IRSA Inversiones y Representaciones S.A. Announces Results for the FY 2017 Ended June 30, 2017

BUENOS AIRES, Argentina, Sept. 9, 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 Fiscal Year 2017 Ended June 30, 2017.

During the year, 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 has recognized the effects of this change in the current financial statements as of June 30, 2017. The Company has retained an independent appraiser to estimate the fair market value of its investment properties.

HIGHLIGHTS

• In this fiscal year, we changed the valuation model of our investment properties from cost model to fair value model. The change was reflected in the financial statements for the fourth of this fiscal year.
• Adjusted EBITDA for fiscal year 2017 was ARS 9,957 million (ARS 2.397 million from Argentina and ARS 7,560 million from Israel), a 63.8% increase compared to 2016.
• Profit for fiscal year 2017 was ARS 5,520 million, compared to a profit for the year of ARS 9,496 million in 2016, mainly due to lower grain from changes in the fair value of investment properties, offset by gain from the sale of Adama and the higher listing price of Clal, in addition to the fact that the consolidated period of the operations center in Israel is 12 months of 2017 vs. 6 months in 206.
• Sales in our shopping malls grew 19.1% in fiscal year 2017, and the average rental price of our office portfolio reached USD 25.3 per sqm. EBITDA from the rental segments grew by 27.5% as compared to the previous fiscal year
• We reached an occupancy rate of 98.5% in our shopping centers, 96.2% in our offices and 67.3% in our hotels portfolio.
• In fiscal year 2017, IDBD issued notes in the Israeli market for NIS 1,060 million, at a fixed interest rate of 5.40%, due in 2019, and in July it issued notes again for NIS 642.1 million at a fixed interest rate of 5.3%, due in 2022. The proceeds were used to refinance its short-term debt.

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 FY 2017 Results Conference Call on Monday, September 11, 2017, at 9:00 AM Eastern Time

If you would like to participate, please call:
United States: (844) 308-3343
International: +1-(412) 717-9602
ID# IRSA

To access the webcast, click on the link below:

http://webcast.engage-x.com/Cover.aspx?PlatformId=so%2BiiYvMLJSZCP4rH7JU0A%3D%3D

Investor Relations Department
IRSA Inversiones y Representaciones S.A.
+ 5411 4323-7449
[email protected] 
www.irsa.com.ar 
Follow us on Twitter @irsair

SOURCE IRSA Inversiones y Representaciones S.A.

Related Links

http://www.irsa.com.ar