IRSA Inversiones y Representaciones (IRSA) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net loss was ARS 6,380 million versus net income of ARS 217,952 million a year earlier, mainly reflecting a negative investment-property fair-value change as inflation exceeded currency depreciation.

• Total Adjusted EBITDA rose 9.3% YoY to ARS 83,304 million; rental Adjusted EBITDA declined 2% to ARS 83,933 million, while dollar rental EBITDA grew 20% and reached a record $205 million on a last-12-month basis.

• Mall occupancy and traffic remained strong amid weaker real consumption; development activity and Ramblas del Plata commercialization advanced.

Financial highlights

• Revenue rose 4.4% YoY to ARS 179,892 million; operating income excluding fair-value changes increased 3.8% to ARS 75,228 million.

• Investment-property fair-value change swung from a positive ARS 293,294 million in IQ26 to a negative ARS 74,236 million in IQ27.

• Net financial result was a loss of ARS 9 billion versus a loss of ARS 38.8 billion a year earlier; net interest expense was ARS 19,059 million and fair value of financial assets and liabilities was negative ARS 25,983 million.

• Operating cash flow was ARS 45,515 million versus ARS 109,682 million; period-end cash and equivalents were ARS 127,378 million.

Outlook and guidance

• FY27 CapEx is expected to be ~$150 million, including project spending and remaining prior-acquisition installments, excluding new acquisitions.

• Net debt could rise toward $500 million during the year with high CapEx; management cited capacity to reduce debt if investment moderates.

• Oeste Outlet is expected to open in FY27 Q2 and Distrito Diagonal in Q4; the mall portfolio is projected to reach 19 assets by FY27 year-end.

• Ramblas del Plata infrastructure and commercialization will continue, with initial real-estate developments expected to begin in calendar 2027; construction is also planned to continue at Polo Dot and Edificio del Plata.

• Future annual dividends are expected to trend closer to the historical average of ~$70 million, subject to annual review rather than a fixed policy.