IRSA Surges Ahead: Record EBITDA, Expanding Malls, and Thriving Economy
IRSA, a leading retail company in Argentina, has concluded its fiscal year 2026 with impressive results. According to Matías Gaivironsky, CFO, the company posted a net gain of ARS 421 billion during the year, reaching a record high EBITDA in the rental segment.
The company's development and acquisition activities were also noteworthy. IRSA closed two significant transactions, acquiring Al Oeste Shopping and Los Gallegos Shopping Mall, and launched the development of a new shopping mall in La Plata, Distrito Diagonal. This expansion is expected to bring the total square footage of their malls to 410,000 sq m by the end of the next fiscal year.
The performance of IRSA's malls was solid, with revenues growing in line with inflation despite weaker consumption in Argentina. The occupancy rates remained high, with a new office building project launched next to Dot Baires Shopping and five new barter agreements signed for Ramblas del Plata. IRSA also raised $230 million during the year through re-tapping international loans and local market financing.
On the dividend front, the company distributed 10% dividend yield in November last year, with a new proposal expected to be announced soon. The acquisition of Al Oeste Shopping has been particularly noteworthy, with the mall currently under refurbishment and redevelopment, expected to open by the end of calendar 2026 or early 2027.
IRSA's shopping malls portfolio has entered a new growth cycle, with the addition of Al Oeste and Los Gallegos Malls. The company expects to reach 432,000 sq m in mall space next year, moving towards a portfolio of 19 shopping centers in the country. This expansion is driven by the growing presence of international brands across their malls, which now control 70% of the market share in Buenos Aires City.
The entry of new international brands such as Decathlon, Victoria's Secret, Mango, and Dolce & Gabbana has created a high demand for space in IRSA's malls. To accommodate this growth, the company is expanding its current malls to provide space for these new brands. Despite the softer consumption environment, IRSA's business remained resilient, with tenant sales decreasing by 8.5% in real terms due to a price effect.
The company's financial performance was also noteworthy, with revenues increasing by 1% despite the challenges posed by weaker consumption in Argentina. As IRSA continues to grow and expand its portfolio of shopping malls, it is clear that the company is well-positioned for future success.
