Summary of IRSA Q2 2026 Earnings Call

1Key Financial Results and Metrics

Net Income: ARS 248.8 billion, a significant recovery from a loss in the same period last year, primarily due to gains in fair value of investment properties.

Revenue Growth:

Shopping Malls: +4%

Offices: +15%

Hotels: +44.8%

EBITDA: Adjusted EBITDA increased by 2% year-over-year, with total EBITDA in dollar terms reaching $102 million.

Debt Position: Net debt to rental EBITDA ratio at 1.6x, with a conservative debt structure (LTV at 13%, coverage ratio at 7x).

Dividend: A dividend yield of 10% was paid, totaling $116 million.

2Strategic Updates and Business Highlights

Shopping Malls: Occupancy rates at nearly 98%, with revenue growth driven by inflation-linked lease structures. Expansion projects are underway in La Plata and Oeste Shopping.

Office Segment: 100% occupancy maintained, with stable rents at $25-$26 per square meter.

Hotels: Recovery noted, with occupancy at 69% and average rates at $227 per room, particularly benefiting from corporate events in Buenos Aires.

Development Projects: Significant progress in projects like Distrito Diagonal and Ramblas del Plata, with plans for mixed-use developments and new commercial spaces.

Financial Strategy: Issued an additional $180 million in bonds, enhancing cash position for growth opportunities.

3Forward Guidance and Outlook

Economic Context: Anticipated growth in Argentina's economy, which is expected to positively impact consumption and rental income.

Expansion Plans: The company is entering a new growth phase, with multiple projects and potential M&A activities planned for the upcoming quarters.

Market Confidence: Management expresses optimism regarding the real estate sector, particularly in residential and mixed-use developments.

4Bad News, Challenges, or Points of Concern

Tenant Sales Decline: Notable decrease in real sales from tenants, with a reported decline of 9% in the latest quarter, attributed to economic pressures and a challenging retail environment.

Consumer Behavior: Concerns over the sustainability of lower prices in the textile sector may impact rental income and tenant stability.

Inflation and Currency Risks: The company faces challenges related to currency devaluation and inflation, which could affect financial performance and operational costs.

5Notable Q&A Insights

Tenant Contract Adjustments: Management noted that while there have been no significant requests from tenants to rebalance contracts, they are observing trends in demand for international brands and adjusting lease structures accordingly.

Workspace Management: The Philips building's workspace is managed directly by IRSA, with plans to replicate this model in other locations due to positive performance.

Market Sentiment: There is optimism about future demand in the real estate sector, contingent on economic recovery and access to credit for the middle class.

Leverage Concerns: Management is comfortable with current leverage levels and expects to maintain conservative debt practices while pursuing growth. Overall, IRSA is positioned for growth despite facing some economic headwinds, with a focus on strategic expansions and maintaining strong operational performance.