IRSA Inversiones y Representaciones S.A announces its results for the second quarter of Fiscal Year 2023 ended December 31, 2022

Rhea-AI Summary

IRSA Inversiones y Representaciones S.A. (NYSE: IRS), a leading real estate firm in Argentina, reported its financial results for the second quarter of FY 2023 ending December 31, 2022. The company recorded a net profit of ARS 15,436 million, down from ARS 49,712 million in the prior year. Rental adjusted EBITDA rose 47.5% to ARS 15,471 million, driven by strong performance in shopping malls and hotels. Tenant sales in malls increased by 22.2%. The occupancy rates for shopping malls, office portfolios, and hotels improved to 93.9%, 83.8%, and 71.4%, respectively. Despite these gains, a fair value adjustment resulted in a loss of ARS 29,530 million, raising concerns about asset valuations.

Positive

• Rental adjusted EBITDA up by 47.5% to ARS 15,471 million.
• Tenant real sales in shopping malls increased by 22.2%.
• Improved occupancy rates: 93.9% for shopping malls.

Negative

• Net profit dropped significantly to ARS 15,436 million from ARS 49,712 million.
• Loss of ARS 29,530 million from fair value adjustments to investment properties.

BUENOS AIRES, Argentina, Feb. 9, 2023 /PRNewswire/ -- 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 2023 ended December 31, 2022.

HIGHLIGHTS

• The net result for the first half of fiscal year 2023 registered a profit of ARS 15,436 million compared to a profit of ARS 49,712 million in the previous fiscal year.
• The rental adjusted EBITDA reached ARS 15,471 million, 47.5% higher than the first half of the previous year, driven by the segments of shopping malls and hotels. Total adjusted EBITDA, which includes sales of investment properties, reached ARS 13,903 million, increasing 10.1% in the period.
• Tenant real sales in shopping malls grew by 22.2% in the first semester of 2023 compared to the same period of 2022. The EBITDA of the segment reached ARS 12,419 million, increasing by 50.5% in the period and the EBITDA margin grew to 78.6%.
• Occupancy in the rental segments grew in the quarter, reaching 93.9% in shopping malls, 83.8% in the premium office portfolio, and 71.4% in hotels.
• On November 8, 2022, the Company distributed to shareholders a cash dividend in the amount of ARS 4,340 million, equivalent to ARS/share 5.41438 and ARS/ADR 54.1438.
• After closing, we issued Series XV and XVI Notes for the sum of USD 90 million. Funds will be used to cancel short-term liabilities.

Financial Highlights
(In millions of Argentine Pesos)
6M FY 2023

Income Statement	12/31/2022	12/31/2021
Revenues	30,890	21,527
Consolidated Gross Profit	20,411	13,315
Net result from changes in the fair value of investment properties	(29,530)	43,731
Consolidated Result from Operations	(17,422)	51,642
Result for the Period	15,436	49,712
Attributable to:
IRSA's Shareholders	15,090	50,105
Non-Controlling interest	346	(393)
EPS (Basic)	18.85	61.94
EPS (Diluted)	16.92	56.25
Balance Sheet	12/31/2022	06/30/2022
Current Assets	46,403	60,689
Non-Current Assets	442,829	472,666
Total Assets	489,232	533,355
Current Liabilities	56,329	123,656
Non-Current Liabilities	182,808	166,871
Total Liabilities	239,137	290,527
Non-Controlling Interest	15,769	15,557
Shareholders' Equity	250,095	242,828

The Company's market capitalization as of December 31, 2022, was approximately USD 388 million. (81,089,539 GDS with a price per GDS of USD 4.78).

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 2023 Results Conference Call on Monday, February 13, 2023, at 10:00 AM US Eastern Time / 12:00 PM BA Time.

To access the Webinar:

https://irsacorp.zoom.us/webinar/register/WN_ymlPxyxdTkqZJxRoAuXajA
Webinar ID: 868 1139 3494
Password: 317213

In addition, you can participate communicating to this numbers:

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

Israel: +972 2 376 4510 or +972 3 978 6688 or +972 2 376 4509

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

Estados Unidos: +1 507 473 4847 or +1 564 217 2000 or +1 646 558 8656 or +1 646 931 3860 or +1 669 444 9171 or +1 669 900 9128 or +1 689 278 1000 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053

Chile: +56 22 573 9305 or +56 23 210 9066  or +56 232 938 848  or +56 41 256 0288  or +56 22 5739304

Investor Relations Department.
+ 5411 4323-7449
ir@irsa.com.ar
https://www.irsa.com.ar/home-inversores.php?lng=en 
Follow us on Twitter @irsair

 

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SOURCE IRSA Inversiones y Representaciones S.A.

FAQ

What were the second quarter results for IRSA (IRS) in FY 2023?

IRSA reported a net profit of ARS 15,436 million for the second quarter of FY 2023.

How did IRSA's rental adjusted EBITDA perform in FY 2023?

The rental adjusted EBITDA rose by 47.5% to ARS 15,471 million.

What was the fair value adjustment impact on IRSA's financials?

IRSA experienced a loss of ARS 29,530 million from changes in the fair value of investment properties.

What were the occupancy rates for IRSA's properties?

Occupancy rates reached 93.9% for shopping malls, 83.8% for premium offices, and 71.4% for hotels.