IRSA LEADING REAL ESTATE COMPANY INSTITUTIONAL PRESENTATION -3Q FY2021
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IRSA
LEADING REAL ESTATE COMPANY
INSTITUTIONAL PRESENTATION – 3Q FY2021
1
ABOUT US
LEADING REAL ESTATE IN ARGENTINA
✓ 30 years acquiring, developing and operating real estate
✓ 25 years listed on the NYSE and accessing capital markets
✓ Rental Portfolio of more than 500,000 sqm of GLA
RENTAL PROPERTIES
Controlling shareholder of IRCP (BYMA:IRCP ; NASDAQ:IRCP),
leader in Shopping Malls and Offices in the country (80% Stake).
Owner of 3 premium hotels in Argentina and investment in
CONDOR, US hotel REIT (18.9% stake)
DEVELOPMENT PROPERTIES
~20 mm sqm premium landbank for future developments,
almost to double current rental portfolio.
Owner of Santa María del Plata – 700th premium sqm in Puerto
Madero (BA).
MANAGEMENT TEAM RESILIENT SECTOR
Investment in Banco Hipotecario (30% stake) – potential With proven track record in the industry Real Estate as safe haven
against Argentine volatility
synergies with the develompent of mortage market in the
country. 2
OUR STRATEGY
YOUR TITLE 01 YOUR TITLE 02
OPERATING PROFITABILITY INNOVATION AND GROWTH SUSTAINABILITY
Our premium locations and our Pioneers in innovative real estate We are part of the communities
leadership position in Argentina, developments in Argentina due to where our business units operate.
together with our knowledge of the their format, scale and concept. We plan for the long term and work
shopping center and office industry, We have created a unique real towards environmental protection,
allows us to maintain high estate portfolio in the last 30 years and sustainable Development,
occupancy levels and an optimal in the country innovating and seeking to achieve environmental
tenant mix. adapting to changes in context certification standards in our real
and consumption habits. estate projects. 3
MALLS’ PORTFOLIO
15 67%
BA City
# Malls Market Share
333,000
GLA sqm
1,557
# Stores
4
2 0 0 D E L L A PA O L E R A
30
Floors
35,000
SQM OF GLA
OFFICE PORTFOLIO
316
Parking lots
7
28,000 Office buildings
IRCP GLA
114,000
75% sqm
Occupancy
10%
BA City Market Share
New headquarters 5
Opened on Dec-20
OFFICE BUILDINGS
AC T I V E P O RT FO L I O M A N AG E M E N T
F L I G H T TO Q UA L I T Y S T R AT E G Y CAPITAL CONTROLS CAPITAL CONTROLS
Intercontinental 200 Della Boston
200 Della Paolera Paolera Tower
5,000
Acquisitions
Sales 4,500
A+ Offices prices Maipú
USD/sqm Rulero Bouchard 710
Intercontinental
Boston Tower
Bouchard Plaza Bouchard Plaza Dique IV
2,450
Rulero
Bouchard 710
Yacht V & VI Flight to quality strategy
Maipú República
710 Zetta Building 200 Della Paolera
Opened in May 2019 Opened in Dec-20
6
HOTEL PORTFOLIO
3 18.9% 15
Premium hotels in Argentina IRSA stake in Condor hotels
79,000 8
sqm states across US
718 1,908
rooms rooms
7
Caballito (BA city)
PROPERTIES FOR
MIXED USE DEVELOPMENTS
San Martin (BA province)
18 17.4 Polo Dot (BA city)
# Land Reserves Total surface
(mm sqm)
700k sqm 6.2
Santa María Plot
Buildable surface
Puerto Madero – BA city
(mm sqm)
(approvals pending)
Capacity to almost double current rental portfolio
8
Montevideo (Uruguay) Santa María del Plata (BA city) La Plata (BA province)
SANTA MARÍA
DEL PLATA
It is a residential and mixed-use project that would
include stores, offices, hotels, sport and yachting
clubs, large public parks and service support areas
such as schools, supermarkets, parking spaces, etc.
