IRSA Inversiones y Representaciones Sociedad Anónima is a leading Argentine real estate company engaged in the acquisition, development and management of shopping malls, office buildings, hotels and land reserves for future development or sale. The firm also undertakes residential projects and holds selective investments outside Argentina, giving it a diversified presence across multiple real estate sectors. Notably, it is the only Argentine real estate company whose shares…
IRSA Inversiones y Representaciones Sociedad Anónima is a leading Argentine real estate company engaged in the acquisition, development and management of shopping malls, office buildings, hotels and land reserves for future development or sale. The firm also undertakes residential projects and holds selective investments outside Argentina, giving it a diversified presence across multiple real estate sectors. Notably, it is the only Argentine real estate company whose shares trade on both the Buenos Aires Stock Exchange (BYMA) and the New York Stock Exchange.
IRSA generates revenue chiefly from lease and service income received from tenants of its shopping mall portfolio, which includes base rent, percentage rent tied to tenant sales and other service charges. The company earns rental income from its office buildings, and derives hotel revenue from room occupancy, food and beverage sales and ancillary services. Proceeds from the sale and development of land parcels, residential units and other trading properties contribute to earnings, as do entertainment operations and financial investments such as its stake in Banco Hipotecario.
The company operates through the following five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others.
- Shopping Malls: This segment derives income from lease and service revenue generated by the company’s portfolio of shopping malls across Argentina, encompassing base rent, percentage rent tied to tenant sales, advertising, parking and other ancillary revenues.
- Offices: This segment consists of lease revenue from office buildings owned and managed by the company, including properties such as Intercontinental Plaza, the Dot Building, the Zetta Building and 261 Della Paolera.
- Hotels: This segment includes room, catering and restaurant revenue from the company’s hotel properties, principally the Intercontinental Hotel, the Libertador Hotel and the 50 percent interest in the Llao Llao resort.
- Sales and Developments: This segment covers results from other rental properties, the development, maintenance and sale of undeveloped land parcels and trading properties, including residential projects such as the Ramblas del Plata initiative and land swap agreements.
- Others: This segment encompasses entertainment operations through La Arena S. A., La Rural S. A. and the Buenos Aires Convention Center, the software activities of We Are Appa, and financial investments such as the stake in Banco Hipotecario and related entities.
IRSA is the largest owner and operator of shopping malls, office buildings and other commercial properties in Argentina by gross leasable area and number of rental properties, with its mall portfolio representing roughly 29 percent of the total GLA reported in the country. The firm faces competition principally from Cencosud S. A., which operates Unicenter Shopping and the Jumbo supermarket chain, but benefits from prime locations in major urban centers, long standing relationships with tenants and its ability to develop mixed use projects on land reserves in high growth areas.
The company serves a diverse base of retail tenants including prominent brands such as Zara, Nike, Adidas, McDonald’s and Puma, corporate office occupants such as Mercado Libre and various multinational firms, and hotel guests seeking upscale accommodation in Buenos Aires and Bariloche.