IRSA(US:IRS)2023-11-07 21:14Financial Data and Key Metrics Changes - The company reported a gain of ARS81 billion for the first quarter of fiscal year 2024, compared to a gain of ARS3.1 billion in the same period last year, indicating significant improvement [35] - Inflation during the quarter was 35%, up from 22% the previous year, impacting the fair value of investment properties and foreign exchange differences [30][31] - The company reduced its debt by 61%, resulting in a net debt of $296 million, reflecting a conservative capital structure [36] Business Line Data and Key Metrics Changes - Shopping malls experienced a 22% increase in adjusted EBITDA, while the office segment saw a 4% decrease [13] - The occupancy rate for shopping malls increased to 98%, with sales growing by 10% compared to the same quarter last year and 34% above pre-pandemic levels [22][23] - Hotel occupancy rates reached 66%, with average room rates growing to approximately $270 [25] Market Data and Key Metrics Changes - The real estate activity was strong, with significant disposals including the sale of three floors of the Della Paolera building and the entire Suipacha building [3][5] - The company noted a slight devaluation of the peso, with a 1% devaluation in real terms against a 4% appreciation last year [12] Company Strategy and Development Direction - The company is focusing on premium developments, particularly the Costa Urbana project, and plans to utilize various financing methods including preselling units and barter agreements [27][43] - The management emphasized a strategy of "flight to quality" in their real estate portfolio, selling lower-quality assets to concentrate on higher-value projects [7][27] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumption levels in October and November, indicating a positive trend in sales growth [45] - The company is prepared for potential economic uncertainties following elections, trusting in the quality of its portfolio [66][73] Other Important Information - A dividend payment representing around 12% yield was approved and paid, with ongoing discussions regarding the distribution to GDS holders due to regulatory restrictions [20][38][56] - The company extended its share repurchase program by 180 days, having already repurchased 42% of the planned ARS5 billion [41] Q&A Session Summary Question: How will the company finance the Costa Urbana development? - The company plans to use various financing methods, including preselling units and barter agreements, to minimize cash investment [43] Question: What is the expected timing for launching the first towers of the Costa Urbana project? - Infrastructure work is expected to start in 2024, with building presales and construction to follow based on demand [62][70] Question: Are there plans to expand Alto Rosario? - The company has the capacity to expand Alto Rosario and is considering mixed-use developments [46][72] Question: What are the expectations for the malls business post-elections? - Management acknowledged uncertainty regarding new policies but remains confident in the quality of their portfolio [73]