Notes to the Unaudited Condensed Interim Consolidated Financial
Statements
(All
amounts in millions of Argentine Pesos, except profit per share and
otherwise indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
1.
Group’s
business and general information
IRSA
PROPIEDADES COMERCIALES S.A. (“IRSA Propiedades
Comerciales” or the “Company”, and together with
its subsidiaries, the “Group”) is an Argentine real
estate company mainly engaged in holding, leasing, managing,
developing, operating and acquiring shopping malls and office
buildings and holds a predominant position within the Argentine
market. IRSA Propiedades Comerciales was incorporated in 1889 under
the name Sociedad Anonima Mercado de Abasto Proveedores (SAMAP) and
until 1984 operated the main fresh product market in the Autonomous
City of Buenos Aires. SAMAP’s core asset was the historical
building of Mercado de Abasto, which served as site of the market
from 1889 until 1984, when a sizable part of its operations was
interrupted.
Since
the Company was acquired by IRSA Inversiones y Representaciones
Sociedad Anónima (hereinafter, IRSA) in 1994, it has grown
through a series of acquisitions and development projects that
resulted in a corporate reorganization pursuant to which the
company was renamed Alto Palermo S.A. which was subsequently
changed to our current denomination.
As of
the end of these Unaudited Condensed Interim Consolidated Financial
Statements (hereinafter, Financial Statements), the Group operates
335,641 square meters (sqm) in 14 shopping malls, 113,451 sqm
in 7 premium offices and an extensive land reserve for future
commercial developments; operates and holds a majority interest
(with the exception of La Ribera Shopping Center, of which it has a
50% ownership interest) in a portfolio of 14 shopping malls in
Argentina, six of which are located in the Autonomous City of
Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo,
Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two in
Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet)
and the rest are situated in different provinces (Alto Noa in the
City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza
in the City of Mendoza, Córdoba Shopping Villa Cabrera in the
City of Córdoba, Alto Comahue in the City of Neuquén and
La Ribera Shopping in the City of Santa Fe). The Group also owns
the historic building where the Patio Olmos Shopping Mall is
located, operated by a third party.
The
Company’s shares are traded on the Buenos Aires Stock
Exchange (MERVAL: IRCP) and in United States of America on the
NASDAQ (NASDAQ: IRCP).
IRSA
Propiedades Comerciales and its subsidiaries are hereinafter
referred to jointly as "the Group". Our main shareholder and parent
Company is IRSA and Consultores Assets Management S.A. is our
ultimate parent Company.
These
Financial Statements have been approved by the Board of Directors
to be issued on November 4, 2021.
2.
Summary
of significant accounting policies
2.1.
Basis
of preparation
These
Financial Statements have been prepared in accordance with IAS 34
“Interim Financial Reporting” and therefore must be
read together with the Group's Annual Consolidated Financial
Statements as of June 30, 2021 prepared in accordance with IFRS.
Likewise, these Financial Statements include additional information
required by Law No. 19,550 and / or CNV regulations. This
information is included in the notes to these Financial Statements,
as allowed by IFRS.
These
Financial Statements for the interim of three-month periods ended
September 30, 2021 and 2020 have not been audited. Management
considers that they include all the necessary adjustments to fairly
present the results of each period. Intermediate period results do
not necessarily reflect the proportion of the Group's results for
the entire fiscal years.
IRSA
Propiedades Comerciales S.A.
IAS 29
"Financial Reporting in Hyperinflationary Economies" requires that
the Financial Statements of an entity whose functional currency is
one of a hyperinflationary economy be expressed in terms of the
current unit of measurement at the closing date of the reporting
period, regardless of whether they are based on the historical cost
method or the current cost method. To do so, in general terms, the
inflation produced from the date of acquisition or from the
revaluation date, as applicable, must be calculated for
non-monetary items. This requirement also includes the comparative
information of the Financial Statements.
In
order to conclude on whether an economy is categorized as a
hyperinflationary, in the terms of IAS 29, the standard details a
series of factors to be considered, including the existence of an
accumulated inflation rate in three years that approaches to or
exceeds 100%. Accumulated inflation in Argentina in three years has
been over 100%. For this reason, in accordance with IAS 29, the
Argentine economy must be considered as a hyperinflationary economy
starting July 1, 2018.
In
relation to the inflation index to be used and according to FACPCE
Resolution No. 539/18, the inflation index is determinated based on
the Wholesale Price Index (IPIM) until 2016, considering the
average variation of Consumer Price indices (CPI) of the Autonomous
City of Buenos Aires for the months of November and December 2015,
because during those two months there were no national IPIM
measurements. Then, from January 2017, the National Consumer Price
Index (National CPI) will be considered. The table below shows the
evolution of this index during the three months period
ended September 30, 2021, according to official statistics by
Argentine Institute of Statistics and Census (INDEC) and following
the guidelines described in Resolution 539/18:
As a consequence
of the aforementioned, these Financial Statements as of
September 30, 2021 were restated in accordance with IAS
29.
2.2.
Significant
accounting policies
The
accounting policies adopted for these Financial Statements are
consistent with those used in the preparation of information under
IFRS as described in Note 2 to the Annual Consolidated Financial
Statements as of June 30, 2021.
2.3.
Comparability
of information
The
amounts as of June 30, 2021 and September 30, 2020, which are
disclosed for comparative purposes, arise from the Financial
Statements at said dates restated in accordance with IAS 29.
Certain figures have been reclassified for comparison purposes in
these Financial Statements.
See
Note 27 for information on the context in which the Group
operates.
The
preparation of Financial Statements at a certain date requires the
Group’s Management to make estimations and evaluations
affecting the amount of assets and liabilities recorded and
contingent assets and liabilities disclosed at such date, as well
as income and expenses recorded during the period. Actual results
might differ from the estimates and evaluations made at the date of
preparation of these Financial Statements. In the preparation of
these Financial Statements, the significant judgments made by
Management in applying the Group’s accounting policies and
the main sources of uncertainty were the same applied by the Group
in the preparation of the Annual Consolidated Financial Statements
of the information are described in Note 3 as of June 30, 2021,
except for what is mentioned in Note 27 to these Financial
Statements.
3.
Seasonal
effects on operations
The
operations of the Group’s shopping malls are subject to
seasonal effects, which affect the level of sales recorded by
tenants. During summertime (January and February), the tenants of
shopping mall experience the lowest sales levels in comparison with
the winter holidays (July) and during the period of
Christmas’ Seasons (December) when they tend to record peaks
of sales. Apparel stores generally change their collections during
Spring and Autumn, which impacts positively on shopping mall sales.
Sale discounts at the end of each season also impact the business.
Consequently, a higher level of revenues is generally expected in
shopping mall operations during the second half of the
year.
IRSA
Propiedades Comerciales S.A.
4.
Acquisitions
and disposals
Significant
acquisitions and disposals for the three-month period ended
September 30, 2021 are detailed below. Significant acquisitions and
disposals for the fiscal year ended June 30, 2021, are detailed in
Note 4 to the Annual Consolidated Financial
Statements.
Sale
of real estate parcels in Hudson
On
August 2, 2021, a bill was signed for the sale of several parcels
of the property called Casonas located in Hudson, Berazategui
district.
The
price of the transaction was USD 0.6 million.
5.
Financial
risk management and fair value estimates
These
Financial Statements do not include all the information and
disclosures on financial risk management; therefore, they should be
read along with Note 5 to the Consolidated Financial Statements as
of June 30, 2021. There have been no changes in risk management or
risk management policies applied by the Group since
year-end.
Since
June 30, 2021 as of the date of this Financial Statements, there
have been no significant changes in business or economic
circumstances affecting the fair value of the Group's assets or
liabilities of the Group except for that the indicated in Note 27.
Furthermore, there have been no transfers between the different
hierarchies used to assess the fair value of the Group’s
financial instruments.
The
following is a summary analysis of the Group's business segments,
corresponding to the periods ended September 30, 2021 and 2020.
Additionally, a reconciliation between results of operations
corresponding to segment information and the results of operations
as per the Statements of Income and Other Comprehensive Income and
total assets by segment and total assets according to the statement
of financial position. The information by segments has been
prepared and classified according to the businesses in which the
Group carries out its activities, which are described in Note 6 of
the Annual Consolidated Financial Statements as of June 30,
2021.
IRSA
Propiedades Comerciales S.A.
|
|
09.30.21
|
|
|
Shopping Malls
|
|
|
|
|
Adjustment for expenses and collective promotion funds
|
Adjustment for share in (profit) / loss of joint
ventures
|
|
Total as per Statements of Income and Other Comprehensive
Income/Statements of Financial Position
|
|
Revenues
|
2,225
|
705
|
-
|
9
|
2,939
|
963
|
(24)
|
-
|
3,878
|
|
Operating
costs
|
(274)
|
(47)
|
(17)
|
(85)
|
(423)
|
(998)
|
15
|
-
|
(1,406)
|
|
Gross profit/ (loss)
|
1,951
|
658
|
(17)
|
(76)
|
2,516
|
(35)
|
(9)
|
-
|
2,472
|
|
Net
(loss)/ gain from fair value adjustments in investment
properties
|
(3,698)
|
(1,586)
|
(517)
|
8
|
(5,793)
|
-
|
114
|
-
|
(5,679)
|
|
General
and administrative expenses
|
(312)
|
(76)
|
(30)
|
(32)
|
(450)
|
-
|
1
|
-
|
(449)
|
|
Selling
expenses
|
(208)
|
(46)
|
(6)
|
(2)
|
(262)
|
-
|
(1)
|
-
|
(263)
|
|
Other
operating results, net
|
26
|
9
|
(2)
|
-
|
33
|
17
|
1
|
-
|
51
|
|
Loss from operations
|
(2,241)
|
(1,041)
|
(572)
|
(102)
|
(3,956)
|
(18)
|
106
|
-
|
(3,868)
|
Share
of loss of associates and joint ventures
|
-
|
-
|
-
|
(31)
|
(31)
|
-
|
(71)
|
-
|
(102)
|
|
Loss before financing and taxation
|
(2,241)
|
(1,041)
|
(572)
|
(133)
|
(3,987)
|
(18)
|
35
|
-
|
(3,970)
|
|
Investment
properties
|
56,144
|
79,211
|
22,531
|
165
|
158,051
|
-
|
(5,017)
|
-
|
153,034
|
|
Property,
plant and equipment
|
307
|
1,240
|
-
|
-
|
1,547
|
-
|
(3)
|
-
|
1,544
|
|
Trading
properties
|
-
|
-
|
259
|
-
|
259
|
-
|
-
|
-
|
259
|
|
Goodwill
|
17
|
51
|
-
|
149
|
217
|
-
|
(68)
|
-
|
149
|
|
Right
to receive units (barters)
|
-
|
-
|
1,143
|
-
|
1,143
|
-
|
-
|
-
|
1,143
|
|
Inventories
|
45
|
-
|
-
|
-
|
45
|
-
|
(1)
|
-
|
44
|
|
Investments
in associates and joint ventures
|
-
|
-
|
-
|
1,179
|
1,179
|
-
|
3,449
|
-
|
4,628
|
|
Other
assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
25,957
|
25,957
|
|
Total assets
|
56,513
|
80,502
|
23,933
|
1,493
|
162,441
|
-
|
(1,640)
|
25,957
|
186,758
|
|
|
09.30.20
|
|
|
Shopping Malls
|
|
|
|
|
Adjustment for expenses and collective promotion funds
|
Adjustment for share in (profit) / loss of joint
ventures
|
|
Total as per Statements of Income and Other Comprehensive
Income/Statements of Financial Position
|
|
Revenues
|
560
|
811
|
3
|
3
|
1,377
|
619
|
(12)
|
-
|
1,984
|
|
Operating
costs
|
(204)
|
(67)
|
(11)
|
(37)
|
(319)
|
(698)
|
18
|
-
|
(999)
|
|
Gross profit/ (loss)
|
356
|
744
|
(8)
|
(34)
|
1,058
|
(79)
|
6
|
-
|
985
|
|
Net
gain from fair value adjustments in investment
properties
|
1,796
|
19,209
|
5,045
|
27
|
26,077
|
-
|
(1,276)
|
-
|
24,801
|
|
General
and administrative expenses
|
(500)
|
(130)
|
(52)
|
(27)
|
(709)
|
-
|
2
|
-
|
(707)
|
|
Selling
expenses
|
(111)
|
(50)
|
(453)
|
(2)
|
(616)
|
-
|
2
|
-
|
(614)
|
|
Other
operating results, net
|
(28)
|
-
|
(3)
|
-
|
(31)
|
46
|
-
|
-
|
15
|
|
Profit/ (loss) from operations
|
1,513
|
19,773
|
4,529
|
(36)
|
25,779
|
(33)
|
(1,266)
|
-
|
24,480
|
|
Share
of (loss)/ profit of associates and joint ventures
|
-
|
-
|
-
|
(36)
|
(36)
|
-
|
940
|
-
|
904
|
|
Profit/ (loss) before financing and taxation
|
1,513
|
19,773
|
4,529
|
(72)
|
25,743
|
(33)
|
(326)
|
-
|
25,384
|
|
Investment
properties
|
82,524
|
106,065
|
21,616
|
151
|
210,356
|
-
|
(6,270)
|
-
|
204,086
|
|
Property,
plant and equipment
|
351
|
209
|
-
|
-
|
560
|
-
|
(3)
|
-
|
557
|
|
Trading
properties
|
-
|
-
|
310
|
-
|
310
|
-
|
-
|
-
|
310
|
|
Goodwill
|
17
|
47
|
-
|
-
|
64
|
-
|
(64)
|
-
|
-
|
|
Right
to receive units (barters)
|
-
|
-
|
1,142
|
-
|
1,142
|
-
|
-
|
-
|
1,142
|
|
Inventories
|
63
|
-
|
-
|
-
|
63
|
-
|
(2)
|
-
|
61
|
|
Investments
in associates and joint ventures
|
-
|
-
|
-
|
3,661
|
3,661
|
-
|
4,832
|
-
|
8,493
|
|
Other
assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
39,127
|
39,127
|
|
Total assets
|
82,955
|
106,321
|
23,068
|
3,812
|
216,156
|
-
|
(1,507)
|
39,127
|
253,776
|
IRSA
Propiedades Comerciales S.A.
7.
Investments
in associates and joint ventures
The table below lists
information about the Group’s investments in associates and
joint ventures:
|
|
% of ownership interest held by non-controlling
interests
|
Value of Group’s interest in equity
|
Group’s interest in comprehensive income
|
|
|
09.30.21
|
06.30.21
|
09.30.21
|
06.30.21
|
09.30.21
|
06.30.21
|
|
Joint Ventures
|
|
|
|
|
|
|
|
Quality
Invest S.A.
|
50.00%
|
50.00%
|
3,154
|
3,198
|
(72)
|
949
|
|
Nuevo
Puerto Santa Fe S.A.
|
50.00%
|
50.00%
|
295
|
294
|
1
|
(9)
|
|
La
Rural S.A. (2)
|
50.00%
|
50.00%
|
178
|
185
|
(6)
|
24
|
|
Associates
|
|
|
|
|
|
-
|
|
|
27.82%
|
27.82%
|
1,001
|
1,024
|
(23)
|
(78)
|
Total interests in associates and joint ventures
|
|
|
4,628
|
4,701
|
(100)
|
886
|
The
table below lists information of the latest Financial Statements
issued by associates and joint ventures:
|
|
|
|
Last Financial Information issued
|
|
Name of the entity
|
Place of business / Country of incorporation
|
Main activity
|
|
Share capital (nominal value)
|
(Loss)/ income for the period
|
|
|
Joint Ventures
|
|
|
|
|
|
|
|
Quality
Invest S.A. (2)
|
Argentina
|
Real
estate
|
406,316,259
|
406
|
(144)
|
6,206
|
|
Nuevo
Puerto Santa Fe S.A. (1)(2)
|
Argentina
|
Real
estate
|
138,750
|
28
|
2
|
555
|
|
La
Rural S.A. (2)
|
Argentina
|
Event
organization and others
|
714,498
|
1
|
(2)
|
101
|
|
Associates
|
|
|
|
|
|
|
|
TGLT
S.A. (3)(4)
|
Argentina
|
Real
estate
|
257,320,997
|
925
|
(82)
|
4,635
|
(1) Nominal value
per share ARS 100.
(2) Correspond to
(loss)/ profit for the three-month period ended at September 30,
2021 and 2020, respectively.
(3) Includes ARS 2
included in other comprehensive income. For the purposes of the
valuation of the investment in the Group, the financial information
prepared by TGLT S.A. has been considered.
(4) For transfer of
shares, see Note 4 to the Annual Consolidated Financial Statements
as of June 30, 2021.
Changes
in the Group’s investments in associates and joint ventures
for the period ended September 30, 2021 and for the year ended June
30, 2021 were as follows:
|
|
09.30.21
|
06.30.21
|
|
Beginning of the period / year
|
4,701
|
7,611
|
|
Loss
sharing, net
|
(100)
|
(2,214)
|
|
Currency
translation adjustment in associates
|
2
|
(27)
|
|
Impairment
of associates and joint ventures (i)
|
(2)
|
(684)
|
|
Reclassification
to financial instruments (ii)
|
-
|
(17)
|
|
Irrevocable
contributions (Note 24)
|
27
|
32
|
|
End of the period / year
|
4,628
|
4,701
|
(i) Corresponds to
the investment in TGLT S.A. See Note 7 to the annual consolidated
financial statements as of June 30, 2021.
(ii) Corresponds to
the reclassification to the Avenida Inc. investment due to decrease
of the share ownership below 5%.
IRSA
Propiedades Comerciales S.A.
Changes
in the Group’s investment properties for the three-month
period ended September 30, 2021 and for the year ended June 30,
2021 were as follows:
|
|
|
Office and Other rental properties
|
Undeveloped parcels of land
|
Properties under development
|
|
09.30.21
|
06.30.21
|
|
Fair value at beginning of the period / year
|
55,532
|
75,863
|
23,130
|
3,629
|
157
|
158,311
|
192,854
|
|
Additions
(iv)
|
222
|
2
|
3
|
260
|
-
|
487
|
1,072
|
|
Disposals
(iii)
|
-
|
-
|
(85)
|
-
|
-
|
(85)
|
(19,750)
|
|
Transfers
(v)
|
-
|
-
|
-
|
-
|
-
|
-
|
(634)
|
|
Capitalized
lease costs
|
3
|
2
|
-
|
-
|
-
|
5
|
23
|
|
Amortization
of capitalized lease costs (i)
|
(2)
|
(3)
|
-
|
-
|
-
|
(5)
|
(14)
|
|
Net
(loss) / gain from fair value adjustment on investment properties
(ii)
|
(3,652)
|
(1,492)
|
(517)
|
(26)
|
8
|
(5,679)
|
(15,240)
|
|
Fair value at end of the period / year
|
52,103
|
74,372
|
22,531
|
3,863
|
165
|
153,034
|
158,311
|
(i) As of September
30, 2021 the depreciation charge was included in
“Costs” in the amount of ARS (5) in the Statement of
Income and Other Comprehensive Income (Note 21).
(ii) For the
three-month period ended September 30, 2021, the net loss from fair
value adjustment on investment properties was ARS 5,679 million.
The net impact of the values in Argentine pesos of our properties
was mainly a consequence of the change in macroeconomic
conditions:
a)
Net gain of ARS
1,498 million as a result of the conversion to Argentine pesos of
the value of the shopping malls in dollars based on the exchange
rate at the end of the period.
b)
an increase of 30
basis points in the discount rate, mainly caused by a rise in the
country risk component of the WACC discount rate used to discount
the cash flow, which generated a decrease in the value of the
shopping centers of ARS 1,232.
c)
In addition, for
the impact of the inflation adjustment the Group reclassified by
shopping malls ARS 4,717 million to Inflation
adjustment.
d)
The value of our
office buildings and other rental properties measured in real terms
decrease by 2.4% during the three-month period as of September 30,
2021, due to a devaluation of the Argentine peso exceeding the
inflation rate of the period.
(iii) See Note 4.
As of June 30, 2021 includes the disposals of Torre Boston and
Bouchard buildings.
(iv) As of June 30,
2021, includes addition for the acquisition of the building "200
Della Paolera" according to the degree of progress of the
construction work. See Note 4 to the Annual Consolidated Financial
Statements as of June 30, 2021.
(v) As of June 30,
2021, it includes the registration by transfer of the 24th floor of
the Intercontinental Building from Property, plant and equipment
and the cancellation by transfer of 77% of the area of the 8th
floor of "200 Della Paolera" to Property, plant and
equipment.
The
following amounts have been recognized in the Statements of Income
and Other Comprehensive Income:
|
|
09.30.21
|
09.30.20
|
|
Revenues
from rental and services (Note 20)
|
2,915
|
1,362
|
|
Expenses
and collective promotion fund (Note 20)
|
963
|
619
|
|
Rental
and services costs (Note 21)
|
(1,385)
|
(988)
|
|
Net
unrealized gain from fair value adjustment on investment
properties
|
(5,611)
|
24,516
|
|
Net
realized gain from fair value adjustment on investment properties
(i)(ii)
|
18
|
8,163
|
(i) As of September
30, 2021, includes ARS 18 from the sale of Casona Hudson. As of
September 30, 2020 includes ARS 2,732 for the sale of Torre Boston
and ARS 5,431 for the sale of Bouchard 710.
(ii) As of
September 30, 2021 correspond ARS (68) to the result for changes in
the fair value realized for the year and ARS 86 to the result for
changes in the fair value realized in previous years from the sale
of Casona Hudson. As of September 30, 2020, ARS 285 corresponds to
the result for changes in the fair value realized for the year (ARS
797 for the sale of Torre Boston and ARS (512) for the sale of
Bouchard 710) and ARS 7,878 for the result for changes in the fair
value realized in previous years (ARS 1,935 for the sale of Torre
Boston and ARS 5,943 for the sale of Bouchard 710).
Valuation
techniques are described in Note 9 to the Annual Consolidated
Financial Statements as of June 30, 2021. There were no changes to
the valuation techniques. The Group has reassessed the assumptions
at the end of the period, incorporating the effect of the changes
in macroeconomics conditions.
9.
