IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the First Quarter Fiscal Year 2010 Ended September 30, 2009

November 11, 2009 7:39 PM EST

BUENOS AIRES, Argentina, Nov. 11 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, announced its results for the First Quarter Fiscal Year 2010 Ended September 30, 2009.

HIGHLIGHTS

-- Net income for the first quarter of fiscal year 2010 amounted to Ps. 131.4 million, compared to a Ps. 70.3 million loss in the same period of the previous fiscal year. This is mainly attributable to the increase in our operating income and profits from our related company Banco Hipotecario S.A.

-- Operating results for the July-September 2009 period showed a Ps. 111.6 million profit compared to a Ps. 0.9 million loss recorded in the same period of the previous fiscal year. This improvement reflects the recovery of results from our Consumer Finance segment, which had recorded operating losses of Ps. 73.7 million during the first quarter of the previous fiscal year, whereas during the period in question it posted an operating income of Ps. 5.9 million.

-- Compared to the first quarter of the previous fiscal year, total revenues increased 20.5%, to Ps. 263.2 million, attributable to the following segments: Sales and Development, Ps. 36.3 million; Offices and Other, Ps. 40.7 million; Shopping Centers, Ps. 113.8 million; Hotels: Ps. 29.2 million; and Consumer Finance: Ps. 43.2 million. Excluding the Consumer Finance segment, the revenues and operating results of the remaining segments increased by 29.7% to Ps. 220.0 million and 45.2% to Ps. 105.7 million, respectively.

-- The Shopping Center segment continued to show robust results despite the general deterioration of market conditions last year and the outbreak of the H1N1 Influenza that affected the flow of visitors to our shopping centers during the month of July, in the peak of the winter season. Both revenues and EBITDA from this segment increased approximately 20%, whereas the EBITDA/Sales margins remained at levels above 77% and occupancy stood at around 98%.

-- Our offices and other lease properties had a satisfactory performance during the first quarter of this fiscal year compared to the same period of the previous fiscal year, although certain signs of stagnation were observed in terms of occupancy levels and market prices. Revenues from this segment increased 35.7% whereas the EBITDA rose 31.0%.

-- As for concerns in the Consumer Finance segment, during the first three months of fiscal year 2010 the trend in losses of the past quarters was reversed, thanks to the actions taken in terms of capitalization and streamlining of business operations, confirming the diagnosis that had been made.

-- In connection with the Sales and Development segment, during this quarter we sold non-strategic office assets for around US$ 3,000 per square meter, reflecting the strength of the local real estate market, as such an amount is close to the price paid by us for the purchase of premium properties before the world financial crisis. Moreover, we have started to compute the results of the Horizons project being jointly developed with Cyrela, hand in hand with the progress of works and cash revenues arising from this venture.

-- Investments in the USA: Although IRSA's strategic focus is real estate development and operations in Argentina, the current world scenario presents attractive investment opportunities in new markets. Because of this, in August 2009 we acquired an indirect interest in Hersha Hospitality Trust, a REIT that has 73 hotels located in major cities throughout the United States, becoming its principal shareholder. These hotels are operated under leading franchises that enjoy wide recognition in the market.

-- During this period we have increased our interest in Banco Hipotecario S.A. to 24.01% of its issued stock capital. The increase in this interest combined with the recovery in Banco Hipotecario's net income have had a favorable impact on IRSA's results.

-- IRSA resumes dividend payments: The Shareholders' Meeting held on October 29 authorized the payment of Ps. 31.7 million in dividends, representing 20% of its net income for fiscal year 2009, according to the dividend policy set by the Board of Directors.

             First Quarter Fiscal Year 2010 Financial Highlights
                      (In thousands of Argentine Pesos)
                           Ended September 30, 2009

                                          09-30-09      09-30-08

    Total sales                            263,227       218,383
    Operating Income                       111,561         (888)
    Net Income (Loss)                      131,445      (70,265)
    Net Income per GDS                        2.27        (1.21)

                                          09-30-09      09-30-08
    Total Current Assets                   822,728       891,869
    Total Non Current Assets             4,199,553     4,044,118
    Total Assets                         5,022,281     4,935,987
    Short-Term debt                        357,992       349,243
    Total Current Liabilities              876,133       974,890
    Long-term debt                       1,057,100     1,044,725
    Total Non Current Liabilities        1,423,204     1,401,054
    Total Liabilities                    2,299,337     2,375,944
    Minority interest                      494,553       464,381
    Shareholders' Equity                 2,228,391     2,095,662

IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BASE: IRSA) is Argentina's largest, most 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.

A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: WWW.IRSA.COM.AR

IRSA cordially invites you to participate in its First Quarter Fiscal Year 2010 Results Conference Call on Wednesday, November 18, 2009 at 10:00 a.m. Eastern Time

    To participate, please call:
    800-314-6696 If you are in the U.S. or
    +1-706-758- 8485 for international calls

    To access the webcast, click on the link below:
    http://www.videonewswire.com/event.asp?id=63989

    Investor Relations Department
    IRSA Inversiones y Representaciones S.A.
    ir@irsa.com.ar

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima

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