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Core Insights - IRSA Inversiones y Representaciones S.A. has filed its 20-F Form for Fiscal Year 2025, which ended on June 30, 2025, with the SEC [1][4] - The company is recognized as Argentina's largest and most diversified real estate firm, with shares listed on both BYMA and the New York Stock Exchange [2][4] - IRSA manages a significant portfolio that includes shopping centers, office buildings, and luxury hotels, and holds a stake in Banco Hipotecario, the largest mortgage supplier in Argentina [2][4] Company Overview - IRSA is the leading real estate company in Argentina, focusing on a diverse range of properties [2] - The company operates a growing portfolio primarily in Buenos Aires, which includes shopping centers and office buildings [2] - In addition to real estate, IRSA has investments in the banking sector through its stake in Banco Hipotecario [2]

Economic Performance - Argentine GDP increased by 6.3% interannually during the second quarter of 2025, compared to a decrease of 1.7% in the same period of 2024[780]. - Inflation rates for the fiscal year ended June 30, 2025, were 39.4% for the Consumer Price Index (CPI) and 21.2% for the Wholesale Price Index (IPIM)[785]. - The unemployment rate as of June 30, 2025, was 7.6%, unchanged from the previous year[782]. Sales and Revenue - Shopping mall sales in June 2025 reached ARS 592,710 million, representing a 27.8% increase compared to June 2024[782]. - Accumulated sales for the first six months of 2025 showed a 205.8% increase in current terms but a 1.7% decrease in real terms compared to the same period in 2024[782]. - Total revenues for the fiscal year ended June 30, 2025, amounted to ARS 374,662 million, with a gross profit of ARS 287,297 million[809]. - Revenues from Argentina accounted for ARS 374,042 million, while revenues from other countries totaled ARS 620 million, primarily from Uruguay and the USA[814]. - Total revenues for the period ended June 30, 2024, reached ARS 377,202 million, a slight increase from ARS 374,521 million in the same period last year, representing a growth of 0.5%[815]. Segment Performance - The "Shopping Malls" segment generated revenues of ARS 270,531 million, while the "Offices" segment contributed ARS 20,065 million[813]. - The "Sales and Developments" segment reported a loss of ARS 5,168 million, indicating challenges in this area[813]. - Revenues from the Shopping Malls segment increased by 8.0% from ARS 250,468 million in FY 2024 to ARS 270,531 million in FY 2025, driven by a rise in base rental revenues by ARS 44,813 million[827]. - Revenues from the Offices segment decreased by 11.4% from ARS 22,646 million in FY 2024 to ARS 20,065 million in FY 2025, primarily due to a 12.1% drop in lease revenue[828]. - Revenues from the Hotels segment decreased by 24.7% from ARS 85,840 million in FY 2024 to ARS 64,596 million in FY 2025, mainly due to a decline in international tourism[830]. Financial Condition - The company’s financial condition is significantly affected by macroeconomic factors, particularly in Argentina, where most of its assets are located[778]. - A significant portion of the company’s financial debt is denominated in U.S. dollars, making it vulnerable to currency fluctuations and exchange rate restrictions[793]. - Total reportable assets as of June 30, 2025, were ARS 2,741,621 million, with net reportable assets of ARS 1,671,967 million[809]. - The company’s total outstanding debt as of June 30, 2025 was ARS 647,128 million, with ARS 137,336 million due within one year[959]. Profitability and Losses - The company reported a segment profit of ARS 202,214 million for the fiscal year 2025, with a significant share of profit from associates and joint ventures amounting to ARS 25,332 million[813]. - The company experienced a net loss from fair value adjustments of investment properties amounting to ARS 2,500 million for the fiscal year 2025[809]. - The profit for the year improved significantly from a loss of ARS 47,127 million in FY 2024 to a profit of ARS 196,118 million in FY 2025[880]. - The share of profit from associates and joint ventures decreased to ARS 25,332 million from ARS 47,068 million, a decline of 46.2%[822]. Expenses - General and administrative expenses for the fiscal year 2025 were ARS 69,135 million, reflecting the company's operational costs[809]. - General and administrative expenses decreased to ARS 71,355 million from ARS 100,686 million, a reduction of 29.1%[819]. - Selling expenses in the Sales and Developments segment decreased by 30.9%, from ARS 4,512 million in FY 2024 to ARS 3,116 million in FY 2025, with expenses as a percentage of revenues dropping from 35.0% to 24.4%[856]. Cash Flow and Financing - As of June 30, 2025, the company had cash and cash equivalents totaling ARS 176,820 million[943]. - For the fiscal year ended June 30, 2025, financing activities generated net cash inflows of ARS 35,515 million, primarily from borrowings and issuance of non-convertible notes totaling ARS 373,323 million[952]. - In the fiscal year ended June 30, 2024, financing activities resulted in net cash outflows of ARS 266,206 million, mainly due to dividend payments of ARS 212,502 million and loan repayments of ARS 142,298 million[954]. Capital Expenditures - Capital expenditures for the fiscal year ended June 30, 2025 amounted to ARS 82,733 million, with ARS 51,185 million allocated for improvements in rental properties[956]. - In the fiscal year ended June 30, 2024, capital expenditures totaled ARS 23,577 million, including ARS 13,929 million for rental property improvements[957].