Property,
plant and equipment
Changes
in the Group’s property, plant and equipment for the
three-month period ended September 30, 2021 and for the year ended
June 30, 2021 were as follows:
|
Other buildings and facilities
|
|
|
|
|
09.30.21
|
06.30.21
|
|
Costs
|
1,626
|
510
|
2,494
|
32
|
1
|
4,663
|
3,584
|
|
Accumulated
depreciation
|
(465)
|
(350)
|
(2,314)
|
(32)
|
-
|
(3,161)
|
(3,005)
|
|
Net book amount at beginning of the period / year
|
1,161
|
160
|
180
|
-
|
1
|
1,502
|
579
|
|
Additions
|
8
|
54
|
20
|
-
|
-
|
82
|
192
|
|
Disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
(8)
|
|
Transfers
|
-
|
-
|
-
|
-
|
-
|
-
|
895
|
|
Depreciation
charges (i)
|
(13)
|
(7)
|
(20)
|
-
|
-
|
(40)
|
(156)
|
|
Net book amount at end of the period / year
|
1,156
|
207
|
180
|
-
|
1
|
1,544
|
1,502
|
|
Costs
|
1,634
|
564
|
2,514
|
32
|
1
|
4,745
|
4,663
|
|
Accumulated
depreciation
|
(478)
|
(357)
|
(2,334)
|
(32)
|
-
|
(3,201)
|
(3,161)
|
|
Net book amount at end of the period / year
|
1,156
|
207
|
180
|
-
|
1
|
1,544
|
1,502
|
(i) On September
30, 2021 depreciation charges were included in “Costs”
in the amount of ARS 24, and in “General and administrative
expenses” in the amount of ARS 16 in the Statement of Income
and Other Comprehensive Income (Note 21).
IRSA
Propiedades Comerciales S.A.
Changes
in in the Group’s trading properties for the three-month
period ended September 30, 2021 and for the year ended June 30,
2021 were as follows:
|
|
|
|
09.30.21
|
06.30.21
|
|
Net book amount at beginning of the period / year
|
13
|
246
|
259
|
310
|
|
Additions
|
-
|
-
|
-
|
8
|
|
Disposals
(i)
|
-
|
-
|
-
|
(59)
|
|
Net book amount at end of the period / year
|
13
|
246
|
259
|
259
|
|
Non
- current
|
|
|
254
|
254
|
|
Current
|
|
|
5
|
5
|
|
Total
|
|
|
259
|
259
|
|
|
|
|
|
|
(i) As
of June 30, 2021 corresponds to the sale of two Astor Berutti
apartments.
Changes
in the Group’s intangible assets for the three-month period
ended September 30, 2021 and for the year ended June 30, 2021 were
as follows:
|
|
|
|
Right to receive units (Barters) (ii)
|
|
09.30.21
|
06.30.21
|
|
Costs
|
149
|
764
|
1,151
|
543
|
2,607
|
2,557
|
|
Accumulated
amortization
|
-
|
(567)
|
(8)
|
(421)
|
(996)
|
(887)
|
|
Net book amount at beginning of the period / year
|
149
|
197
|
1,143
|
122
|
1,611
|
1,670
|
|
Additions
|
-
|
3
|
-
|
-
|
3
|
50
|
|
Disposals
|
-
|
-
|
-
|
(122)
|
(122)
|
-
|
|
Amortization
charge (i)
|
-
|
(22)
|
-
|
-
|
(22)
|
(109)
|
|
Net book amount at end of the period / year
|
149
|
178
|
1,143
|
-
|
1,470
|
1,611
|
|
Costs
|
149
|
767
|
1,151
|
421
|
2,488
|
2,607
|
|
Accumulated
amortization
|
-
|
(589)
|
(8)
|
(421)
|
(1,018)
|
(996)
|
|
Net book amount at end of the period / year
|
149
|
178
|
1,143
|
-
|
1,470
|
1,611
|
(i) On
September 30, 2021 amortization charges were included in
“Costs” in the amount of ARS 6, and in “General
and administrative expenses” in the amount of ARS 16 in the
Statement of Income and Other Comprehensive Income (Note
21).
(ii)
Corresponds to in kind receivables representing the right to
receive residential apartments in the future under barter
transactions.
The
composition of the Group's rights of use assets as of September 30,
2021 and June 30, 2021 is as follows:
|
|
09.30.21
|
06.30.21
|
|
Convention
center
|
218
|
222
|
|
Stadium
DirecTV Arena
|
633
|
641
|
|
Machinery
and equipment
|
8
|
11
|
|
Shopping
malls
|
12
|
12
|
|
Total rights of use assets
|
871
|
886
|
|
Non-current
|
871
|
886
|
|
Total
|
871
|
886
|
The
charges to income related to rights of use assets were the
following:
|
|
09.30.21
|
09.30.20
|
|
Convention
center
|
(4)
|
(5)
|
|
Stadium
DirecTV Arena
|
(8)
|
(8)
|
|
Machinery
and equipment
|
(2)
|
(21)
|
|
Total amortizations and depreciation (i)
|
(14)
|
(34)
|
(i)
On September 30,
2021 amortization charges were included in “Costs” in
the amount of ARS 11, and in “General and administrative
expenses” in the amount of ARS 3 in the Statement of Income
and Other Comprehensive Income (Note 21).
IRSA
Propiedades Comerciales S.A.
13.
Financial
instruments by category
The
present note shows the financial assets and financial liabilities
by category of financial instrument and a reconciliation to the
corresponding line in the Consolidated Statements of Financial
Position, as appropriate. Financial assets and liabilities measured
at fair value are assigned based on their different levels in the
fair value hierarchy. For further information, related to fair
value hierarchy see Note 14 to the Financial Statements as of June
30, 2021.
Financial assets
and financial liabilities as of September 30, 2021 are as
follows:
|
|
Financial assets at amortized cost (i)
|
Financial assets at fair value through profit or loss
|
Subtotal financial assets
|
|
|
|
September 30, 2021
|
|
|
|
|
|
|
Assets as per Statements of Financial Position
|
|
|
|
|
|
|
Trade
and other receivables (excluding allowance for doubtful accounts)
(Note 14)
|
9,935
|
-
|
9,935
|
2,684
|
12,619
|
|
Investments
in financial assets:
|
|
|
|
|
|
|
-
Public companies’ securities
|
-
|
245
|
245
|
-
|
245
|
|
-
Mutual funds
|
10
|
206
|
216
|
-
|
216
|
|
-
Bonds
|
-
|
11,149
|
11,149
|
-
|
11,149
|
|
Cash
and cash equivalents:
|
|
|
|
|
|
|
-
Cash at banks and on hand
|
697
|
-
|
697
|
-
|
697
|
|
-
Short- term investments
|
-
|
291
|
291
|
-
|
291
|
|
Total
|
10,642
|
11,891
|
22,533
|
2,684
|
25,217
|
|
|
Financial liabilities at amortized cost (i)
|
Financial liabilities at fair value through profit or
loss
|
Subtotal financial liabilities
|
Non-financial liabilities
|
|
|
|
|
|
|
|
|
|
Liabilities as per Statements of Financial Position
|
|
|
|
|
|
|
Trade
and other payables (Note 16)
|
2,036
|
-
|
2,036
|
4,061
|
6,097
|
|
Derivative
financial instruments
|
|
|
|
|
|
|
-
Swaps of interest rate (ii)
|
-
|
45
|
45
|
-
|
45
|
|
Borrowings
(Note 17)
|
42,611
|
-
|
42,611
|
-
|
42,611
|
|
Total
|
44,647
|
45
|
44,692
|
4,061
|
48,753
|
Group´s
financial assets and financial liabilities as of June 30, 2021 were
as follows:
|
|
Financial assets at amortized cost (i)
|
Financial assets at fair value through profit or loss
|
Subtotal financial assets
|
|
|
|
June 30, 2021
|
|
|
|
|
|
|
Assets as per Statements of Financial Position
|
|
|
|
|
|
|
Trade
and other receivables (excluding allowance for doubtful accounts)
(Note 14)
|
14,073
|
-
|
14,073
|
3,005
|
17,078
|
|
Investments
in financial assets:
|
|
|
|
|
|
|
-
Public companies’ securities
|
-
|
356
|
356
|
-
|
356
|
|
-
Mutual funds
|
11
|
22
|
33
|
-
|
33
|
|
-
Bonds
|
-
|
8,479
|
8,479
|
-
|
8,479
|
|
Cash
and cash equivalents:
|
|
|
|
|
|
|
-
Cash at banks and on hand
|
547
|
-
|
547
|
-
|
547
|
|
-
Short- term investments
|
-
|
320
|
320
|
-
|
320
|
|
Total
|
14,631
|
9,177
|
23,808
|
3,005
|
26,813
|
|
|
Financial liabilities at amortized cost (i)
|
Financial liabilities at fair value through profit or
loss
|
Subtotal financial liabilities
|
Non-financial liabilities
|
|
|
|
|
|
|
|
|
|
Liabilities as per Statements of Financial Position
|
|
|
|
|
|
|
Trade
and other payables (Note 16)
|
2,039
|
-
|
2,039
|
3,749
|
5,788
|
|
Derivative
financial instruments
|
|
|
|
|
|
|
-
Swaps of interest rate (ii)
|
-
|
63
|
63
|
-
|
63
|
|
Borrowings
(Note 17)
|
46,906
|
-
|
46,906
|
-
|
46,906
|
|
Total
|
48,945
|
63
|
49,008
|
3,749
|
52,757
|
(i)
The fair value of
financial assets and liabilities at their amortized cost does not
differ significantly from their book value, except for borrowings
(Note 17).
(ii)
The maturity date
is February 16, 2023 and it is associated with the loan obtained
through its subsidiary, Panamerican Mall S.A., with the purpose of
paying for the work that is being carried out at the Polo
Dot.
The
valuation models used by the Group for the measurement at different
levels of hierarchy are no different from those used as of June 30,
2021.
IRSA
Propiedades Comerciales S.A.
The
Group uses a range of valuation models for the measurement of Level
2 instruments, details of which may be obtained from the following
table. When no quoted prices in an active market are available,
fair values (particularly with derivatives) are based on recognized
valuation methods.
|
Description
|
|
Pricing model
|
|
Parameters
|
|
Fair value hierarchy
|
|
Range
|
|
Foreign-currency contracts
|
|
Present value method - Theoretical price
|
|
Underlying asset price (Money market curve); Interest
curve
|
|
Level 2
|
|
-
|
|
|
|
Foreign exchange curve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps of interest rate
|
|
Discounted cash flow
|
|
Interest rate futures
|
|
Level 2
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30, 2021, there have been no changes to the economic or
business circumstances affecting the fair value of the financial
assets and liabilities of the Group, except for what is indicated
in Note 27.
14.
Trade
and other receivables
The
following table shows the amounts of Group's trade and other
receivables as of September 30, 2021 and June 30,
2021:
|
|
09.30.21
|
06.30.21
|
|
Lease
and services receivables
|
1,961
|
1,781
|
|
Post-dated
checks
|
651
|
620
|
|
Averaging
of scheduled rent escalation
|
1,153
|
1,327
|
|
Debtors
under legal proceedings
|
826
|
601
|
|
Property
sales receivables
|
191
|
204
|
|
Consumer
financing receivables
|
16
|
18
|
|
Less:
allowance for doubtful accounts
|
(956)
|
(917)
|
|
Total trade receivables
|
3,842
|
3,634
|
|
Loans
|
1,480
|
1,566
|
|
Advance
payments
|
641
|
691
|
|
Others
(*)
|
313
|
321
|
|
Prepayments
|
356
|
457
|
|
Other
tax receivables
|
339
|
346
|
|
Expenses
to be recovered
|
43
|
41
|
|
Guarantee
deposit
|
-
|
10
|
|
Total other receivables
|
3,172
|
3,432
|
|
Related
parties (Note 24)
|
4,649
|
9,095
|
|
Total trade and other receivables
|
11,663
|
16,161
|
|
Non-current
|
1,255
|
1,337
|
|
Current
|
10,408
|
14,824
|
|
Total
|
11,663
|
16,161
|
(*)
Includes ARS 281 and ARS 282 as of September 30, 2021 and June 30,
2021, respectively, consistent with the assumption of debt with the
State Assets Administration Agency (AABE). (Note 17)
Movements on the
Group’s allowance for doubtful accounts and other receivables
are as follows:
|
|
09.30.21
|
06.30.21
|
|
Beginning of the period / year
|
917
|
1,015
|
|
Additions
(i)
|
146
|
457
|
|
Unused
amounts reversed (i)
|
(34)
|
(245)
|
|
Inflation
adjustment
|
(73)
|
(310)
|
|
End of the period / year
|
956
|
917
|
(i)
As of September 30,
2021 additions and unused amount reversed were charged to
“Selling expenses”, in the amount of ARS 112 in the
Statement of Income and Other Comprehensive Income (Note
21).
IRSA
Propiedades Comerciales S.A.
15.
Cash
flow and cash equivalent information
Following is a
detailed description of cash flows generated by the Group’s
operations for the three-month periods ended September 30, 2021 and
2020:
|
|
Note
|
09.30.21
|
09.30.20
|
|
(Loss)/ profit for the period
|
|
(1,801)
|
20,275
|
|
Adjustments:
|
|
|
|
|
Income
tax
|
19
|
(1,044)
|
6,435
|
|
Amortization
and depreciation
|
21
|
81
|
108
|
|
Net
loss/ (gain) from fair value adjustment on investment
properties
|
8
|
5,679
|
(24,801)
|
|
Disposals
by concession maturity
|
|
-
|
2
|
|
Averaging
of schedule rent escalation
|
20
|
42
|
26
|
|
Directors’
fees
|
24
|
107
|
395
|
|
Financial
results, net
|
|
(1,415)
|
(7,225)
|
|
Provisions
and allowances
|
|
125
|
91
|
|
Share
of loss/ (profit) of associates and joint ventures
|
7
|
102
|
(904)
|
|
Changes in operating assets and liabilities
|
|
|
|
|
Decrease
in inventories
|
|
2
|
3
|
|
Decrease/
(increase) in trade and other receivables
|
|
21
|
(238)
|
|
(Decrease)/
increase in trade and other payables
|
|
(170)
|
104
|
|
Decrease
in payroll and social security liabilities
|
|
(89)
|
(120)
|
|
Uses
of provisions
|
18
|
(20)
|
(18)
|
|
Net cash generated from/ (used in) operating activities before
income tax paid
|
|
1,620
|
(5,867)
|
|
|
09.30.21
|
09.30.20
|
|
Non-cash transactions
|
|
|
|
Increase
in trade and other receivables through a decrease in investment in
financial assets
|
-
|
6,289
|
|
Increase
in investment properties through an increase in trade and other
payables
|
122
|
-
|
|
Increase
in rights of use assets through an increase in leases
liabilities
|
-
|
37
|
|
Increase
in financial assets through an increase in borrowings
|
-
|
27
|
|
Currency
translation adjustment in associates
|
2
|
18
|
|
Increase
in investment in financial assets through a decrease in trade and
other receivables
|
2,911
|
557
|
|
Increase
in investment in financial assets through a decrease in investments
in associates and joint ventures
|
-
|
17
|
|
Decrease
in finance leases through a decrease in trade and other
receivables
|
1
|
-
|
16.
Trade
and other payables
The
following table shows the amounts of Group's trade and other
payables as of September 30, 2021 and June 30, 2021:
|
|
09.30.21
|
06.30.21
|
|
Rent
and service payments received in advance
|
1,469
|
1,486
|
|
Admission
rights
|
1,181
|
1,180
|
|
Accrued
invoices
|
412
|
431
|
|
Trade
payables
|
656
|
725
|
|
Tenant
deposits
|
80
|
95
|
|
Payments
received in advance
|
277
|
298
|
|
Total trade payables
|
4,075
|
4,215
|
|
Tax
payable
|
1,043
|
691
|
|
Others
|
220
|
239
|
|
Other
payments received in advance to be accrued
|
83
|
85
|
|
Tax
payment plans
|
6
|
7
|
|
Total other payables
|
1,352
|
1,022
|
|
Related
parties (Note 24)
|
670
|
551
|
|
Total trade and other payables
|
6,097
|
5,788
|
|
Non-current
|
1,591
|
1,443
|
|
Current
|
4,506
|
4,345
|
|
Total
|
6,097
|
5,788
|
IRSA
Propiedades Comerciales S.A.
The
following table shows the Group's borrowings as of September 30,
2021 and June 30, 2021:
|
|
|
|
|
|
|
Non-Convertible
notes
|
35,044
|
37,905
|
33,911
|
35,062
|
|
Bank
loans
|
2,048
|
2,344
|
2,048
|
2,359
|
|
Bank
overdrafts
|
4,733
|
5,766
|
4,733
|
5,766
|
|
AABE
Debts
|
281
|
282
|
281
|
282
|
|
Finance
leases
|
53
|
55
|
53
|
55
|
|
Related
parties (Note 24)
|
452
|
554
|
452
|
554
|
|
Total borrowings
|
42,611
|
46,906
|
41,478
|
44,078
|
|
Non-current
|
36,247
|
38,454
|
|
|
|
Current
|
6,364
|
8,452
|
|
|
|
Total
|
42,611
|
46,906
|
|
|
The
following table shows the movements in the Group's provisions at
September 30, 2021 and June 30, 2021 categorized by type of
provision:
|
|
Labor, legal and other claims
|
09.30.21
|
06.30.21
|
|
Balances at the beginning of the period/ year
|
180
|
180
|
189
|
|
Inflation
adjustment
|
(14)
|
(14)
|
(72)
|
|
Increases
(i)
|
13
|
13
|
78
|
|
Recovery
(i)
|
-
|
-
|
(5)
|
|
Used
during the period / year
|
(6)
|
(6)
|
(10)
|
|
Balances at the end of the period/ year
|
173
|
173
|
180
|
|
Non-current
|
|
86
|
88
|
|
Current
|
|
87
|
92
|
|
Total
|
|
173
|
180
|
(i)
Increases and
recovery provisions were charged to “Other operating results,
net”, in the Statement of Income and Other Comprehensive
Income (Note 22).
19.
Current
and deferred income tax
The
details of the Group’s income tax expense are as
follows:
|
|
09.30.21
|
09.30.20
|
|
Current
income tax (i)
|
(1,422)
|
(2)
|
|
Deferred
income tax
|
2,466
|
(6,433)
|
|
Income tax - Profit/ (Loss)
|
1,044
|
(6,435)
|
(i)
If the merger
with IRSA Inversiones y Representaciones S.A. is approved by the
Shareholders' Meeting, the income tax liability will be absorbed
with the tax loss carryforward that owns the absorbing company.
(See Note 27).
Changes
in the deferred tax account are as follows:
|
|
09.30.21
|
06.30.21
|
|
Beginning of the period / year
|
(52,861)
|
(38,997)
|
|
Income
tax
|
2,466
|
(13,773)
|
|
Revaluation
surplus
|
-
|
(91)
|
|
Period / year end
|
(50,395)
|
(52,861)
|
IRSA
Propiedades Comerciales S.A.
Below there is a reconciliation between the income
tax recognized and that which would result from applying the
prevailing tax rate to the profit before income tax for the
three-month period ended September 30, 2021 and 2020:
|
|
09.30.21
|
09.30.20
|
|
Loss/
(profit) for the period before income tax at the prevailing tax
rate
|
996
|
(8,013)
|
|
Tax
effects of:
|
|
|
|
Rate
change
|
-
|
1,926
|
|
Share
of (loss)/ profit of associates and joint ventures
|
(36)
|
271
|
|
Result
by rate transparency
|
(157)
|
91
|
|
Special
tax revaluation
|
56
|
-
|
|
Loss
forecast
|
(48)
|
(53)
|
|
Expiration
of carry-forwards
|
(2)
|
(3)
|
|
Non-taxable,
non-deductible items
|
(1)
|
(3)
|
|
Difference
between provisions and affidavits
|
(2)
|
3
|
|
Minimum
presumed income tax
|
-
|
8
|
|
Inflation
adjustment
|
977
|
(287)
|
|
Tax
inflation adjustment
|
(738)
|
(520)
|
|
Others
|
(1)
|
145
|
|
Income tax - Profit/ (loss)
|
1,044
|
(6,435)
|
|
|
09.30.21
|
09.30.20
|
|
Base
rent
|
1,465
|
969
|
|
Contingent
rent
|
1,098
|
96
|
|
Admission
rights
|
197
|
224
|
|
Averaging
of scheduled rent escalation
|
(42)
|
(26)
|
|
Commissions
|
54
|
44
|
|
Property
management fees
|
36
|
41
|
|
Parking
fees
|
62
|
4
|
|
Others
|
45
|
10
|
|
Total revenues from rentals and services
|
2,915
|
1,362
|
|
Sale
of trading properties
|
-
|
3
|
|
Total revenues from sale of properties
|
-
|
3
|
|
Total revenues from sales, rentals and services
|
2,915
|
1,365
|
|
Expenses
and collective promotion fund
|
963
|
619
|
|
Total revenues from expenses and collective promotion
funds
|
963
|
619
|
|
Total revenues
|
3,878
|
1,984
|
The
Group disclosed expenses in the Statements of Income and Other
Comprehensive Income by function as part of the line items
“Costs”, “General and administrative
expenses” and “Selling expenses”. The following
table provides additional disclosure regarding expenses by nature
and their relationship to the function within the
Group.
|
|
|
General and administrative expenses
|
|
09.30.21
|
09.30.20
|
|
Salaries,
social security costs and other personnel administrative expenses
(i)
|
508
|
174
|
10
|
692
|
623
|
|
Maintenance,
security, cleaning, repairs and other
|
437
|
28
|
-
|
465
|
360
|
|
Taxes,
rates and contributions
|
153
|
4
|
126
|
283
|
433
|
|
Directors'
fees
|
-
|
107
|
-
|
107
|
395
|
|
Fees
and payments for services
|
39
|
70
|
5
|
114
|
244
|
|
Advertising
and other selling expenses
|
175
|
-
|
6
|
181
|
35
|
|
Amortization
and depreciation (Notes 8, 9, 11 and 12)
|
46
|
35
|
-
|
81
|
108
|
|
Leases
and expenses
|
35
|
10
|
1
|
46
|
52
|
|
Traveling,
transportation and stationery
|
10
|
8
|
3
|
21
|
3
|
|
Bank
expenses
|
1
|
12
|
-
|
13
|
6
|
|
Allowance
for doubtful accounts (additions and unused amounts reversed) (Note
14)
|
-
|
-
|
112
|
112
|
61
|
|
Other
expenses
|
2
|
1
|
-
|
3
|
-
|
|
Total expenses by nature 09.31.21
|
1,406
|
449
|
263
|
2,118
|
-
|
|
Total expenses by nature 09.31.20
|
999
|
707
|
614
|
-
|
2,320
|
(i)
For the three-month
period ended September 30, 2021, includes ARS 681 of Salaries,
Bonuses and Social Security and ARS 11 of other concepts. For the
three-month period ended September 30, 2020, includes ARS 618 of
Salaries, Bonuses and Social Security and ARS 5 of other
concepts.
