IRSA Inversiones y Representaciones S.A. announces Results for the six-month period of 2016 Ended December 31, 2015

Feb 12, 2016, 00:43 ET from IRSA Inversiones y Representaciones S.A.

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

SOURCE IRSA Inversiones y Representaciones S.A.



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