This article first appeared on GuruFocus .
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Net Income:ARS163.4 million gain compared to a loss of ARS143.6 million last year.
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Shopping Mall Revenue and EBITDA:Increased by 6% and 4%, respectively.
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Shopping Mall Occupancy:Reached almost 98%.
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Office Segment Occupancy:Maintained at 100% with rents at $25 per square meter per month.
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Hotel Occupancy:Decreased from 67% to 52%.
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Adjusted EBITDA:Declined by 7.5% overall; rental segment increased by 3.5%.
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Net Debt:Stands at $308 million, 1.6 times EBITDA.
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Dividend Distribution:ARS173.8 million, approximately $116 million, with a 10% yield.
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New Mall Acquisition:Al Oeste Shopping for $9 million, adding 32,000 square meters of GLA.
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Total GLA:Shopping mall portfolio now at 390,000 square meters.
Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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IRSA Inversiones y Representaciones SA ( NYSE:IRS ) reported a gain of ARS163.4 million for the first quarter of 2026, compared to a loss of ARS143.6 million in the previous year.
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The company experienced growth in revenues and occupancy in its malls, with an occupancy rate reaching almost 98%.
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IRSA acquired a new mall, Al Oeste Shopping, for $9 million, expanding its shopping mall portfolio to 17 properties.
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The office segment maintained stable rents and achieved 100% occupancy, with a focus on converting spaces to cater to startups and entrepreneurs.
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The company distributed a dividend with a yield of around 10%, reflecting strong cash generation and a conservative debt position.
Negative Points
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Tenant sales in malls declined by 7% during the first quarter of 2026 compared to the same period in 2025.
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The hotel segment continued to show a decline in revenues and occupancy, with occupancy dropping from 67% to 52% due to a weak winter season.
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Adjusted EBITDA saw a decline of 7.5%, with a significant 22% drop in the hotel segment.
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The company faced a loss in net financial results due to the real devaluation of the peso, impacting dollar-denominated debt.
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The economic environment was volatile due to elections, affecting consumer confidence and sales in the malls.
Q & A Highlights
Q: If the company is entering a period of higher investment and CapEx, why was it decided to distribute such a large dividend? Has something changed? A: Matias Ivan Gaivironsky, CFO, explained that the strategy has not changed. The company is accelerating its investment and development process, with a planned CapEx of around $75 million for the next year. Despite this, IRSA has strong cash generation, approximately $180 million to $190 million, and low debt levels. The dividend distribution was feasible due to a strong cash position, and even after paying $120 million in dividends, the company retains $180 million in cash, ensuring sufficient funds for future projects.
Q: What are the medium-term timelines for the Ramblas del Plata project? When will the construction of the first buildings begin, and when is the park's construction expected to be completed? A: Jorge Cruces, CIO, stated that the Ramblas del Plata project is divided into three phases. The first phase of infrastructure is expected to be completed next year, allowing developers to begin constructing buildings. Each phase will include the completion of corresponding park sections, with the first phase's park expected to be finished alongside the infrastructure.
Q: Regarding the exercise of the warrants of Cresud and Alto, will the ratios be updated after the dividend? A: Matias Ivan Gaivironsky, CFO, confirmed that the warrants have a clause requiring adjustment of the strike price and ratio whenever dividends are paid. The company plans to announce the new ratios shortly, before the next window to exercise the warrants opens next week.
Q: How does the company view the current political and economic environment in Argentina, and what are the expectations for the future? A: Matias Ivan Gaivironsky, CFO, expressed optimism about the clearer political direction in Argentina following the elections. This clarity is expected to create a more stable environment for decision-making, benefiting companies in Argentina. The company anticipates continued development projects and increased consumer confidence, positively impacting mall operations.
Q: What is the current status of the company's debt and financial position? A: Matias Ivan Gaivironsky, CFO, reported that the company's net debt stands at $308 million, with a leverage ratio of 1.6 times EBITDA and a loan-to-value (LTV) ratio of less than 9%. The company maintains a conservative debt position, even after the recent dividend distribution, ensuring financial stability and flexibility for future investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
