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IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the First Nine Months Fiscal Year 2009 Ended March 31, 2009

Posted on: Tuesday, 12 May 2009, 17:33 CDT

BUENOS AIRES, Argentina, May 12 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, announces its results for the First Nine Months Fiscal Year 2009, ended March 31, 2009.

HIGHLIGHTS

-- IRSA's results for the first nine months mainly reflect the impact of the financial market's volatility on the consumer finance business, on the financial results derived from fluctuations in the exchange rate applied for valuing our stock of debt, and on the results from our related company Banco Hipotecario S.A. caused by the lower valuation of its financial asset portfolio. The real estate operating segments remained healthy during the first nine months of the fiscal year, showing good cash generation levels.

-- A comparison of the first 9 months of FY09 with the same period of FY08 reveals a 0.4% increase in revenues and a 37.8% decrease in operating income, mainly due to losses in the consumer finance segment. Revenues and operating income excluding the consumer finance segment increased by 6.6% and 22.1% respectively

-- The performance of IRSA's various segments in terms of net sales was: Sales and development decreased by 21.7% to Ps.137.1 million; Offices and other rental properties rose by 46.1% to Ps.106.6 million; Shopping centers rose by 12.5% to Ps.283.6 million; Hotels rose by 10.5% to Ps.127.1 million; Consumer finance decreased by 17.4% to Ps.175.7 million; whereas Financial transactions and Other income posted income for Ps.1.8 million

-- Shopping DOT BAIRES (previously referred to as Panamerican Mall or PAMSA project) is opening its doors to the public tomorrow, May 13, after a two-year construction period and with its occupancy rate above 94%. It will be the largest Shopping Center in the city of Buenos Aires, with unique design features and a location in what can be described as "the gateway to the city of Buenos Aires": the intersection of Avenida General Paz and the Panamericana highway. This shopping mall will host more than 50,000 square meters of gross leasable area distributed among a hypermarket and more than 150 stores that include an anchor store, a gym, a movie-theater complex and a food court.

-- Regarding the office rental segment, we have agreed on the lease of the 8 office stories at Edificio Dique IV in Puerto Madero, recently added to our portfolio. In addition, we have continued selling offices considered to be non-core assets for US$ 17.2 million during the first nine months of FY 2009, a figure that increased by US$ 34.8 million during the month of April. This will allow us to re-focus on pursuing potential business opportunities arising from the new market scenario

-- Regarding the consumer finance business, the third quarter of FY09 has shown a substantial reduction in operating losses in contrast to those experienced in the immediately preceding quarters as a consequence of improved capitalization combined with relative stabilization in local financial markets, decreased loan loss charges and decreased operating expenses.

Nine Months Fiscal Year 2009 Financial Highlights (In thousands of Argentine Pesos) Ended March 31, 2009 03-31-09 03-31-08 Total sales 831,960 828,477 Operating Income 139,216 223,662 Net Loss (106,177) 22,879 Net Income per GDS -0.183 0.042 Net Income per GDS diluted -0.183 0.042 03-31-09 06-30-08 Total Current Assets 675,042 893,842 Total Non Current Assets 3,844,015 3,578,130 Total Assets 4,519,057 4,471,972 Short-Term debt 327,595 187,234 Total Current Liabilities 804,293 742,267 Long-term debt 1,131,350 1,119,726 Total Non Current Liabilities 1,433,682 1,348,812 Total Liabilities 2,237,975 2,091,079 Minority interest 448,114 456,715 Shareholders' Equity 1,832,968 1,924,178

IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BASE: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on both the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. Additionally, IRSA owns a stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.

A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: WWW.IRSA.COM.AR

IRSA cordially invites you to participate in its nine months period ended March 31, of Fiscal Year 2009 Results Conference Call

Friday, May 15, 2009 at 1:00 p.m. Eastern Time To participate, please call: +1-877-860-4996 if you are in the U.S. or +1-404-665-9583 for international calls

To access the webcast, click on the link below: http://www.videonewswire.com/event.asp?id=59022

Investor Relations Department

IRSA Inversiones y Representaciones S.A.

ir@irsa.com.ar

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima

Source: PR Newswire

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