BUENOS AIRES, Argentina,
Feb. 12, 2015 /PRNewswire/
-- IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BASE:
IRSA), the leading real estate company in Argentina, today announces its results for the
first six months of Fiscal Year 2016 Ended December 31, 2015.
Consolidation of IDB Development Corporation
On October 11, 2015, the Group
acquired control of the Israeli company IDB Development Corporation
Ltd. ("IDBD"). During this quarter, the consolidation will be
reflected in the balance sheet, and as from the third quarter, it
will also be disclosed at income statement level. IDBD's fiscal
year-end is on December 31 of each
year, whereas the Company's is on June
30. Moreover, in compliance with Israeli regulations, IDBD
reports its quarterly and annual results after the expiration of
the Argentine statutory terms. For such reasons, the Company will
consolidate results from IDBD's operations with a three-month
mismatch adjusted for the effects of material transactions occurred
during the reported period.
IDBD is one of the largest and most diversified holding
companies in Israel. Through its
subsidiaries, associates, joint ventures and other investments,
IDBD is engaged in numerous markets and industry sectors in
Israel and other countries,
including real estate (Property & Building Corporation),
supermarkets (Shufersal), agroindustry (Adama), insurance (Clal
Holdings Insurance Enterprises, hereinafter Clal), and
telecommunications (Cellcom). IDBD's shares are listed in the Tel
Aviv Stock Exchange ("TASE") since May
2014.
Significant assets have been added in various industries in
which the Group did not have investments until to date, as well as
liabilities for loans taken by IDBD and its subsidiaries.
The company is conducting the "Purchase Price Allocation"
process. As of December 31, 2015, the
degree of progress was 50% and the expected completion date is
June 30, 2016.
We have decided to break down reporting into an Argentine
Operating Center and an Israeli Operating Center. From the
Argentine Operating Center, the Group, through IRSA and its
subsidiaries, manages the businesses in Argentina and the international investments in
the Lipstick Building in New York
and the Condor Hospitality Trust hotel REIT. From the Israeli
Operating Center, the Group manages IDBD. From the next quarter
onwards, results and the various business lines will be disclosed
according to this breakdown.
HIGHLIGHTS
- Net loss for the first semester of fiscal year 2016 was
ARS 910.0 million mainly due to a
decrease in the stock price of Clal Insurance, lower net financial
results and higher losses from exchange rate differences.
- EBITDA of the company, excluding the expenses from the
transference of assets to IRSA Commercial Properties and sales of
Investment Properties grew by 28.3% in the six month period of 2016
compared to the same period of 2015.
- Tenant sales in our shopping centers rose 39.5% during the
semester (32.0% considering the same shopping centers) and
portfolio occupancy was 99.0%.
- We generated a gain from investment properties sales for
ARS 1,029 million.
Financial Highlights
(In millions of
Argentine Pesos)
Six month period 6M 2016
Ended December 31, 2015
|
Income
Statement
|
12/31/2015
|
12/31/2014
|
|
Revenues from sales,
leases and services
|
1,570
|
1,259
|
|
Consolidated Gross
Profit
|
1,192
|
963
|
|
Consolidated Profit
from Operations
|
1,948
|
1,586
|
|
Profit / (Loss) For
the Period
|
(910)
|
47
|
|
|
|
|
Attributable
to:
|
|
|
|
IRSA's
Shareholders
|
(487)
|
5
|
|
Non-Controlling
interest
|
(423)
|
42
|
|
|
|
|
EPS
(Basic)
|
(0.85)
|
0.008
|
|
EPS
(Diluted)
|
(0.84)
|
0.008
|
|
|
|
|
Balance
Sheet
|
12/31/2015
|
06/30/2015
|
|
Current
Assets
|
45,052
|
1,896
|
|
Non Current
Assets
|
88,868
|
8,347
|
|
Total
Assets
|
133,920
|
10,243
|
|
Current
Liabilities
|
37,469
|
2,691
|
|
Non Current
Liabilities
|
90,702
|
4,682
|
|
Total
Liabilities
|
128,171
|
7,373
|
|
Non-Controlling
Interest
|
3,846
|
396
|
|
Shareholders'
Equity
|
5,749
|
2,870
|
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. Its solid, diversified portfolio of properties has
established the Company as the leader in the sector in which it
participates, making it the best vehicle to access the Argentine
real estate market. 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.
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 First six-month
2016 Results Conference Call on Wednesday,
February 17, 2016, at 9:00 AM Eastern
Time.
If you would like to participate, please call:
United States: (888) 734-0544
International: +1-706-758-3363
ID# 36366344
To access the webcast, click on the link below:
http://webcast.neo1.net/Cover.aspx?PlatformId=83J3gZ8GgS%2BV1MTqedjJhw%3D%3D
Investor Relations Department
+ 5411 4323-7449
ir@irsa.com.ar
www.irsa.com.ar
Follow us on Twitter @irsair
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SOURCE IRSA Inversiones y Representaciones S.A.