Core Insights - IRSA Inversiones y Representaciones S.A. reported a net income of ARS 196,118 million for FY 2025, a significant recovery from a loss of ARS 32,141 million in FY 2024 [4] - Revenues increased by 2.3% year-over-year, reaching ARS 468,526 million, while the consolidated gross profit decreased to ARS 284,790 million from ARS 305,755 million [3][4] - The company successfully returned to international capital markets with the issuance of Series XXIV Notes for USD 300 million, marking a significant milestone after nearly a decade [4] Financial Performance - Revenues for FY 2025 were ARS 468,526 million compared to ARS 458,059 million in FY 2024, indicating a growth of 2.3% [3] - Consolidated gross profit decreased to ARS 284,790 million from ARS 305,755 million [3] - The net result from changes in the fair value of investment properties improved to a loss of ARS 2,500 million from a loss of ARS 488,794 million [3] - The consolidated result from operations showed a significant recovery to ARS 172,615 million from a loss of ARS 265,867 million [3] Segment Performance - Rental Adjusted EBITDA reached ARS 234,697 million, with contributions from Shopping Malls (ARS 210,741 million), Offices (ARS 15,584 million), and Hotels (ARS 8,372 million), reflecting a 2% decrease compared to FY 2024 [4] - The Shopping Malls segment saw revenues and Adjusted EBITDA grow by 8% and 10% respectively, with portfolio occupancy remaining close to 98% [4] - The Offices segment benefited from increased demand for premium spaces, achieving nearly full occupancy in Class A+ and A buildings [4] Strategic Developments - The company acquired the Terrazas de Mayo shopping center and an adjoining property, and commenced construction of a new open-air shopping mall in La Plata [4] - Infrastructure works and commercialization progressed for the flagship project, Ramblas del Plata, with 13 transactions signed totaling approximately 111,000 saleable sqm valued at USD 81 million [4]

Group 1 - The article highlights that many investors are currently seeking refuge in real assets due to anticipated economic recovery in Argentina, positioning IRSA (NYSE: IRS) as a direct, liquid, and leveraged investment alternative [1] - The focus is on value companies with solid long-term potential, indicating a strategy that aligns with the current market sentiment [1] Group 2 - The article does not provide any specific financial data or performance metrics related to IRSA or the broader market context [2][3] - There is no mention of any specific investment recommendations or advice regarding the suitability of investments for individual investors [2][3]

Group 1 - Seeking Alpha welcomes a new contributing analyst, Eliseo Bottini Antunez, who invites others to share investment ideas for publication and potential earnings [1] - The new analyst has over 10 years of experience in communications and works with various economic institutions, emphasizing a strong background in financial market history [2] Group 2 - The article does not provide specific investment recommendations or advice, highlighting that past performance does not guarantee future results [4]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - A very small fraction of companies are considered a buy at any given time, highlighting a selective investment strategy [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a generally bullish market [1]

Financial Data and Key Metrics Changes - The company reported a net loss of 41 billion Pesos primarily due to non-cash effects from the appraisal of investment properties [3][66] - The adjusted EBITDA for the hotel segment dropped from 15 billion Pesos to 5 billion Pesos, with hotel margins decreasing from 38% to 17% [38][96] - The net financial results showed a significant improvement with a net FX result of a 205 billion Pesos loss last year compared to a gain of 21 billion Pesos this year due to Peso appreciation [100][101] Business Line Data and Key Metrics Changes - Shopping malls experienced a 21.4% increase in tenant sales in Q2 2025 compared to the previous quarter, although still 8.5% below the same quarter last year [11][69] - The office segment achieved full occupancy in its premium portfolio, with stable rents at approximately $25 per square meter per month [14][72] - The hotel segment faced challenges with occupancy rates declining from 70% to 67% compared to the previous year [16][74] Market Data and Key Metrics Changes - The company completed the acquisition of the Terrazas De Mayo shopping mall, adding approximately 34,000 square meters of GLA to its portfolio [12][19] - The overall occupancy rate for the shopping malls remained high at nearly 98%, excluding the newly acquired mall which is currently at 82.3% [12][71] - The company noted a positive outlook for the shopping mall segment in the upcoming quarters, aligning with economic recovery in Argentina [11][61] Company Strategy and Development Direction - The company is focusing on residential developments, with a significant project, Ramblas Del Plata, expected to yield over 10,000 new homes and an estimated investment of $1.8 billion [20][90] - The strategy includes selling plots to cover infrastructure costs and swapping remaining plots with local developers, minimizing cash investment from the company [54][113] - The company anticipates positive developments in the shopping mall segment and the commencement of several construction projects in the next quarters [61][120] Management's Comments on Operating Environment and Future Outlook - Management highlighted the recovery in consumer spending following the Milei administration, expecting improved performance in the shopping mall segment [61][120] - The company is optimistic about the valuation of its mall portfolio increasing due to decreasing country risk and improving operational figures [40][99] - Management expressed confidence in managing debt maturities, citing a strong cash position and liquidity [58][118] Other Important Information - The company paid dividends yielding 8% during the last quarter, maintaining a conservative net debt level of $255 million [44][103] - The company is actively pursuing infrastructure projects, with significant investments planned for the Ramblas Del Plata project [81][82] Q&A Session Summary Question: Can you provide details on the price per square meter for the Ramblas Del Plata project? - The expected price per square meter will start at no less than $4,000, potentially reaching up to $6,000 for taller buildings depending on market conditions [49][109] Question: How does the company plan to finance the upcoming investments? - The company plans to finance projects through cash generation and selling plots to cover infrastructure costs, minimizing cash outflow [54][115] Question: How will the company manage debt maturities in 2025? - The company has sufficient liquidity to manage debt maturities and will evaluate whether to go to the market or raise debt through banking channels [58][118]

