BUENOS AIRES, Argentina, Sept. 8 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (BCBA: IRSA), the largest real estate company in Argentina, announced results for Fiscal Year 2006.
Net income for the fiscal year ended June 30, 2006, decreased 6.5% from net income of Ps. 103.2 million during the fiscal year ended June 30, 2005, to net income during the fiscal year ended June 30, 2006, of Ps. 96.6 million, or Ps. 2.54 for GDS, while net income per diluted GDS was Ps. 2.28.
Operating income increased 43.5%, from Ps. 141.1 million in fiscal year 2005, to Ps. 202.4 million in 2006, mainly driven by better revenue performance.
Total sales increased 56.2%, from Ps. 369.9 million in the fiscal year ended June 30, 2005, to Ps. 577.7 million during the fiscal year ended June 30, 2006. The increase was attributed to higher revenues obtained in all our business segments during the present fiscal year.
Participation of the various segments in net sales was as follows: sales and development, Ps 104.0 million; offices and other rental properties, Ps. 30.6 million; Shopping Centers, Ps. 338.0 million; hotels, Ps. 103.8 million; and financial operations and others, Ps. 1.4 million.
EBITDA for the fiscal year ended June 30, 2006 was Ps. 270.8 million, 44.6% higher than for the same period of the last fiscal year.
HIGHLIGHTS
* Net income for fiscal year 2006 was Ps. 96.6 million. Operating income increased 43.5%, from Ps. 141.1 million in fiscal year 2005 to Ps. 202.4 million in 2006. EBITDA was Ps. 270.8 million, 44.6% above that of the previous fiscal year.
* Occupancy at our Shopping Centers reached 99.1%, while lessee sales increased 33.9%. The operating income of our Shopping Centers business unit grew 37.0% in fiscal year 2006, reaching Ps. 130.4 million.
* Continuing with the regional expansion plan and consolidation of its commercial leadership, our subsidiary APSA signed a purchase agreement subject to due diligence for the acquisition of Cordoba Shopping, the Company's tenth shopping center. Located in the neighborhood of Villa Cabrera in the city of Cordoba, Cordoba Shopping has a total area of 35,000 m2, with 160 shops, 12 cinemas and parking space for 1,500 vehicles.
* Average occupancy of our class "A" Office Buildings continues high reaching 94% at the close of the fiscal year. The revenues of this segment grew 57.3% reaching Ps. 30.6 million on June 30, 2006.
* During the fiscal year, hotel activity continued consolidating its excellent performance propelled by tourism and recovery of the corporate segment. The average occupancy of our hotels reached 78.7% and the operating income increased 31.5% to Ps. 14.6 million in 2006. The good performance allowed us to begin plans for remodeling two hotels in Buenos Aires and expand the Llao Llao Hotel in the Argentinian Patagonia, where we continue with the construction of 42 suites.
* We continue to grow our sales and real estate development business. Among main projects can be mentioned the high expectations for "Torres Renoir" located in the area of Puerto Madero, with 32% of construction complete. The construction of "Project Caballito" has begun, a residential complex with two apartment towers of 34 stories each, with the objective of pioneering a new segment within the demand for housing. The operating income of this segment increased 112.7%, going from Ps. 21.1 million to Ps. 44.9 million in fiscal year 2006.
* In the month of August of 2006, the Rating Agency Fitch Argentina Calificadora de Riesgo S.A., raised the rating of our debt bonds from BB+ (arg) to BBB (arg), overcoming the "Investment Grade" position at the local level. Also, Fitch Argentina Calificadora de Riesgo S.A. raised to the maximum level the rating of our stocks. The rating takes into account the low-level indebtedness in connection with assets held by the Company and the growing capacity for fund generation and solidity of our subsidiary Alto Palermo S.A.
Fiscal Year Financial Highlights
(In thousands of Argentine Pesos)
06-30-06 06-30-05
Total Sales 557,680 369,889
Operating Income 202,424 141,111
Financial Results, Net -41,381 -12,217
Net Income 96,573 103,245
Net Income per GDS 2.54 3.68
Net Income per GDS Diluted 2.28 2.31
06-30-06 06-30-05
Total Current Assets 481,788 389,735
Total Non Current Assets 2,258,333 2,134,691
Total Assets 2,740,121 2,524,426
Short-Term Debt 129,206 119,380
Total Current Liabilities 419,228 310,977
Long-Term Debt 295,282 417,382
Total Non Current Liabilities 385,138 515,381
Total Liabilities 804,366 826,358
Minority Interest 449,989 445,839
Shareholders' Equity 1,485,766 1,252,229
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 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 11.8% stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country which shareholder's equity amounted to Ps. 2,247.6 million.
For further information, please contact:
Alejandro Elsztain - Director
Gabriel Blasi - CFO
+(5411) 4323 7449
IRSA cordially invites you to participate in its Fiscal Year 2006 Results Conference Call Monday, September 18, 2006 at 10:00 a.m., EDT
To participate, please call:
1-888-603-6873 if you are in the US or
+1-973-582-2706 for international calls
Pin #: 7834289
You can also access the slideshow webcast by logging onto the web at: http://www.videonewswire.com/event.asp?id=35573
