IRSA FY2026 Earnings Call - Record Rental EBITDA and $390M Cash Hoard Shield Against Election Volatility

Santiago Donato, Investor Relations Officer, IRSA: Good morning, everyone. I am Santiago Donato, Investor Relations Officer at IRSA, and I welcome you to the fiscal year 2026 results conference call. First of all, I would like to remind you that both audio and slideshow may be accessed through the company’s Investor Relations website at www.irsa.com.ar by clicking on the banner webcast link. The following presentation and the earnings release are also available for download on the company website. After management remarks, there will be a question and answer session for analysts and investors. If you want to make a question, please use the chat. Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company’s financial and operating performance. All projections are subject to risk and uncertainties, and actual results may differ materially.

Please refer to the detailed note in the company’s earnings release regarding forward-looking statements. I will now turn the call over to Matías Gaivironsky, CFO.

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: Thank you, Santiago. Good morning, everybody. We are finishing our fiscal year 2026. Remember that we closed the year during June. We are very happy with the results. We posted a net gain of ARS 421 billion during the year. We reached a record high EBITDA in the rental segment, reaching almost $200 million. It was a very active year in terms of development and acquisition. As you remember, we closed two transactions of acquisitions, Al Oeste Shopping and Los Gallegos, during the year, and also launched the development of a new shopping mall in La Plata, Distrito Diagonal. We expect to reach 410,000 sq m at the end of the next fiscal year. Regarding the performance of our mall, it was very solid in terms of occupancy. Revenues grew in line with inflation, despite the weaker consumption in Argentina that Santi will explain a little deeper.

Regarding the office portfolio, also we reached 100% occupancy and launched a new project to expand an office building next to Dot Baires Shopping, the Zetta Building, with Mercado Libre as the main tenant. Regarding Ramblas del Plata, we keep the commercialization progress and the development. We signed, during the fiscal year, five new barter agreements. We already closed 20 transactions in Ramblas del Plata, so we are very happy with that. On the financial side also, we were active. We raised $230 million during the year. $180 million was the re-tap of our international loans, and $50 million was in the local market. About the shareholders’ return during the year, we distributed 10% dividend yield at the beginning or during November last year. We will announce the new dividend proposal probably in the next week.

With this, I want to turn the call to Santiago Donato to continue with the presentation.

Santiago Donato, Investor Relations Officer, IRSA: Thank you, Matías. Here we can see the shopping malls portfolio evolution. Since last year, we entered into a new growth cycle. Remember that we acquired in 2025, Terrazas de Mayo in the outskirts of the capital city. This year we added, as Matías mentioned in the highlights, we added Al Oeste that currently is under refurbishment and redevelopment, and we expect to open it by the end of this calendar 2026, second quarter of 2027. By the end of the period, we also acquired Los Gallegos Shopping Mall, a very traditional mall in Mar del Plata, one of the most populated cities in Argentina. We are very happy with that. We grew 20% in our GLA and we expect to add Distrito Diagonal in La Plata, another important city, very highly populated with no shopping malls at scale.

We think these malls are going to perform very well. We are starting with commercializations in Los Gallegos, and it is doing very well. We are going to reach next year, 432,000 sq m just in malls, moving to a portfolio of 19 shopping centers in the country. Another trend that we are seeing, and we have shown this slide for the last quarters, is the entrance and the growing presence of international brands across our malls. The opening of the economy and all the liberalization is attracting new players in Argentina. Our shopping centers are top of mind, and we control 70% of this market share of Buenos Aires City. They want to be in our malls. We have received Decathlon, Victoria’s Secret, Mango, Dolce & Gabbana, and many others.

The good problem is that we do not have space for such high demand, and we are expanding our current malls in order to give space to all these new brands that enter into our malls.

