BUENOS AIRES, Argentina,
May 12, 2016 /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 nine months of Fiscal Year 2016 Ended March 31, 2016
Consolidation of IDB Development Corporation
On October 11, 2015, the Group
obtained control of the Israeli company IDB Development Corporation
Ltd. ("IDBD"). During the past quarter, the investment was
consolidated in the balance sheet, and as from this third quarter
of fiscal year 2016, it is also 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 be unable to have available IDBD's quarterly
results as and when due in order to report them to the CNV in its
financial statements for the period ended March 31, 2016. Thus, 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. In this way, the results of IDBD's
operations for the period running from October 11, 2015 (date of acquisition) until
December 31, 2015 are included in the
interim comprehensive results of the Group for the nine-month
period ended on March 31, 2016,
except for material transactions considered. The Company estimates
a similar mismatch in obtaining IDBD's results in the succeeding
periods.
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). After the closing of this quarter,
IDBD's shares were delisted from the Tel Aviv Stock Exchange
("TASE"). However, the company will continue to be registered with
the TASE as a "Debentures Company" pursuant to Israeli law, as it
has bonds listed in such exchange.
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, which is expected to be completed on 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.
HIGHLIGHTS
- During this third quarter of 2016, we started to consolidate
the results of our investment in IDB Development Corporation.
- Operating income for the nine-month period of 2016 was
ARS 3,146 million, and a net loss of
ARS 1,039 million was recorded.
- Sales in our shopping centers grew by 36.3% in the 9-month
period (30% in the same shopping centers) and EBITDA from this
segment rose 34.7%, up to ARS 1,338
million.
- During the 9-month period we sold investment properties, at a
gain of ARS 1,068 million.
- As concerns our investment in IDB, we acquired the minority
interest, increasing our indirect equity interest to 68.3% and
delisting the company.
- During the third quarter of fiscal year 2016, we launched a
tender offer for our bonds and our subsidiary IRSA Propiedades
Comerciales issued a new bond for USD 360
million, accruing interest at 8.75%, and falling due in
2023.
Financial
Highlights (In millions of Argentine Pesos)
Nine month period 9M 2016
Ended March 31, 2016
|
|
|
|
Income
Statement
|
03/31/2016
|
03/31/2015
|
Revenues from sales,
leases and services
|
19,731
|
2,509
|
Consolidated Gross
Profit
|
5,339
|
1,400
|
Consolidated Profit
from Operations
|
3,146
|
1,866
|
Profit / (Loss) For
the Period
|
(1,039)
|
(164)
|
|
|
|
Attributable
to:
|
|
|
IRSA's
Shareholders
|
(676)
|
(245)
|
Non-Controlling
interest
|
(363)
|
81
|
|
|
|
EPS
(Basic)
|
(1.18)
|
(0.43)
|
EPS
(Diluted)
|
(1.18)
|
(0.43)
|
|
|
|
Balance
Sheet
|
03/31/2016
|
06/30/2015
|
Current
Assets
|
51,271
|
1,896
|
Non Current
Assets
|
105,529
|
8,347
|
Total
Assets
|
156,800
|
10,243
|
Current
Liabilities
|
45,165
|
2,691
|
Non Current
Liabilities
|
104,074
|
4,682
|
Total
Liabilities
|
149,239
|
7,373
|
Non-Controlling
Interest
|
6,284
|
396
|
Shareholders'
Equity
|
7,561
|
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 nine-month 2016
Results Conference Call on Friday, May 13,
2016, at 2:30 AM Eastern
Time
If you would like to participate, please call:
United States: (412) 317-0088
International: (877) 344-7529
ID# 10084685
To access the webcast, click on the link below:
http://webcast.neo1.net/Cover.aspx?PlatformId=gcmLMPbgct9cwjHHB2pFow%3D%3D
Investor Relations Department
+5411-4323-7449
ir@irsa.com.ar
www.irsa.com.ar
Follow us on Twitter @irsair
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/irsa-inversiones-y-representaciones-sa-announces-results-for-the-nine-month-period-of-2016-ended-march-31-2016-300268194.html
SOURCE IRSA Inversiones y Representaciones S.A.