(ii)
For the three-month
period ended September 30, 2021, includes ARS 1,385 of Rental and
services costs and ARS 21 of Cost of sales and developments. For
the three-month period ended September 30, 2020, includes ARS 988
of Rental and services costs, ARS 11 of Cost of sales and
developments.
IRSA
Propiedades Comerciales S.A.
22.
Other
operating results, net
|
|
09.30.21
|
09.30.20
|
|
Interest
generated by operating credits
|
63
|
60
|
|
Management
fees
|
2
|
2
|
|
Others
|
6
|
2
|
|
Donations
|
(7)
|
(19)
|
|
Lawsuits
(Note 18)
|
(13)
|
(30)
|
|
Total other operating results, net
|
51
|
15
|
23.
Financial
results, net
|
|
09.30.21
|
09.30.20
|
|
-
Interest income
|
87
|
644
|
|
Finance income
|
87
|
644
|
|
-
Interest expense
|
(1,369)
|
(1,507)
|
|
-
Others financial costs
|
(112)
|
(213)
|
|
Finance costs
|
(1,481)
|
(1,720)
|
|
Foreign
exchange, net
|
2,137
|
(139)
|
|
-
Fair value (loss)/ gain of financial assets at fair value through
profit or loss
|
(135)
|
2,370
|
|
-
Gain/ (loss) from derivative financial instruments
|
3
|
(274)
|
|
-
(Loss)/ gain from repurchase of non-convertible notes
|
(1)
|
31
|
|
Other financial results
|
2,004
|
1,988
|
|
-
Inflation adjustment
|
515
|
414
|
|
Total financial results, net
|
1,125
|
1,326
|
IRSA
Propiedades Comerciales S.A.
24.
Related
parties transactions
The
following is a summary of the balances with related
parties:
|
Item
|
09.30.21
|
06.30.21
|
|
Trade
and other receivables
|
4,649
|
9,095
|
|
Investments
in financial assets
|
10,485
|
7,980
|
|
Trade
and other payables
|
(670)
|
(551)
|
|
Borrowings
|
(452)
|
(554)
|
|
Leases
liabilities
|
(2)
|
(7)
|
|
Total
|
14,010
|
15,963
|
|
Related parties
|
09.30.21
|
06.30.21
|
Description of transaction
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
(IRSA)
|
(118)
|
(155)
|
Received
advances
|
|
|
8,192
|
5,530
|
Non-convertible
notes
|
|
|
4,188
|
8,639
|
Loans
granted
|
|
|
62
|
55
|
Corporate
services
|
|
|
12
|
13
|
Equity
incentive plan
|
|
|
18
|
7
|
Reimbursement
of expenses
|
|
|
3
|
1
|
Averaging
|
|
|
(255)
|
(276)
|
Borrowings
|
|
|
3
|
11
|
Leases
and/or rights to use space
|
|
|
(15)
|
(16)
|
Equity
incentive plan to pay
|
|
|
-
|
2
|
Lease
collections
|
|
Total direct parent company
|
12,090
|
13,811
|
|
|
Cresud
S.A.CI.F. y A.
|
2,282
|
2,450
|
Non-convertible
notes
|
|
|
(3)
|
(3)
|
Equity
incentive plan to pay
|
|
|
14
|
8
|
Leases
and/or rights to use space
|
|
|
(1)
|
-
|
Other
payables
|
|
|
(1)
|
(31)
|
Reimbursement
of expenses to pay
|
|
|
24
|
-
|
Averaging
|
|
|
(275)
|
(154)
|
Corporate
services to pay
|
|
Total direct parent company of IRSA
|
2,040
|
2,270
|
|
|
La
Rural S.A.
|
204
|
223
|
Dividends
|
|
|
(3)
|
(15)
|
Leases
and/or rights to use space to pay
|
|
|
75
|
80
|
Loans
granted
|
|
Other
associates and joint ventures
|
(2)
|
(7)
|
Leases
liabilities
|
|
|
1
|
2
|
Reimbursement
of expenses
|
|
|
6
|
5
|
Loans
granted
|
|
|
5
|
4
|
Management
fee
|
|
|
-
|
1
|
Lease
collections
|
|
|
(2)
|
(2)
|
Leases
and/or rights to use space to pay
|
|
Total associates and joint ventures
|
284
|
291
|
|
|
Directors
|
(199)
|
(117)
|
Fees
|
|
Total Directors
|
(199)
|
(117)
|
|
|
IRSA
International LLC
|
(30)
|
(32)
|
Other
payables
|
|
Helmir
S.A.
|
(33)
|
(35)
|
Borrowings
|
|
OFC
S.R.L.
|
1
|
1
|
Other
receivables
|
|
|
(20)
|
(22)
|
Other
payables
|
|
Others
|
12
|
17
|
Reimbursement
of expenses
|
|
|
14
|
5
|
Leases
and/or rights to use space
|
|
|
(2)
|
-
|
Leases
and/or rights to use space to pay
|
|
|
-
|
(3)
|
Other
payables
|
|
|
7
|
21
|
Other
receivables
|
|
|
11
|
-
|
Other
investments
|
|
|
(164)
|
(243)
|
Borrowings
|
|
|
(1)
|
(1)
|
Legal
services to pay
|
|
Total others
|
(205)
|
(292)
|
|
|
Total at the end of the period / year
|
14,010
|
15,963
|
|
IRSA
Propiedades Comerciales S.A.
The
following is a summary of the results with related
parties:
|
Related parties
|
09.30.21
|
09.30.20
|
Description of transaction
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
(IRSA)
|
13
|
6
|
Corporate
services
|
|
|
(14)
|
1,535
|
Financial
operations
|
|
|
6
|
3
|
Leases
and/or rights to use space
|
|
Total direct parent company
|
5
|
1,544
|
|
|
Cresud
S.A.CI.F. y A.
|
(3)
|
184
|
Financial
operations
|
|
|
(78)
|
3
|
Leases
and/or rights to use space
|
|
|
(159)
|
(156)
|
Corporate
services
|
|
Total direct parent company of IRSA
|
(240)
|
31
|
|
|
Helmir
S.A.
|
1
|
-
|
Dividends
accrued
|
|
Other
associates and joint ventures
|
2
|
2
|
Fees
|
|
|
(1)
|
-
|
Leases
and/or rights to use space
|
|
Total associates and joint ventures
|
2
|
2
|
|
|
Directors
|
(107)
|
(395)
|
Fees
|
|
Senior
Management
|
(18)
|
(15)
|
Fees
|
|
Total Directors
|
(125)
|
(410)
|
|
|
Banco
de Crédito y Securitización
|
20
|
21
|
Leases
and/or rights to use space
|
|
BHN
Vida S.A
|
4
|
5
|
Leases
and/or rights to use space
|
|
BHN
Seguros Generales S.A.
|
4
|
5
|
Leases
and/or rights to use space
|
|
IRSA
Internacional LLC
|
-
|
23
|
Financial
operations
|
|
Estudio
Zang, Bergel & Viñes
|
(5)
|
(8)
|
Fees
|
|
Others
|
(8)
|
-
|
Leases
and/or rights to use space
|
|
|
14
|
2
|
Financial
operations
|
|
Total others
|
29
|
48
|
|
|
Total at the end of the period
|
(329)
|
1,215
|
|
The
following is a summary of the transactions with related
parties:
|
Related parties
|
09.30.21
|
09.30.20
|
Description of transaction
|
|
Quality
Invest S.A.
|
27
|
14
|
Irrevocable
contributions granted
|
|
Total irrevocable contributions
|
27
|
14
|
|
25.
CNV
General Resolution N° 622/13
As
required by Section 1, Chapter III, Title IV of CNV General
Resolution N° 622/13, below there is a detail of the notes to
the Financial Statements that disclose the information required by
the Resolution in Exhibits.
|
Exhibit A - Property, plant and equipment
|
Note 8 - Investment properties
|
|
|
Note 9 - Property, plant and equipment
|
|
Exhibit C - Equity investments
|
Note 7 - Investments in associates and joint ventures
|
|
Exhibit B - Intangible assets
|
Note 11 - Intangible assets
|
|
Exhibit D - Other investments
|
Note 13 - Financial instruments by category
|
|
Exhibit E - Provisions
|
Note 14 - Trade and other receivables
|
|
|
Note 18 - Provisions
|
|
Exhibit F - Cost of sales and services provided
|
Note 21 - Expenses by nature
|
|
|
Note 10 - Trading properties
|
|
Exhibit G - Foreign currency assets and liabilities
|
Note 26 - Foreign currency assets and liabilities
|
IRSA
Propiedades Comerciales S.A.
26.
Foreign
currency assets and liabilities
Book
amounts of foreign currency assets and liabilities are as
follows:
|
Items (1)
|
|
|
09.30.21
|
06.30.21
|
|
Assets
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
US
Dollar
|
25.01
|
98.54
|
2,464
|
2,499
|
|
Euros
|
0.08
|
113.88
|
9
|
11
|
|
Trade and other receivables with related parties
|
|
|
|
|
|
US
Dollar
|
0.09
|
98.74
|
9
|
38
|
|
Total trade and other receivables
|
|
|
2,482
|
2,548
|
|
Investments in financial assets
|
|
|
|
|
|
US
Dollar
|
7.71
|
98.54
|
760
|
727
|
|
Investment in financial assets with related parties
|
|
|
|
|
|
US
Dollar
|
97.23
|
98.74
|
9,600
|
7,052
|
|
Total investments in financial assets
|
|
|
10,360
|
7,779
|
|
Cash and cash equivalents
|
|
|
|
|
|
US
Dollar
|
6.41
|
98.54
|
632
|
513
|
|
Total cash and cash equivalents
|
|
|
632
|
513
|
|
Total Assets
|
|
|
13,474
|
10,840
|
|
Liabilities
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
US
Dollar
|
5.99
|
98.74
|
591
|
829
|
|
Euros
|
0.01
|
114.36
|
1
|
20
|
|
Trade and other payables with related parties
|
|
|
|
|
|
US
Dollar
|
0.34
|
98.74
|
34
|
32
|
|
Total trade and other payables
|
|
|
626
|
881
|
|
Borrowings
|
|
|
|
|
|
US
Dollar
|
371.34
|
98.74
|
36,666
|
40,082
|
|
Borrowings with related parties
|
|
|
|
|
|
US
Dollar
|
5.11
|
98.74
|
505
|
367
|
|
Total borrowings
|
|
|
37,171
|
40,449
|
|
Derivative financial instruments
|
|
|
|
|
|
US
Dollar
|
0.46
|
98.74
|
45
|
63
|
|
Total derivative financial instruments
|
|
|
45
|
63
|
|
Leases liabilities
|
|
|
|
|
|
US
Dollar
|
8.35
|
98.74
|
824
|
855
|
|
Leases liabilities with related parties
|
|
|
|
|
|
US
Dollar
|
0.02
|
98.74
|
2
|
7
|
|
Total leases liabilities
|
|
|
826
|
862
|
|
Total Liabilities
|
|
|
38,668
|
42,255
|
(1)
Considering
foreign currencies those that differ from each one of the
Group’s companies at each period/year-end.
(2)
Expressed in millions of foreign currency.
(3)
Exchange
rate of the Argentine Peso as of September 30, 2021 according to
Banco Nación Argentina.
27.
Relevant
events of the period
Partial
cancellation of the IRSA and IRSA Propiedades Comerciales credit
line
On
August 26, 2021, the credit line between IRSA and IRSA Propiedades
Comerciales was partially canceled for a total of ARS 2,474
million. It was non-cash transaction with IRC 13
securities.
On
September 13, 2021, the credit line between IRSA and IRSA
Propiedades Comerciales was partially canceled for a total of ARS
1,910 million. It was non-cash transaction with IRC 13 securities,
mutual funds and a part in cash.
IRSA
and IRSA Propiedades Comerciales Merger Proposal
On
September 30, 2021, IRSA & IRSA Propiedades Comerciales Boards
of Directors approved the prior merger agreement between both
companies and the corresponding special financial statements as of
June 30, 2021, initiating the corporate reorganization process
under the terms of art. 82 and sbq. of the General Law of
Companies. The merger process has particular characteristics given
that they are two companies included in the public offering regime,
reason why, not only apply the current provisions of the General
Law of Companies but also the procedures established regarding
reorganization of companies of the regulations of the
“Comisión Nacional de Valores” (National
Securities Commission) and the markets, both national and foreign,
where their shares are listed.
IRSA
Propiedades Comerciales S.A.
The
Merger is carried out in order to streamline the technical,
administrative, operational and economic resources of both
Companies, standing out among others: (a) the operation and
maintenance of a single transactional information system and
centralization of the entire accounting registration process; (b)
presentation of a single financial statement to the different
control agencies with the consequent cost savings in accounting and
advisory fees, tariffs and other related expenses; (c)
simplification of the accounting information reporting and
consolidation process, as a consequence of the reduction that the
merger would imply for the corporate structure as a whole; (d)
removal of the IRSA PC public offering listing on BYMA and NASDAQ
with the associated costs that this represents; (e) cost reduction
for legal fees and tax filings; (f) increase in the percentage of
the capital stock that is listed in the different markets,
increasing the liquidity of the listed shares; (g) tax efficiencies
and (h) preventively avoid the potential overlap of activities
between the Companies.
The
merger is subject to the approval of the shareholders' meeting of
both companies whose call will be made once they have the
administrative approval of the United States Securities and
Exchange Commission, an entity to which they are subject since both
companies list their shares in markets that operate in said
jurisdiction.
Once
the merger by absorption between IRSA as the absorbing company and
IRSA CP as the absorbed company has been approved, the effective
date will be July 1, 2021, date from which the transfer to the
absorbing company of all the assets of the absorbed company will
take effect, thereby incorporating all its rights and obligations,
assets, and liabilities into the equity of the absorbing company,
all subject to the required corporate approvals.
Likewise, and
within the framework of the reorganization process, the Board of
Directors has approved the exchange ratio, which has been
established at 1.40 IRSA shares for each IRSA PC share, which is
equivalent to 0.56 IRSA GDS for each ADS of IRSA PC.
The
exchange of IRSA PC shares for IRSA shares will be carried out once
the entire administrative process has been completed and once the
registration has been made in the “Inspección General de
Justicia” (General Inspection of Justice), a process that may
take several months.
Economic
context in which the Group operates
The
Group operates in a complex context both due to macroeconomic
conditions, whose main variables have recently experienced strong
volatility, as well as regulatory, social, and political
conditions, both nationally and internationally.
The
results from operations may be affected by fluctuations in the
inflation and the exchange rate of the Argentine peso against other
currencies, mainly the dollar, changes in interest rates which have
an impact on the cost of capital, changes in government policies,
capital controls and other political or economic events both
locally and internationally.
In
December 2019, a new strain of coronavirus (SARS-COV-2), which
caused severe acute respiratory syndrome (COVID-19) appeared in
Wuhan, China. On March 11, 2020, the World Health Organization
declared COVID-19 a pandemic. In response, countries have taken
extraordinary measures to contain the spread of the virus,
including imposing travel restrictions and closing borders, closing
businesses deemed non-essential, instructing residents to practice
social distancing, implementing lockdowns, among other measures.
The ongoing pandemic and these extraordinary government measures
are affecting global economic activity, resulting in significant
volatility in global financial markets.
On
March 3, 2020, the first case of COVID-19 was registered in the
country and as of today, more than 5,290,000 cases of infections
had been confirmed in Argentina, by virtue of which the Argentinian
Government implemented a series of health measures of social,
preventive and mandatory lockdown at the national level with the
closure of non-essential activities, including shopping malls, as
well as the suspension of flights and border closures, for much of
the year 2020. Since October 2020, a large part of the activities
started to become more flexible, in line with a decrease in
infections, although between April 16 and June 11, 2021, because of
the sustained increase in the cases registered, the National
Government established restrictions on night activity and the
closure of shopping malls in Buenos Aires Metropolitan Area. Due to
the flexibility that has occurred in the economic activities since
the beginning of this fiscal year and as of the date of issuance of
these financial statements, 100% of the shopping malls are
operational.
IRSA
Propiedades Comerciales S.A.
At the
local environment, the following circumstances were
observed:
●
In August 2021, the
Monthly Economic Activity Estimator (“EMAE” in Spanish)
reported by the National Institute of Statistics and Censuses
(“INDEC” in Spanish), registered a variation of 12.8%
compared to the same month of 2020, and 1.1% compared to the
previous month.
●
The annual retail
inflation reached 52.47% in the last 12 months. The survey on
market expectations prepared by the Argentine Central Bank in
September 2021, called the Market Expectations Survey
(“REM” in Spanish), estimates a retail inflation of
48.2% i.a. for December 2021 and 46.0% for December 2022. Analysts
participating in the REM forecast a rebound in economic activity in
2021, reaching an economic growth of 7.6%.
●
In the period from
September 2020 to September 2021, the Argentine peso depreciated
29.6% against the US dollar according to the wholesale average
exchange rate of Banco de la Nación Argentina. Given the
exchange restrictions in force since August 2019, as of September
30, 2021, there is an exchange gap of approximately 78.9% between
the official price of the dollar and its price in parallel markets,
which impacts the level of activity in the economy and affects the
level of reserves of the Argentine Central Bank. Additionally,
these exchange restrictions, or those that may be issued in the
future, could affect the Group's ability to access the Single Free
Exchange Market (“MULC” in Spanish) to acquire the
necessary currencies to meet its financial
obligations.
COVID-19
Pandemic
As
described above, the COVID-19 pandemic has adversely impacted both
the global economy and the Argentine economy and the Group's
business, mainly in the Shopping Malls and Entertainment segments.
Since the beginning of fiscal year 2022, and until the date of
presentation of the financial statements, the Group's shopping
malls are fully operational, as well as the office buildings,
despite the remote work modality that some tenants continue to
apply. In relation to the Entertainment segment, on July 12, 2021,
the protocols for holding events, congresses and exhibitions were
activated.
The
final extent of the Coronavirus outbreak and its impact on the
country's economy is still uncertain. However, although it has
produced significant short-term effects, they are not expected to
affect business continuity and the Group’s ability to meet
its financial commitments for the next twelve months.
The
Group is closely monitoring the situation and taking all necessary
measures to preserve human life and the Group's
businesses.
General
Ordinary Shareholders’ Meeting
The
General Ordinary Shareholders’ Meeting of IRSA Propiedades
Comerciales, held on October 21, 2021, approved among
others:
The assignment of
the positive retained earnings in the amount of ARS 1,527 million
to (i) the partial absorption of the loss result for the year; (ii)
to fully dispose of the special reserve in the amount of ARS 9,816
million to be used for the partial absorption of the loss for the
year and (iii) to allocate the residual of the loss for the year in
the amount of ARS 10,593 million to the retained earnings
account.
The
amounts are expressed in the closing currency as of June 30, 2021
as approved by the General Ordinary Shareholders'
Meeting.
Catalinas
floors sale
On
November 2, 2021, was made the sold of three medium-height floors
of the tower “261 Della Paolera” located in the
Catalinas district of the Autonomous City of Buenos Aires for a
total area of approximately 3,582 square meters and
36 parking spaces located in the building.
The
transaction price was approximately ARS 3,197 million, which as of
the date of issuance of these financial statements were paid in
full.
The
financial result of this operation will be recognized in the
Company's Financial Statements for the second quarter of fiscal
year 2022.
Free
translation from the original prepared in Spanish for publication
in Argentina
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
To the Shareholders, President and Directors of
IRSA Propiedades Comerciales S.A.
Legal address: Carlos Della Paolera 261– 8º
floor
Autonomous City of Buenos Aires
Tax Registration Number: 30-52767733-1
Introduction
We have reviewed the accompanying unaudited condensed interim
consolidated financial statements of IRSA Propiedades Comerciales
S.A. and its subsidiaries (“the Company”), which
comprise the unaudited condensed interim consolidated statement of
financial position as of September 30, 2021, and the unaudited
condensed interim consolidated statements of comprehensive income
for the three-month period ended September 30, 2021,
changes in shareholders’ equity
and of cash flows for the three-month period then ended, and
selected explanatory notes.
The balances and other information for the fiscal year ended on
June 30, 2021 and its interim periods are an integral part of the
financial statements mentioned
above; therefore, they must be considered in connection with
these financial
statements.
Management’s responsibility
The Board of Directors of the Company is responsible for the
preparation and presentation of these unaudited condensed interim
consolidated financial statements in accordance with International
Financial Reporting Standards (IFRS), adopted by the Argentine
Federation of Professional Councils in Economic Sciences (FACPCE)
as professional accounting standards and included by the National
Securities Commission (CNV) in its regulations, as approved by the
International Accounting Standards Board (IASB), and is therefore
responsible for the preparation and presentation of the unaudited
condensed interim consolidated financial statements mentioned in
the first paragraph, in accordance with International Accounting
Standard 34 Interim Financial Reporting (IAS 34).
Scope of our review
Our review was limited to the application of the procedures
established under International Standards on Review Engagements
ISRE 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity, adopted as a review standard in
Argentina by Technical Pronouncement No. 33 of the FACPCE and
approved by the International Auditing and Assurance Standards
Board (IAASB). A review of interim financial information consists
of inquiries of Company staff responsible for preparing the
information included in the unaudited condensed interim
consolidated financial statements and of analytical and other
review procedures. This review is substantially less in scope than
an audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion on the consolidated statement of financial position and the
consolidated statements of comprehensive income and of cash
flows of the Company.
Free
translation from the original prepared in Spanish for publication
in Argentina
Conclusion
On the
basis of our review, nothing has come to our attention that causes us to believe that
the unaudited condensed interim consolidated financial statements
mentioned in the first paragraph of this report have not been
prepared, in all material respects, in accordance with
International Accounting Standard 34.
Report on compliance with current regulations
In accordance with current regulations, we report,
in connection with IRSA Propiedades
Comerciales S.A. that:
a) the unaudited condensed interim consolidated financial
statements of IRSA Propiedades Comerciales S.A. are in the process
of being transcribed into the Inventory and Balance Sheet book and,
except for the above mentioned situation, as regards those matters
that are within our competence, they are in compliance
with the provisions of the General
Companies Law and pertinent resolutions of the National Securities
Commission.
b) the unaudited condensed interim consolidated financial
statements of IRSA Propiedades Comerciales S.A., arise from
accounting records carried in all formal aspects in accordance with
legal requirements except for i) the
lack of transcription to the Inventories and Balance Sheet Book,
and ii) the lack of transcription to the General Journal Book of
the accounting entries corresponding to the month of September
2021.
c) we have read the Business Summary (“Reseña
Informativa”), on which
we have no observations to make regarding matters that are within
our competence;
d) at September 30, 2021 the debt of IRSA Propiedades
Comerciales S.A. accrued in favor of the Argentine
Integrated Social Security System, as shown by the Company’s accounting
records, amounted to ARS 51,695,309, which is not due at that date.
