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01/11 07:56
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A reveal strong financial performance, with record-high EBITDA, stable office rents, and increased shopping mall valuations. The company has a healthy debt structure and plans for future dividends. Despite challenges in the hotel segment, the overall outlook is optimistic, with fast sales in Ramblas and potential new office projects. The Q&A section shows analysts' confidence, despite some uncertainties. The positive momentum, combined with strategic initiatives, suggests a likely stock price increase of 2% to 8% over the next two weeks.
Net Gain ARS 196 billion compared to a significant loss in the previous year. The improvement is attributed to better performance in shopping malls and changes in fair value of investment properties.
Shopping Malls Adjusted EBITDA Grew by 10% year-over-year. This growth is linked to inflation and better performance in tenant sales.
Shopping Malls Revenues Increased by 8% year-over-year, driven by inflation-linked revenues and recovery in tenant sales.
Shopping Malls Tenant Sales Grew by 3.2% in Q4 FY25 compared to Q4 FY24, but ended the fiscal year 2.8% below inflation due to weaker performance in the first half of the fiscal year.
Shopping Malls Occupancy Remained at high levels close to 98%, excluding Terrazas de Mayo, which improved from 81% to 89% occupancy after acquisition.
Office Segment Rents Remained stable at $25 per square meter per month, with premium portfolio occupancy reaching almost 100%.
Hotel Segment Occupancy Decreased from 66% two years ago to 60%-61% in FY25, due to lower international tourism caused by the appreciation of the Argentine peso against the U.S. dollar.
Hotel Segment Margins Declined due to lower occupancy and adjusted room rates.
Ramblas del Plata Transactions 13 transactions completed, including cash sales and swaps totaling approximately 111,000 sellable square meters.
Banco Hipotecario Contribution to IRSA ARS 13.6 billion in FY25, down from ARS 40.8 billion in the previous year, due to lower financial margins and interest rate gaps.
Banco Hipotecario Dividends to IRSA ARS 18 billion in FY25, up from ARS 13 billion in the previous year.
Shopping Malls Valuation Increased by $500 million in dollar terms, with total valuation at $1.2 billion, reflecting better performance and reduced cost of capital in Argentina.
Debt Structure Net debt of $184 million, with a ratio of 1x EBITDA or 8% of assets, indicating a very healthy financial position.
Shopping Malls: Solid recovery with adjusted EBITDA growing by 10% year-over-year. Tenant sales grew by 3.2% in Q4 FY25 compared to Q4 FY24. Portfolio expanded with acquisitions like Terrazas de Mayo (34,000 sqm) and developments like La Plata shopping mall (22,000 sqm). Occupancy levels remained high at 98%.
Office Segment: Rents remained stable at $25 per sqm per month. Occupancy in premium portfolio reached nearly 100%. Sold an additional floor of Della Paolera.
Hotels: Challenged by Argentine peso appreciation against the USD, leading to lower revenues and occupancy (decreased from 66% to 61%).
International Capital Market: Returned after nearly a decade, issuing $300 million in Series XXIV notes with a 10-year tenure.
Real Estate Developments: Strong activity in residential projects like Del Plata Building Trust (76 units sold for $11.4M), Nuevo Quilmes II (41 lots sold for $6.3M), and Ramblas del Plata (transactions totaling $81M).
Financial Performance: Net income of ARS 196 billion compared to a loss of ARS 32 billion last year. Shopping malls valued at $1.2 billion, reflecting strong performance.
Debt Structure: Net debt of $184 million, with a ratio of 1x EBITDA. Debt extended over the next 10 years.
Sustainability Initiatives: 90% of malls transitioned to LED lighting, solar panels installed in 3 additional malls. Completed third carbon balance measurement and working on mitigation plans.
Dividend Distribution: Distributed an 8% dividend and treasury shares equivalent to 3.6% of capital stock.