In terms of operating performance, the business remained very resilient, despite, we have seen in recent quarters and probably in the last two years, a slowdown in consumption, a softer consumption environment. Tenant sales decreased by 8.5% in real terms in the year, mainly because of price effect, because tickets and visitors remained stable and with positive numbers in some months of the year. Our malls revenues increased by 1.5%. That is basically explained by our fixed components, that 87% of our revenues comes from fixed components that adjust by inflation. So provides a strong resiliency during even periods of weaker consumption. In dollar terms, we can see here evolution of EBITDA of the segment. We have reached record levels similar to 2013, and almost 4% above last year. So we are very happy also with the performance in dollars. And occupancy quite stable at levels of 97%.

The same, despite a more challenging consumption environment, our malls continue to deliver very strong operating results. Moving to the office portfolio, this is more stable. Remember that we have just five office buildings accounting for 58,000 sq m. As Matías mentioned, we are developing a new building of around 15,000 in the Polo Dot area that Jorge will give more details later. So we think that there is potential also for this and that there is demand for these type of buildings. Occupancy is in 100%, so there is a return to office that we have been seeing for the last quarters and years. And the rent is stable at levels of $25 per sq m per month. The average between the premium, the triple A buildings and the A buildings. Moving to hotels. In general, the portfolio showed solid operating results.

Occupancy increased to almost 65%, with an average rate of $218. Better performance in Buenos Aires than Llao Llao. Llao Llao is in process of renovation of some rooms. So there we show the occupancy with excluding those rooms that reach 70%. And the situation with this renovation that is at levels of 50%. But the reality is that the corporate events and conventions are growing in Argentina. That sector is growing, and we are seeing that in the performance of Libertador and InterContinental Buenos Aires, our hotels in Buenos Aires, that today the occupancy is 70%, very high, and rates at $150 per room. This is small segment accounts to $10 million of EBITDA, but it performed quite well this year. Some highlights on the ESG working program. We continue strengthening all the agenda on the environmental, social, and governance front. We started our climate risk assessment.

We expanded all renewable energy in our malls. We have four malls that today generates renewable energy or green energy. Dot Baires Shopping, Distrito Arcos, Alto Palermo, Mendoza Plaza Shopping, with solar panels. We also strengthen our circular economy initiatives and launching the first pilot of our sustainable purchasing program. On the social side, remember that we have Fundación IRSA, a foundation that started in 1996. And this year, it was its 30th anniversary, so it’s particularly meaningful for us. We invested more than $2 million in different initiatives and donations and work with more than 70 alliances with NGOs in Argentina. And then we know that we have two big buildings, office buildings that accounts for 72% of our portfolio of offices that are LEED. We are planning also that Ramblas del Plata will be LEED certified.

Then we are doing some seals with the, we did with the city of Buenos Aires, the green seal that our malls are entering into that category as well. So we continue to see ESG as an integral part of the way we manage our assets and engage with our communities. I will now give the word to Jorge, our CIO, Jorge Cruces, for all the real estate investments chapter.

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Good morning. We are pleased to share an update on our construction projects and the value being created. These actions reflect our long-term strategy of investing in high-quality assets, expanding our footprint in attractive markets, and developing projects that will fuel future growing. Oeste Outlet. We acquired the asset for ARS 9 million, of which ARS 4.5 million has already been paid. The remaining balance will be settled in 4 annual installments. Oeste Outlet is in Morón, west of greater Buenos Aires. It is an area with a large population base and a strong growth potential. The redevelopment of our 17th shopping center is progressing as planned. We are repositioning the asset as an outlet center, and the property is expected to be relaunched before the end of year. The project is currently 70% complete.