Autonomous City of Buenos
Aires, November 4, 2021.
|
PRICE
WATERHOUSE & Co. S.R.L.
(Socio)
C.P.C.E.C.A.B.A.
Tº 1 Fº 17
Carlos
Brondo
Contador
Público (UNCUYO)
C.P.C.E.C.A.B.A.
T° 391 F° 078
|
|
ABELOVICH,
POLANO & ASOCIADOS S.R.L.
(Socio)
C.P.C.E.
C.A.B.A. T° 1 F° 30
Noemí
I. Cohn
Contador
Público (U.B.A.)
C.P.C.E. C.A.B.A. T° 116 F° 135
|
IRSA Propiedades Comerciales S.A.
Unaudited Condensed Interim Separate Financial Statements for the
three-month period ended September 30, 2021, presented
comparatively
IRSA
Propiedades Comerciales S.A.
Unaudited Condensed Interim Separate Statements of Financial
Position
as
of September 30, 2021 and June 30, 2021
(All amounts
in millions of Argentine Pesos, except profit per share and
otherwise indicated)
Free translation
from the original prepared in Spanish for publication in
Argentina
|
|
Note
|
09.30.21
|
06.30.21
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Investment
properties
|
7
|
107,509
|
111,499
|
|
Property,
plant and equipment
|
8
|
1,268
|
1,278
|
|
Trading
properties
|
9
|
123
|
123
|
|
Intangible
assets
|
10
|
1,264
|
1,278
|
|
Rights
of use assets
|
11
|
703
|
803
|
|
Investments
in subsidiaries, associates and joint ventures
|
6
|
39,712
|
40,575
|
|
Income
tax credits
|
|
5
|
5
|
|
Trade
and other receivables
|
13
|
1,164
|
633
|
|
Total non-current assets
|
|
151,748
|
156,194
|
|
Current Assets
|
|
|
|
|
Trading
properties
|
9
|
5
|
5
|
|
Inventories
|
|
35
|
37
|
|
Income
tax credits
|
|
26
|
28
|
|
Trade
and other receivables
|
13
|
8,296
|
13,236
|
|
Investments
in financial assets
|
12
|
10,358
|
7,814
|
|
Cash
and cash equivalents
|
12
|
74
|
59
|
|
Total current assets
|
|
18,794
|
21,179
|
|
TOTAL ASSETS
|
|
170,542
|
177,373
|
|
SHAREHOLDERS’ EQUITY
|
|
|
|
|
Capital
and reserves attributable to equity holders of the parent
(according to corresponding statement)
|
|
77,598
|
79,305
|
|
TOTAL SHAREHOLDERS’ EQUITY
|
|
77,598
|
79,305
|
|
LIABILITIES
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Trade
and other payables
|
15
|
1,228
|
1,081
|
|
Borrowings
|
16
|
35,439
|
37,511
|
|
Income
tax liabilities
|
|
1,327
|
-
|
|
Deferred
income tax liabilities
|
18
|
39,859
|
42,008
|
|
Other
liabilities
|
6
|
32
|
50
|
|
Provisions
|
17
|
74
|
76
|
|
Total non-current liabilities
|
|
77,959
|
80,726
|
|
Current liabilities
|
|
|
|
|
Trade
and other payables
|
15
|
3,739
|
3,773
|
|
Income
tax liabilities
|
|
939
|
1,027
|
|
Payroll
and social security liabilities
|
|
190
|
262
|
|
Borrowings
|
16
|
10,044
|
12,197
|
|
Leases
liabilities
|
|
4
|
9
|
|
Provisions
|
17
|
69
|
74
|
|
Total current liabilities
|
|
14,985
|
17,342
|
|
TOTAL LIABILITIES
|
|
92,944
|
98,068
|
|
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
|
|
170,542
|
177,373
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
IRSA
Propiedades Comerciales S.A.
Unaudited Condensed Interim Separate Statements of Income and Other
Comprehensive Income
for the three-month periods ended
September 30, 2021 and 2020
(All
amounts in millions of Argentine Pesos, except profit per share and
otherwise indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
|
Note
|
09.30.21
|
09.30.20
|
|
Income
from sales, rentals and services
|
19
|
2,286
|
915
|
|
Income
from expenses and collective promotion fund
|
19
|
796
|
508
|
|
Operating
costs
|
20
|
(1,150)
|
(868)
|
|
Gross profit
|
|
1,932
|
555
|
|
Net
(loss)/ gain from fair value adjustments of investment
properties
|
7
|
(4,247)
|
14,927
|
|
General
and administrative expenses
|
20
|
(390)
|
(664)
|
|
Selling
expenses
|
20
|
(235)
|
(595)
|
|
Other
operating results, net
|
21
|
69
|
41
|
|
(Loss)/ profit from operations
|
|
(2,871)
|
14,264
|
|
Share
of (loss)/ profit of associates and joint ventures
|
6
|
(1,031)
|
7,150
|
|
(Loss)/ profit from operations before financing and
taxation
|
|
(3,902)
|
21,414
|
|
Finance
income
|
22
|
71
|
642
|
|
Finance
cost
|
22
|
(1,434)
|
(1,664)
|
|
Other
financial results
|
22
|
2,223
|
1,889
|
|
Inflation
adjustment
|
22
|
553
|
440
|
|
Financial
results, net
|
|
1,413
|
1,307
|
|
(Loss)/ profit before income tax
|
|
(2,489)
|
22,721
|
|
Income
tax expense
|
18
|
780
|
(3,893)
|
|
(Loss)/ profit for the period
|
|
(1,709)
|
18,828
|
|
|
|
|
|
Other comprehensive income/ (loss) for the period: (i)
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
|
Currency
translation adjustment of associates
|
6
|
2
|
(18)
|
|
Other comprehensive income/ (loss) for the period
|
|
2
|
(18)
|
|
Total comprehensive (loss)/ income for the period
|
|
(1,707)
|
18,810
|
|
(Loss)/ Income per share for the period: (ii)
|
|
|
|
|
Basic
|
|
(3.16)
|
34.80
|
|
Diluted
|
|
(3.16)
|
34.80
|
(i)
The components of
other comprehensive income have no impact on income
tax.
(ii)
(Loss)/ Profit per
share have been calculated using 541,230,019 shares as of September
30, 2021 and September 30, 2020. Instead 126,014,050 shares were
used for this calculation, the basic and diluted result per share
would be ARS 149.41 corresponding to September 30,
2020.
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
IRSA
Propiedades Comerciales S.A.
Unaudited Condensed Interim Separate Statements of Changes in
Shareholders’ Equity
for the three-month periods ended September 30, 2021 and
2020
(All
amounts in millions of Argentine Pesos, except profit per share and
otherwise indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
|
|
|
Inflation adjustment of share capital
|
|
|
|
Total shareholder’s equity
|
|
Balance as of June 30, 2021
|
54,123
|
34,716
|
1,622
|
11,148
|
(22,304)
|
79,305
|
|
Loss
for the period
|
-
|
-
|
-
|
-
|
(1,709)
|
(1,709)
|
|
Other
comprehensive income for the period
|
-
|
-
|
-
|
2
|
-
|
2
|
|
Balance as of September 30, 2021
|
54,123
|
34,716
|
1,622
|
11,150
|
(24,013)
|
77,598
|
|
|
|
|
Changes in non-controlling interest
|
Currency translation adjustment
|
Total shareholder’s equity
|
|
Balance as of June 30, 2021
|
618
|
10,727
|
(136)
|
(61)
|
11,148
|
|
Other
comprehensive income for the period
|
-
|
-
|
-
|
2
|
2
|
|
Balance as of September 30, 2021
|
618
|
10,727
|
(136)
|
(59)
|
11,150
|
|
|
|
Inflation adjustment of share capital
|
|
|
Special reserve CNV 609/12 (2)
|
|
|
Total shareholder’s equity
|
|
Balance as of June 30, 2020
|
126
|
5,646
|
15,857
|
220
|
15,043
|
52,446
|
28,050
|
117,388
|
|
Profit
for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
18,828
|
18,828
|
|
Other
comprehensive loss for the period
|
-
|
-
|
-
|
-
|
-
|
(18)
|
-
|
(18)
|
|
Balance as of September 30, 2020
|
126
|
5,646
|
15,857
|
220
|
15,043
|
52,428
|
46,878
|
136,198
|
|
|
Reserve for future dividends
|
|
|
Changes in non-controlling interest
|
Currency translation adjustment
|
Total shareholder’s equity
|
|
Balance as of June 30, 2020
|
51,922
|
448
|
247
|
(136)
|
(35)
|
52,446
|
|
Other
comprehensive loss for the period
|
-
|
-
|
-
|
-
|
(18)
|
(18)
|
|
Balance as of September 30, 2020
|
51,922
|
448
|
247
|
(136)
|
(53)
|
52,428
|
(1)
See Note 17 to the
Annual Consolidated Financial Statements as of June 30,
2021.
(2)
Corresponds to
General Resolution 609/12 of National Securities Commission
(“CNV”). Furthermore includes the effect for the
standard change in investment properties as of June 1,
2011.
There
are no cumulative unpaid dividends on preferred
shares.
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
IRSA
Propiedades Comerciales S.A.
Unaudited Condensed Interim Separate Statements of Cash
Flows
for the three-month periods ended September 30, 2021 and
2020
(All
amounts in millions of Argentine Pesos, except profit per share and
otherwise indicated)
Free translation
from the original prepared in Spanish for publication in
Argentina
|
|
Note
|
09.30.21
|
09.30.20
|
|
Operating activities:
|
|
|
|
|
Cash
generated from operations
|
14
|
1,128
|
(5,616)
|
|
Net cash generated from/ (used in) operating
activities
|
|
1,128
|
(5,616)
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Acquisition
of investment properties
|
|
(346)
|
(1,067)
|
|
Acquisition
of property, plant and equipment
|
|
(21)
|
(8)
|
|
Acquisition
of intangible assets
|
|
(3)
|
(6)
|
|
Acquisitions
of financial assets
|
|
(424)
|
(4,920)
|
|
Decrease
of financial assets
|
|
451
|
5,997
|
|
Loans
payment received from related parties
|
|
1,971
|
290
|
|
Loans
granted to related parties
|
|
-
|
(232)
|
|
Advance
payments
|
|
(2)
|
(17)
|
|
Proceeds
from sales of property, plant and equipment
|
|
-
|
2
|
|
Proceeds
from sales of investment properties
|
|
85
|
14,639
|
|
Irrevocable
contributions in subsidiaries, associates and joint
ventures
|
|
(184)
|
(14)
|
|
Collection
of financial assets interests
|
|
169
|
217
|
|
Acquisition
of interest in subsidiaries, associates and joint
ventures
|
|
-
|
(81)
|
|
Net cash generated from investing activities
|
|
1,696
|
14,800
|
|
Financing activities:
|
|
|
|
|
Payments
of financial leasing
|
|
(3)
|
-
|
|
Borrowings
obtained
|
|
-
|
1,468
|
|
Payment
of borrowings
|
|
-
|
(1,686)
|
|
Payment
of borrowings with related parties
|
|
(3)
|
-
|
|
Payment
of non-convertible notes
|
|
-
|
(16,266)
|
|
Sale
of non-convertible notes in portfolio
|
|
-
|
768
|
|
Repurchase
of non-convertible notes
|
|
-
|
(101)
|
|
Proceeds
from derivative financial instruments
|
|
-
|
14
|
|
Payment
of derivative financial instruments
|
|
-
|
(302)
|
|
Interests
paid
|
|
(1,928)
|
(2,412)
|
|
Short
term loans, net
|
|
(565)
|
6,280
|
|
Net cash used in financing activities
|
|
(2,499)
|
(12,237)
|
|
Net increase/ (decrease) in cash and cash equivalents
|
|
325
|
(3,053)
|
|
Cash
and cash equivalents at beginning of period
|
12
|
59
|
3,112
|
|
Foreign
exchange (loss)/ gain on cash and fair value result for cash
equivalents
|
|
(1)
|
5
|
|
Inflation
adjustment
|
|
(309)
|
(2)
|
|
Cash and cash equivalents at end of period
|
12
|
74
|
62
|
The
accompanying notes are an integral part of these Unaudited
Condensed Interim Separate Financial Statements.
IRSA
Propiedades Comerciales S.A.
Notes to the Unaudited Condensed Interim Separate Financial
Statements
(All
amounts in millions of Argentine Pesos, except profit per share and
otherwise indicated)
Free
translation from the original prepared in Spanish for publication
in Argentina
IRSA
PROPIEDADES COMERCIALES S.A. (“IRSA Propiedades
Comerciales”, or “the Company”) is an Argentine
real estate company mainly engaged in holding, leasing, managing,
developing, operating and acquiring shopping malls and office
buildings and holds a predominant position within the argentine
market. IRSA Propiedades Comerciales was incorporated in 1889 under
the name SAMAP and until 1984 operated the major fresh foodstuff
market in the Autonomous City of Buenos Aires. SAMAP’s core
asset was the historical building of Mercado de Abasto, which
served as site of the market from 1889 until 1984, when a sizable
part of its operations was interrupted.
Since
the Company was acquired by IRSA Inversiones y Representaciones
Sociedad Anónima (hereinafter, IRSA) in 1994, it has grown
through a series of acquisitions and development projects that
resulted in a corporate reorganization giving rise to the previous
organizational structure and company named Alto Palermo
S.A.
As of
the end of these unaudited Condensed Interim Separate Financial
Statements (hereinafter, Financial Statements), the Company
operates 335,641 square meters (sqm) in 14 shopping malls, 113,451
sqm in 7 premium offices and an extensive land reserve for future
commercial developments; operates and holds a majority interest
(with the exception of La Ribera Shopping Center, of which it has a
50% ownership interest) in a portfolio of 14 shopping malls in
Argentina, seven of which are located in the Autonomous City of
Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo,
Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two in
Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet)
and the rest are situated in different provinces (Alto Noa in the
City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza
in the City of Mendoza, Córdoba Shopping Villa Cabrera in the
City of Córdoba, Alto Comahue in the City of Neuquén and
La Ribera Shopping in the City of Santa Fe). The Company also owns
the historic building where the Patio Olmos Shopping Mall is
located, operated by a third party.
The
Company’s shares are traded on the Buenos Aires Stock
Exchange (MERVAL: IRCP) and in United States of America on the
NASDAQ (NASDAQ: IRCP).
These
Financial Statements have been approved by the Board of Directors
to be issued on November 4, 2021.
2.
Summary
of significant accounting policies
2.1.
Basis
of preparation
These
Financial Statements have been prepared in accordance with IAS 34
“Interim Financial Reporting” and therefore must be
read together with the Group's Annual Consolidated Financial
Statements as of June 30, 2021 prepared in accordance with IFRS.
Likewise, these Financial Statements include additional information
required by Law No. 19,550 and / or CNV regulations. This
information is included in the notes to these Financial Statements,
as allowed by IFRS.
These
Financial Statements for the interim periods of three month ended
September 30, 2021 and 2020 have not been audited. Management
considers that they include all the necessary adjustments to fairly
present the results of each period. Intermediate period results do
not necessarily reflect the proportion of the Company's results for
the entire fiscal years.
IAS 29
"Financial Reporting in Hyperinflationary Economies" requires that
the Financial Statements of an entity whose functional currency is
one of a hyperinflationary economy be expressed in terms of the
current unit of measurement at the closing date of the reporting
period, regardless of whether they are based on the historical cost
method or the current cost method. To do so, in general terms, the
inflation produced from the date of acquisition or from the
revaluation date, as applicable, must be calculated for
non-monetary items. This requirement also includes the comparative
information of the Financial Statements.
IRSA
Propiedades Comerciales S.A.
In
order to conclude on whether an economy is categorized as a
hyperinflationary, in the terms of IAS 29, the standard details a
series of factors to be considered, including the existence of an
accumulated inflation rate in three years that approaches to or
exceeds 100%. Accumulated inflation in Argentina in three years has
been over 100%. For this reason, in accordance with IAS 29, the
Argentine economy must be considered as a hyperinflationary economy
starting July 1, 2018.
In
relation to the inflation index to be used according to FACPCE
Resolution No. 539/18, the inflation index is determined based on
the Wholesale Price Index (IPIM) until 2016, considering the
average variation of Consumer Price indices (CPI) of the Autonomous
City of Buenos Aires for the months of November and December 2015,
because during those two months there were no national IPIM
measurements. Then, from January 2017, the National Consumer Price
Index (National CPI) will be considered. The table below shows the
evolution of this index during the period ended September 30,
2021, according to official statistics by Argentine Institute of
Statistics and Census (INDEC) and following the guidelines
described in Resolution 539/18:
As a
consequence of the aforementioned, these Financial Statements
as of September 30, 2021 were restated in accordance with IAS
29.
2.2.
Significant
accounting policies
The
accounting policies adopted for these Financial Statements are
consistent with those used in the preparation of information under
IFRS as described in Note 2 to the Annual Consolidated Financial
Statements as of June 30, 2021.
2.3.
Comparability
of information
The
amounts as of June 30, 2021 and September 30, 2020, which are
disclosed for comparative purposes, arise from the Financial
Statements at said dates restated in accordance with IAS 29.
Certain figures have been reclassified for comparison purposes in
these Financial Statements.
See
Note 27 to the Unaudited Condensed Interim Consolidated Financial
Statements.
The
preparation of Financial Statements at a certain date requires that
Management makes estimates and assessments about the amount of
assets and liabilities recorded and contingent assets and
liabilities disclosed at such date, as well as income and expenses
recorded during the period. Actual results might differ from the
estimates and evaluations made at the date of preparation of these
Financial Statements. In the preparation of the Financial
Statements, the significant judgments made by Management upon
applying the Company’s accounting policies and the main
sources of uncertainty were the same as those applied by the
Company to the preparation of Separate Annual Financial Statements
as of and for the fiscal year ended June 30, 2021, except as
indicated in Note 27 to the Unaudited Condensed Interim
Consolidated Financial Statements.
3.
Seasonal
effects on operations
See
Note 3 to the Unaudited Condensed Interim Consolidated Financial
Statements.
4.
Acquisitions
and disposals
See
relevant acquisitions and disposals descripted in the Note 4 to the
Unaudited Condensed Interim Consolidated Financial
Statements.
5.
Financial
risk management and fair value estimates
These
Financial Statements do not include all the information and
disclosures on financial risk management; therefore, they should be
read along with Separate Annual Financial Statements as of June 30,
2021. There have been no changes in risk management or risk
management policies applied by the company's since
year-end.
IRSA
Propiedades Comerciales S.A.
Since June 30, 2021 as of the date of this
Financial Statements, there have been no significant changes in
business or economic circumstances affecting the fair value of the
company’s assets or liabilities of the company except for
that the indicated in Note 27 to the Unaudited Condensed
Interim Consolidated Financial Statements. Furthermore, there have been no transfers
between the different hierarchies used to assess the fair value of
the company’s financial instruments.
6.
Investment
in subsidiaries, associates and joint ventures
The
table below lists information about the Company's investment in
subsidiaries, associates and joint ventures:
|
|
% of ownership interest held
|
Value of Company’s interest in equity
|
Company’s interest in comprehensive (loss)/
income
|
|
Name of the entity
|
09.30.21
|
06.30.21
|
09.30.21
|
06.30.21
|
09.30.21
|
09.30.20
|
|
Subsidiaries
|
|
|
|
|
|
|
|
Panamerican
Mall S.A.
|
80.00%
|
80.00%
|
23,119
|
23,505
|
(387)
|
5,906
|
|
Torodur
S.A.
|
100.00%
|
100.00%
|
7,974
|
8,207
|
(389)
|
111
|
|
Arcos
del Gourmet S.A.
|
90.00%
|
90.00%
|
2,108
|
2,203
|
(95)
|
(11)
|
|
Shopping
Neuquén S.A.
|
99.95%
|
99.95%
|
949
|
931
|
18
|
93
|
|
Centro
de Entretenimientos La Plata S.A. (5)(4)(3)
|
95.40%
|
95.40%
|
635
|
649
|
(14)
|
203
|
|
We
Are Appa S.A.
|
93.63%
|
93.63%
|
405
|
491
|
(86)
|
(9)
|
|
Entertainment
Holdings S.A.
|
70.00%
|
70.00%
|
(30)
|
(39)
|
9
|
(53)
|
|
Emprendimiento
Recoleta S.A. (1)
|
53.68%
|
53.68%
|
68
|
73
|
(4)
|
(2)
|
|
Entretenimiento
Universal S.A. (2)
|
3.75%
|
3.75%
|
(2)
|
(2)
|
-
|
-
|
|
Fibesa
S.A. (2)
|
97.00%
|
97.00%
|
4
|
(9)
|
13
|
31
|
|
Associates
|
|
|
|
|
|
|
|
TGLT
S.A. (6)(7)
|
27.82%
|
27.82%
|
1,001
|
1,024
|
(23)
|
(77)
|
|
Joint ventures
|
|
|
|
|
|
|
|
Quality
Invest S.A.
|
50.00%
|
50.00%
|
3,154
|
3,198
|
(72)
|
948
|
|
Nuevo
Puerto Santa Fe S.A. (5)
|
50.00%
|
50.00%
|
295
|
294
|
1
|
(8)
|
|
|
|
|
39,680
|
40,525
|
(1,029)
|
7,132
|
|
|
|
|
|
Last financial information
|
|
Name of the entity
|
Place of business / Country of incorporation
|
Main activity
|
|
Share capital (nominal value)
|
(Loss) / income for the period
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
Panamerican
Mall S.A.
|
Argentina
|
Real
estate
|
397,661,435
|
497
|
(484)
|
28,898
|
|
Torodur
S.A.
|
Uruguay
|
Investment
|
2,514,547,001
|
1,884
|
(382)
|
7,970
|
|
Arcos
del Gourmet S.A.
|
Argentina
|
Real
estate
|
72,973,903
|
81
|
(49)
|
2,341
|
|
Shopping
Neuquén S.A.
|
Argentina
|
Real
estate
|
53,511,353
|
54
|
18
|
949
|
|
Centro
de Entretenimiento La Plata S.A. (5)(4)(3)
|
Argentina
|
Real
estate
|
36,824
|
95
|
1
|
142
|
|
Entertainment
Holdings S.A.
|
Argentina
|
Investment
|
32,503,379
|
46
|
19
|
182
|
|
Emprendimiento
Recoleta S.A. (1)
|
Argentina
|
Real
estate
|
13,449,990
|
25
|
(8)
|
127
|
|
Entretenimiento
Universal S.A.
|
Argentina
|
Event
organization and others
|
825
|
-
|
3
|
(52)
|
|
Fibesa
S.A.
|
Argentina
|
Real
estate
|
|
2
|
22
|
186
|
|
We
Are Appa S.A.
|
Argentina
|
Developer
|
484,727,737
|
518
|
(92)
|
311
|
|
Associates
|
|
|
|
|
|
|
|
TGLT
S.A. (6)
|
Argentina
|
Real
estate
|
257,320,997
|
925
|
(82)
|
4,635
|
|
Joint ventures
|
|
|
|
|
|
|
|
Quality
Invest S.A.
|
Argentina
|
Real
estate
|
225,146,912
|
406
|
(144)
|
6,206
|
|
Nuevo
Puerto Santa Fe S.A. (5)
|
Argentina
|
Real
estate
|
138,750
|
28
|
2
|
555
|
(1) Concession
ended on November 18, 2018. As of September 30, 2021, is in
liquidation.