700k sqm
PREMIUM LOCATION
Located in Puerto Madero, the most expensive and
premium neighborhood of Buenos Aires City, 5
minutes from downtown and next to the river
GUBERNAMENTAL APPROVAL
The project count with the environmental and use
approval. Governmental approval from BA City
congress is still pending
9
9
INVESTMENT IN Private Sector Loan Diversification1,2
In Ps. mm
BANCO 39,948.0
44,876.0
43,274.7 44,466.0
HIPOTECARIO 62.2%
50.9%
Full-service commercial bank, focused on
household and consumer credit
31.4%
27.6%
More than 130 years track record
17.7%
10.2%
Nationwide network of 63 branches in 23 2017 2018 2019 Q3 2020
provinces and BA City
3.6x
1,2 Mortgage Commercial Consumer
12 additional points of sale Max P/BV
1
STOCK PRICE
(USD)
Subsidiaries: BHN Vida, BHN Seguros and 0,8
BACS (leading local capital markets bank)
0,6
Partnership between IRSA (30% stake) and -20%
the Argentine government (64%). Remaining 0,4 YoY
6% float (BYMA: BHIP)
0,2
Throughout its history, it has originated more
than 1.7 million residential mortgage loans.
0
Since 2012, it is the trustee of the PROCREAR
trust (a housing trust established by the national 10
government) and has originated more than Sources: Bank filings with the National Securities Commission (CNV) and BCRA
Notes: 10
200,000 housing loans 1. Only considers loans to the non-financial private sector and residents abroad
2. Information for FY 2019, FY 2018 and FY 2017 is in historical currency, whereas information for Q3 2020 is in constant currency as of September 30, 2020ENVIRONMENTAL LEED GOLD CERTIFICATION FOR OFFICE BUILDINGS
Zetta building, opened in 2019, in the north area of Buenos
Aires City, has LEED Gold Core & Shell certification.
COMMITMENT 200 Della Paolera building, recently opened, has the
characteristics to obtain LEED Gold Core & Shell Certification.
50% (of office portfolio)
ISO 14001 SHOPPING MALLS CERTIFICATIONS
Pursuing improvement in the environmental
management of shopping centers, we have 4 ISO 14001
certified shopping malls: Alto Palermo, Dot Baires, Patio
Bullrich and Distrito Arcos.
P O T E N T I A L LY
30% (of malls’ portfolio)
ENERGY REDUCTION
Energy consumption was reduced in our malls 22% from 2018 to 2020. 80% of the
luminaire is LED. 42% of the scalators have a speed regulation system to save energy.
22% 11SOCIAL
RESPONSIBILITY
We are part of the communities where
our business units are based
• We frequently organize CSR actions in malls
and offices to disseminate and make visible the
topics of interest of the society in general, such us
inclusion and assistance to those most in need.
• During 2020, although remotely, we continue to
be a bridge between NGOs and the public and
we´ve been part of SeamosUno Campaign
delivering food and cleaning kits in COVID
emergency
• The Foundation supports initiatives that enhance
the interaction between education and culture
for the growth of society.
• During fiscal year 2020, Fundación IRSA worked SeamosUno Campaign
1996 with 92 civil society organizations, making a
Fund's donation to deliver 14,000 food and cleaning kits in COVID emergency
direct social investment of ARS 67 million.
