#Argentina #Real Estate #IRSA Inversiones

IRSA Inversiones y Representaciones S.A. Second Quarter Results for FY 2025

Introduction
On February 7, 2025, IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BYMA: IRSA), Argentina's leading real estate firm, released their financial results for the second quarter of the Fiscal Year 2025, which ended on December 31, 2024. The performance marked a challenging period characterized by significant losses, driven primarily by fluctuations in the value of investment properties.

Key Financial Highlights

The report indicated that the company registered a net loss of ARS 40.971 billion for the first half of FY 2025, contrasting sharply with a profit of ARS 319.226 billion reported in the same timeframe the previous year. This stark decrease is largely attributable to accounting adjustments relating to the fair value of their investment properties, rather than actual cash implications.

Despite the overall loss, the segment specific to tenants' sales in shopping malls showed signs of recovery, with a notable increase of 21.4% from the previous quarter. However, when assessed year-on-year, sales saw a decline of 8.5% compared to the same period in FY 2024. The adjusted EBITDA for this segment for the semester stood at ARS 94.539 billion, just 2.0% lower than the previous year's similar period.

Strategic Developments

During this quarter, IRSA made strides by acquiring a new mall named