I met with Inversiones y Representaciones Sociedad Anónima, or IRSA's ( IRS ) management, last week as part of my formal position. While I had not paid much attention to the company since the pandemic, I had coveredI have more that 35 years of experience in the investment field having worked as a sell & buy side analyst and portfolio manger for debt and equity funds. I am currently managing a high yield Latam bond fund.My goal, as a Seeking Alpha contributor, is to provide a fundamental view and analysis of ...

Core Insights - The first quarter of the IRSA fiscal year was influenced by midterm elections in Argentina, which typically introduce uncertainty and slow consumption [1] Company and Industry Analysis - The article emphasizes the importance of connecting macroeconomic dynamics with company-level valuation to identify long-term investment opportunities in Argentina's complex market [1] - The investment approach highlighted focuses on deep value and a long-term perspective, particularly on underfollowed companies and structural stories within leading firms [1]

Core Insights - Airbus has secured a contract worth 50 million euros (approximately $58 million) to integrate artificial intelligence developed by the French Ministerial Agency for Defence AI (AMIAD) into its weapons and information systems [1] Company Summary - The contract signifies Airbus's commitment to enhancing its technological capabilities in defense through the incorporation of advanced AI solutions [1] - This partnership with AMIAD reflects a strategic move to leverage government-developed technologies for improving operational efficiency and effectiveness in defense applications [1] Industry Summary - The integration of AI in defense systems is becoming increasingly critical as companies seek to modernize their capabilities and maintain competitive advantages in the defense sector [1] - The collaboration between defense contractors and governmental agencies highlights a trend towards public-private partnerships in developing cutting-edge technologies for military applications [1]

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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]