Irsa Propiedades Comerciales (IRCP) 8 Nov 212022 Q1 Earnings call transcript

Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of IRSA Commercial Properties, and I welcome you to the First Quarter of Fiscal Year 2022 Results Conference Call.

First of all, I would like to remind you that both audio and slide show, maybe accessed through company's Investor Relations website at www.irsacp.com.ar by clicking on the banner webcast link. The following presentation and the earnings release are also available for download on the company website. After management remarks, there will be a question-and-answer session for analysts and investors.

make please to the want you a use question chat. If

may to begin, Elsztain, and that today projections regarding are I performance. we risk and remind company's that forward-looking financial the would discussed subject recorded Before All being like you operating statements is this information and to results include call will materially. the Daniel Please actual release, regarding Please now earnings to company's the CEO. forward-looking to over the And sir. uncertainties. I ahead, refer may differ statements. turn call in detailed go note Mr.

XQ morning, our Good to first everyone, call of the XXXX.

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below a the asset levels. full the sales. Nevertheless, at of lot terms this Last we asset rental had still rental the EBITDA sales. quarter, In of no basically of we XX% our same quarter, with pre-pandemic that see EBITDA operation it's year

at the the pre-pandemic with loss Della be but is event, in the building there fair a see proposal we better is value are ISRA investment seen XXX The merger ARSX.X at liquidity years. by this our of lowest by this of billion the company. may attributable the is Directors net premium getting and Board numbers. the in we and And still pending properties. office buildings, controlling the yet still, we three approved change a to to strong There shareholders' that explained subsequent are of We operation, low meeting not mainly rates, Paolera be have cap that for the in the approved. many, floors we many sold very reflects of

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the see that restaurants, design, only see are we you and services chart, and have top we of really tenants bringing apparel now the team electronics. in new So is XX% others, you and in pie home working as bringing can on

the So, Center, Soccer Shopping Falabella lot pictures, indoor. complex Home had we we of of the complex, is We space indoor opened and on at vacancy. Design, the a almost opened we opened Dot where field now soccer fully Remember we the Field also occupied. first have

We also opened pharmacies, some pharmaceutical. banks, services,

activity So and new there is only apparel. not in

left more seeing XXX term than stay team occupied. There tenants time. able So is are month. able also very empty The during occupy optimistic period those to per being we Falabella that and of that were in to leases really space not COVID the us the signing we are of

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companies there will more is for Now closed, After it's $XX.X the believe the and per see signed that be in Zetta at good We of meter. space. quarter But terms we pressure month the more leasing pricing. at floor on and per this one square activity building one floor we looking news building.

economy is Also more they the bit noticed days little willing we is more they office New to this hearing on are least, a for at the desk, have At a share companies growing, three space. are because There, growing two confident companies the workforce in the that size and is the what nobody what now this a is reduction reduced. market. now of be a be and are because we a This looking the or to not of we first are looking their not are increasing York. the saw forecast to market. we we with in that week That's is course, what actually are talking at for offices know trend least is on and that here. the is, space. team, the business thing the But office So going is the

have per on is Cap X%, in space an sold that an incredible building have at and incredible we a are price building. do thing. this three represent building, we of It's as GLA another meters On we some of of of pressure $X,XXX on rate was almost floors that the and - of to meters. lease, for we one price. on be in square Paolera So, keep that sale. expect much had this yes, see in building, the square it's signed really price. And this million, XXX there And and of floors those to which floors not meter X, - more $XX X,XXX Della it's I mentioned, XX,XXX low. we $X,XXX maybe we sign total November Page more XX empty we this which still prospect lose can But of we offices square occupancy we lucky is which doing a will terms XXXX,

that's the activity So, on estate. mainly main real the

Now financial CFO. for Matias our Gaivironsky, results, the

Thank see If of the Page can you, move we breakdown we Daniel. everybody. X, our morning, to P&L. Good

year, sense, comparing have year of ARSXX.X loss sometimes show compared of a fiscal with year a because in quarter year We first the by the with the year gain a with will normal affected billion. XXXX. make ARSX.X previous the was to billion, compared pandemic. with a not very this last information To it reference of finishing are fiscal We started XXXX of to

