BUENOS AIRES, Argentina, February 11, 2022 - IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BYMA: IRSA), leading real estate company in Argentina, announces today its results for the second quarter of the Fiscal Year 2022 ended December 31, 2021.

Rhea-AI Summary

IRSA Inversiones y Representaciones S.A. (NYSE: IRS) announced significant financial recovery for the first half of fiscal year 2022, achieving a net profit of ARS 25,520 million, compared to a loss of ARS 1,758 million in the previous year. This turnaround is attributed to changes in the fair value of investment properties, with total revenues rising to ARS 11,051 million. The rental segment showed signs of recovery, while the company sold floors of a significant building for USD 41.2 million and received regulatory approval for the Costa Urbana project, promoting future growth.

Positive

• Net profit of ARS 25,520 million, a significant recovery from ARS 1,758 million loss.
• Revenues increased to ARS 11,051 million from ARS 7,473 million year-over-year.
• Sale of '261 Della Paolera' floors for approximately USD 41.2 million.
• Regulatory approval for 'Costa Urbana' project, enabling construction of 895,000 m².

Negative

• Rental adjusted EBITDA decreased by 31.5% compared to the same period in 2020.
• Slight decrease in average rent and occupancy in the office segment.

BUENOS AIRES, Argentina, Feb. 11, 2022 /PRNewswire/ --

HIGHLIGHTS

• In December 2021, the Shareholders' Meetings of IRSA and IRSA PC approved the merger by absorption between the companies, in which IRSA absorbs IRSA PC. The merger has an effective date of July 1, 2021, and the exchange of IRSA PC shares for IRSA shares will take place in the coming months.
• The net result for the first half of fiscal year 2022 was ARS 25,520 million compared to a ARS 1,758 million loss in the previous fiscal year. This is mainly explained by the gain recorded for changes in the fair value of investment properties.
• Rental segment showed a recovery in the main indicators of shopping malls and hotels, while the office segment showed a slight decrease in the average rent and occupancy. The rental adjusted EBITDA reached ARS 5,489 million during the first semester of 2022 (ARS 4,298 million in shopping malls, ARS 834 million in offices and ARS 357 million in hotels), 31.5% lower than in the same period of 2020, not affected by the pandemic.
• During the semester we sold 4 floors of "261 Della Paolera" building with a surface area of 4,797 sqm for an approximate amount of USD 41.2 million.
• In December 2021, the Legislature of the Autonomous City of Buenos Aires approved by law the regulations for the development of the "Costa Urbana" project on the 70-hectare property owned by IRSA since 1997. The Company will have a construction capacity of approximately 895,000 m², which will drive growth for the coming years through the development of mixed-use projects.

Financial Highlights 
(In millions of Argentine Pesos) 
6M FY 2022

 

Income Statement	12/31/2021	12/31/2020
Revenues	11,051	7,473
Consolidated Gross Profit	6,835	3,505
Net result from changes in the fair value of investment properties	22,450	13,986
Consolidated Profit from Operations	26,511	13,945
Result for the Period	25,520	(1,758)
Attributable to:
IRSA's Shareholders	25,722	(882)
Non-Controlling interest	(202)	(876)
EPS (Basic)	31.80	(1.53)
EPS (Diluted)	28.87	(1.53)
Balance Sheet	12/31/2021	06/30/2021
Current Assets	21,523	16,769
Non-Current Assets	266,792	251,552
Total Assets	288,315	268,321
Current Liabilities	19,117	26,663
Non-Current Liabilities	144,489	142,025
Total Liabilities	163,606	168,688
Non-Controlling Interest	7,947	25,162
Shareholders' Equity	124,709	99,633

IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BYMA: IRSA), the Argentina's largest, most well-diversified real estate company, cordially invites you to participate in its IIQ FY 2022 Results Conference Call on Monday, February 14, 2022, at 09:00 AM US Eastern Time / 11:00 AM BA Time.

To participate, please access through the following link:

https://irsacorp.zoom.us/j/86253139548?pwd=MkJZODJTMk55NVJoaG1lc2dPUDYwZz09

Webinar ID: 862 5313 9548

Password: 413944

In addition, you can participate communicating to this numbers:

Argentina: +54 112 040 0447 or +54 115 983 6950 or +54 341 512 2188 or +54 343 414 5986

Israel: +972 3 978 6688 or +972 55 330 1762

Brazil: +55 11 4700 9668 or +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788

United States of America: +1 312 626 6799 or +1 346 248 7799 or +1 646 558 8656 or +1 669 900 9128 or +1 253 215 8782 or +1 301 715 8592

Chile: +56 232 938 848 or +56 41 256 0288 or +56 22 573 9304 or +56 22 573 9305 or +56 23 210 9066

Investor Relations Department.

+ 5411 4323-7449

ir@irsa.com.ar

https://www.irsa.com.ar/home-inversores.php?lng=en

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SOURCE IRSA Inversiones y Representaciones S.A.

FAQ

What are the earnings results for IRSA (IRS) in FY 2022?

IRSA reported a net profit of ARS 25,520 million for the first half of FY 2022.

How did the merger affect IRSA (IRS)?

The merger of IRSA and IRSA PC was approved, effective July 1, 2021, facilitating the exchange of shares.

What is the future outlook for IRSA (IRS)?

The approval of the 'Costa Urbana' project is expected to drive future growth opportunities.

What is the revenue growth for IRSA (IRS)?

IRSA's revenues increased to ARS 11,051 million in the first half of FY 2022, up from ARS 7,473 million.

What challenges does IRSA (IRS) face in FY 2022?

The rental segment showed a 31.5% decrease in adjusted EBITDA and a decline in office segment performance.