Financial Performance - The company reported a net loss of ARS 40,971 million for the first half of 2025, primarily due to the impact of inflation on the fair value of investment properties[3] - Rental EBITDA decreased by 9.5% from 6M 24 to 6M 25[56] - The company's net financial result improved by ARS 227,303 million, primarily due to net FX results[62] Operational Highlights - Shopping malls experienced a recovery in occupancy and sales, with a 21.4% increase compared to the previous quarter (IQ 25), but an 8.5% decrease compared to IIQ 24[3] - Premium office occupancy reached 100%[3] - The company acquired "Terrazas de Mayo" shopping mall located in Malvinas Argentinas District[3, 6] - Hotels' revenues and occupancy dropped during IIQ25[3] Ramblas del Plata Project - Two plots from the first stage of the Ramblas del Plata project (40,000 sellable sqm) were sold for USD 23.4 million[3] - The Ramblas del Plata project has an estimated investment of over USD 1.8 billion[21] - Stage 1 of Ramblas del Plata is estimated to have total sales (cash + swaps) of USD 120 million[27] Dividend and Share Distribution - The company distributed a dividend with an approximate 8% yield and holds 25.7 million treasury shares, representing 3.6% of the social capital[3] Other Projects - IRSA will receive 40% of the buildable sqm of the macro lots from "Nuevo Quilmes II" Commercialization Progress[41] - 33 single-family lots already sold for approximately USD 5 million[41]

Core Viewpoint - IRSA Inversiones y Representaciones S.A. reported significant financial losses for the second quarter of Fiscal Year 2025, primarily due to a substantial loss in the fair value of investment properties, despite some recovery in tenant sales in shopping malls [1][4]. Financial Highlights - Revenues for the first half of FY 2025 were ARS 212,141 million, a decrease of 4.0% from ARS 220,936 million in the same period of FY 2024 [3]. - Consolidated Gross Profit fell to ARS 130,934 million, down 12.5% from ARS 149,605 million year-over-year [3]. - The net result from changes in the fair value of investment properties was a loss of ARS 233,073 million, compared to a gain of ARS 300,126 million in the previous year [3][4]. - The consolidated result from operations showed a loss of ARS 149,784 million, contrasting with a profit of ARS 420,889 million in the same period last year [3]. - The net result for the period was a loss of ARS 40,971 million, compared to a profit of ARS 319,226 million in the prior year [3][4]. - Earnings per Share (EPS) were reported at (54.19), a significant decline from 412.55 in the same period of FY 2024 [3]. Operational Highlights - Real tenant sales in shopping malls increased by 21.4% compared to the previous quarter but decreased by 8.5% compared to the same period of FY 2024 [4]. - The adjusted EBITDA for the shopping mall segment was ARS 94,539 million, only 2.0% lower than the same period last year [4]. - The company acquired a new shopping mall, "Terrazas de Mayo," for USD 27.75 million, with a leasable area of 33,700 sqm and 86 stores [4]. - The premium office portfolio achieved 100% occupancy, and an additional floor of the Della Paolera 261 building was sold for USD 7.1 million [4]. - The Hotels segment experienced lower revenues and occupancy rates compared to FY 2024, attributed to the appreciation of the Argentine peso against the U.S. dollar [4]. - Sale agreements were signed for two lots of the Ramblas del Plata project, with an estimated saleable area of 40,000 sqm for USD 23.4 million [4]. Market Capitalization - As of December 31, 2024, the company's market capitalization was approximately USD 1,117 million, based on 74,829,790 GDS with a price per GDS of USD 14.93 [5].