IRS-WT — IRSA Inversiones y Representaciones Sociedad Anónima WT

Summary of IRSA Earnings Call (Q3 2026)

1. Key Financial Results and Metrics

• Net Result: ARS 239.7 billion for the 9-month period, up from ARS 46.5 billion year-over-year.
• Adjusted EBITDA:
  • Shopping malls: Increased by 2% in pesos (6% in dollars).
  • Offices: Grew by 15%.
  • Hotels: Increased by 37%.
• Rental Adjusted EBITDA: Reached $151 million, with expectations of a record high by fiscal year-end.
• Debt Metrics: Net debt to rental EBITDA at 1.4x, with a low loan-to-value (LTV) ratio of 11.3%.

2. Strategic Updates and Business Highlights

• Shopping Malls: GLA increased to 373,000 square meters with occupancy near 98%. Despite a 10% decline in tenant sales in real terms, revenues grew due to fixed components accounting for 87% of revenues.
• Office Expansion: New office building adjacent to Zetta signed with Mercado Libre, increasing GLA to over 47,500 square meters.
• Hotel Performance: Occupancy at 74%, driven by tourism and corporate events, with positive trends noted despite past renovation challenges.
• Ramblas Project: Significant progress with ongoing development and land swaps totaling $11.3 million, with a master plan featuring retail spaces and a pedestrian promenade.

3. Forward Guidance and Outlook

• Management anticipates a recovery in consumption aligned with economic activity in the coming quarters, despite current weak trends.
• Continued focus on expansion projects and potential entry into logistics, with a cautious approach to new developments based on market conditions.

4. Bad News, Challenges, or Points of Concern

• Tenant Sales Decline: A 10% drop in tenant sales in real terms raises concerns about consumer spending and retail dynamics.
• Inflation Impact: The appreciation of the peso against the dollar and high inflation rates create volatility in asset valuations and financial results.
• Economic Environment: High interest rates and credit constraints in Argentina pose risks to future growth and consumer spending.

5. Notable Q&A Insights

• Consumption Trends: Weak sales trends are expected to continue into the next quarter, with management noting the need for careful monitoring of pricing dynamics and tenant negotiations.
• Office Sector Outlook: Positive sentiment regarding the office sector, with expectations of improved occupancy and demand, particularly driven by high-quality tenants like Mercado Libre.
• Share Repurchase Program: No immediate plans announced, but management indicated a willingness to consider buybacks depending on future financial results and market conditions.
• Al Oeste Development: On schedule for completion, with expectations for a public launch by the end of the year or early next year.

Overall, IRSA reported strong financial results with positive growth in adjusted EBITDA across all segments, but faces challenges from declining tenant sales and economic pressures in Argentina. The company remains optimistic about future expansions and market recovery.