(2) Included in
other payables.
(3) Corresponds to
profit for the three-month periods ended September 30, 2021 and
2020, respectively.
(4) Include the
necessary adjustments to get to the balances in accordance with the
International Financial Reporting Standards.
(5) Nominal value
per share ARS 100.
(6) See note 4 to
the Annual Consolidated Financial Statements as of June 30,
2021.
(7) Includes ARS 2
of other comprehensive income. For the purposes of the valuation of
the investment in the Company, the financial information prepared
by TGLT S.A. has been considered.
(i) Corresponds to
2,323,126 shares. Nominal value per share ARS 1 with 5 votes
rights.
IRSA
Propiedades Comerciales S.A.
Changes
in the Company’s investments in subsidiaries, associates and
joint ventures for the period ended September 30, 2021 and for the
year ended June 30, 2021 were as follows:
|
|
09.30.21
|
06.30.21
|
|
Beginning of the period/ year
|
40,525
|
46,136
|
|
Irrevocable
contributions (Note 23)
|
184
|
450
|
|
Share
of loss net
|
(1,029)
|
(5,431)
|
|
Sale
of interest of subsidiaries (ii)
|
-
|
(1)
|
|
Acquisition
of interest in associates (iii)
|
-
|
81
|
|
Other
comprehensive income / (loss)
|
2
|
(26)
|
|
Impairment
of associates and joint ventures (iv)
|
(2)
|
(684)
|
|
End of the period/ year (i)
|
39,680
|
40,525
|
(i)
It includes (ARS
32) as of September 30, 2021 corresponding to the participation in
Entertainment Holdings S.A. and Entertainment Universal S.A., and
(ARS 50) as of June 30, 2021 corresponding to the participation in
Fibesa S.A., Entertainment Universal S.A. and Entertainment
Holdings S.A., disclosed in Other liabilities
respectively.
(ii)
Corresponds to the
sale of We Are Appa S.A.. See note 4 to the Annual Consolidated
Financial Statements as of June 30, 2021.
(iii)
Corresponds to the
acquisition of 22% common shares of We are Appa S.A. See note 4 to
the Annual Consolidated Financial Statements as of June 30,
2021.
(iv)
Corresponds to the
investment in TGLT S.A. See note 8 to the Annual Consolidated
Financial Statements as of June 30, 2021.
Changes
in the Company’s investment properties for the three-month
period ended September 30, 2021 and for the year ended June 30,
2021 were as follows:
|
|
|
Office and Other rental properties
|
Undeveloped parcels of land
|
Properties under development
|
09.30.21
|
06.30.21
|
|
Fair value at beginning of the period / year
|
45,251
|
47,537
|
15,108
|
3,603
|
111,499
|
144,239
|
|
Additions
|
78
|
-
|
3
|
261
|
342
|
914
|
|
Disposals
(ii)
|
-
|
-
|
(85)
|
-
|
(85)
|
(19,750)
|
|
Transfers
|
-
|
-
|
-
|
-
|
-
|
(531)
|
|
Capitalized
lease costs
|
3
|
1
|
-
|
-
|
4
|
22
|
|
Amortization
of capitalized lease costs (i)
|
(2)
|
(2)
|
-
|
-
|
(4)
|
(8)
|
|
Net
loss from fair value adjustment on investment
properties
|
(2,920)
|
(940)
|
(361)
|
(26)
|
(4,247)
|
(13,387)
|
|
Fair value at end of the period / year
|
42,410
|
46,596
|
14,665
|
3,838
|
107,509
|
111,499
|
(i)
On September 30,
2021, the depreciation charges were included in “Costs”
in the amount of ARS 4, in the Statement of Income and Other
Comprehensive Income (Note 20).
(ii)
As of September 30,
2021, correspond to the sale of Casona Hudson. (See Note 4 to the
condensed interim consolidated financial statements). As of June
30, 2021, disposals are due to the sale of the buildings
“Bouchard 710” and “Boston Tower” included
in Offices and other rental properties. (See Note 4 to the
consolidated financial statements as of June 30,
2021).
The
following amounts have been recognized in the Statements of Income
and Other Comprehensive Income:
|
|
09.30.21
|
09.30.20
|
|
Rentals
and services income (Note 19)
|
2,286
|
912
|
|
Expenses
and collective promotion fund (Note 19)
|
796
|
508
|
|
Rental
and services costs (Note 20)
|
(1,133)
|
(847)
|
|
Net
unrealized (loss) / gain from fair value adjustment on investment
properties
|
(4,179)
|
14,642
|
|
Net
realized gain from fair value adjustment on investment properties
(i) (ii)
|
18
|
8,163
|
(i)
As of September 30,
2021, includes ARS 18 from the sale of Casona Hudson. As of
September 30, 2020, includes ARS 2,732 for the sale of Torre Boston
and ARS 5,431 for the sale of Bouchard 710.
(ii)
As of September 30,
2021, (ARS 68) corresponds to the result for changes in the fair
value realized to the year and ARS 86 for the result due to changes
in fair value made in previous years for the sale of Casona Hudson.
As of September 30, 2020, ARS 285 corresponds to the result for
changes in the fair value realized for the year (ARS 797 for the
sale of Torre Boston and (ARS 512) for the sale of Bouchard 710)
and ARS 7,878 for the result for changes in the fair value realized
in previous years (ARS 1,935 for the sale of Torre Boston and ARS
5,943 for the sale of Bouchard 710).
Valuation
techniques are described in Note 9 to the Annual Consolidated
Financial Statements as of June 30, 2021. There were no changes to
the valuation techniques.
IRSA
Propiedades Comerciales S.A.
8.
Property,
plant and equipment
Changes
in the Company’s property, plant and equipment for the
three-month period ended September 30, 2021 and for the year ended
June 30, 2021 were as follows:
|
|
Other
buildings and facilities
|
|
|
|
|
09.30.21
|
06.30.21
|
|
Costs
|
1,526
|
346
|
2,163
|
32
|
1
|
4,068
|
3,125
|
|
Accumulated
depreciation
|
(467)
|
(275)
|
(2,016)
|
(32)
|
-
|
(2,790)
|
(2,667)
|
|
Net book amount at beginning of the period / year
|
1,059
|
71
|
147
|
-
|
1
|
1,278
|
458
|
|
Additions
|
8
|
1
|
12
|
-
|
-
|
21
|
158
|
|
Disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
(7)
|
|
Transfers
|
-
|
-
|
-
|
-
|
-
|
-
|
792
|
|
Depreciation
charges (i)
|
(12)
|
(3)
|
(16)
|
-
|
-
|
(31)
|
(123)
|
|
Net book amount at end of the period / year
|
1,055
|
69
|
143
|
-
|
1
|
1,268
|
1,278
|
|
Costs
|
1,534
|
347
|
2,175
|
32
|
1
|
4,089
|
4,068
|
|
Accumulated
depreciation
|
(479)
|
(278)
|
(2,032)
|
(32)
|
-
|
(2,821)
|
(2,790)
|
|
Net book amount at end of the period / year
|
1,055
|
69
|
143
|
-
|
1
|
1,268
|
1,278
|
(i)
On September
30, 2021, the depreciation charges were included in
“Costs” in the amount of ARS 17 and in “General
and administrative expenses” in the amount of ARS 14 in the
Statement of Income and Other Comprehensive Income (Note
20).
Changes
in the Company’s, trading properties for the three-month
period ended September 30, 2021 and for the year ended June 30,
2021 were as follows:
|
|
|
|
|
|
|
Net book amount the beginning of the period / year
|
12
|
116
|
128
|
179
|
|
Additions
|
-
|
-
|
-
|
8
|
|
Disposals
(i)
|
-
|
-
|
-
|
(59)
|
|
Net book amount the end of the period / year
|
12
|
116
|
128
|
128
|
|
Non-current
|
|
|
123
|
123
|
|
Current
|
|
|
5
|
5
|
|
Total
|
|
|
128
|
128
|
(i)
As of June 30,
2021, the cost of selling properties is included in
“Costs” in the statement of comprehensive income (Note
20)
Changes
in the Company’s intangible assets for the three-month period
ended September 30, 2021 and for the year ended June 30, 2021 were
as follows:
|
|
|
Right to receive units (ii)
|
|
09.30.21
|
06.30.21
|
|
Costs
|
668
|
1,144
|
104
|
1,916
|
1,898
|
|
Accumulated
amortization
|
(534)
|
-
|
(104)
|
(638)
|
(549)
|
|
Net book amount at beginning of the period / year
|
134
|
1,144
|
-
|
1,278
|
1,349
|
|
Additions
|
3
|
-
|
-
|
3
|
18
|
|
Amortization
charges (i)
|
(17)
|
-
|
-
|
(17)
|
(89)
|
|
Net book amount at end of the period / year
|
120
|
1,144
|
-
|
1,264
|
1,278
|
|
Costs
|
671
|
1,144
|
104
|
1,919
|
1,916
|
|
Accumulated
amortization
|
(551)
|
-
|
(104)
|
(655)
|
(638)
|
|
Net book amount at end of the period / year
|
120
|
1,144
|
-
|
1,264
|
1,278
|
(i) On September
30, 2021, the amortization charges were included in “General
and administrative expenses” in the amount of ARS 17 in the
Statement of Income and Other Comprehensive Income (Note
20).
(ii) Corresponds to
in kind receivables representing the right to receive residential
apartments in the future under barter transactions.
IRSA
Propiedades Comerciales S.A.
|
|
09.30.21
|
06.30.21
|
|
Shopping
malls (Note 23)
|
696
|
792
|
|
Machinery
and equipment
|
4
|
5
|
|
Others
|
3
|
6
|
|
Total rights of use
|
703
|
803
|
|
Non-current
|
703
|
803
|
|
Total
|
703
|
803
|
The
charges to income related to rights of use assets were the
following:
|
|
09.30.21
|
09.30.20
|
|
Shopping
malls
|
99
|
99
|
|
Machinery
and equipment
|
1
|
4
|
|
Others
|
3
|
16
|
|
Total amortization and depreciation of rights of use
(i)
|
103
|
119
|
(i)
On September 30,
2021, the depreciation charges were included in “Costs”
in the amount of ARS 99 and in “General and administrative
expenses” in the amount of ARS 4 in the Statement of Income
and Other Comprehensive Income (Note 20).
12.
Financial
instruments by category
The
present note shows the financial assets and financial liabilities
by category of financial instrument and a reconciliation to the
corresponding line in the statements of financial position, as
appropriate. Financial assets and liabilities measured at fair
value are assigned based on their different levels in the fair
value hierarchy. For further information, related to fair value
hierarchy see Note 14 to the Separate Annual Financial Statements
as of June 30, 2021.
Financial assets
and financial liabilities as of September 30, 2021, are as
follows:
|
|
Financial assets at amortized cost (i)
|
Financial assets at fair value through profit or loss
|
Subtotal financial assets
|
|
|
|
September 30, 2021
|
|
|
|
|
|
|
Assets as per Statement of Financial Position
|
|
|
|
|
|
|
Trade
and other receivables (excluding allowance for doubtful accounts)
(Note 13)
|
8,367
|
-
|
8,367
|
1,921
|
10,288
|
|
Investments
in financial assets:
|
|
|
|
|
|
|
-
Investment in equity public companies´ securities
|
-
|
156
|
156
|
-
|
156
|
|
-
Bonds
|
-
|
10,182
|
10,182
|
-
|
10,182
|
|
-
Mutual funds
|
-
|
20
|
20
|
-
|
20
|
|
Cash
and cash equivalents:
|
|
|
|
|
|
|
-
Cash at banks and on hand
|
62
|
-
|
62
|
-
|
62
|
|
-
Short- term investments
|
-
|
12
|
12
|
-
|
12
|
|
Total
|
8,429
|
10,370
|
18,799
|
1,921
|
20,720
|
|
|
Financial liabilities at amortized cost (i)
|
Non-financial liabilities
|
|
|
|
|
|
|
|
Liabilities as per statement of financial position
|
|
|
|
|
Trade
and other payables (Note 15)
|
1,574
|
3,393
|
4,967
|
|
Borrowings
(Note 16)
|
45,483
|
-
|
45,483
|
|
Total
|
47,057
|
3,393
|
50,450
|
IRSA
Propiedades Comerciales S.A.
Company´s
financial assets and financial liabilities as of June 30, 2021 were
as follows:
|
|
Financial assets at amortized cost (i)
|
Financial assets at fair value through profit or loss
|
Subtotal financial assets
|
|
|
|
June 30, 2021
|
|
|
|
|
|
|
Assets as per Statement of Financial Position
|
|
|
|
|
|
|
Trade
and other receivables (excluding allowance for doubtful accounts)
(Note 13)
|
12,470
|
-
|
12,470
|
2,187
|
14,657
|
|
Investments
in financial assets:
|
|
|
|
|
|
|
-
Investment in equity public companies´ securities
|
-
|
136
|
136
|
-
|
136
|
|
-
Bonds
|
-
|
7,656
|
7,656
|
-
|
7,656
|
|
-
Mutual funds
|
-
|
22
|
22
|
-
|
22
|
|
Cash
and cash equivalents:
|
|
|
|
|
|
|
-
Cash at banks and on hand
|
27
|
-
|
27
|
-
|
27
|
|
-
Short- term investments
|
-
|
32
|
32
|
-
|
32
|
|
Total
|
12,497
|
7,846
|
20,343
|
2,187
|
22,530
|
|
|
Financial liabilities at amortized cost (i)
|
Non-financial liabilities
|
|
|
|
|
|
|
|
Liabilities as per statement of financial position
|
|
|
|
|
Trade
and other payables (Note 15)
|
1,723
|
3,131
|
4,854
|
|
Borrowings
(Note 16)
|
49,708
|
-
|
49,708
|
|
Total
|
51,431
|
3,131
|
54,562
|
(i)
The fair value of
financial assets and liabilities at their amortized cost does not
differ significantly from their book value, except for borrowings
(See Note 16).
Liabilities carried
at amortized cost also include liabilities under finance leases
where the Company is the lessee and which therefore have to be
measured in accordance with IFRS 16 “Leases”. Finance
leases are excluded from the scope of IFRS 7 “financial
instruments: disclosures”.
13.
Trade
and other receivables
The
following table shows the amounts of Company’s trade and
other receivables as of September 30, 2021 and June 30,
2021:
|
|
09.30.21
|
06.30.21
|
|
Lease
and services receivables
|
1,591
|
1,471
|
|
Averaging
of scheduled rent escalation
|
760
|
850
|
|
Post-dated
checks
|
512
|
515
|
|
Debtors
under legal proceedings
|
705
|
492
|
|
Consumer
financing receivables
|
16
|
18
|
|
Property
sales receivables
|
191
|
204
|
|
Less:
allowance for doubtful accounts
|
(828)
|
(788)
|
|
Total trade receivables
|
2,947
|
2,762
|
|
Advance
payments
|
597
|
650
|
|
Prepayments
|
317
|
409
|
|
Other
tax receivables
|
247
|
254
|
|
Loans
|
108
|
113
|
|
Expenses
to be recovered
|
35
|
33
|
|
Others
|
12
|
13
|
|
Total other receivables
|
1,316
|
1,472
|
|
Related
parties (Note 23)
|
5,197
|
9,635
|
|
Total current trade and other receivables
|
9,460
|
13,869
|
|
Non-current
|
1,164
|
633
|
|
Current
|
8,296
|
13,236
|
|
Total
|
9,460
|
13,869
|
Movements on the
Company’s allowance for doubtful accounts and other
receivables are as follows:
|
|
09.30.21
|
06.30.21
|
|
Beginning of the period / year
|
(788)
|
(860)
|
|
Additions
(Note 20)
|
(133)
|
(391)
|
|
Unused
amounts reversed (Note 20)
|
32
|
203
|
|
Inflation
adjustment
|
61
|
260
|
|
End of the period / year
|
(828)
|
(788)
|
IRSA
Propiedades Comerciales S.A.
14.
Cash
flow and cash equivalent information
Following is a
detailed description of cash flows generated by the Company’s
operations for the three-month periods ended September 30, 2021,
and 2020:
|
|
Note
|
09.30.21
|
09.30.20
|
|
Net (loss)/ gain for the period
|
|
(1,709)
|
18,828
|
|
Adjustments:
|
|
|
|
|
Income
tax
|
18
|
(780)
|
3,893
|
|
Amortization
and depreciation
|
20
|
155
|
180
|
|
Net
loss/ (gain) from fair value adjustments of investment
properties
|
7
|
4,247
|
(14,927)
|
|
Directors’
fees provision
|
|
100
|
390
|
|
Averaging
of schedule rent escalation
|
19
|
(5)
|
54
|
|
Financial
results, net
|
|
(1,247)
|
(7,153)
|
|
Provisions
and allowances
|
13
and 17
|
113
|
84
|
|
Share
of loss/ (profit) of associates and joint ventures
|
6
|
1,031
|
(7,150)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Decrease
in inventories
|
|
2
|
2
|
|
(Increase)/
Decrease in trade and other receivables
|
|
(329)
|
58
|
|
(Decrease)/
Increase in trade and other payables
|
|
(359)
|
245
|
|
Decrease
in payroll and social security liabilities
|
|
(72)
|
(105)
|
|
Uses
of provisions
|
17
|
(19)
|
(15)
|
|
Net cash generated from/ (used in) operating activities before
income tax paid
|
1,128
|
(5,616)
|
The
following table shows a detail of non-cash transactions occurred in
the three-month periods ended September 30, 2021, and
2020:
|
Non-cash transactions
|
09.30.21
|
09.30.20
|
|
Currency
translation adjustment in associates
|
2
|
18
|
|
Increase
in investment in financial assets through a decrease in trade and
other receivables
|
2,911
|
556
|
|
Decrease
in trade and other receivables trough a decrease in leases
liabilities
|
1
|
-
|
|
Decrease
in Investments in subsidiaries, associates and joint ventures
trough decrease in other liabilities
|
18
|
-
|
|
Increase
in financial assets through an increase in borrowings
|
-
|
27
|
|
Decrease
in financial assets through a decrease in trade and other
payables
|
-
|
26
|
|
Increase
in rights of use assets through a decrease in leases
liabilities
|
-
|
37
|
|
Increase
in trade and other receivables through a decrease in investment in
financial assets
|
-
|
6,290
|
15.
Trade
and other payables
The
following table shows the amounts of Company’s trade and
other payables as of September 30, 2021 and June 30,
2021:
|
|
09.30.21
|
06.30.21
|
|
Admission
rights
|
1,059
|
1,067
|
|
Rent
and service payments received in advance
|
1,048
|
1,081
|
|
Trade
payables
|
496
|
594
|
|
Accrued
invoices
|
276
|
296
|
|
Tenant
deposits
|
60
|
65
|
|
Payments
received in advance
|
236
|
280
|
|
Total trade payables
|
3,175
|
3,383
|
|
Tax
payables
|
979
|
646
|
|
Other
income to be accrued
|
55
|
57
|
|
Other
payables
|
12
|
13
|
|
Total other payables
|
1,046
|
716
|
|
Related
parties (Note 23)
|
746
|
755
|
|
Total trade and other payables
|
4,967
|
4,854
|
|
Non-current
|
1,228
|
1,081
|
|
Current
|
3,739
|
3,773
|
|
Total
|
4,967
|
4,854
|
IRSA
Propiedades Comerciales S.A.
The
following table shows the Company’s borrowings as of
September 30, 2021 and June 30, 2021:
|
|
|
|
|
|
|
Non-Convertible
notes
|
35,044
|
37,905
|
33,911
|
35,063
|
|
Bank
loans
|
455
|
375
|
455
|
375
|
|
Related
parties (Note 23)
|
5,558
|
5,939
|
5,544
|
5,903
|
|
Bank
overdrafts
|
4,426
|
5,489
|
4,426
|
5,489
|
|
Total borrowings
|
45,483
|
49,708
|
44,336
|
46,830
|
|
Non-current
|
35,439
|
37,511
|
|
|
|
Current
|
10,044
|
12,197
|
|
|
|
Total
|
45,483
|
49,708
|
|
|
The
following table shows the movements in the Company’s
provisions as of September 30, 2021 and June 30, 2021:
|
|
09.30.21
|
06.30.21
|
|
Balances at the beginning of the period / year
|
150
|
151
|
|
Increases
(Note 21)
|
12
|
71
|
|
Recovery
(Note 21)
|
-
|
(4)
|
|
Used
during the period / year
|
(6)
|
(5)
|
|
Inflation
adjustment
|
(13)
|
(63)
|
|
Balances at the end of the period / year
|
143
|
150
|
|
Non-current
|
74
|
76
|
|
Current
|
69
|
74
|
|
Total
|
143
|
150
|
18.