Upon completion of this phase, the shopping center will offer 24,000 sq m of GLA of modern retail units and an upgrade food court. Estimated CapEx, ARS 12.5 million, including some tenant improvements and marketing expenses. The project has already attracted leading brands including Adidas, McDonald’s, Levi’s, reinforcing its potential to become a key retail destination within the region. Los Gallegos. Mar del Plata is Argentina’s leading coastal city and one of the country’s most important tourism destinations. Home to nearly 700,000 residents, the city welcomes approximately 3 million tourists during the summer season, and around 8 million visitors annually, supporting strong commercial activity and creating long-term growth opportunities. We are pleased to announce the acquisition of Los Gallegos Shopping Center, located downtown, just a few blocks away from the cathedral, and along one of the city’s prime boulevard.

The story of this property dates to 1912, when it began operating as a general store. Over time, it evolved into the city’s most iconic department store, and in 1994, became the first modern shopping center in Mar del Plata. The transaction was completed through the acquisition of 100% of the shares of the 2 companies that own the property. The total purchase price was $13.5 million. We already paid $12.5 million, while the remaining $1 million has been retained for a period of 5 years as a warranty holdback. The property has approximately 10,400 sq m of GLA, including 49 retail stores, 14 stands, 2 movie theaters, a department store, and more than 100 parking spaces. Looking ahead, we expect to invest approximately $5 million to reposition the asset, strengthen its commercial offering, and unlock additional value. Distrito Diagonal.

Turning to La Plata, construction of the city’s first large-scale shopping center is progressing well. The shopping center will have approximately 22,000 square meters of GLA and is designed to be truly outstanding destination. The project is now more than 50% complete, with an average of 365 people working on-site. We remain on track to complete the shopping center by May or June 2027. The cinema spaces are expected to be ready for the operator to begin fit-out work in November, while the retail units will start to be handed over in January. This shopping center is the first phase of a long-term vision for La Plata. In the next stages, we plan to develop mixed-use projects that will expand the overall project and create additional value. Polo Dot.

The Zetta building expansion is part of Polo Dot, which already includes Dot Baires Shopping, the Dot building offices, and the existing Zetta building. The project is in the northern part of Buenos Aires, at one of the city’s most important highway intersections. Over the years, Polo Dot has grown into a major mixed-use development, bringing together offices, retail, residential, and entertainment uses. Looking ahead, we plan to continue developing the next phases, including the Giga office building with approximately 16,000 square meters of GLA, and the EXA residential building with approximately 19,000 sellable square meters. The redevelopment of the Philips building will complete the overall master plan. We are moving forward with the expansion of our Zetta building. Preliminary works and the earth moving have been completed, and construction is now focused on the concrete structure.

Once completed, the expansion will add more than 15,000 square meters of GLA with an estimated investment of $35 million. To date, $14 million has already been committed through awarded contracts. The building currently has around 32,000 square meters of GLA and is mostly occupied by Mercado Libre. In December, we signed an amendment to our lease with Mercado Libre to expand the space they occupy. Once the expansion is completed, the building will have more than 47,500 square meters of GLA, with approximately 72% occupied by Mercado Libre. Edificio Del Plata. Located in the heart of downtown Buenos Aires, this development will have 721 residential units and eight retail spaces, totaling approximately 35,000 square meters of sellable area. The project is part of the city of Buenos Aires’ downtown reutilization program, which provides tax incentives to support new developments in the area.

We have made good progress in the tax benefit process and have received 12 reimbursements to date. Construction is currently focused on demolition and site preparation works, including the basement levels. The project will soon enter a more visible stage of construction. At the same time, we continue to advance the procurement of major systems and construction materials. Ramblas del Plata is our flagship development, one of the most significant projects in our portfolio and also one of the largest private mixed developments ever in Buenos Aires. Located on the riverfront in a unique natural setting, the project will help transform the Buenos Aires waterfront by opening it up to the public and creating new recreational areas. As an extension of Puerto Madero, Ramblas del Plata will combine residential and retail developments with large public green spaces, creating new opportunities and experiences for both residents and visitors.

