IRSA Inversiones y Representaciones S.A announces its results for the first quarter of Fiscal Year 2025 ended September 30, 2024

Rhea-AI Summary

IRSA Inversiones y Representaciones reported a net loss of ARS 109,135 million in Q1 FY2025, compared to a gain of ARS 250,538 million in the same period last year. The loss was primarily attributed to changes in fair value of investment properties. Shopping center sales declined 12.1% year-over-year, while premium office portfolio occupancy improved to 97.9%. The company acquired a property near Alto Avellaneda shopping center for USD 12.2 million and sold a floor of Della Paolera 261 building for USD 7.1 million. A cash dividend of ARS 90,000 million was approved, along with distribution of own shares representing 3.6% of stock capital.

Positive

• Premium office portfolio occupancy increased to 97.9%
• Shareholders approved cash dividend with 8% yield
• Market capitalization stands at approximately USD 850 million

Negative

• Net loss of ARS 109,135 million in Q1 FY2025 vs gain last year
• Shopping center tenant sales declined 12.1% year-over-year
• Revenue decreased from ARS 94,939M to ARS 89,873M
• Hotels segment showed reduced income and occupancy levels
• Operating loss of ARS 187,584M vs profit of ARS 375,142M last year

Insights

Financial Analyst

The Q1 FY2025 results show concerning trends for IRSA. The company reported a significant loss of ARS 109,135 million, contrasting with a gain of ARS 250,538 million in the same period last year. Key operational metrics are deteriorating across segments:

• Shopping Centers saw tenant sales decline by 12.1% year-over-year
• Hotels segment experienced reduced income and occupancy due to Argentina's weakening exchange rate competitiveness
• Revenue dropped to ARS 89,873 million from ARS 94,939 million

The substantial negative swing in investment property fair value (ARS -225,499 million vs. ARS 316,084 million last year) significantly impacted bottom-line results. While the company maintains high office occupancy at 97.9%, the broader financial indicators suggest challenging market conditions. The announced dividend of ARS 90,000 million appears aggressive given the current performance.

BUENOS AIRES, Argentina, Nov. 6, 2024 /PRNewswire/ -- IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BYMA: IRSA), the leading real estate company in Argentina, announces today its results for the first quarter of the Fiscal Year 2025 ended September 30, 2024.

HIGHLIGHTS

• The net result for the first quarter of fiscal year 2025 recorded a loss of ARS 109,135 million compared to a gain of ARS 250,538 million in the same period of the previous year, mainly due to the loss recorded due to changes in the fair value of investment properties. This is an accounting effect that does not involve cash movements.
• Real tenant sales in Shopping Centers recovered slightly compared to previous quarters, although they fell 12.1% compared to the first quarter of fiscal year 2024. The adjusted EBITDA of the segment reached ARS 41,116 million, in line with the same quarter of the previous year.
• The average occupancy of the premium office portfolio rose to 97.9% in the quarter mainly due to the improvement in the occupancy of Dot Building.
• The Hotels segment reduced its income and occupancy levels in the first quarter of fiscal year 2025 compared to 2024 due to lower exchange competitiveness in Argentina.
• During the quarter we acquired a property adjacent to the Alto Avellaneda shopping center for its future expansion for USD 12.2 million and subsequently, we sold an additional floor of the Della Paolera 261 building for USD 7.1 million.
• On October 28, 2024, the Shareholders' Meeting approved the distribution of a cash dividend of ARS 90,000 million (dividend yield 8%) and own shares in the portfolio, representing approximately 3.6% of the stock capital.

Financial Highlights
(In millions of Argentine Pesos)
3M FY 2025
Income Statement	09/30/2024	09/30/2023
Revenues	89,873	94,939
Consolidated Gross Profit	57,415	64,045
Net result from changes in the fair value of investment properties	(225,499)	316,084
Consolidated Profit / (Loss) from Operations	(187,584)	375,142
Result for the Period	(109,035)	250,538
Attributable to:
IRSA's Shareholders	(105,646)	238,061
Non-Controlling interest	(3,389)	12,477
EPS (Basic)	(145.92)	323.89
EPS (Diluted)	(145.92)	319.12
Balance Sheet	09/30/2024	06/30/2024
Current Assets	257,290	255,350
Non-Current Assets	2,029,205	2,258,362
Total Assets	2,286,495	2,513,712
Current Liabilities	313,785	308,258
Non-Current Liabilities	807,193	913,213
Total Liabilities	1,120,978	1,221,471
Non-Controlling Interest	75,902	82,744
Shareholders' Equity	1,165,517	1,292,241

The Company's market capitalization as of September 30, 2024, was approximately USD 850 million. (74,689,314 GDS with a price per GDS of USD 11.38).

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 IQ FY 2025 Results Conference Call on Thursday, November 7, 2024, at 9:00 AM US Eastern Time / 11:00 AM BA Time.

To access the Webinar:
https://zoom.us/webinar/register/WN_lu10OyeLSwynigZM4LyFeQ#

Webinar ID: 924 0981 1991

Password: 525894

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

Follow us on X @irsair

 

View original content:https://www.prnewswire.com/news-releases/irsa-inversiones-y-representaciones-sa-announces-its-results-for-the-first-quarter-of-fiscal-year-2025-ended-september-30-2024-302297922.html

SOURCE IRSA Inversiones y Representaciones S.A.

FAQ

What was IRSA's (IRS) net result for Q1 FY2025?

IRSA reported a net loss of ARS 109,135 million in Q1 FY2025, compared to a gain of ARS 250,538 million in the same period last year.

How much did IRSA's (IRS) shopping center sales decline in Q1 FY2025?

IRSA's shopping center tenant sales declined by 12.1% compared to the first quarter of fiscal year 2024.

What was IRSA's (IRS) office portfolio occupancy rate in Q1 FY2025?

IRSA's premium office portfolio occupancy rate rose to 97.9% in the quarter, mainly due to improved occupancy at Dot Building.

What dividend did IRSA (IRS) approve in October 2024?

IRSA approved a cash dividend of ARS 90,000 million (8% yield) and distribution of own shares representing approximately 3.6% of stock capital.