Current
and deferred income tax
The
detail of the income tax expense of the Company are as
follows:
|
|
09.30.21
|
09.30.20
|
|
Current
income tax
|
(1,369)
|
-
|
|
Deferred
income tax
|
2,149
|
(3,893)
|
|
Income tax
|
780
|
(3,893)
|
Changes
in the deferred tax account are as follows:
|
|
09.30.21
|
06.30.21
|
|
Beginning of the period / year
|
(42,008)
|
(31,644)
|
|
Income
tax
|
2,149
|
(10,273)
|
|
Revaluation
surplus
|
-
|
(91)
|
|
End of the period / year
|
(39,859)
|
(42,008)
|
Below
there is a reconciliation between the income tax recognized and
that which would result from applying the prevailing tax rate on
the profit before income tax for the three-month periods ended
September 30, 2021, and 2020:
|
|
09.30.21
|
09.30.20
|
|
Profit/
(Loss) for period before income tax at the prevailing tax
rate
|
871
|
(6,816)
|
|
Tax
effects of:
|
|
|
|
Result
by rate transparency
|
(24)
|
15
|
|
Rate
change
|
-
|
1,360
|
|
Share
of (loss)/ profit of subsidiaries, associates and joint
ventures
|
(361)
|
2,145
|
|
Tax
loss carryforward update/ Fixed assets sold
|
(6)
|
-
|
|
Tax
inflation adjustment
|
(840)
|
(799)
|
|
Inflation
adjustment
|
1,141
|
55
|
|
Non-taxable
profit, non-deductible expenses and others
|
(1)
|
147
|
|
Income tax
|
780
|
(3,893)
|
IRSA
Propiedades Comerciales S.A.
|
|
09.30.21
|
09.30.20
|
|
Base
rent
|
1,108
|
629
|
|
Contingent
rent
|
897
|
88
|
|
Admission
rights
|
170
|
205
|
|
Averaging
of scheduled rent escalation
|
5
|
(54)
|
|
Property
management fees
|
30
|
34
|
|
Others
|
35
|
7
|
|
Parking
fees
|
41
|
3
|
|
Rentals and services income
|
2,286
|
912
|
|
Sale
of trading properties
|
-
|
3
|
|
Gain from disposal of trading properties
|
-
|
3
|
|
Total revenues from sales, rentals and services
|
2,286
|
915
|
|
Expenses
and collective promotion fund
|
796
|
508
|
|
Total revenues from expenses and collective promotion
funds
|
796
|
508
|
|
Total revenues
|
3,082
|
1,423
|
|
|
|
General and administrative expenses
|
|
09.30.21
|
09.30.20
|
|
Salaries,
social security costs and other personnel administrative expenses
(1)
|
375
|
171
|
10
|
556
|
509
|
|
Maintenance,
security, cleaning, repairs and other
|
335
|
21
|
2
|
358
|
282
|
|
Taxes,
rates and contributions
|
125
|
1
|
110
|
236
|
399
|
|
Directors'
fees
|
-
|
100
|
-
|
100
|
390
|
|
Amortization
and depreciation
|
120
|
35
|
-
|
155
|
180
|
|
Fees
and payments for services
|
6
|
37
|
5
|
48
|
229
|
|
Advertising
and other selling expenses
|
144
|
-
|
5
|
149
|
30
|
|
Leases
and expenses
|
34
|
10
|
1
|
45
|
44
|
|
Traveling,
transportation and stationery
|
8
|
8
|
1
|
17
|
5
|
|
Allowance
for doubtful accounts (additions and unused amounts reversed) (Note
13)
|
-
|
-
|
101
|
101
|
55
|
|
Other
expenses
|
3
|
7
|
-
|
10
|
4
|
|
Total expenses by nature 09.30.21
|
1,150
|
390
|
235
|
1,775
|
-
|
|
Total expenses by nature 09.30.20
|
868
|
664
|
595
|
-
|
2,127
|
(1)
For the three-month
period ended September 30, 2021, includes ARS 543 of Salaries,
Bonuses and Social Security and ARS 13 of other concepts. For the
three-month period ended September 30, 2020, includes ARS 404 of
Salaries, Bonuses and Social Security and ARS 105 of other
concepts.
(2)
For the three-month
period ended September 30, 2021, includes ARS 1,133 of Rental and
services costs and ARS 17 of Cost of sales and developments. For
the three-month period ended September 30, 2020, includes ARS 847
of Rental and services costs and ARS 21 of Cost of sales and
developments.
21.
Other
operating results, net
|
|
09.30.21
|
09.30.20
|
|
Management
fees
|
33
|
23
|
|
Others
|
(1)
|
4
|
|
Interest
generated by operating credits
|
56
|
52
|
|
Donations
|
(7)
|
(9)
|
|
Lawsuits
(Note 17)
|
(12)
|
(29)
|
|
Total other operating results, net
|
69
|
41
|
22.
Financial
results, net
|
|
09.30.21
|
09.30.20
|
|
-
Interest income
|
71
|
642
|
|
Finance income
|
71
|
642
|
|
-
Interest expense
|
(1,333)
|
(1,462)
|
|
-
Other finance costs
|
(101)
|
(202)
|
|
Finance costs
|
(1,434)
|
(1,664)
|
|
-
Foreign exchange, net
|
2,347
|
(78)
|
|
-
Fair value (loss)/ gain of financial assets and liabilities at Fair
value through profit or loss
|
(124)
|
2,231
|
|
-
Loss from derivative financial instruments
|
-
|
(257)
|
|
-
Loss for repurchase of non-convertible notes
|
-
|
(7)
|
|
Other financial results
|
2,223
|
1,889
|
|
-
Inflation adjustment
|
553
|
440
|
|
Total financial results, net
|
1,413
|
1,307
|
IRSA
Propiedades Comerciales S.A.
23.
Related
parties transactions
The
following is a summary of the balances with related
parties:
|
Items
|
09.30.21
|
06.30.21
|
|
Trade
and other receivables
|
5,197
|
9,635
|
|
Rights
of use assets
|
696
|
792
|
|
Investments
in financial assets
|
9,688
|
7,145
|
|
Trade
and other payables
|
(746)
|
(755)
|
|
Borrowings
|
(5,558)
|
(5,939)
|
|
Leases
liabilities
|
(2)
|
(6)
|
|
Total
|
9,275
|
10,872
|
|
Related parties
|
09.30.21
|
06.30.21
|
Description of transaction
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
(IRSA)
|
7,460
|
4,753
|
Non-convertible
notes
|
|
|
4,126
|
8,578
|
Loans
granted
|
|
|
62
|
56
|
Corporate
services
|
|
|
12
|
13
|
Equity
incentive plan
|
|
|
18
|
7
|
Reimbursement
of expenses
|
|
|
3
|
11
|
Leases
and/or rights to use space
|
|
|
3
|
1
|
Averaging
|
|
|
-
|
2
|
Lease
collections
|
|
|
(255)
|
(277)
|
Non-convertible
notes
|
|
|
(118)
|
(163)
|
Advance
received
|
|
Total direct parent company
|
11,311
|
12,981
|
|
|
Cresud
S.A.CI.F. y A.
|
2,228
|
2,392
|
Non-convertible
notes
|
|
|
(3)
|
(3)
|
Equity
incentive plan to pay
|
|
|
24
|
-
|
Averaging
|
|
|
14
|
-
|
Reimbursement
of expenses
|
|
|
-
|
(31)
|
Reimbursement
of expenses to pay
|
|
|
(275)
|
(154)
|
Corporate
services to pay
|
|
Total direct parent company of IRSA
|
1,988
|
2,204
|
|
|
Panamerican
Mall S.A.
|
45
|
49
|
Reimbursement
of expenses
|
|
|
8
|
-
|
Management
fee
|
|
|
211
|
223
|
Other
receivables
|
|
|
-
|
(2)
|
Leases
and/or rights to use space to pay
|
|
|
(22)
|
(23)
|
Lease
collections to pay
|
|
Arcos
del Gourmet S.A.
|
18
|
5
|
Reimbursement
of expenses
|
|
|
4
|
-
|
Management
fee
|
|
|
(9)
|
(10)
|
Lease
collections to pay
|
|
|
-
|
(2)
|
Leases
and/or rights to use space to pay
|
|
Fibesa
S.A.
|
(24)
|
(28)
|
Borrowings
|
|
|
2
|
1
|
Leases
and/or rights to use space
|
|
|
1
|
3
|
Reimbursement
of expenses
|
|
Shopping
Neuquén S.A.
|
696
|
792
|
Rights
of use assets
|
|
|
169
|
176
|
Loans
granted
|
|
|
29
|
31
|
Reimbursement
of expenses
|
|
Torodur
S.A.
|
(5,102)
|
(5,372)
|
Borrowings
|
|
|
(144)
|
(156)
|
Non-convertible
notes
|
|
Ogden
Argentina S.A
|
349
|
365
|
Loans
granted
|
|
|
3
|
1
|
Reimbursement
of expenses
|
|
Entretenimiento
Universal S.A.
|
47
|
49
|
Loans
granted
|
|
We
Are Appa S.A.
|
8
|
1
|
Other
receivables
|
|
|
-
|
(10)
|
Reimbursement
of expenses to pay
|
|
|
(90)
|
(197)
|
Other
payables
|
|
La
Arena S.A.
|
1
|
1
|
Reimbursement
of expenses
|
|
Centro
de Entretenimiento La Plata S.A.
|
-
|
1
|
Reimbursement
of expenses
|
|
Other
subsidiaries of IRSA Propiedades Comerciales S.A.
|
(4)
|
-
|
Reimbursement
of expenses to pay
|
|
Total subsidiaries
|
(3,804)
|
(4,102)
|
|
IRSA
Propiedades Comerciales S.A.
|
Related parties
|
09.30.21
|
06.30.21
|
Description of transaction
|
|
Nuevo
Puerto Santa Fe S.A.
|
5
|
4
|
Management
fee
|
|
|
1
|
1
|
Reimbursement
of expenses
|
|
|
6
|
5
|
Loans
granted
|
|
|
-
|
(1)
|
Leases
and/or rights to use space to pay
|
|
Quality
S.A.
|
(2)
|
(6)
|
Leases
and/or rights to use space to pay
|
|
|
-
|
1
|
Reimbursement
of expenses
|
|
TGLT
S.A.
|
-
|
13
|
Other
receivables
|
|
Total associates and joint ventures
|
10
|
17
|
|
|
Directors
|
(191)
|
(110)
|
Fees
|
|
Total Directors
|
(191)
|
(110)
|
|
|
Futuros
y Opciones.Com S.A.
|
2
|
2
|
Reimbursement
of expenses
|
|
|
-
|
(71)
|
Borrowings
|
|
IRSA
International LLC
|
(30)
|
(32)
|
Other
payables
|
|
Fundación
Museo de los Niños
|
6
|
14
|
Reimbursement
of expenses
|
|
La
Rural S.A.
|
(2)
|
(14)
|
Leases
and/or rights to use space to pay
|
|
Others
related parties
|
1
|
14
|
Reimbursement
of expenses
|
|
|
1
|
-
|
Reimbursement
of expenses to pay
|
|
|
2
|
-
|
Other
receivables
|
|
|
17
|
7
|
Leases
and/or rights to use space
|
|
|
(3)
|
(3)
|
Leases
and/or rights to use space to pay
|
|
|
(33)
|
(35)
|
Non-convertible
notes
|
|
Total others
|
(39)
|
(118)
|
|
|
Total
|
9,275
|
10,872
|
|
The
following is a summary of the results with related
parties:
|
Related parties
|
09.30.21
|
09.30.20
|
Description of transaction
|
|
IRSA
Inversiones y Representaciones Sociedad Anónima
(IRSA)
|
13
|
6
|
Corporate
services
|
|
|
-
|
1,429
|
Financial
operations
|
|
|
6
|
3
|
Leases
and/or rights to use space
|
|
Total direct parent company
|
19
|
1,438
|
|
|
Cresud
S.A.CI.F. y A.
|
-
|
271
|
Financial
operations
|
|
|
(78)
|
3
|
Leases
and/or rights to use space
|
|
|
(159)
|
(156)
|
Corporate
services
|
|
Total direct parent company of IRSA
|
(237)
|
118
|
|
|
Arcos
del Gourmet S.A.
|
11
|
11
|
Fees
|
|
|
(3)
|
(2)
|
Leases
and/or rights to use space
|
|
Fibesa
S.A.
|
3
|
(2)
|
Leases
and/or rights to use space
|
|
|
-
|
2
|
Fees
|
|
Torodur
S.A.
|
276
|
78
|
Financial
operations
|
|
Helmir
S.A.
|
1
|
-
|
Financial
operations
|
|
Shopping
Neuquén S.A.
|
(7)
|
(99)
|
Financial
operations
|
|
|
(99)
|
-
|
Leases
and/or rights to use space
|
|
Ogden
Argentina S.A
|
(17)
|
6
|
Financial
operations
|
|
Panamerican
Mall S.A.
|
18
|
14
|
Fees
|
|
|
(2)
|
-
|
Leases
and/or rights to use space
|
|
|
(11)
|
9
|
Financial
operations
|
|
Centro
de Entretenimientos La Plata S.A.
|
(1)
|
1
|
Financial
operations
|
|
Entretenimiento
Universal S.A.
|
(2)
|
2
|
Financial
operations
|
|
Total subsidiaries
|
167
|
20
|
|
|
Nuevo
Puerto Santa Fe S.A.
|
1
|
2
|
Fees
|
|
|
(1)
|
-
|
Leases
and/or rights to use space
|
|
Quality
Invest S.A.
|
-
|
(12)
|
Financial
operations
|
|
|
1
|
-
|
Fees
|
|
Total associates and joint ventures
|
1
|
(10)
|
|
|
Directors
|
(100)
|
(390)
|
Fees
|
|
Senior
Management
|
(18)
|
(15)
|
Fees
|
|
Total directors
|
(118)
|
(405)
|
|
|
IRSA
International LLC
|
-
|
23
|
Financial
operations
|
|
Tyrus
S.A.
|
-
|
149
|
Financial
operations
|
|
Museo
de los Niños
|
(6)
|
-
|
Donations
|
|
Banco
de Crédito y Securitización S.A.
|
20
|
21
|
Leases
and/or rights to use space
|
|
Estudio
Zang, Bergel & Viñes
|
(3)
|
(6)
|
Fees
|
|
Others
|
(3)
|
(3)
|
Donations
|
|
|
12
|
14
|
Leases
and/or rights to use space
|
|
Total others related parties
|
20
|
198
|
|
|
Total
|
(148)
|
1,359
|
|
IRSA
Propiedades Comerciales S.A.
The
following is a summary of the transactions with related
parties:
|
Related parties
|
09.30.21
|
09.30.20
|
Description of transaction
|
|
Torodur
S.A.
|
157
|
-
|
Irrevocable
contributions granted
|
|
Quality
Invest S.A.
|
27
|
14
|
Irrevocable
contributions granted
|
|
Total irrevocable contributions to joint ventures
|
184
|
14
|
|
|
We
are Appa S.A.
|
-
|
81
|
Share
acquisition
|
|
Total share acquisition
|
-
|
81
|
|
24.
CNV
General Resolution N° 622/13
As
required by Section 1, Chapter III, Title IV of CNV General
Resolution N° 622/13, below there is a detail of the notes to
the Financial Statements that disclose the information required by
the Resolution in Exhibits.
|
Exhibit A - Property, plant and equipment
|
Note 7 - Investment properties
|
|
|
Note 8 - Property, plant and equipment
|
|
Exhibit B - Intangible assets
|
Note 10 - Intangible assets
|
|
Exhibit C - Equity investments
|
Note 6 - Investment in subsidiaries, associates and joint
ventures
|
|
Exhibit D - Other investments
|
Note 12 - Financial instruments by category
|
|
Exhibit E – Provisions
|
Note 13 - Trade and other receivables
|
|
|
Note 17 - Provisions
|
|
Exhibit F – Cost of sales and services provided
|
Note 9 - Trading properties
|
|
|
Note 20 - Expenses by nature
|
|
Exhibit G - Foreign currency assets and liabilities
|
Note 25 - Foreign currency assets and liabilities
|
25.
Foreign
currency assets and liabilities
Book
amounts of foreign currency assets and liabilities are as
follows:
|
|
|
|
09.30.21
|
06.30.21
|
|
Assets
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
US
Dollar
|
10.18
|
98.54
|
1,003
|
970
|
|
Euro
|
0.08
|
113.88
|
9
|
11
|
|
Trade and other receivables with related parties
|
|
|
|
|
|
US
Dollar
|
6.36
|
98.74
|
628
|
660
|
|
Total trade and other receivables
|
|
|
1,640
|
1,641
|
|
Investments in financial assets
|
|
|
|
|
|
US
Dollar
|
5.01
|
98.54
|
494
|
510
|
|
Investment in financial assets with related parties
|
|
|
|
|
|
US
Dollar
|
89.26
|
98.74
|
8,814
|
6,228
|
|
Total investments in financial assets
|
|
|
9,308
|
6,738
|
|
Cash and cash equivalents
|
|
|
|
|
|
US
Dollar
|
0.26
|
98.54
|
26
|
23
|
|
Total cash and cash equivalents
|
|
|
26
|
23
|
|
Total Assets
|
|
|
10,974
|
8,402
|
|
Liabilities
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
US
Dollar
|
2.87
|
98.74
|
283
|
492
|
|
Euro
|
0.01
|
114.36
|
1
|
20
|
|
Trade and other payables with related parties
|
|
|
|
|
|
US
Dollar
|
0.39
|
98.74
|
39
|
37
|
|
Total trade and other payables
|
|
|
323
|
549
|
|
Borrowings
|
|
|
|
|
|
US
Dollar
|
355.15
|
98.74
|
35,068
|
37,935
|
|
Borrowings from related parties
|
|
|
|
|
|
US
Dollar
|
56.05
|
98.74
|
5,534
|
5,841
|
|
Total borrowings
|
|
|
40,602
|
43,776
|
|
Leases liabilities
|
|
|
|
|
|
US
Dollar
|
0.02
|
98.74
|
2
|
3
|
|
Leases liabilities with related parties
|
|
|
|
|
|
US
Dollar
|
0.02
|
98.74
|
2
|
7
|
|
Total Leases liabilities
|
|
|
4
|
10
|
|
Total Liabilities
|
|
|
40,929
|
44,335
|
(1)
Considering
foreign currencies those that differ from each one of the
company’s companies at each period/year-end.
(2)
Expressed
in millions of foreign currency.
(3)
Exchange rate of the Argentine Peso as of
September 30, 2021,
according to Banco Nación
Argentina.
IRSA
Propiedades Comerciales S.A.
26.
Economic
context in which the Company operates
See
Note 27 to the Unaudited Condensed Interim Consolidated Financial
Statements.
See
Note 28 to the Unaudited Condensed Interim Consolidated Financial
Statements.
Free
translation from the original prepared in Spanish for publication
in Argentina
REVIEW REPORT ON THE UNAUDITED CONDENSED INTERIM SEPARATE FINANCIAL
STATEMENTS
To the
Shareholders, President and Directors of
IRSA Propiedades Comerciales S.A.
Legal address: Carlos Della Paolera 261– 8º
floor
Autonomous
City of Buenos Aires
Tax Registration Number: 30-52767733-1
Introduction
We have reviewed the accompanying unaudited condensed interim separate
financial statements of IRSA Propiedades Comerciales S.A.
(“the Company”), which comprise the unaudited condensed interim
separate statement of financial position as of September 30, 2021,
and the unaudited condensed interim separate statements of
comprehensive income for the three-month period ended September 30,
2021, changes in shareholders’ equity and of cash flows for
the three-month period then ended, and selected explanatory
note.
The
balances and other information for the fiscal year ended on June
30, 2021 and its interim periods are an integral part of the
financial statements mentioned
above; therefore, they must be considered in connection
with these financial statements.
Management’s responsibility
The
Board of Directors of the Company is responsible for the
preparation and presentation of these unaudited condensed interim
separate financial statements in accordance with International
Financial Reporting Standards (IFRS), adopted by the Argentine
Federation of Professional Councils in Economic Sciences (FACPCE)
as professional accounting standards and included by the National
Securities Commission (CNV) in its regulations, as approved by the
International Accounting Standards Board (IASB), and is therefore
responsible for the preparation and presentation of the unaudited
condensed interim separate financial statements mentioned in the
first paragraph, in accordance with International Accounting
Standard 34 Interim Financial Reporting (IAS 34).
Scope of our review
Our review was limited to the application of the procedures
established under International Standards on Review Engagements
ISRE 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity, adopted as a review standard in
Argentina by Technical Pronouncement No. 33 of the FACPCE and
approved by the International Auditing and Assurance Standards
Board (IAASB). A review of interim financial information consists
of inquiries of Company staff responsible for preparing the
information included in the unaudited condensed interim separate
financial statements and of analytical and other review procedures.
This review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion on the
separate statement of financial position and the separate
statements of comprehensive income and of cash flows of the
Company.
Free
translation from the original prepared in Spanish for publication
in Argentina
Conclusion
On the
basis of our review, nothing has come to our attention that causes
us to believe that the unaudited condensed interim separate
financial statements mentioned in the first paragraph of this
report have not been prepared, in all material respects, in
accordance with International Accounting Standard 34.
Report on compliance with current regulations
In
accordance with current regulations, we report in connection with
IRSA Propiedades Comerciales S.A. that:
a)
the unaudited condensed interim
separate financial statements of IRSA Propiedades Comerciales S.A
are in the process of being transcriben into the Inventory and
Balance Sheet book and, except for the above mentioned situation,
as regards those matters that are within our competence, they are
in complience with the provisionis of the General Companies Law and
pertinent resolutions of the National Securities
Commission.
b)
the unaudited condensed interim
separate financial statements of IRSA Propiedades Comerciales S.A
arise from accounting records carried in all formal aspects in
accordance with legal requirements except for i) the lack of transcription to the
Inventories and Balance Sheet Book, and ii) the lack of
transcription to the General Journal Book of the accounting entries
corresponding to the month of September 2021.
c)
at September 31,
2021, the debt of IRSA Propiedades Comerciales S.A. accrued in
favor of the Argentine Integrated Social Security System, as shown
by the Company’s accounting records, amounted to ARS
51,695,309, which is not due at that date.
Autonomous City of Buenos Aires, November 4,
2021.
|
PRICE
WATERHOUSE & Co. S.R.L.
(Socio)
C.P.C.E.C.A.B.A.
Tº 1 Fº 17
Carlos
Brondo
Contador
Público (UNCUYO)
C.P.C.E.C.A.B.A.
T° 391 F° 078
|
|
ABELOVICH,
POLANO & ASOCIADOS S.R.L.
(Socio)
C.P.C.E.
C.A.B.A. T° 1 F° 30
Noemí
I. Cohn
Contador
Público (U.B.A.)
C.P.C.E. C.A.B.A. T° 116 F° 135
|
IRSA Propiedades Comerciales Sociedad
Anónima
Summary as of September 30, 2021
I. Brief comment on the Group’s activities during the period
including references to significant events occurred after the end
of the period.
