BUENOS AIRES, Argentina, Nov. 10 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (BCBA: IRSA), the largest real estate company in Argentina, announces first quarter fiscal year 2007 results.
Net income for the three-month period ended September 30, 2006, was Ps. 15.6 million or Ps. 0.36 per GDS, while earnings per diluted GDS totaled Ps. 0.31, compared with a gain of Ps. 18.6 million, or Ps. 0.52 per GDS (Ps. 0.41 per diluted GDS) for the same period the previous year.
Operating income increased 54.5%, from Ps. 33.4 million in the first three months of fiscal year 2006 to Ps. 51.7 million in the same period of fiscal year 2007, mainly due to higher revenues.
Consolidated sales for the three-month period totaled Ps. 169.6 million, compared to Ps. 106.0 million recorded in the same period the previous year.
Participation of the various segments in net sales was as follows: sales and developments, Ps. 29.7 million; offices and other rental properties, Ps. 9.5 million; shopping centers, Ps. 101.1 million; hotels, Ps. 28.6 million; and financial operations and others, Ps. 0.7 million.
HIGHLIGHTS
-- Net income for the first quarter of fiscal year 2007 amounted to
Ps. 15.6 million, compared to Ps. 18.6 million registered during the
same period of the previous year. The decrease is explained by a lower
income generated by related companies, mainly from Banco Hipotecario,
whose income decreased from Ps. 19.1 million to Ps. 1.4 million.
However, such result was broadly offset by our business segments'
operating results.
-- Operating income grew 54.5% compared to the first quarter of fiscal
year 2006, to Ps. 51.7 million from Ps. 33.4 million, mainly due to
higher revenues, which increased 60.1% to Ps. 169.6 million. EBITDA
was Ps. 72.0 million, an increase of 34.5% compared to the same quarter
of the previous fiscal year.
-- Average occupancy of our offices continues high, reaching 96.1% for the
first quarter of fiscal year 2007, compared to 95% in the first quarter
of fiscal year 2006. Income from lease properties reached
Ps. 9.5 million, compared to Ps. 6.5 million recorded in the first
quarter of fiscal year 2006.
-- Operating income from our subsidiary Centros Comerciales APSA grew
53.5% compared to the first quarter of fiscal year 2006, reaching
Ps. 44.1 million. Our shopping center portfolio reached an occupancy
rate of 99.2%, whereas our tenants' sales increased 23.4% in nominal
terms. Additionally, the favorable context and the succesful
performance of Tarshp S.A.'s management made operating income grow
100.2%, reaching Ps. 10.7 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 square meters, with 160 retail stores, 12 movie theatres and
parking for 1,500 vehicles.
-- For the three-month period ended September 30, 2006, income from the
sales and development segment was Ps. 29.7 million, compared to
Ps. 0.5 million recorded in the same period of the previous year,
mainly reflecting the success of our "Cruceros Dique II" project. Among
main projects are the high expectations for "Torres Renoir,"
located in the area of Puerto Madero, with 57% of construction complete.
Also promising are prospects for the "Caballito Nuevo" residential
complex and "Canteras Natal Crespo" development, embedded in the unique
hillside setting of Sierras Chicas, in the province of Cordoba.
-- Income from the hotel segment was Ps. 28.6 million for the first
quarter of 2007, compared to Ps. 24.9 million in the same period of the
previous year. Average rate per room increased to Ps. 470 for the first
quarter of fiscal year 2007, from Ps. 344 in the same quarter of fiscal
year 2006.
-- In August 2006, Fitch Argentina Calificadora de Riesgo S.A. rating
company raised the rating of our debt bonds from BB+ (arg) to BBB (arg),
surpassing "Investing Grade" level at local level. In addition, Fitch
Argentina Calificadora de Riesgo S.A. raised the rating of our shares
to the maximum level. 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.
First Quarter Financial Highlights
(In thousands of Argentine Pesos)
09-30-06 09-30-05
Total sales 169,646 105,950
Operating Income 51,654 33,436
Net Income - (Loss) 15,619 18,646
Net Income per GDS 0.36 0.52
Net Income per GDS diluted 0.31 0.41
09-30-06 09-30-05
Total Current Assets 498,820 481,788
Total Non Current Assets 2,262,362 2,258,333
Total Assets 2,761,182 2,740,121
Short-Term debt 99,284 110,799
Total Current Liabilities 423,657 419,228
Long-term debt 272,313 280,560
Total Non Current Liabilities 377,142 385,138
Total Liabilities 800,799 804,366
Minority interest 454,981 449,989
Shareholders' Equity 1,505,402 1,485,766
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 an 11.76% stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country, which shareholder's equity amounted to Ps. 2,259.7 million.
A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: http://www.irsa.com.ar/
For further information, please contact:
Alejandro Elsztain - Director
Gabriel Blasi - CFO
David Perednik - CAO
+(5411) 4323 7449
IRSA cordially invites you to participate in its First Quarter Fiscal Year 2007 Results Conference Call
Monday, November 20, 2006 at 9.30 Eastern Standard Time
To participate, please call:
973-582-2847 (International) or
866-406-5369 (USA)
You can access the conference call through the following webcast:
http://www.videonewswire.com/event.asp?id=36697
