IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BYMA) presented fiscal year 2026 results on September 8, 2026, showing record rental adjusted EBITDA of approximately $200 million, its highest level since 2013. The company, which cited a 75-year operating history and 30 years of public listings, reported net income of ARS 420,977 million, up 60.7% from ARS 261,911 million in the prior year. Operating income excluding fair value changes rose 7.6% to ARS 251,560 million, while fair value changes on investment properties swung to a positive ARS 193,797 million from a negative ARS 3,338 million in fiscal 2025. Shares traded at $15.02, down from a previous close of $15.16, with a 52-week range of $10.87 to $19.14.
Net financial results increased 58.9% to ARS 86,515 million, driven by foreign exchange gains of ARS 89,908 million and offset by net interest expenses of ARS 67,876 million. Shopping mall rental revenues rose 1.5% to ARS 364,494 million, although tenant sales declined 8.6% in real terms to ARS 3,739,833 million. Shopping mall EBITDA increased 3.8% to $176 million, with occupancy at 97.0%. Mall revenues remain heavily fixed-rent oriented, with 87% derived from fixed components: 60.1% monthly base rent, 14.2% key money and brokerage fees, plus parking and advertising revenues.
The mall portfolio expanded from 15 to 18 properties, with gross leasable area growing 10.5% to 410,356 square meters, representing 22% growth since fiscal 2024. Management projects GLA of approximately 432,356 square meters in fiscal 2027, or 29% above fiscal 2024. The Los Gallegos Shopping Mall acquisition in Mar del Plata was completed in June 2026 for $13.5 million, plus an estimated $5 million in upgrade capital expenditure; the property adds 10,400 square meters of GLA.
Office and hotel segments also improved. Office segment adjusted EBITDA rose 9.8% to ARS 22,847 million, with Class A+ and A office lease rates at $25.2 per square meter per month and 100% occupancy across 58,553 square meters. Hotel segment adjusted EBITDA increased 31.1% to ARS 14,653 million. Portfolio average room rates were $218 with 64.8% occupancy, while Llao Llao Hotel in Bariloche recorded $464 per room and 70.0% occupancy, excluding rooms under renovation.
Development activity includes Oeste Outlet in Haedo, 70% complete and expected to open in the second quarter of 2027, with 24,000 square meters of GLA. Distrito Diagonal in La Plata City is 50% complete, with the slides citing an opening in 2027, either Q4 2027 or May-June 2027; the project includes 22,000 square meters of retail GLA and a stage-one shopping mall followed by residential buildings totaling approximately 80,000 buildable square meters. Construction of the Ramblas del Plata building is expected to begin in late 2026 or early 2027. The project has 870,000 buildable square meters, 278,000 square meters of green space, 693,000 square meters of saleable area for more than 10,000 family units, and 1,830 trees planted. Five barter agreements representing about 45,000 square meters of saleable area were signed during fiscal 2026, with two more signed after year-end. Monetized or committed area of approximately 167,000 square meters was valued at around $130 million.
Zetta Building expansion adds 15,350 square meters, with Mercado Libre leasing 61% of the expansion space and bringing its total leased area to approximately 34,100 square meters, or 72% of the expanded building. Mercado Libre's contract extension runs to December 2030. Debt maturities are scheduled at $99.3 million in fiscal 2027, $46.8 million in fiscal 2028, and $51.5 million in fiscal 2029.
The balance sheet showed approximately $390 million in cash, gross debt of $671.3 million and net debt of $281.8 million. Net debt to rental EBITDA was 1.4x, loan-to-value was 10.6%, and debt coverage was 8.9x. IRSA raised $180 million through an international notes retap and $50 million in the local market. The company distributed ARS 173 billion in cash dividends, representing roughly a 10% dividend yield, and completed its 2021 warrants program.
IRSA holds a 29.12% stake in Banco Hipotecario, which distributed ARS 12,700 million in cash dividends, with IRSA receiving approximately ARS 3,700 million. The bank's return on assets fell to 0.1% from 1.3%, return on equity fell to 0.5% from 8.1%, and non-performing loans rose to 9.0% from 3.1%. Liquidity coverage improved to 127.1% from 110.0%, and the bank originated 1,850 mortgages with a 3.3% market share. IRSA Foundation invested more than $2.0 million in social programs, reaching more than 70,000 beneficiaries through approximately 70 NGOs. Fiscal 2027 is expected to be a peak capital expenditure year of approximately $150 million.