Economic
context where the Group operates
The Group operates in a complex context both due to macroeconomic
conditions, whose main variables have recently experienced strong
volatility, as well as regulatory, social, and political
conditions, both nationally and internationally.
The results from operations may be affected by fluctuations in the
inflation and the exchange rate of the Argentine peso against other
currencies, mainly the dollar, changes in interest rates which have
an impact on the cost of capital, changes in government policies,
capital controls and other political or economic events both
locally and internationally.
In December 2019, a new strain of coronavirus (SARS-COV-2), which
caused severe acute respiratory syndrome (COVID-19) appeared in
Wuhan, China. On March 11, 2020, the World Health Organization
declared COVID-19 a pandemic. In response, countries have taken
extraordinary measures to contain the spread of the virus,
including imposing travel restrictions and closing borders, closing
businesses deemed non-essential, instructing residents to practice
social distancing, implementing lockdowns, among other measures.
The ongoing pandemic and these extraordinary government measures
are affecting global economic activity, resulting in significant
volatility in global financial markets.
On March 3, 2020, the first case of COVID-19 was registered in the
country and as of today, more than 5,290,000 cases of infections
had been confirmed in Argentina, by virtue of which the Argentinian
Government implemented a series of health measures of social,
preventive and mandatory lockdown at the national level with the
closure of non-essential activities, including shopping malls, as
well as the suspension of flights and border closures, for much of
the year 2020. Since October 2020, a large part of the activities
started to become more flexible, in line with a decrease in
infections, although between April 16 and June 11, 2021, because of
the sustained increase in the cases registered, the National
Government established restrictions on night activity and the
closure of shopping malls in Buenos Aires Metropolitan Area.
Due to the flexibility that has
occurred in the economic activities since the beginning of this
fiscal year and as of the date of issuance of these financial
statements, 100% of the shopping malls are
operational.
At the local environment, the following circumstances were
observed:
●
In August 2021, the
Monthly Economic Activity Estimator (“EMAE” in Spanish)
reported by the National Institute of Statistics and Censuses
(“INDEC” in Spanish), registered a variation of 12.8%
compared to the same month of 2020, and 1.1% compared to the
previous month.
●
The
annual retail inflation reached 52.47% in the last 12 months. The
survey on market expectations prepared by the Argentine Central
Bank in September 2021, called the Market Expectations Survey
(“REM” in Spanish), estimates a retail inflation of
48.2% i.a. for December 2021 and 46.0% for December 2022. Analysts
participating in the REM forecast a rebound in economic activity in
2021, reaching an economic growth of 7.6%.
●
In
the period from September 2020 to September 2021, the Argentine
peso depreciated 29.6% against the US dollar according to the
wholesale average exchange rate of Banco de la Nación
Argentina. Given the exchange restrictions in force since August
2019, as of September 30, 2021, there is an exchange gap of
approximately 78.9% between the official price of the dollar and
its price in parallel markets, which impacts the level of activity
in the economy and affects the level of reserves of the Argentine
Central Bank. Additionally, these exchange restrictions, or those
that may be issued in the future, could affect the Group's ability
to access the Single Free Exchange Market (“MULC” in
Spanish) to acquire the necessary currencies to meet its financial
obligations.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
COVID-19 pandemic
As described above, the COVID-19 pandemic has adversely impacted
both the global economy and the Argentine economy and the Group's
business, mainly in Shopping Malls and Entertainment segments.
Since the beginning of fiscal year 2022, and until the date of
presentation of the financial statements, the Company's shopping
malls are fully operational, as well as the office buildings,
despite the remote work modality that some tenants continue to
apply. Regarding the Entertainment segment, on July 12, 2021, the
protocols for holding events, congresses and exhibitions were
activated.
The final extent of the Coronavirus outbreak and its impact on the
country's economy is still uncertain. However, although it has
produced significant short-term effects, they are not expected to
affect business continuity and the Group’s ability to meet
its financial commitments for the next twelve months.
The Group is closely monitoring the situation and taking all
necessary measures to preserve human life and the Group's
businesses.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
Consolidated Results in current currency
|
|
|
|
|
|
|
|
Income from sales, leases and services
(1)
|
2,915
|
1,365
|
113.6%
|
4,245
|
(31.3)%
|
|
Net
result from fair value adjustment on investment
properties
|
(5,679)
|
24,801
|
(122.9)%
|
13,087
|
(143.4)%
|
Realized
Result from changes in the fair value of investment
properties
|
18
|
8,163
|
(99.8)%
|
-
|
-
|
|
|
(3,868)
|
24,480
|
(115.8)%
|
16,046
|
(124.1)%
|
|
Depreciation
and amortization
|
81
|
108
|
(25.0)%
|
108
|
(25.0)%
|
|
Consolidated EBITDA (2)
|
(1,482)
|
27,681
|
(105)%
|
7,056
|
(121.0)%
|
|
Consolidated Adjusted EBITDA (2)
|
1,910
|
7,950
|
(76.0)%
|
3,068
|
(37.7)%
|
|
Consolidated NOI (3)
|
2,308
|
8,642
|
(73.3)%
|
3,668
|
(37.1)%
|
|
Result for the period
|
(1,801)
|
20,275
|
(108.9)%
|
4,710
|
(138.2)%
|
(1)
Does
not include Incomes from Expenses and Promotion Funds
(2)
See
Point XIV: EBITDA Reconciliation
(3)
See
Point XV: NOI Reconciliation
Group’s income increased by 113.6% during the first quarter
of fiscal year 2022 compared to the same quarter of fiscal year
2021 mainly due to the impact of COVID-19 pandemic in the Shopping
Malls segment that straightly affected operations during previous
fiscal year, while adjusted EBITDA decreased by 76.0% mainly
explained by Sales and Developments segment whose adjusted EBITDA
reached ARS 7,652 million during the first quarter of previous
fiscal year due to Bouchard 710 and Boston Tower’s office
sales. Compared with the first quarter of fiscal year 2020, that
was not affected by the COVID-19 pandemic, the decrease in EBITDA
is 37.7%. Rental segments Adjusted EBITDA reached ARS 2,064
million, ARS 1,506 million from the Shopping Malls segment and ARS
558 million from the Offices segment.
Net result for the first quarter of fiscal year 2022 recorded a
loss of ARS 1,801 million compared to a gain of ARS 20,275 million
during the same quarter of previous fiscal year mainly explained by
a loss due to changes in the fair value of investment
properties.
II. Shopping Malls
Shopping Malls’ Operating Indicators
|
|
|
|
|
|
|
|
Gross
leasable area (sqm)
|
335,641
|
334,826
|
335,893
|
333,460
|
333,345
|
|
Tenants’
sales (3 months cumulative in current currency)
|
34,205
|
16,913
|
28,263
|
29,804
|
8,105
|
|
Occupancy
|
89.6%
|
89.9%
|
89.5%
|
88.3%
|
92.8%
|
Our portfolio’s leasable area totaled 335,641 sqm of GLA
(excluding certain spaces occupied by hypermarkets, which are not
our tenants). Real tenants’ sales of our shopping malls
reached ARS 34,205 million in the first quarter of fiscal year
2022, 322% higher than in IQ21 affected by the closure of
operations and 10.7% below the first quarter of FY20, not affected
by the pandemic. Portfolio’s occupancy reached 89.6%, mainly
due to the exit of Falabella in Mendoza Plaza Shopping. Excluding
the effect of the remaining vacancy from large stores, occupancy
would have been 94.3%.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
Shopping Malls’ Financial Indicators
|
|
|
|
|
|
|
|
Income
from sales. rentals and services
|
2,225
|
560
|
297.3%
|
3,179
|
(30.0)%
|
|
Net
result from fair value adjustment on investment
properties
|
(3,698)
|
1,796
|
(305.9)%
|
916
|
(503.7)%
|
|
Result
from operations
|
(2,241)
|
1,513
|
(248.1)%
|
3,174
|
(170.6)%
|
|
Depreciation
and amortization
|
49
|
64
|
(23.4)%
|
57
|
(14.0)%
|
|
EBITDA (1)
|
(2,192)
|
1,577
|
(239.0)%
|
3,231
|
(167.8)%
|
|
Adjusted EBITDA (1)
|
1,506
|
(219)
|
-
|
2,315
|
(34.9)%
|
|
NOI (2)
|
2,225
|
560
|
297.3%
|
2,748
|
(34.8)%
|
(1)
See
Point XIV: EBITDA Reconciliation
(2)
See
Point XV: NOI Reconciliation
Income from this segment increased by 297.3% during the first
quarter of fiscal year 2022 when compared with the same period of
previous fiscal year, mainly explained by the closure of operations
due to COVID-19 from March 20 to October 14, 2020. As of the date
of presentation of the financial statements, all the Group's
shopping malls are operational.
Adjusted EBITDA for the first quarter of fiscal year 2022 reached
ARS 1,506 million, 34.9% below that the first quarter of 2020, not
affected by the pandemic.
Operating data of our Shopping Malls
|
|
Date of acquisition
|
Location
|
|
|
|
|
|
Alto
Palermo
|
Dec-97
|
City
of Buenos Aires
|
20,071
|
133
|
99.7%
|
100%
|
|
Abasto Shopping (4)
|
Nov-99
|
City
of Buenos Aires
|
36,797
|
159
|
95.8%
|
100%
|
|
Alto
Avellaneda
|
Dec-97
|
Province
of Buenos Aires
|
40,286
|
125
|
68.2%
|
100%
|
|
Alcorta
Shopping
|
Jun-97
|
City
of Buenos Aires
|
15,812
|
112
|
99.4%
|
100%
|
|
Patio
Bullrich
|
Oct-98
|
City
of Buenos Aires
|
11,396
|
89
|
87.4%
|
100%
|
|
Dot
Baires Shopping
|
May-09
|
City
of Buenos Aires
|
47,366
|
164
|
83.1%
|
80%
|
|
Soleil
|
Jul-10
|
Province
of Buenos Aires
|
15,925
|
78
|
93.5%
|
100%
|
|
Distrito
Arcos
|
Dec-14
|
City
of Buenos Aires
|
14,335
|
65
|
100.0%
|
90.0%
|
|
Alto
Noa Shopping
|
Mar-95
|
Salta
|
19,388
|
84
|
97.5%
|
100%
|
|
Alto
Rosario Shopping
|
Nov-04
|
Santa
Fe
|
33,731
|
138
|
94.8%
|
100%
|
|
Mendoza
Plaza Shopping
|
Dec-94
|
Mendoza
|
42,947
|
131
|
85.7%
|
100%
|
|
Córdoba
Shopping
|
Dec-06
|
Córdoba
|
15,360
|
105
|
97.6%
|
100%
|
|
La
Ribera Shopping
|
Aug-11
|
Santa
Fe
|
10,530
|
70
|
97.3%
|
50%
|
|
Alto
Comahue
|
Mar-15
|
Neuquén
|
11,697
|
94
|
92.2%
|
99.95%
|
|
Patio Olmos (5)
|
Sep-07
|
Córdoba
|
|
-
|
|
|
|
Total
|
|
|
335,641
|
1,547
|
89.6%
|
|
(1)
Corresponds to gross leasable area in each property. Excludes
common areas and parking spaces.
(2)
Calculated dividing occupied square meters by leasable area as of
the last day of the fiscal period.
(3)
Group’s effective interest in each of its business
units.
(4)
Excludes Museo de los Niños (3,732 square meters in
Abasto).
(5)
IRSA PC owns the historic building of the Patio Olmos shopping mall
in the Province of Córdoba, operated by a third
party.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
Tenant Retail Sales in real terms as of September 30, 2021,
compared to the same quarter of fiscal years 2021 and
2020(1)
|
(in ARS million)
|
|
|
|
|
|
|
Alto
Palermo
|
4,033
|
199
|
1,926.6%
|
4,752
|
(15.1)%
|
|
Abasto
Shopping
|
3,998
|
147
|
2,619.7%
|
4,926
|
(18.8)%
|
|
Alto
Avellaneda
|
2,983
|
144
|
1,971.5%
|
4,314
|
(30.9)%
|
|
Alcorta
Shopping
|
3,016
|
27
|
11,070.4%
|
2,693
|
12.0%
|
|
Patio
Bullrich
|
1,450
|
263
|
451.3%
|
1,819
|
(20.3)%
|
|
Dot
Baires Shopping
|
2,609
|
130
|
1,906.9%
|
3,644
|
(28.4)%
|
|
Soleil
|
2,222
|
288
|
671.5%
|
2,099
|
5.9%
|
|
Distrito
Arcos
|
2,595
|
783
|
231.4%
|
2,274
|
14.1%
|
|
Alto
Noa Shopping
|
1,677
|
1,023
|
63.9%
|
1,674
|
0.2%
|
|
Alto
Rosario Shopping
|
4,218
|
1,927
|
118.9%
|
3,826
|
10.2%
|
|
Mendoza
Plaza Shopping
|
2,417
|
1,921
|
25.8%
|
3,006
|
(19.6)%
|
|
Córdoba
Shopping
|
1,380
|
793
|
74.0%
|
1,177
|
17.2%
|
|
La Ribera Shopping(2)
|
591
|
222
|
166.2%
|
872
|
(32.2)%
|
|
Alto
Comahue
|
1,016
|
238
|
326.9%
|
1,218
|
(16.6)%
|
|
Total sales
|
34,205
|
8,105
|
322.0%
|
38,294
|
(10.7)%
|
(1)
Through our joint venture Nuevo Puerto Santa Fe S.A.
(2)
Includes sales from stands and excludes spaces used for special
exhibitions.
Cumulative tenants’ sales per type of business in real terms
compared to the same quarter of fiscal years 2021 and
2020(1)
|
(in ARS million)
|
|
|
|
|
|
|
Department
Store
|
-
|
580
|
(100.0)%
|
2,025
|
(100.0)%
|
|
Clothes
and footwear
|
20,326
|
4,023
|
405.2%
|
20,698
|
(1.8)%
|
|
Entertainment
|
755
|
-
|
-
|
1,597
|
(52.7)%
|
|
Home
and decoration
|
987
|
243
|
306.2%
|
752
|
31.3%
|
|
Home
Appliances
|
3,264
|
663
|
392.3%
|
4,674
|
(30.2)%
|
|
Restaurants
|
5,133
|
1,410
|
264.0%
|
4,788
|
7.2%
|
|
Miscellaneous
|
576
|
113
|
409.7%
|
451
|
27.7%
|
|
Services
|
3,164
|
1,073
|
194.9%
|
3,309
|
(4.4)%
|
|
Total
|
34,205
|
8,105
|
322.0%
|
38,294
|
(10.7)%
|
(1)
Includes
sales from stands and excludes spaces used for special
exhibitions.
Revenues from cumulative leases as of September 30, 2021, compared
to the same quarter of fiscal years 2021 and 2020
|
(in ARS million)
|
|
|
|
|
|
|
Base rent (1)
|
715
|
99
|
622.2%
|
1,594
|
(55.1)%
|
|
Contingent rent (1)
|
1,107
|
96
|
1,053.1%
|
761
|
45.5%
|
|
Total rent
|
1,822
|
195
|
834.1%
|
2,355
|
(22.6)%
|
|
Revenues
from non-traditional advertising
|
44
|
50
|
(12.0)%
|
85
|
(48.2)%
|
|
Admission
rights
|
198
|
223
|
(11.2)%
|
401
|
(50.6)%
|
|
Fees
|
35
|
38
|
(7.9)%
|
44
|
(20.5)%
|
|
Parking
fees
|
62
|
5
|
1,140.0%
|
186
|
(66.7)%
|
|
Commissions
|
54
|
44
|
22.7%
|
85
|
(36.5)%
|
|
Others
|
10
|
5
|
100.0%
|
23
|
(56.5)%
|
|
Subtotal(2)
|
2,225
|
560
|
297.3%
|
3,179
|
(30.0)%
|
|
Expenses
and Collective Promotion Funds
|
963
|
540
|
78.3%
|
1,287
|
(25.2)%
|
|
Total
|
3,188
|
1,100
|
189.8%
|
4,466
|
(28.6)%
|
(1)
Includes Revenues
from stands for ARS 107.3 million cumulative as of September
2021
(2)
Includes ARS 2.7
million from Patio Olmos.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
III. Offices
According to Cushman & Wakefield, the quarter closed with a
stable vacancy of 14.3%, in the Buenos Aires City premium market,
due to the gradual occupation of workspaces thanks to advances in
vaccination and end of the winter period, while prices show a
decline averaging USD 25.1 / sqm.
Offices’ Operating Indicators
|
|
|
|
|
|
|
|
Gross
Leasable area
|
113,451
|
113,291
|
114,475
|
114,475
|
93,144
|
|
Total
Occupancy
|
72.4%
|
74.7%
|
76.3%
|
75.6%
|
83.7%
|
|
Class
A+ & A Occupancy
|
78.9%
|
80.1%
|
81.2%
|
79.5%
|
91.6%
|
|
Class
B Occupancy
|
41.1%
|
48.5%
|
52.4%
|
56.7%
|
53.6%
|
|
Rent
USD/sqm
|
25.1
|
25.7
|
25.4
|
25.7
|
26.0
|
The gross leasable area during the first quarter of fiscal year
2022 was 113,451 sqm, in line with the previous
quarter.Portfolio average A+
& A reached 78.9%, and average rental price reached USD 25.1
per sqm.
|
(in ARS million)
|
|
|
|
|
|
|
Income
from sales, rentals, and services
|
705
|
811
|
(13.1)%
|
1,047
|
(32.7)%
|
|
Net
result from fair value adjustment of investment
properties.
|
(1,586)
|
19,209
|
(108.3)%
|
10,087
|
(115.7)%
|
|
Result from operations
|
(1,041)
|
19,773
|
(105.3)%
|
10,969
|
(109.5)%
|
|
Depreciation
and amortization
|
13
|
19
|
(31.6)%
|
10
|
30.0%
|
|
EBITDA(1)
|
(1,028)
|
19,792
|
(105.2)%
|
10,979
|
(109.4)%
|
|
Adjusted EBITDA (1)
|
558
|
583
|
(4.3)%
|
892
|
(37.4)%
|
|
NOI(2)
|
625
|
713
|
(12.3)%
|
971
|
(35.6)%
|
(1)
See
Point XIV: EBITDA Reconciliation
(2)
See
Point XV: NOI Reconciliation
During the first quarter of fiscal year 2022, revenues from the
offices segment decreased by 13.1% and Adjusted EBITDA decreased
4.3% compared to the previous fiscal year, mainly explained by the
lower occupancy and sale of part of the portfolio, although
compensated by the incorporation of “261 Della
Paolera”. Adjusted EBITDA margin was 79.1%, 7.3 bps higher
than the previous year.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
Below is information on our office segment and other rental
properties:
|
Offices & Others
|
Date of Acquisition
|
Gross
Leasable Area (sqm)(1)
|
|
IRSA PC’s Actual Interest
|
3M
22 - Rental revenues (ARS thousand) (6)
|
|
AAA & A Offices
|
|
|
|
|
|
|
Republica
Building
|
Dec-14
|
19,885
|
60.9%
|
100%
|
94,443
|
|
Boston Tower (6)
|
Dec-14
|
|
|
|
311
|
|
Intercontinental Plaza (3)
|
Dec-14
|
2,979
|
100.0%
|
100%
|
56,813
|
|
Dot
Building
|
Nov-06
|
11,242
|
84.9%
|
80%
|
63,353
|
|
Zetta
|
May-19
|
32,173
|
81.1%
|
80%
|
206,243
|
|
261 Della Paolera – Catalinas
(5)
|
Dec-20
|
27,690
|
84.6%
|
100%
|
241,202
|
|
Total AAA & A Offices
|
|
93,969
|
78.9%
|
|
662,365
|
|
|
|
|
|
|
|
B Offices
|
|
|
|
|
|
|
Suipacha
652/64
|
Dec-14
|
11,465
|
17.3%
|
100%
|
12,713
|
|
Philips
|
Jun-17
|
8,017
|
75.1%
|
100%
|
32,953
|
|
Total B Buildings
|
|
19,482
|
41.1%
|
100%
|
45,666
|
|
Subtotal Offices
|
|
113,451
|
72.4%
|
|
708,031
|
|
|
|
|
|
|
|
Other rental properties (4)
|
|
|
|
|
3,002
|
|
Total Offices and Others
|
|
|
|
|
705,029
|
(1)
Corresponds to the total gross leasable area of each property as of
September 30, 2021. Excludes common areas and parking
spaces.
(2)
Calculated by dividing occupied square meters by gross leasable
area as of September 30, 2021.
(3)
We own 13.2% of the building that has 22,535 square meters of gross
leasable area.
(4)
Includes all those properties that are not buildings intended for
rent, but that are partially or fully rented (Philips Deposit,
Anchorena 665 and San Martin Plot).
(5)
Includes 824 square meters of gross leasable area of the
basement.
(6)
Corresponds to accumulated income for the period.
IV. Sales & Developments and Others
The segment “Others” includes We are Appa S.A.
activities as well as the Fair, Convention Center and Entertainment
activities through our investments in La Rural S.A. and La Arena
S.A.
|
|
|
|
|
|
3M 22
|
3M 21
|
|
3M 22
|
3M 21
|
|
|
Revenues
|
-
|
3
|
(100.0)%
|
9
|
3
|
200.0%
|
|
Net
result from fair value adjustment on investment
properties.
|
(517)
|
5,045
|
(110.2)%
|
8
|
27
|
(70.4)%
|
|
Realized
Result from fair value adjustments of investment
properties
|
18
|
8,163
|
(99.8)%
|
-
|
-
|
100.0%
|
|
Result from operations
|
(572)
|
4,529
|
(112.6)%
|
(102)
|
-36
|
183.3%
|
|
Depreciation
and amortization
|
2
|
5
|
(60.0)%
|
18
|
19
|
(5.3)%
|
|
EBITDA(1)
|
(570)
|
4,534
|
(112.6)%
|
(84)
|
-17
|
394.1%
|
|
Adjusted EBITDA(1)
|
(35)
|
7,652
|
(100.5)%
|
(92)
|
-44
|
109.1%
|
|
NOI(2)
|
-
|
3
|
(100.0)%
|
9
|
3
|
200.0%
|
(1)
See
Point XIV: EBITDA Reconciliation
(2)
See
Point XV: NOI Reconciliation
Revenues from “Sales and Developments” segment
decreased by 100% in real terms during the first quarter of fiscal
year 2022 compared to previous fiscal year. Revenues from the
"Others" segment increased by 200% mainly explained by the closure
of the activities of La Rural, La Arena and the Convention Centers
in the context of the pandemic during the compared
quarter.