As in phase one, we successfully completed the environmental public hearing process for phase two and obtained the corresponding environmental certificate. We have completed the sheet piling works, the cleanup of the central bay, and a significant portion of the roads and stormwater infrastructure in phase one. Current activities are focused on the installation of key utilities, including water, sewage, electricity, and gas networks. Contracted works are now 77% complete, with an average of 72 people working on-site, supported by heavy equipment. To date, we have awarded contracts totaling ARS 12.5 million. As of fiscal year-end, we completed transactions for 18 lots of the 26 included in the expanded stage one, with eight lots still available. Over the last two months, we signed two additional swap agreements totaling ARS 10.75 million for lots LO3 and JO2.

As a result, less than 40,000 square meters of sellable area remain available in the expanded stage one. Overall, to date, we have completed 20 transactions, including 18 land swaps and two sales, for a total value of approximately $130 million. Through the swap agreements already signed, IRSA will receive almost 33,000 square meters of sellable area. Overall, commercial activity continues to show strong market demand for the project and gives us confidence in its long-term value. Now, I’ll give the floor back to our CFO, Matías Gaivironsky.

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: Thank you, Jorge. Going to our investment in Banco Hipotecario, where we have 29% of the shares, we can highlight that during the year, the bank started a change in the strategy, trying to focalize more the branch in the corporate and SME clients, and converting all the retail banking, trying to transform in a fully digital model with 100% of the customers’ interaction and transaction handled through digital channels. This year was a challenging year in terms of NPL. As you can see, there was an increase in NPL in the bank and in the whole system in Argentina. Also the margins were lower than the previous year. So that affected the results of Banco Hipotecario. But as you can see, the results two years, last year achieved ARS 18 billion. This year was positively ARS 15.7 billion.

The bank distributed dividends during the year, so IRSA received ARS 3.7 billion, and that was the third year in a row that the bank is distributing dividends. Also regarding mortgages, the bank, as you know, has a strong knowledge in this segment. So the bank is reaching more than its market share in terms of the banking system in the mortgage market, originating almost 2,000 mortgages during the last years. Going to the financial results of the year. First, to understand what happened with the evolution of the effects and the inflation generated some distortions in our financial statement. As you can see, the inflation during the year was higher than the devaluation. That generate positive results when we convert the debt into pesos.

As a negative effect, when we value some properties in USD, when you convert into pesos, since the inflation was higher than the devaluation, that generate negative results and also positive results in the valuation of the shopping malls. You can see that we finished the year with a net income of ARS 420.9 billion, compared with the previous year of ARS 261.9 billion. The main impacts are first in line four, the change in the fair value that this year was positive by ARS 193.7 billion compared with a negative result last year.

This was originated basically for an improvement in the valuation of our shopping malls since there is a more stable effect and since the shopping malls generate pesos adjusted by inflation, we are improving the valuation of shopping malls as a result of the DCF model that we are using and also a decrease in the cost of capital for the company that lowered our WACC that we use to discount the flows. Also, there is an important effect in line 10, the income tax that we will see later. We can see that the adjusted EBITDA was positive during the year. The rental segment increased by 1.4%, was hiring in hotels and offices. Slight decrease in shopping malls, but almost the same than the previous year.

With some impact in margins in shopping malls, but slight decrease from 67.9% to 66% during the last quarter of the year. We recognize some one-shot effects in the shopping mall segment, so we expect that to recover going forward and an improvement in margins in offices and hotels. About the change in the fair value, as I mentioned, there was an improvement in shopping malls that was somehow offset by a negative impact in peso terms of the offices and land bank. If we see the offices and the land bank in dollar terms, that remained stable compared with the previous year. Finally, regarding the net financial results, we have a positive result of ARS 86.5 billion that is basically related to the net FX result of a positive number of ARS 89.9 billion compared with ARS 18.6 billion last year.

