IRSA Inversiones y Representaciones (IRSA) Q2 2025 earnings summary

Executive summary

• Reported a net loss of ARS 40,971 million for the first six months of FY25, mainly due to non-cash effects and fair value losses on investment properties.

• Shopping malls showed a 21.4% sequential sales recovery, though still 8.5% below the same quarter last year, with adjusted EBITDA just 2% below last year.

• Completed the acquisition of Terrazas de Mayo, the 16th mall, for USD 27.75 million, adding nearly 34,000 sq m of GLA.

• Premium office segment achieved 100% occupancy, with stable rents at $25 per sq m per month, and a floor in Della Paolera 261 sold for USD 7.1 million.

• Hotel segment saw weaker results, with occupancy dropping to 67% and lower rates, impacted by peso appreciation and reduced international tourism.

Financial highlights

• Net loss of ARS 40,971 million for 6M25, compared to a significant gain last year.

• Adjusted EBITDA for shopping malls was ARS 145,768 million (+21.8% YoY), offices ARS 27,953 million (+5.4% margin improvement), hotels ARS 5,669 million (-66.8% YoY).

• Group revenues for 6M25 were ARS 212,141 million, down 4% year-over-year; adjusted EBITDA margin dropped to 60.47% from 79.84%.

• Net financial results improved, with a gain of ARS 21 billion from FX appreciation, compared to a loss of ARS 205 billion last year.

• Income tax gain of ARS 34 billion, with ARS 93 billion from deferred tax and ARS 60 billion current tax; company will resume paying income tax this year.

Outlook and guidance

• Expecting positive results in shopping malls in the next two quarters, driven by economic and real wage recovery.

• Plans to optimize tenant mix in Terrazas de Mayo and launch new residential and commercial developments, including Ramblas del Plata and a new mall in La Plata.

• Mall portfolio valuation expected to increase as country risk decreases and operational figures improve.