performance.

On the development front, IRSA signed agreements for eleven lots in the Ramblas del Plata project with an estimated sellable area of 95,000 sqm for USD 66.1 million. The company also issued USD 300 million in Series XXIV Notes maturing in 2035, with funds allocated to canceling existing liabilities and financing investment projects.

The company continues to experience negative adjustments in the fair value of investment properties (ARS -141,903 million), though this represents a considerable improvement from the previous year's adjustment (ARS -601,653 million). This significant change in fair value adjustments appears to be a major factor in the improved bottom line.

IRSA's balance sheet shows total assets of ARS 3,058,780 million against total liabilities of ARS 1,633,038 million, with shareholders' equity at ARS 1,425,742 million. The company's market capitalization as of March 31, 2025, stood at approximately USD 977 million.

BUENOS AIRES, Argentina, May 6, 2025 /PRNewswire/ -- IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BYMA: IRSA), the leading real estate company in Argentina, announces today its results for the third quarter of the Fiscal Year 2025 ended March 31, 2025.

HIGHLIGHTS

• The net result for the nine-month period of fiscal year 2025 recorded a profit of ARS 35,063 million compared to a loss of ARS 174,216 million in the same period of the previous year.
  
  
• The shopping malls continued their recovery process and observed very good results in the third quarter of fiscal year 2025. Tenant sales grew by 13.4% compared to the same quarter in 2024, and portfolio occupancy increased to 98.1%. The segment's adjusted EBITDA reached ARS 147,914 million in the nine-month period, 9.7% higher than the same period in 2024.
  
  
• We maintained full occupancy of our premium office portfolio in the third quarter of FY25.
  
  
• The Hotels segment recorded lower revenues and occupancy in a context of greater appreciation of the Argentine peso against the dollar.
  
  
• During the quarter and thereafter, we signed sale and exchange agreements for eleven lots of the Ramblas del Plata project, with an estimated sellable area of 95,000 sqm for USD 66.1 million.
  
  
• During the quarter, we issued the Series XXIV Notes in the international market for USD 300 million, maturing in 2035. The funds will be used to cancel existing liabilities and finance investment projects.

Financial Highlights

(In millions of Argentine Pesos)

9M FY 2025

Income Statement	03/31/2025	03/31/2024
Revenues	336,028	333,013
Consolidated Gross Profit	205,352	225,202
Net result from changes in the fair value of investment properties	(141,903)	(601,653)
Consolidated Result from Operations	(5,458)	(430,212)
Result for the Period	35,063	(174,216)
Attributable to:
IRSA's Shareholders	33,417	(163,611)
Non-Controlling interest	1,646	(10,605)
EPS (Basic)	45.10	(219.61)
EPS (Diluted)	39.45	(219.61)
Balance Sheet	03/31/2025	06/30/2024
Current Assets	556,717	299,487
Non-Current Assets	2,502,063	2,648,718
Total Assets	3,058,780	2,948,205
Current Liabilities	386,604	361,541
Non-Current Liabilities	1,246,434	1,071,061
Total Liabilities	1,633,038	1,432,602
Non-Controlling Interest	89,918	97,045
Shareholders' Equity	1,425,742	1,515,603

The Company's market capitalization as of March 31, 2025, was approximately USD 977 million. (75,769,996 GDS with a price per GDS of USD 12.90).

IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BYMA: IRSA), the Argentina's largest, most well-diversified real estate company, cordially invites you to participate in its IIIQ FY 2025 Results Conference Call on Wednesday, May 7, 2025, at 11:00 AM US Eastern Time / 12:00 PM BA Time.

To access the Webinar:

https://zoom.us/webinar/register/WN_39X4CQ9QS260Oym25aXaHg

Webinar ID: 932 6260 4326

Password: 622331

In addition, you can participate communicating to this numbers:

Argentina: +54 112 040 0447 or +54 115 983 6950 or +54 341 512 2188 or +54 343 414 5986

Israel: +972 3 978 6688 or +972 2 376 4509 or +972 2 376 4510

Brazil: +55 11 4632 2237 or +55 11 4680 6788 or +55 11 4700 9668 or +55 21 3958 7888 or +55 11 4632 2236

United States of America: +1 564 217 2000 or +1 646 931 3860 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000

Chile:  +56 22 573 9305 or +56 23 210 9066 or +56 232 938 848 or +56 41 256 0288 or +56 22 573 9304

Investor Relations Department.

+ 5411 4323-7449

ir@irsa.com.ar

https://www.irsa.com.ar/home-inversores.php?lng=en

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SOURCE IRSA Inversiones y Representaciones S.A.

FAQ

What was IRS's profit for the first nine months of FY2025?

IRSA (IRS) reported a profit of ARS 35,063 million for the nine-month period of FY2025, compared to a loss of ARS 174,216 million in the same period last year.

How did IRSA's shopping mall performance change in Q3 2025?

IRSA's shopping malls showed strong performance with tenant sales growing 13.4% compared to Q3 2024, and portfolio occupancy increased to 98.1%.

What was the value of IRSA's Ramblas del Plata project sales?

IRSA signed sale and exchange agreements for eleven lots of the Ramblas del Plata project, with an estimated sellable area of 95,000 sqm for USD 66.1 million.

How much did IRSA raise in their Series XXIV Notes offering?

IRSA issued Series XXIV Notes in the international market for USD 300 million, maturing in 2035, to cancel existing liabilities and finance investment projects.

What was IRSA's market capitalization as of March 31, 2025?

IRSA's market capitalization was approximately USD 977 million as of March 31, 2025, with 75,769,996 GDS priced at USD 12.90 per GDS.