That is related, as I mentioned, to convert the dollar-denominated debt into pesos because of the effect of the inflation and devaluation. About the income tax, this year we are posting a negative result of ARS 150 billion. Here we have a part that is related to the deferred tax on the appraisal of the investment properties. Every time that we recognize an appreciation of that line, we have to recognize automatically 35% deferred tax. So part of that is related to that and part of that is related to the income tax of the company that we started to pay again income tax after consuming all the tax credit that we used to have. Also there is including a deferred tax that we defer the payment for two years. So now we have the last installment of that year.

Going forward, we should see a reduction of this number for the next fiscal year. With this, we finish the year with a net income of ARS 420.9 billion. When we see the evolution of the rental adjusted EBITDA, we have a record high, almost $200 million for this year. We are very happy on the evolution of all our recurring EBITDA. About the debt profile, as I mentioned during the year, we raised $230 million. One that is with amortizations that we re-tap the existing notes with amortization in 2033, 2034, and 2035 and part is very short-term for a year with an interest rate of 3.75%. We raised $50 million one-year term. As you can see on the left, the difference between the gross debt and the net debt is our cash position.

Today we have a strong cash position of $390 million. What we did was to anticipate any kind of volatility that could appear in the market because of the electionary year that we will have in Argentina with the presidential elections. The company anticipated all the CapEx needs. We already have in cash all the money for our expansion. We won’t have to reach the market or tap the market during the next year. The net debt to EBITDA today is 1.4 times. We expect that number to grow because of the CapEx needs and deployment of the cash that will raise it so that number will increase probably for the next year. The LTV is still very conservative at 10% LTV and a coverage ratio of almost nine times. With this, we finish the presentation.

Now we open the line to receive your questions. We closed the presentation. Now it’s time for the Q&A session. If you have a question, please use the chat. We are going to take the questions in the order we receive them. Here we have some from in the chat. The first one is related to when you say the price effect on the shopping malls, do you mean the prices increase at a lower pace than inflation? Yes, correct. Prices decrease. In real terms, they decrease. That is the reason of the price effect. Something else to add here is that if we analyze what happened in Argentina with prices of clothing during all the process on the last part of the government, the last government, that was an acceleration of the inflation and was very difficult to import goods in Argentina.

Prices of all the clothes in Argentina was extremely expensive. Also, if we compare the CPI with that inflation of apparel in Argentina was much higher than the last two years of the previous administration. Now with the open of the economy, we have much more brands coming and also for existing local brands, they can import easily, and the cost are lower, so they can transfer that to clients and we start to see much normal prices compared with the region. Still Argentina is expensive in some brands. That is what happening. Today we have, in terms of quantity, more or less the same level of tickets and traffic in the malls, but in prices are lower prices.

In the same question, they are asking on the rental EBITDA, can you provide some detail on what caused the decline in the quarter and the margin compression? I think you mentioned regarding the one-shot effects in malls, but related to the fourth quarters that effect now, the decline in EBITDA. That was some costs that we have on the implementations of some programs of management and also some investments that we recognize instead of transfer to the assets, we recognize it as a loss during the quarter. But they are not recurrent going forward. A question related to the financial part. Given the very strong results in the fiscal year, that was not reflected in the share price.

The share price was down in the fiscal year and considering that it is discounted, do you consider adding to the dividend distribution a new program of repurchase of shares? This is something that we are discussing internally and maybe it’s an option. As you know, we did some buyback programs during the last 2, 3 years. So it’s something that we could consider. Well, another question related to dividends coming in 2027, or target dividend or dividend policy going forward. As you know, we don’t have a fixed dividend policy, but our behavior, you know that every time that the company can distribute dividends, we did it. So if you analyze probably years in terms of dividend yield was the highest dividend payer in Argentina for the last 5 years. We expect to maintain that behavior.

We have to announce the dividend proposal to our shareholders meeting, I think is next week. But always we analyze what is the financial condition of the company, the CapEx need. And if we feel comfortable, we use part of the cash to distribute dividends. As I mentioned, we feel very comfortable with the cash position. We have $390 million. The cash generation for the next year appears that will be very positive. So I think we will continue with the same line that the previous years. Okay, here there are two questions on real estate projects. One is related to Ramblas. When are the construction works expected to begin? On the same questions is many real estate companies are entering into the data center business. Are you thinking on targeting that market as well?

