IRSA Inversiones y Representaciones (IRSA) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA reached ARS 46,910 million, down 8.8–10.9% year-over-year, mainly due to hotel segment weakness and lower FX competitiveness.

• Net loss of ARS 109,035–109,135 million, primarily driven by non-cash losses from investment property valuations and inflation.

• Tenant sales in shopping malls showed a 7% sequential recovery but remain 12.1% below the same quarter last year.

• Dividend payments of ARS 90,000 million were made, representing an ~8% yield, with additional share buybacks executed.

• Premium office occupancy reached 98%, with a land plot acquired next to Alto Avellaneda Shopping for future expansion.

Financial highlights

• Revenues declined 5.3% year-over-year, mainly due to lower hotel activity.

• Adjusted EBITDA margin was 65.09% for Q1 FY2025.

• Net financial results improved due to FX and financial asset revaluation.

• Net debt as of September 30, 2024, ranged from USD 170–204.6 million, with LTV at 14–14.3%.

• Cash generated from operating activities increased to ARS 47,811 million.

Outlook and guidance

• Continued recovery in tenant sales expected, with stronger performance anticipated in later quarters as real wages improve.

• Positive momentum in residential real estate, driven by tax amnesty, renewed mortgage activity, and new project launches.

• Plans for major residential and mixed-use developments, including Ramblas del Plata.

• Focus on cost efficiency, liquidity management, and asset sales.