growing So XXXX will compared our here first our reduce was shopping that that we is still effect with comparing affected quarter XX% tenants are, XXX% and we for And with with previous we of implemented quarters some can believe we next we the They malls. the see the revenues the course, our below. rules believe - in revenues. it. year. that We with politics - But some open that also

effect start the than see for main quarter an Argentina effect that blue in Last in this quarter. has this that this So can No chip and higher we Basically, of fair the in on than to of line change malls The an gain the valuation We billion. in drop evolution the the a and line. the and on our in of ARSX.X was the in was here, the we recognized - as bank. happened the devaluation inflation year, two value. swap. what important doubt is offices faster will recovery the variables the land

So inflation FX the this will year. quarter, a of and see gains keep blue we the higher, loss while of In If this the will the the have we - have segments. EBITDA after in in - for previous was if ARSX.X showing malls, significant losses. have we next previous we totaled have variables, to going And we that, quarter, is quarters our page, the of different increase, - have instance, different two swap the increase, an billion. breakdown evolution forward. the we losses adjusted other a the chip see we we The EBITDA in year, the shopping we the an move

X.X% significant that we explain a Sales XXXX the of first next will the quarter. we have billion, with XXXX, we have a don't first with year, previous a we at the and year, And ARSX.X only was see the with when compare page. EBITDA. have below gain development and The we previous during a drop The decrease we offices, development, so Compared XX% also of quarter the XX.X% compared one. below. I quarter in have adjusted this

open EBITDA building will of we this move Della line be each XX, disposal and quarter. the As If the of the operation the we in to of evolution reflected in the in the reflects part next the of Daniel quarter. percentage the Paolera three Page graph, mentioned, malls. the can see it in the of building floors

quarter, the with an the So good here a we of $XX.X the see of all million, is the news we But different of stages see pandemic. previous close, - previous the quarter level of million. the is pandemic quarters since is compared above the that before the can the was And first beginning pandemic. with EBITDA that $XX.X

$X.X in that to levels this the good cash. - was cash level previous of here And similar. shopping that good was opening a million came was Also, previous that that see XXX the it's evolution the building. can we started square year, by the quarter the again, [indiscernible] with the Tower. But of So from meters we now see million, and offices, $X.X the Paolera incremented was previous we with Boston compared we sold that drop Della is The news million. the the malls $X.X generate quarter during Bouchard

We a and rent $X.X only change the flat, the in the increase - of effect million negative almost have in of the price price million. the $X vacancy is

evolution we XX, Page to Going see the the financial net of results.

X.X% have of a the and in nominal below. - We reflected that devaluation the can real X.X%. we of previous a a in see graph is devaluation year, devaluation driver main the Here,

During appreciation the currency and nominal real in X.X% this a devaluation have was of we X.X%. negative, and quarter, by an fact,

reflected So in effect to two, is last basically value and is gain our this - was debt in the by dollars. that foreign year, have exchange pesos, the that in a the effect of of ARSX.X line ARSXXX exposure our in This the million. the year we negative differences million,

is In interest of similar the terms losses. the numbers XXXX against XXXX. net than

credit positive we little with that interest. the line generated Here, reduced a IRSA

that rate exchange values. see the now billion. not is official interest a of higher that NAV, lines collection the the of shares, And asset rest are today in our how effect times. value is market DCF. we compared evolution using, go reduction X.X using our have properties to in valuation we the we books. - with IRSA. use the differences. used the instance, the If and received of from also malls net we XX, we we our shopping net $X.X for we And year, to on the to all since the other only don't because Last our at value billion This it's our it's If method comparables price $X.X considering we in of at we So that valuation the have of that little of the are Page significant are to

portfolio So of conservative. believe the total $XXX million for we shopping very that malls, our is

