IRSA(US:IRS)2020-06-10 15:12IRSA Overview - IRSA is a leading diversified real estate company in Argentina with a unique portfolio and strong market position[3] - IRSA is currently under a sale process[2] - CRESUD owns 62.4% of IRCP shares and additionally owns 2.6% of IRCP shares[3] Argentina Business Center Portfolio - Argentina Business Center has 332,000 sqm GLA across 15 shopping malls, holding 40% market share in Argentina[4] - Argentina Business Center has 115,000 sqm GLA across 8 premium office buildings in BA City[4] - The company has 3 premium hotels across the country with a total of 718 rooms[5] Rental Revenue Model - Shopping malls and offices have variable and fixed rent agreements, with 74% of total revenues from fixed rent and 24% variable[5] - Office agreements have a 3-year average term and are US Dollar based, with 75% of rental rates for renewed terms from international tenants[5] Operational Performance - Shopping malls have shown strong operational performance over 20 years, with 99% occupancy in 1H 2020[6] - Office buildings have high occupancy rates, with 97.1% occupancy for A+ & A class offices in IIQ 2020[7] Potential Development - The company has potential to almost double its current commercial portfolio, with 580 Th sqm of shopping malls and 221 Th sqm of offices in the pipeline[8, 9] - 200 Della Paolera project has an estimated investment of USD 28.5 million and 35,000 GLA sqm, with 86% works progress[12] Israel Business Center - The company owns 83.7% directly and indirectly of Israel Business Center[3] - Clal ownership in Israel Business Center is 54.8%[20] - DIC has a net financial debt of USD 830.9 million as of December 31, 2019[23] Financial Metrics - IRSA's Adjusted EBITDA is USD 107.6 million and Net Operating Income is USD 134.4 million[26] - Net Debt is USD 673 million and Net Asset Value is USD 1.33 billion[26] - IRCP has a consolidated net debt of USD 346.9 million, with a 26% Loan to Value[27]