Adjusted EBITDA of Sales and Developments was negative ARS 35
million during the first quarter of fiscal year 2022 mainly
explained by negative results due to changes in the fair value of
investment properties, while adjusted EBITDA for Others segment was
negative ARS 92 million.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
V. CAPEX
Alto Palermo Expansion
We keep working on the expansion of Alto Palermo shopping mall, the
shopping mall with the highest sales per square meter in our
portfolio, that will add a gross leasable area of approximately
3,900 square meters and will consist in moving the food court to a
third level by using the area of an adjacent building acquired in
2015. Work progress as of September 30, 2021, was 95.7% and
construction works are expected to be finished by January
2022.
VI. Reconciliation with
Consolidated Income Statement
Below is an explanation of the reconciliation of the Group’s
total income by segment with its consolidated Income Statement. The
difference lies in the presence of joint ventures included in the
Income Statement per segment but not in the Income
Statement.
For the three-month period ended September 30, 2021
|
Item
(stated in ARS million)
|
|
Expenses and Collective Promotion Funds
|
Adjustment
for share of profit / (loss) of joint ventures (1)
|
|
|
Revenues
|
2,939
|
963
|
(24)
|
3,878
|
|
Costs
|
(423)
|
(998)
|
15
|
(1,406)
|
|
Gross profit
|
2,516
|
(35)
|
(9)
|
2,472
|
|
Net
result from fair value adjustments of investment
property
|
(5,793)
|
-
|
114
|
(5,679)
|
|
General
and administrative expenses
|
(450)
|
-
|
1
|
(449)
|
|
Selling
expenses
|
(262)
|
-
|
(1)
|
(263)
|
|
Other
operating results, net
|
33
|
17
|
1
|
51
|
|
Result from operations
|
(3,956)
|
(18)
|
106
|
(3,868)
|
(1)
Includes operating results from La Ribera Shopping and San
Martín Plot (ex Nobleza Picardo) (50%).
VII. Consolidated Financial Debt
Below
is a detail of IRSA Propiedades Comerciales S.A.’s debt as of
September 30, 2021
|
Description
|
Currency
|
|
|
Maturity
|
|
Bank
loans and overdrafts
|
ARS
|
51.7
|
-
|
<
360 days
|
|
PAMSA
loan
|
USD
|
16.2
|
|
Feb-23
|
|
IRSA
PC Notes Series II
|
USD
|
358.5
|
8.75%
|
Mar-23
|
|
IRSA PC’s Total Debt
|
USD
|
426.4
|
|
|
|
Cash & Cash Equivalents + Investments
(2)
|
USD
|
126.0
|
|
|
|
Intercompany
Credit
|
ARS
|
41.4
|
|
|
|
IRSA PC’s Net Debt
|
USD
|
259.0
|
|
|
(1)
Principal
amount at an exchange rate of ARS/USD 98.74 without considering
accrued interest or eliminations of balances with
subsidiaries.
(2)
Includes
Cash and cash equivalents and Investments in Current Financial
Assets (includes related companies notes holding)
VIII. Dividends
Pursuant to Argentine law, the distribution and payment of
dividends to shareholders is only valid if they result from
realized and net profits of the Group pursuant to annual financial
statements approved by the shareholders. The approval, amount and
payment of dividends are subject to the approval by our
shareholders at our annual ordinary shareholders’ meeting.
The approval of dividends requires the affirmative vote of a
majority of the shares entitled to vote at the
meeting.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
Pursuant to Argentine law and our by-laws, net and realized profits
for each fiscal year are allocated as follows:
●
5%
of such net profits are allocated to our legal reserve, until such
reserve amounts to 20% of our capital stock;
●
a
certain amount determined at a shareholders’ meeting is
allocated to the compensation of our directors and the members of
our Supervisory Committee; and
●
additional
amounts are allocated to the payment of dividends, optional
reserve, or to set up reserves for any other purpose as determined
by our shareholders.
The following table illustrates the ratio between the amounts paid
as dividends and the total amount paid as dividends on each fully
paid-in share for the fiscal years mentioned.
|
|
Dividend paid stated in terms of the measuring unit current as of
September 30, 2021
|
Dividend per share paid stated in terms of the measuring unit
current as of September 30, 2021
|
Dividend paid stated in terms of the measuring unit current as of
the date of each corresponding shareholders’
meeting
|
Dividend per share paid stated in terms of the measuring unit
current as of the date of each corresponding shareholders’
meeting
|
|
|
|
|
|
|
|
2018
|
3,011,046
|
23.8945
|
680,000
|
5.3962
|
|
2019
|
1,653,818
|
13.1241
|
545,000
|
4.3249
|
|
2020
|
1,199,910
|
9.5221
|
595,000
|
4.7217
|
|
2021
|
14,253,211
|
113.1081
|
9,700,000
|
76.9755
|
IX. Material and Subsequent Events
July 2021: Capitalization and Change in Nominal Value
The
Comisión Nacional de Valores (the Argentine National
Securities Commission) and Buenos Aires Stock Exchange approved
what has been decided in the Company’s Shareholders meeting
held on October 26, 2020:
1 -
the capitalization of Inflation Adjustment of Share Capital, Share
Premium and Other Reserves recorded in the Financial Statements
corresponding to the fiscal year ended on June 30,
2020
2 -
the change in the nominal value of the capital stock shares with a
nominal value of ARS 1 and one vote per share to a nominal value of
ARS 100 each and one vote per share, and
3 -
the distribution of 53,996,987,920 issued shares representing
42,849.97% of the share capital.
From
July 20, 2021, the shares distribution and the change in nominal
value will be made simultaneously and the entry of the change of
126,014,050 book-entry common shares, with a nominal value of ARS 1
each and one vote per share, for 541,230,019 book-entry common
shares with a nominal value of ARS 100 each and one vote per share,
will be made in the Scriptural Registry of Caja de Valores S.A.
From the indicated date, the new shares to be distributed due to
the capitalization will have economic rights under equal conditions
with those that are currently in circulation.
IRSA PC’s share capital after de indicated operations will
amount to ARS 54,123,001,900 represented by 541,230,019 book-entry
common shares with a nominal value of ARS 100 each and one vote per
share.
Likewise, the Buenos Aires Stock Exchange has been requested to
change the modality of the negotiation of the shares representing
the share capital, that is, that the negotiation price is
registered per share instead of being negotiated by Argentinean
peso (ARS) of nominal value, given that the change in nominal
value, and the issuance of shares resulting from the
capitalization, would produce a substantial downward effect on the
share price.
It should be mentioned that this capitalization and change in the
nominal value of the shares do not modify the economic values of
the holdings or the percentage of participation on the share
capital.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
September 2021: Merger Proposal
On September 30, 2021, IRSA & IRSA Propiedades Comerciales
Boards of Directors approved the prior merger agreement between
both companies and the corresponding special financial statements
as of June 30, 2021, initiating the corporate reorganization
process under the terms of art. 82 et seq. of the General Law of
Companies. The merger process has particular characteristics given
that they are two companies included in the public offering regime,
reason why, not only apply the current provisions of the General
Law of Companies but also the procedures established regarding
reorganization of companies of the Regulations of the
“Comisión Nacional de Valores” (National
Securities Commission) and the markets, both national and foreign,
where their shares are listed.
The Merger is carried out in order to streamline the technical,
administrative, operational and economic resources of both
Companies, standing out among others: (a) the operation and
maintenance of a single transactional information system and
centralization of the entire accounting registration process; (b)
presentation of a single financial statement to the different
control agencies with the consequent cost savings in accounting and
advisory fees, tariffs and other related expenses; (c)
simplification of the accounting information reporting and
consolidation process, as a consequence of the reduction that the
merger would imply for the corporate structure as a whole; (d)
removal of the IRSA PC public offering listing on BYMA and NASDAQ
with the associated costs that this represents; (e) cost reduction
for legal fees and tax filings; (f) increase in the percentage of
the capital stock that is listed in the different markets,
increasing the liquidity of the listed shares; (g) tax efficiencies
and (h) preventively avoid the potential overlap of activities
between the Companies.
The merger is subject to the approval of the shareholders' meeting
of both companies whose call will be made once they have the
administrative approval of the United States Securities and
Exchange Commission, an entity to which they are subject since both
companies list their shares in markets that operate in said
jurisdiction.
Once the merger by absorption between IRSA as the absorbing company
and IRSA PC as the absorbed company has been approved, the
effective date will be July 1, 2021, date from which the transfer
to the absorbing company of all the assets of the absorbed company
will take effect, thereby incorporating all its rights and
obligations, assets and liabilities into the equity of the
absorbing company, all subject to the required corporate
approvals.
Likewise, and within the framework of the reorganization process,
the Board of Directors has approved the exchange ratio, which has
been established at 1.40 IRSA shares for each IRSA PC share, which
is equivalent to 0.56 IRSA GDS for each ADS of IRSA
PC.
The exchange of IRSA PC shares for IRSA shares will be carried out
once the entire administrative process has been completed and once
the registration has been made in the “Inspección
General de Justicia” (General Inspection of Justice), a
process that may take several months.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
October 2021: General Ordinary Shareholders’
Meeting
On October 21, 2021, our General Ordinary Shareholders’
Meeting was held. The following matters. inter alia, were resolved
by majority of votes:
●
Allocation
of the unallocated positive results for the sum of ARS
1,526,515,266 which, adjusted by inflation, amounts to the sum of
ARS 1,668,218,014 in order to absorb the negative result of the
Fiscal Year;
●
To
fully write off the special reserve in the amount of ARS
9,815,663,641 which, adjusted for inflation, amounts to the sum of
ARS 10,726,828,139, and use it for the partial absorption of the
result for the fiscal year, and,
●
Allocation
of the remaining loss of the fiscal year for the sum of ARS
10,592,781,323 which, adjusted by inflation, amounts to the sum of
ARS 11,576,083,790 to the Non-Allocated Income
account.
●
Designation
of board members.
●
Compensations
to the Board of Directors for the fiscal year ended June 30,
2021.
November 2021: “261 Della Paolera” floors
sale
After the end of the period, on November 2, 2021, the Company sold
and transferred three medium-height floors of the tower “261
Della Paolera” located in the Catalinas district of
Autonomous City of Buenos Aires for a total area of approximately
3,582 sqm and 36 parking spaces located in the
building.
The transaction price was set at approximately ARS 3,197 million,
equivalents to USD 32.0 million (USD/sqm 8,950), which had already
been paid.
After this transaction, IRSA PC retains its rights for 20 floors of
the building with an approximate leasable area of 24,000 sqm, in
addition to parking spaces and other complementary
spaces.
The financial result of this operation will be recognized in the
Company's Financial Statements for the second quarter of FY
2022.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
X. Summary Comparative Consolidated Balance Sheet
|
(in ARS million)
|
09.30.2021
|
09.30.2020
|
09.30.2019
|
|
Non-current
assets
|
163,585
|
231,209
|
168,553
|
|
|
23,173
|
22,561
|
38,047
|
|
|
186,758
|
253,770
|
206,600
|
|
Equity
attributable to the holders of the parent
|
77,482
|
136,084
|
94,344
|
|
|
5,972
|
8,140
|
5,646
|
Total shareholders’ equity
|
83,454
|
144,224
|
99,990
|
|
Non-current
liabilities
|
91,022
|
92,498
|
80,778
|
|
|
12,282
|
17,048
|
25,832
|
|
|
103,304
|
109,546
|
106,610
|
Total liabilities and shareholders’ equity
|
186,758
|
253,770
|
206,600
|
XI. Summary Comparative Consolidated Income Statement
|
(in ARS million)
|
09.30.2021
|
09.30.2020
|
09.30.2019
|
|
|
(3,868)
|
24,480
|
16,046
|
Share
of profit of associates and joint ventures
|
(102)
|
904
|
752
|
Result from operations before financing and taxation
|
(3,970)
|
25,384
|
16,798
|
|
Financial
income
|
87
|
644
|
111
|
|
Financial
cost
|
(1,481)
|
(1,720)
|
(1,468)
|
|
Other
financial results
|
2,004
|
1,988
|
(9,747)
|
|
|
515
|
414
|
15
|
|
|
1,125
|
1,326
|
(11,089)
|
|
|
(2,845)
|
26,710
|
5,709
|
|
|
1,044
|
(6,435)
|
(999)
|
|
|
(1,801)
|
20,275
|
4,710
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
Equity holders of the parent
|
(1,709)
|
18,828
|
4,175
|
|
|
(92)
|
1,447
|
535
|
XII. Summary Comparative Consolidated Cash Flow
|
(in ARS million)
|
09.30.2021
|
09.30.2020
|
09.30.2019
|
|
Net
cash generated from/ (used in) operating activities
|
1,615
|
(5,872)
|
3,094
|
|
Net
cash generated from/ (used in) investing activities
|
1,548
|
13,914
|
(3,580)
|
Net
cash generated used in financing activities
|
(2,749)
|
(11,671)
|
(567)
|
Net increase/ (decrease) in cash and cash equivalents
|
414
|
(3,629)
|
(1,054)
|
|
Cash
and cash equivalents at beginning of year
|
867
|
7,595
|
9,851
|
|
Financial
Results from cash and cash equivalents
|
44
|
50
|
691
|
|
|
(337)
|
(11)
|
(30)
|
Cash and cash equivalents at period-end
|
988
|
4,005
|
9,458
|
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
|
(in ARS million)
|
09.30.2021
|
|
09.30.2020
|
|
09.30.2019
|
|
|
Liquidity
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
23,173
|
1.89
|
22,561
|
1.32
|
38,047
|
1.47
|
|
CURRENT
LIABILITIES
|
12,282
|
|
17,048
|
|
25,832
|
|
|
Indebtedness
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
103,304
|
1.33
|
109,546
|
0.80
|
106,610
|
1.13
|
|
SHAREHOLDERS’
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
|
77,482
|
|
136,084
|
|
94,344
|
|
|
Solvency
|
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
|
77,482
|
0.75
|
136,084
|
1.24
|
94,344
|
0.88
|
|
TOTAL
LIABILITIES
|
103,304
|
|
109,546
|
|
106,610
|
|
|
Capital Assets
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
163,585
|
0.88
|
231,209
|
0.91
|
168,553
|
0.82
|
|
TOTAL
ASSETS
|
186,758
|
|
253,770
|
|
206,600
|
|
XIV.
EBITDA Reconciliation
In this summary report we present EBITDA and Adjusted EBITDA. We
define EBITDA as profit for the period, excluding: i) Interest
income; ii) interest expense; iii) income tax expense; and iv)
depreciation and amortization. We define Adjusted EBITDA as EBITDA
minus Total financial results, nets, excluding net financial
interests, less share of loss/profit in associates and joint
ventures, and excluding unrealized result from fair value
adjustments of investment properties.
EBITDA and Adjusted EBITDA are non-IFRS financial measures that do
not have standardized meanings prescribed by IFRS. We present
EBITDA and adjusted EBITDA because we believe they provide
investors supplemental measures of our financial performance that
may facilitate period-to-period comparisons on a consistent basis.
Our management also uses EBITDA and Adjusted EBITDA from time to
time, among other measures, for internal planning and performance
measurement purposes. EBITDA and Adjusted EBITDA should not be
construed as an alternative to profit from operations, as an
indicator of operating performance or as an alternative to cash
flow provided by operating activities, in each case, as determined
in accordance with IFRS. EBITDA and Adjusted EBITDA, as calculated
by us, may not be comparable to similarly titled measures reported
by other companies. The table below presents a reconciliation of
profit for the relevant period to EBITDA and Adjusted EBITDA for
the periods indicated:
|
|
|
|
|
|
|
|
Result
for the period
|
(1,801)
|
20,275
|
4,710
|
|
Interest
income
|
(87)
|
(644)
|
(112)
|
|
Interest
expense
|
1,369
|
1,507
|
1,351
|
|
Income
tax expense
|
(1,044)
|
6,435
|
999
|
Depreciation
and amortization
|
81
|
108
|
108
|
|
|
(1,482)
|
27,681
|
7,056
|
|
Unrealized
result from fair value adjustments of investment
properties
|
5,697
|
(16,638)
|
(13,087)
|
|
Share
of loss/ (profit) of associates and joint
ventures
|
102
|
(904)
|
(752)
|
|
Foreign
exchange, net
|
(2,137)
|
139
|
9,568
|
|
Result
from derivative financial instruments
|
(3)
|
274
|
(342)
|
|
Fair
value (gain)/ loss of financial assets and liabilities at fair
value through profit or loss
|
135
|
(2,370)
|
531
|
|
Other
financial costs
|
112
|
213
|
117
|
|
Repurchase
of non-convertible notes
|
1
|
(31)
|
(9)
|
|
|
(515)
|
(414)
|
(15)
|
|
|
1,910
|
7,950
|
3,067
|
Adjusted EBITDA Margin(1)
|
66.5%
|
582.4%
|
110.2%
|
(1)
Adjusted EBITDA margin is calculated as Adjusted EBITDA, divided by
income from sales, rentals and services.
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
In addition, we present in this summary report Net Operating Income
or “NOI”. We define NOI as gross profit from
operations, less Selling expenses, plus realized result from fair
value adjustments of investment properties, plus Depreciation and
amortization.
NOI is a non-IFRS financial measure that does not have a
standardized meaning prescribed by IFRS. We present NOI because we
believe it provides investors a supplemental measure of our
financial performance that may facilitate period-to-period
comparisons ona consistent basis. Our management also uses NOI from
time to time, among other measures, for internal planning and
performance measurement purposes. NOI should not be construed as an
alternative to profit from operations, as an indicator of operating
performance or as an alternative to cash flow provided by operating
activities, in each case, as determined in accordance with IFRS.
NOI, as calculated by us, may not be comparable to similarly titled
measures reported by other companies. The table below presents a
reconciliation of profit from operations to NOI for the periods
indicated:
|
|
|
|
|
|
|
|
Gross
profit
|
2,472
|
985
|
3,812
|
|
Selling
expenses
|
(263)
|
(614)
|
(252)
|
|
Depreciation
and amortization
|
81
|
108
|
108
|
Realized
result from fair value of investment properties
|
18
|
8,163
|
-
|
|
|
2,308
|
8,642
|
3,668
|
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
We also present in this summary report Adjusted Funds From
Operations attributable to the controlling interest (or
“Adjusted FFO”), which we define as Total profit for
the year or period plus depreciation and amortization of
property, plant and equipment, intangible assets and amortization
of initial costs of leases minus total net financial results
excluding net financial interests, minus unrealized result from
fair value adjustments of investment properties minus inflation
adjustment plus deferred tax, and less non-controlling interest net
of the result for fair value, less the result of participation in
associates and joint ventures.
Adjusted FFO is a non-IFRS financial measure that does not have a
standardized meaning prescribed by IFRS. Adjusted FFO is not
equivalent to our profit for the period as determined under IFRS.
Our definition of Adjusted FFO is not consistent and does not
comply with the standards established by the White Paper on funds
from operations (FFO) approved by the Board of Governors of the
National Association of Real Estate Investment Trusts
(“NAREIT”), as revised in February 2004, or the
“White Paper.”
We present Adjusted FFO because we believe it provides investors a
supplemental measure of our financial performance that may
facilitate period-to-period comparisons on a consistent basis. Our
management also uses Adjusted FFO from time to time, among other
measures, for internal planning and performance measurement
purposes. Adjusted FFO should not be construed as an alternative to
profit from operations, as an indicator of operating performance or
as an alternative to cash flow provided by operating activities, in
each case, as determined in accordance with IFRS. Adjusted FFO, as
calculated by us, may not be comparable to similarly titled
measures reported by other companies. The table below presents a
reconciliation of profit from operations to Adjusted FFO for the
periods indicated:
|
|
|
|
|
|
|
|
Result
for the period
|
(1,801)
|
20,275
|
4,710
|
|
Unrealized
Result from fair value adjustments of investment
properties
|
5,697
|
(16,638)
|
(13,087)
|
|
Depreciation
and amortization
|
81
|
108
|
108
|
|
Foreign
exchange, net
|
(2,137)
|
139
|
9,568
|
|
Loss
from derivative financial instruments
|
(3)
|
274
|
(342)
|
|
Fair
value (gain)/ loss of financial assets and liabilities at fair
value through profit or loss
|
135
|
(2,370)
|
531
|
|
Other
financial costs
|
112
|
213
|
117
|
|
Deferred
income tax
|
(2,466)
|
6,433
|
996
|
|
Non-controlling
interest
|
92
|
(1,447)
|
(535)
|
|
Non-controlling
interest related to PAMSA’s fair value
|
(27)
|
1,379
|
614
|
|
Share
of loss/ (profit) of associates and joint ventures
|
102
|
(904)
|
(752)
|
|
Inflation
adjustment
|
(515)
|
(414)
|
(15)
|
Repurchase
of non-convertible notes
|
1
|
(31)
|
-
|
|
|
(729)
|
7,017
|
1,913
|
IRSA Propiedades Comerciales Sociedad Anónima
Summary as of September 30, 2021
XVII. Brief comment on prospects for the fiscal year
We are optimistic about the recovery of the shopping malls business
during fiscal year 2022. Activity indicators, such as
tenants’ sales and visiting public, evolve favorably and we
continue working on occupying the area that was made available
because of the pandemic. Likewise, we will continue to position the
Group's Marketplace to complement physical in-store sales with
online sales, offering our customers different purchase and
delivery alternatives.
The office segment continues to evolve in line with new hybrid work
trends. Although we have evidenced a slight reduction in rental
values along with an increase in vacancies, our current portfolio,
after a "flight to quality" process, brings together the
differential characteristics to offer the services level required
by the most demanding corporations. We will work during the fiscal
year on the full occupancy of the building "261 Della Paolera",
inaugurated in December 2020, as well as the rest of the vacant
surface of the portfolio.
We will continue working in 2022 to reduce and make the structure
costs more efficient and to consolidate the best real estate
portfolio in Argentina.
In that framework, the Company's Board of Directors approved during
the quarter a corporate reorganization process consisting of a
merger by absorption within the framework of the Companies Law No.
19,550 and the Income Tax Law No. 20,628, in which IRSA would
absorb the Company, which would be dissolved without being
liquidated. The process is pending approval by the Shareholders'
Meeting which will be carried out in the coming
months.
The
Group remains committed to preserve the health and well-being of
its customers, employees, tenants, and the entire population,
constantly re-evaluating its decisions in accordance with the
evolution of events, the regulations that are issued and the
guidelines of the competent authorities.
Alejandro
G. Elsztain
Executive Vice-Chairman