• Our subsidiary IRSA CP, through the coordination Social Group Relationship Active
of IRSA Foundation was one of the five investors
of the first Social Impact Bond of Argentina in
72.5 Investment
ARS MILLION – FY 2020 92 with NGOs
FY 2020 141 volunteers
FY 2020
which the State and companies work together to
generate employment conditions to extremely
Volunteer Programs 40 Group Social Actions
vulnerable youth in BA city 5 FY 2020
12
FY 2020CORPORATE
GOVERNANCE President & CEO
12 Regular
5 Independent EDUARDO S. ELSZTAIN
• NYSE Level 3 listing since 1994 (>25 yrs listed) We stood out in
(3 in Audit Committee) Chairman & CEO credibility, pride and
• Sarbanes-Oxley compliant fellowship
• Controlling shareholder with 62,0% In recent years, we
• One class of common shares included 3 women MANAGEMENT TEAM
promoting diversity in the
• One share = One vote (equal voting rights 30 years experience
Company’s governing body
for all shareholders) in real estate
• Independent audit committee
• Controlled related parties' transactions:
previous opinion of Audit Committee according to rule and
SHARED SERVICES
third independent valuations. Related party annual form
CORPORATE REAL ESTATE BUSINESS
signed by Directors, Statutory Auditors & Senior Mgmt
CENTER
• Compliance Department in charge of: • Finance & Administration • IT
Corporate Governance, Internal Control & Audit, Fraud • Legal • Tax Settlement
Prevention & information Security DANIEL ELSZTAIN
• Human Resources • Administrative
• Executive and financial risk committees • Compliance COO Operations
• Planning • Commercial Operations
• IR department fully available and active in • Institutional • Treasury
investors’ conferences and meetings Relationships • INVESTMENTS
• COMMERCIAL & BROKERAGE (inc. center managers)
• Equal treatment to all shareholders • MARKETING
• ADMINISTRATION
• Updated website, with full information for • HUMAN RESOURCES
investors general public and direct access 13
to independent whistleblower hotlineFINANCIALS
STRONG FINANCIAL TRACK RECORD
14RENTAL 28%
MALLS
LTM ADJUSTED EBITDA 13% Of total revenues
LTM IIIQ21
S&D
72%
USD 40 million OFFICE 15%
170 165 162 FX and COVID19 effects
Hotels 1 1
Office 20 21 2
19 131
12 144
26 95 (+ S&D)
9
149 143 141 28
93 104
58 21
Shopping
Malls 19
FY 16 FY 17 FY 18 FY 19 FY 20 LTM
IIIQ 21 15
21RENTAL EVOLUTION BY TYPE OF ASSET
(USD MILLION – OFFICIAL FX)
ASSETS 2,155
296
2,170
337 1,878
1,669
VALUATION
334
1,424 1,390
459 827
1,769 1,728 639
1,387
807 669 576
USD 1.3 million FY16 FY17 FY18 FY19 FY 20 IIIQ 21
Shopping Malls Offices
EVOLUTION BY SQM
SHOPPING MALLS (USD)
DCF valuation method is used to 5,800
5,757 5,600
5,583
Official
FX
determine the fair value as there are no 5,290 5,081
sale transactions in the market. 4,032 4,011 4,035
4,003 3,979
3,740 3,625 Blue-chip
swap FX
OFFICE BUILDINGS
2,431
The Argentine office market is a liquid 2,007
1,716
market. Comparable valuation method is
used to determine the fair value, being the
FY16 FY17 FY18 FY19 FY 20 IIIQ 21
price per sqm of recent transactions the
Shopping Malls Offices
most representative metric 16
*Includes 200 della paolera building
22IRSA NET ASSET VALUE
MILLION OFFICIAL USD
Mar-2021
Gross Asset Net Asset
1,389 Value 1,058 Value 24% LTV
339 332
55
27
1,389
1,058
969
IRCP NAV Hotels Banco Hipotecario Landbank & Others Gross Asset Value Net Debt Net Asset Value
23IRSA CAPITAL INCREASE
MAY 2021
80.0 million shares CRESUD Subscription
USD 28.8 million (79.1 million preemptive right subscription &
0.9 million from accretion rights)
+19% 658.7 million shares
Funds received oversubscribed IRSA new capital stock
+ 80.0 million warrants
for 80 million additional new shares
USE OF
DEBT CANCELLATION &
April 16, 2021 EQUITY INVESTMENTS PROCEEDS WORKING CAPITAL IN
Record date
• Group shares trading at historical
minimum prices, highly discounted
1 ARGENTINA
2
ARS 58.35 or USD 0.36 • Opportunity to invest in
Common shares´ Subscription Price subsidiaries
USD 3.60
ADS Subscription Price
OTHER BUSINESS
OPPORTUNITIES 4 3
REAL ESTATE DEVELOPMENTS
• Huge landbank to develop mixed
USD/ADS 4.32 or USD/share 0.432 • In Argentina and/or
use projects in Argentina
abroad that could
Warrant strike price
represent an opportunity
5 years for long-term capital 18
Warrant maturity appreciationIRSA STAND ALONE DEBT
USD 332 MILLION
NET DEBT AS OF MAR-21
Description Amount Maturity
Short term debt 4.0CONTACT US
OUR ADRESS OUR EMAIL OUR PHONE OUR WEBSITE TWITTER
Della Paolera 261 9th floor ir@irsa.com.ar (+54) 911 4323-7449 www.irsa.com.ar @IRSAIR
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