IRS earnings call summary

Prepared Highlights

• Segment Revenue Growth (1H FY2026 vs. 1H FY2025, in real pesos): Rental segment +4.9%, Shopping Malls +2%, Offices +15%, Hotels +44.8% (prepared).
• Shopping Malls: Occupancy reached ~98%; GLA slightly increased; tenant real sales declined -7% last quarter and -9% this quarter; revenues and adjusted EBITDA grew +4% and +2% respectively in the 6-month period, driven by inflation-linked fixed leases (84% of revenue mix is fixed/inflation-adjusted) (prepared).
• Offices: Portfolio of 58,000 sqm (mostly A and A+); occupancy at 100%; rents stable at $25–$26 per sqm per month; EBITDA increased 15% in real terms (prepared).
• Hotels: Gradual recovery; occupancy 69%; average rate $227 per room; margins improved; Buenos Aires hotels benefited from sports and corporate events; Llao Llao occupancy affected by renovation works (prepared).
• Development – Distrito Diagonal (La Plata): Construction progress ~23%; 78% of contracts awarded; on track to open in May 2027; will add 22,000 sqm GLA (CIO).
• Development – Ramblas del Plata: 26 plots now in commercialization pipeline (~207,000 sellable sqm); signed two additional swap agreements (L-1 and J-1) for $11.7 million (~4,000 sellable sqm); cumulative swaps and sales total $93 million covering >124,000 sellable sqm; construction progress 20%; Phase 1 road/sewer/drainage infrastructure 60% complete; >1,900 trees planted (CIO).
• Development – Other: Acquired former Israelita Hospital in Flores, Buenos Aires for $6.8 million (8,850 sqm land, 17,000 sqm existing area); signed swap for Tower 3 at Córdoba Shopping (~1,000 sqm GLA, third floor, 146 parking spaces) with option for fourth floor (CIO).
• CapEx/Development: Total GLA expected to reach 458,000 sqm over next years including acquisitions and expansions (CIO).
• Net Income: ARS 248.8 billion net gain in 1H FY2026 vs. a loss in 1H FY2025, driven by gain in fair value of investment properties (CFO).
• Fair Value of Investment Properties: Gain of ARS 185 billion this semester vs. loss of ARS 306 billion last year; in dollar terms property values remained stable (CFO).
• Debt & Liquidity: Issued additional $180 million in notes maturing 2035 at a yield of 8.25% (coupon 8%); net debt to rental EBITDA 1.6x; LTV 13%; coverage ratio ~7x; ~60% of assets currently generating EBITDA (CFO).
• Dividend: Paid dividend yield of 10% during 2025, totaling $116 million paid in October and November (CFO).
• Official guidance: No explicit guidance ranges provided; CFO stated "if we continue with this trend, we anticipate very good numbers compared with the previous year" (CFO).

Mgmt quotes:

• (CFO) “We are finishing this semester with a net gain of ARS 248.8 billion compared with a loss during the same period last year.”
• (CFO) “The company today has a strong cash position to take advantage of opportunities and also to finance our growth.”
• (prepared) “Occupancy have reached almost 98%, so very, very strong occupancy.”
• (CIO) “Construction works are gaining momentum… we remain on track to open in May 2027, and it will become a milestone for being La Plata's first and only shopping mall.”
• (CFO) “The ratios remain very conservative with a net debt to rental EBITDA of 1.6x, LTV of only 13%, and coverage ratio of almost 7x.”

Prepared Metrics