IRSA Inversiones y Representaciones (IRSA) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 saw strong rental segment results, with rental adjusted EBITDA reaching ARS 171,772 million, up 8.8% year-over-year, despite a net loss of ARS 23,054 million mainly due to non-cash fair value adjustments on investment properties amid high inflation and currency volatility.

• High occupancy rates were maintained across shopping malls (up to 98%), premium offices (up to 96%), and hotels (average 64%).

• Major asset sales, new residential and mixed-use project launches, and aggressive capital returns through ARS 119 billion in dividends and share buybacks (~4% of shares) marked the year.

• Real estate activity was strong, with significant asset transactions and continued focus on development.

Financial highlights

• Rental adjusted EBITDA increased 8.8% year-over-year to ARS 171,772 million.

• Net loss of ARS 23,054 million, mainly from inflation's impact on investment property fair values.

• Operating income excluding fair value changes was ARS 85,475 million, up 87.1% from FY23.

• Net financial results improved to ARS 245,490 million from ARS 57,722 million in FY23.

• Net debt at USD 231–235.3 million as of June 30, 2024, with Net Debt/Rental EBITDA at 1.44x.

Outlook and guidance

• Launch of major residential and mixed-use projects, including Ramblas del Plata, with cautious CapEx allocation based on demand.

• Public hearing for environmental impact assessment scheduled for September 2024 for new developments.

• Continued focus on cost efficiency, liquidity, and capital returns, with optimism for office and hotel segments as tourism and events recover.