Hotel Segment Performance: The hotel segment faced challenges due to the appreciation of the Argentine peso against the U.S. dollar, leading to lower revenues, reduced occupancy rates (from 66% to 60-61%), and decreased margins.
Shopping Malls Inflation Impact: Tenant sales in shopping malls ended the fiscal year slightly below inflation, with a 2.8% gap, despite a recovery in the latter half of the year.
Banco Hipotecario Contribution: Banco Hipotecario's contribution to IRSA's results decreased significantly from ARS 40.8 billion to ARS 13.6 billion due to lower financial margins and interest rate gaps.
Tax Payments Resumption: IRSA resumed paying taxes after consuming its tax credit, which will impact cash flow.
Debt and Financial Position: While the debt structure is healthy, the company’s ability to grow and take on new projects depends on finding suitable opportunities, which could pose a strategic challenge.
Shopping Malls Occupancy: Occupancy in shopping malls is expected to improve in the upcoming months, particularly for the recently acquired Terrazas de Mayo, which currently has an occupancy rate of 89%.
La Plata Shopping Mall Development: The development of La Plata shopping mall is underway, with an estimated opening in May 2027, adding 22,000 square meters of GLA.
Portfolio Growth: The company's portfolio is expected to grow by 27%, reaching 426,000 square meters of GLA through acquisitions and developments.
Residential Developments: The company is progressing on several residential projects, including Nuevo Quilmes II, Coto Abasto Towers, and Ramblas del Plata, with significant sales and construction milestones expected in the near future.
Renewable Energy in Malls: Plans to increase exposure to renewable energy in malls, including the installation of solar panels and transitioning to LED lighting, are contingent on favorable conditions.
Debt Structure and Growth: The company has a healthy debt position and is prepared to increase debt for acquisitions or developments if good opportunities arise.
Dividend Distribution: An 8% dividend was distributed during the fiscal year.
Banco Hipotecario Dividends: Banco Hipotecario, in which IRSA has a 29% stake, distributed dividends for the second consecutive year. IRSA received ARS 18 billion in dividends from the bank this year, compared to ARS 13 billion last year.
Treasury Shares: Treasury shares equivalent to 3.6% of IRSA's capital stock were distributed during the fiscal year.
The earnings call presents mixed signals: strong dividend distribution and positive net income contrast with hotel segment weakness and economic volatility. The Q&A reveals management's confidence in cash generation and strategic flexibility, despite some unclear responses. Given these factors, the stock price reaction is likely to remain stable, leading to a neutral rating.
The earnings call summary and Q&A reveal strong financial performance, with record-high EBITDA, stable office rents, and increased shopping mall valuations. The company has a healthy debt structure and plans for future dividends. Despite challenges in the hotel segment, the overall outlook is optimistic, with fast sales in Ramblas and potential new office projects. The Q&A section shows analysts' confidence, despite some uncertainties. The positive momentum, combined with strategic initiatives, suggests a likely stock price increase of 2% to 8% over the next two weeks.
The earnings call reveals strong financial performance with a record high EBITDA, significant net income recovery, and high occupancy rates in malls. Despite challenges in the hotel segment and economic risks in Argentina, the company's conservative debt structure and strategic bond issuance are positive. The Q&A section shows management's optimism for growth and strategic partnerships, although some uncertainty remains regarding CapEx and dividend policies. Overall, the positive financial metrics and strategic outlook outweigh the risks, suggesting a positive stock price movement.
The earnings call presents mixed signals. Positive aspects include the acquisition of a new mall, full office occupancy, and a strong dividend yield. However, the net loss, weaker hotel performance, and vague financing plans raise concerns. The Q&A session highlighted uncertainties in financing and future maturities, which could affect investor sentiment. Overall, the company's performance is heavily tied to economic recovery in Argentina, making the outlook uncertain. The lack of clear guidance on financing and the net loss contribute to a neutral sentiment, expecting minimal stock price movement.
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