IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the First Six Months of Fiscal Year 2010 Ended December 31, 2009

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• USA - English

BUENOS AIRES, Argentina, Feb. 11 /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 Six Months of Fiscal Year 2010 Ended December 31, 2009.

HIGHLIGHTS

-- Net income for the first six months of fiscal year 2010 amounted to Ps. 264.3 million, compared to a Ps. 99.0 million loss in the same period of the previous fiscal year.

-- Total revenues for the six months increased 21.3% to Ps. 656.6 million compared to the same period of the previous fiscal year: Sales and Developments rose by 115.8% to Ps. 137.4 million; Offices and Other Rental Properties increased by 11.5% to Ps. 79.0 million; Shopping Centers rose by 29.2% to Ps. 252.2 million; Hotels decreased by 13.3% to Ps. 76.3 million; and Consumer Finance decreased 9.6% to Ps. 111.7 million.

-- Operating results for the July-December 2009 period showed a Ps. 291.8 million profit compared to the Ps. 48.9 million recorded in the same period of the previous fiscal year.

-- Shopping Centers: EBITDA from this segment increased 36.6% (EBITDA/Sales: 78%) with high occupancy, at 98%. A recovery in sales growth rate was experienced during the last quarter.

-- Consumer Finance: Following the actions taken in the last year, its results have recovered and they show an EBITDA/Sales margin of 19%, in line with those experienced before the world financial crisis.

-- Sales and developments: This segment reflects the results from the sale of non core office assets made during the period. The prices, which show a sustained level despite the world financial turbulence, reflect the strength of the local real estate market and of our assets, which are perceived by purchasers as a means for preserving the value of their investments.

-- Consolidation of holdings and business lines: Our subsidiary Alto Palermo agreed to the sale of 80% of Tarshop to Banco Hipotecario, which is subject to certain conditions, and IRSA increased its stake in Banco Hipotecario S.A. to 26.86% of its issued stock capital. Moreover, in January 2010, IRSA agreed upon an option to purchase 29.6% of Alto Palermo's stake in the hands of Parque Arauco for US$ 126 million. Should the option be exercised, IRSA will consolidate its position in the Argentine shopping center market.

-- IRSA paid cash dividends for Ps. 31.7 million, representing 20% of the net income for fiscal year 2009, in compliance with the policy set by the Board of Directors.

           First Six Month of Fiscal Year 2010 Financial Highlights
                      (In thousands of Argentine Pesos)
                           Ended December 31, 2009

                                          12-31-09          12-31-08

    Total sales                            656,595           541,363
    Operating Income                       291,842            48,898
    Net Income (Loss)                      264,313          (99,015)
    Net Income per GDS                        4.57            (1.71)

                                          12-31-09          06-30-09

    Total Current Assets                   902,608           891,869
    Total Non Current Assets             4,326,528         4,044,118
    Total Assets                         5,229,136         4,935,987
    Short-Term debt                        359,720           349,243
    Total Current Liabilities              952,535           974,890
    Long-term debt                       1,104,552         1,044,725
    Total Non Current Liabilities        1,437,814         1,401,054
    Total Liabilities                    2,390,349         2,375,944
    Minority interest                      510,583           464,381
    Shareholders' Equity                 2,328,204         2,095,662

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.

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 First Six Months of Fiscal Year 2010 Results Conference Call on Tuesday, February 23, 2010 at 11:00 a.m. Eastern Time

    To participate, please call:
    800-314-6696 If you are in the US or
    +1-706-758-8485 for international calls

    To access the webcast, click on the link below:
    http://www.videonewswire.com/event.asp?id=66321

    Investor Relations Department
    IRSA Inversiones y Representaciones S.A.
    [email protected]

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima