BUENOS AIRES, Argentina, May 15, 2017 /PRNewswire/ -- IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, today announces its results for the nine-month period of Fiscal Year 2017 Ended March 31, 2017.
During the quarter under review, IRSA's Board of Directors decided to change the valuation method of investment properties (mainly, shopping malls, offices and land reserves) from historical cost to fair market value, in accordance with the International Financial Reporting Standards (IFRS). The reason for this change is the need to adjust the valuation of investment property to its fair market value, for its amortized acquisition cost is not reflective of their economic substance. The Company intends to recognize the effects of this change in its financial statements for the fourth quarter of the current fiscal year (June 30, 2017). The Company has retained an independent appraiser to estimate the fair market value of its investment properties.
- EBITDA for the nine-month period of FY 2017 reached ARS 7,504 million (ARS 1,827 million from Argentina and ARS 5,677 million from Israel)
- Net result for 9M17 registered a gain of ARS 3,799 million compared to a loss of ARS 1,039 million in the same period of 2016 mainly explained by the results from Israel Business Center coming from Adama sale and the increase in Clal share price, valued at market value.
- Tenant Sales in our malls grew by 19.9% in 9M17 while the average rent per sqm of the office portfolio reached USD/sqm 26.3. EBITDA of the rental segment increased by 31.8% in the compared period.
- We reached 98.0% occupancy in our shopping malls and 100% occupancy in our portfolio of premium offices.
- During February 2017, IDBD has issued notes in the Israeli market for NIS 1,060 million at a fixed rate of 5.40% due 2019 to cancel existing debt.
- We decided to change the valuation method for the investment properties from historical cost to reasonable value, which was already reflected in our subsidiary IRSA Commercial Properties S.A. this quarter and will be reflected in the company's financial statements by the end of our fiscal year as of June 30, 2017.
(In millions of Argentine Pesos)
Nine-month period 9M 2017
Ended March 31, 2017
Consolidated Gross Profit
Consolidated Profit from Operations
Profit / (Loss) For the Period
Non Current Assets
Non Current Liabilities
IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BASE: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on both the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels Additionally, IRSA owns a stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country as well as international opportunistic investments in real estate and other assets, including 68.3% stake in the largest conglomerate in Israel, IDB Development Corporation.
A longer version of this press release with detailed information is available on the web site: http://www.irsa.com.ar.
IRSA cordially invites you to participate in its nine-month period of FY 2017 Results Conference Call on Monday, May 15, 2017, at 9:45 AM Eastern Time
If you would like to participate, please call:
United States: (844) 308-3343
International: +1-(412) 717-9602
To access the webcast, click on the link below:
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SOURCE IRSA Inversiones y Representaciones S.A.