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Well, the works in Ramblas already began, as I said before, I suppose we’re talking about the buildings.

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: Yeah.

Jorge Cruces, Chief Investment Officer (CIO), IRSA: The buildings should be starting late this year or maybe February or March. They are not able to start building now. It is something we have to do with the city, but they are going to be starting in the next six months all the 20 buildings. Regarding data centers, we are looking into it. It is an intensive capital business. We may be looking for strategic partners, maybe through a fund, but we are looking at that kind of business also. As we said in other webcasts, we are also looking into the warehouses business.

Santiago Donato, Investor Relations Officer, IRSA: Thank you, Jorge. Questions related to CapEx, if we can share some guidance on CapEx for next fiscal year, for 2027.

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: Yes. We will have probably a peak of CapEx during the year. As we mentioned, we launched many projects all together, so we will continue with the development of Distrito Diagonal, with the expansion of the reconversion of Al Oeste, with the new building in Zetta Building for offices. Also, we have to finish with some payments of some acquisitions that we did in the past. So it will not be a new investment. There is a remaining installment that we have to pay. So altogether, we estimate $150 million, more or less, of CapEx for the year. That includes the recurring CapEx and all the expansions, the Ramblas, everything. So that is more or less. That does not include any new acquisitions. So on top of that, we could have other acquisitions during the year, but that is $150 million.

What we have not mentioned is that also we have a pipeline of some disposals and some stock of units that we want to sell. So that also will be a source of cash for the year.

Santiago Donato, Investor Relations Officer, IRSA: Another question coming from BTG. You mentioned increasing demand from international retailers, small space. Are these new leases being signed at higher rents than what we have been seeing? Do you expect this demand to support meaningful rental growth across the broader market?

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: No, are not at higher rents. Probably are more or less the same than the current portfolio. As you know, since part of our income came from tenant sales, we expect that if they perform better, that percentage of tenants will improve our rents. In general terms, agreements are more or less the same than the current agreements.

Santiago Donato, Investor Relations Officer, IRSA: Question related swap opportunities. How many more swap opportunities do you see in Ramblas? Are you going to keep moving forward with swaps rather than own developments?

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Well, as we said before, this first phase has only eight lots to go. Some of them might be swaps, but in the future, we’re going to continue with the swaps. Then again, in the second and the third phase, we’re willing to do things by ourselves. We’re willing to do things with international partners that are starting to become interested in the development. I think we’re going to be a lot more active regarding building ourselves some buildings, by ourselves and with strategic international partners. That’s in the second and the third phase. I don’t think that’s going to happen in the first phase.

Santiago Donato, Investor Relations Officer, IRSA: Here there is a question. It says EBITDA for rentals seems to have a stable growth trajectory. With so much exciting development beyond just Ramblas, what financial guidance can you give for the development non-rental segment in 2027? Probably the thing is here that we have done some other swaps, that they are going to enter, probably we are going to receive the units by 2027, 2028, 2029. Ramblas is so large, so it is a major project. So we will bring a lot of units to be sold since 2028, and we will have a lot of cash. But we generally do swap transactions and sell units. It is still a marginal segment, and this is why we do not show it in our EBITDA, because it is not recurrent and still marginal. But we have done in Montevideo swap last year. In Córdoba, we swapped another lot for a building.

And all the time, we have a lot of lots with a residential or commercial destiny that we are swapping and receiving units in one or two years later.

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Yeah. We are going to have swaps in La Plata also.

Santiago Donato, Investor Relations Officer, IRSA: La Plata. They are asking about 2027, but yes, we are going to increase that segment as well.

