IRSA Inversiones y Representaciones S.A announces its results for the second quarter of Fiscal Year 2025 ended December 31, 2024
Rhea-AI Summary
IRSA Inversiones y Representaciones reported its Q2 FY2025 results, showing a net loss of ARS 40,971 million compared to a gain of ARS 319,226 million in the same period last year. The loss was primarily attributed to changes in fair value of investment properties, which is a non-cash accounting effect.
Shopping mall tenant sales increased 21.4% quarter-over-quarter but decreased 8.5% year-over-year. The company acquired 'Terrazas de Mayo' shopping mall for USD 27.75 million, featuring 33,700 sqm of leasable area. The premium office portfolio reached 100% occupancy, and the company sold a floor of Della Paolera 261 building for USD 7.1 million.
Additionally, IRSA signed agreements to sell two lots of the Ramblas del Plata project with 40,000 sqm of saleable area for USD 23.4 million. The company's market capitalization as of December 31, 2024, was approximately USD 1,117 million.
Positive
- Premium office portfolio reached 100% occupancy
- Shopping mall tenant sales increased 21.4% quarter-over-quarter
- Strategic acquisition of Terrazas de Mayo mall for USD 27.75 million
- Sale of Della Paolera 261 building floor for USD 7.1 million
- Sale agreement for Ramblas del Plata lots for USD 23.4 million
Negative
- Net loss of ARS 40,971 million in H1 FY2025
- Shopping mall tenant sales declined 8.5% year-over-year
- Hotels segment recorded lower revenues and occupancy
- Negative change in fair value of investment properties (ARS 233,073 million)
Insights
IRSA's Q2 FY2025 results present a complex picture of Argentina's leading real estate company's performance. The headline ARS 41 billion loss primarily stems from non-cash fair value adjustments, which often reflect broader market conditions rather than operational performance. The core business shows resilience in key areas:
The shopping mall segment demonstrates encouraging sequential growth with a
The office segment achieved a significant milestone with
The post-period agreement to sell Ramblas del Plata lots for
HIGHLIGHTS
- The net result for the first semester of fiscal year 2025 recorded a loss of ARS 40,971 million compared to a gain of
ARS 319,226 million in the same period of the previous year, mainly due to the loss recorded from changes in the fair value of investment properties. This is an accounting effect that does not imply cash movements. - Real tenant sales in shopping malls continue to recover on a quarterly basis. They increased by
21.4% compared to the previous quarter but declined by8.5% compared to the same period of fiscal year 2024. The segment's adjusted EBITDA for the semester reached ARS 94,539 million, just 2,0% below the same period of the previous year. - During the quarter, we acquired a new shopping mall "Terrazas de Mayo", located in
Malvinas Argentinas in the northwest ofGreater Buenos Aires for a total amount ofUSD 27.75 million . The mall has a leasable area of 33,700 sqm and 86 stores. - During the second quarter we reached
100% occupancy of our premium office portfolio and sold an additional floor of the Della Paolera 261 building forUSD 7.1 million . - The Hotels segment recorded lower revenues and occupancy in the first half of fiscal year 2025 compared to 2024, in a context of greater appreciation of the Argentine peso against the
U.S. dollar. - Subsequently, we signed sale agreements for two lots of the Ramblas del Plata project with an estimated saleable area of 40,000 sqm to a local developer for the sum of
USD 23.4 million .
Financial Highlights
(In millions of Argentine Pesos)
6M FY 2025
Income Statement | 12/31/2024 | 12/31/2023 |
Revenues | 212,141 | 220,936 |
Consolidated Gross Profit | 130,934 | 149,605 |
Net result from changes in the fair value of investment properties | (233,073) | 300,126 |
Consolidated Result from Operations | (149,784) | 420,889 |
Result for the Period | (40,971) | 319,226 |
Attributable to: | ||
IRSA's Shareholders | (39,773) | 308,177 |
Non-Controlling interest | (1,198) | 11,049 |
EPS (Basic) | (54.19) | 412.55 |
EPS (Diluted) | (54.19) | 413.11 |
Balance Sheet | 12/31/2024 | 06/30/2024 |
Current Assets | 271,335 | 275,848 |
Non-Current Assets | 2,230,471 | 2,439,662 |
Total Assets | 2,501,806 | 2,715,510 |
Current Liabilities | 380,247 | 333,008 |
Non-Current Liabilities | 885,019 | 986,524 |
Total Liabilities | 1,265,266 | 1,319,532 |
Non-Controlling Interest | 80,071 | 89,386 |
Shareholders' Equity | 1,236,540 | 1,395,978 |
The Company's market capitalization as of December 31, 2024, was approximately
IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BYMA: IRSA), the
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SOURCE IRSA Inversiones y Representaciones S.A.
FAQ
What caused IRSA's net loss in Q2 FY2025?
How much did IRSA pay for the Terrazas de Mayo mall acquisition?
What was IRSA's market capitalization as of December 31, 2024?
How did IRSA's shopping mall tenant sales perform in Q2 FY2025?
What is the value of the Ramblas del Plata lots sale agreement?
