IRSA(US:IRS)2023-02-13 17:35Financial Data and Key Metrics Changes - The company issued Series XV and XVI notes totaling $90 million to cancel short-term liabilities, resulting in a very low net debt of $285 million, a reduction of 62.2% [4][9] - The net debt to EBITDA ratio is 1.8x, with a loan-to-value (LTV) ratio of 12% and a coverage ratio exceeding 8 times, indicating a conservative debt structure [9] - Operating income, excluding fair value effects, increased by 53%, while the fair value of investment properties resulted in a loss of ARS29.5 billion this year compared to a gain of ARS43.7 billion last year [17] Business Line Data and Key Metrics Changes - The shopping malls segment saw a 50% increase in adjusted EBITDA, with sales up 20.9% compared to pre-pandemic levels and 12.4% year-over-year [45][28] - The hotel segment experienced a remarkable recovery, with occupancy reaching 71.4% and an average rate of $208 per room, marking historical records [30] - The office segment showed a decrease in adjusted EBITDA by 14% due to asset disposals, but occupancy rates improved, particularly in premium buildings [45][42] Market Data and Key Metrics Changes - The occupancy rate for shopping malls reached almost 94%, with a gross leasable area of 336,000 square meters [28] - The hotel segment in Buenos Aires is recovering due to corporate events and international tourism, with rates increasing to $135 per room [31] - The overall inflation during the semester was 43%, with a real appreciation of the peso of 1% impacting financial results [32] Company Strategy and Development Direction - The company is focused on deleveraging and maintaining a conservative capital structure, having cleared liquidity risks and short-term debt [16] - Future growth is anticipated with several projects in the pipeline, including a mixed-use development near the shopping mall [50][53] - The company is optimistic about unlocking value in its shares and expects good performance in the upcoming year [41] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the results across all business lines and noted a strong recovery in tourism, particularly for the Llao Llao resort [6][16] - The company is well-prepared for future growth cycles, with good cash generation across business lines [53] - Management highlighted the importance of monitoring foreign exchange trends, which could impact future EBITDA levels [58] Other Important Information - The company has successfully managed its debt obligations, with no liquidity risk anticipated moving forward [56] - A legal claim related to an investment in Israel has led the company to create a provision of 50% of the claim amount as a conservative measure [49] Q&A Session Summary Question: Is the $50 million quarterly EBITDA level sustainable? - Management indicated that the current trends in sales from tenants support the sustainability of this EBITDA level [48] Question: Can you provide details on sales and development during the quarter? - The adjusted EBITDA from sales was $11.1 million, with total adjusted EBITDA reaching almost $80 million, compared to much higher levels last year due to significant asset sales [48] Question: What is the current status of the Costa Urbana development? - The project is awaiting a court ruling, and the company continues to work on utilities and project design [22][61] Question: Can you provide an update on the office portfolio and future changes? - The company is analyzing a mixed-use development that will include office space, indicating future growth in this segment [50]