IRSA's Q2 2025: Key Contradictions in Pricing, Debt Strategy, and Building Conversions

These are the key contradictions discussed in IRSA's latest 2025 Q2 earnings call, specifically including: Rambla Del Plata Pricing Expectations, Debt Management Strategy, La Plata Building Conversion, and Debt Refinancing Strategies:



Shopping Mall Recovery:
- IRSA reported a 21.4% increase in real tenant sales in its shopping malls in Q2 2025 compared to the previous quarter.
- Occupancy rates remained high at 98%, with expectations for further improvement in the next quarter.
- The recovery is attributed to the economic recovery and real wage increases in Argentina.

Office Segment Occupancy:
- IRSA achieved full occupancy of its premium office portfolio, with the Dot building reaching 100% occupancy.
- The company maintained high occupancy levels despite a challenging market environment.
- The return to office work and strong demand for high-quality office space contributed to this success.

Hotel Performance Challenges:
- The hotel segment faced a decline in occupancy, from 72% to 67%, and a slight reduction in rates per room.
- Despite challenges, hotels generated good revenues compared to historical averages, providing diversification for the rental portfolio.
- The decline is due to the appreciation of the Argentine Peso and lower international tourism influx.

Acquisition and Development:
- IRSA acquired the Terrazas De Mayo shopping mall for $27.75 million, with a GLA of 33,700 square meters.
- The company also achieved the first two plots sale of the Ramblas Del Plata development for $23.4 million.
- These acquisitions and developments are part of IRSA's strategy to expand its portfolio and capitalize on market opportunities.