In X.X FFO, terms that cap value times, and times.. are is price to to of EBITDA we implicit trying the rate XX.X XX.X%, enterprise

of of The stable that we million. X.X debt we is $XXX ratios, Page our in XX.X%. levels company can at don't have our debt levels EBITDA. The amortization amortizations have have in debt Finally, next XX, debt to remain the regarding amortizations. of related the the times to fiscal significant the We notes. year of during evolution debt LTV see will of XXXX be profile. Net net IRCP main year, low scale of this EBITDA very a to we X.X net And a at and times international bound rental fiscal

in Page there's the we more one with XX. sorry, So finished sorry, this, -

it it Regarding Board Directors intention and IRSA, will And by IRCP with merge. it merge September end with - already all FX. IRSA of process liquidated the SEC, the the inside we the in absorbed company will of now with the IRSA the then will Commercial the of We absorbing without will filed the be IRCP and merger - filed Properties prospectus. company. the proposal, of we September, the IRSA. dissolve liquidate be the be We to CNV being We where incorporated started announced

to the our step of approve So meeting. call shareholders' all shareholders' a approval the is meeting processes subject to the next to

meeting in We expect shareholders to December. have our

that what last could the before beginning February. until So at anticipated we

the X, is need meeting time that XXXX. be to the the there is approve a we we December, merge is July believe frame But that, if the that can that date And main our fulfill. that, approval. after and After will is we have to the Now merge. effective shareholders' approve shareholders during next effective event the with

open and presentation the finish Q&A line we a for yes, now, So the session.

with start session. Q&A we'll Yes, the

the your use raise or hand. chat can You

from We order first ahead, we questions Go Alvaro Pactual. the receive BTG Here Garcia one Any the question? have from will the take them. Alvaro. in we

the for questions. Thanks for space

Just on actually. margins,

I we But job think how especially did normalize shopping explaining of comes on your pre-COVID of great offices, you. sort what's sequentially expect and below Thank levels? as should a you line. given it's activity margins this throughout both back, to of going fiscal - in top they're sort still year well

many Thank that were you, things Alvaro. and by It's results the tough the to variables happen. when pandemic have all you the show affected

compare We of to be change That change XXX can We But reduced we see to see been have cost. order part, reflected in a all that XXXX collection. That of working we have have our commercial some our years. reduce in will when during like the we employees the sum our very policies, the very, revenue you tough against the two cost drop you margins. in last costs. to

recover pre-pandemic. numbers target our offices. margins these So We in the is see to

the the was know We in around around pandemic, XX% the margins malls have office. And you that in target before shopping already XX%.

So will full on concessions see - can we revenues, to we that hope activity we no and recover those levels. we again after

Della on then sort those I some of the in And you're right, natural office the not selling, as selling guess, of especially there, margin entrance new sort properties there's XXX% of impacts and Paolera, the GLA? productive probably yet of sort space,

malls. is the that terms Yes. in margin allocation In lower than the directly on malls offices operational much in work is have in office, But our the on the basically, higher amount side segment. of but that the headquarters the because that than to people of the yes, the you office you in know of the

our but significant. has impact, some the space, office it's of not an yes, So of disposal

the your or raise chat hand. question? other can Any use You

back remarks. We closing Elsztain, to are CEO Daniel his There no for you. thank more Mr. Okay, return questions.

coming well to is around world Argentina the frontiers. normality Tourism reopen is same. restarting and world all back Argentina So as the as

now of to really Argentina and We for opportunity tourism, now country cheap is is tourism expect there because - as Argentina malls, process money our in coming to neighbors. more be liquidity People moving flood clear the established, save offices future we some everything will trend we the we a be protect country. a showing see are is recovery. really are the wealth There it's is for to is put the really projects. cheap transactions This And finish in we and estate stronger to building our and coming that for to we forward. back really, than market, and Real have, way work expected. an in

working year having said, on we this we As now Matias technology, at we that a have of really merge, that of to And friction. lot to we our face so cost to fat company these got working mentioned, digitalization not we active in look the transformation. were of costs, new times, opportunity are keep not of took we to incorporated of produce tax as the reduced to the reducing make a structure and efficiencies, and that lot And rid and company. Matias had focus

the So time, of that we cash we growing we lot lot projects a having expect long are to getting keep producing for a company. a as of were company some and again

this on everybody, So participating thank you for call.

our Thank you expect next We you see very much. to quarter. on