Jorge Cruces, Chief Investment Officer (CIO), IRSA: I believe there is going to be swaps in La Plata. There is going to be swaps maybe in Rosario. There is going to be

Santiago Donato, Investor Relations Officer, IRSA: Swaps, yes. Then you receive the cash probably when you sell later, no?

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Yeah, we might be selling also some

Santiago Donato, Investor Relations Officer, IRSA: Selling some directly

Jorge Cruces, Chief Investment Officer (CIO), IRSA: some directly in cash.

Santiago Donato, Investor Relations Officer, IRSA: Yeah. It’s a sector that will increase in the coming years, for sure. Here there is one question related to general shopping malls market in Argentina. How are the cap rates in the private markets? There are not many transactions in the market, so it’s not easy to say a cap rate. But how do you see the sector and potential growth for the sector and general cap rates of the transactions?

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: Let me address that. I think when we compare Argentina with the region, Argentina is very low penetrated. Why is that? Because nobody invested in Argentina during the last, I would say, 30 years or 20 years. That means that there are opportunities for new markets and some expansions. But we are not seeing a market very competitive in that regards. I think we are, of course, one of the leaders in this industry, and we are doing directly ourself, only one shopping mall. The rest, we acquired two this year. But there are not so many transactions or very liquid market. But I think that the potential is good. If we see more opportunities for acquisitions, definitely something that we are actively looking for, and we are very well prepared to close transactions. So we still see potential in the segment. Probably some malls, some outlets.

There is not so many shopping or outlet malls in Argentina. So there we see more potential. But that depends. You need, first of all, a very populated area with land available, and there are not so many opportunities in Argentina for that. We already are in the main markets of Argentina, finishing the acquisition in Mar del Plata and with the development in La Plata. I think we reach all the important cities of Argentina.

Santiago Donato, Investor Relations Officer, IRSA: Yeah, the top 10 probably in terms of GDP per capita or population.

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: But we still see potential for new developments and acquisition.

Santiago Donato, Investor Relations Officer, IRSA: I have one last question. Are you planning to stay in the hotel business going forward, or would you consider full divestment?

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Well, actually, it’s the only segment that we don’t manage ourselves. It’s managed by our partners. Maybe we might dispose both hotels in the city of Buenos Aires, maybe in the near future. I don’t imagine us selling our hotel in Llao Llao in Bariloche. We’re very proud. It’s a landmark. But we might be selling the hotels in the city of Buenos Aires. We bought those hotels in 1998. We don’t manage the hotels. We haven’t bought any more hotels, so it came to be a small business for us. Maybe it doesn’t make sense to keep those hotels. Or we should grow, or we should sell. That’s what I believe, and I don’t imagine growing, so I might imagine most likely selling.

Santiago Donato, Investor Relations Officer, IRSA: Thank you, Jorge. We conclude with this the Q&A session, if there are no more questions. I don’t see any more. We now turn to Matías for his closing remarks.

Matías Gaivironsky, Chief Financial Officer (CFO), IRSA: Thank you, Santi. Looking ahead, we have a very challenging year in terms of finishing all the projects that we launched. We are much more aggressive than in the past for new developments. We have to finish the Distrito Diagonal, Al Oeste, Los Gallegos, the expansion of the Zetta Building, Edificio Del Plata, the infrastructure of Ramblas, some CapEx expansion of our existing shopping malls. We think that the team is ready. We are working heavily to finish all the projects. We are very happy on what happened with Ramblas, and we expect to see the first buildings construction during this fiscal year, so a lot of excitement there. On the financial front, as I mentioned, we anticipated what could be a volatile year in Argentina, so we are ready to keep developing and expanding our properties without the need to tap the market again.

I think the company is very well prepared. We hope to see good results again during the next fiscal year. Thank you very much for your participation, and see you next quarter. Have a nice day. Bye-bye.

Jorge Cruces, Chief Investment Officer (CIO), IRSA: Bye-bye.