IRS

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of IRSA, and I welcome you to the third quarter of 2026 results conference call. First of all, I would like to remind you that both audio and slideshow may be accessed through 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 Mr. Matías Gaivironsky, CFO.

Thank you, Santi. Good afternoon, everybody. We are glad to present our nine-month period results of the fiscal year 2026. We saw during the nine-month period a gain of ARS 239 billion, an increase in shopping mall revenue and EBITDA. Good results also in the office portfolio with 100% occupancy and slight increase in rents and EBITDA. Also an improvement in rents occupancy margins in hotels and EBITDA as well. Regarding the expansion plan, we also announced a new building, an office building, adjacent to our existing building Zetta. We already signed an agreement with Mercado Libre to expand their offices. Mercado Libre will rent most part of the new building.

There is a development and a commercialization progress in Ramblas, our main project, with two additional lots that were swapped for $11.3 million. Let me introduce Santiago again. He will continue with the presentation.

Thank you. We move to page number three, to the shopping malls segment. As you can see here, GLA increased to 373,000 sq m. This was mainly due to a small expansion in Alto Avellaneda mall. Occupancy remained very high at levels of close to 98%. Regarding tenant sales and consumptions over the last quarters, we have seen a decline in our tenant sales in real terms, the last quarter by 10%. Consumption is a little bit weak. We are seeing mainly a pressure on prices within a process of retail reconfiguration driven by the opening of the economy and the entry of new international brands that I will show you in the next page. While volumes and customer traffics continue to be strong, quite good.

Despite these lower sales, in the third graph, our revenues and our adjusted EBITDA grew by close to 2.5% the revenues, 2.2% the adjusted EBITDA of the segment. This is mainly explained by our fixed components, the base rent plus the key money, the nontraditional advertising, the parking. All the fixed components today account for almost 87% of our revenues. This shows the resiliency of our business, of the shopping centers, even in a slowdown of consumption. We hope to be recovering in line with the economic activity in the next quarters. Moving to the next page. Here we can see the growing interest that I mentioned before of international brands across our malls looking to enter Argentina and expanding through our malls.

These are some examples of brands already operating in our portfolio as well as others that are under development and expected to open in the coming quarters. This is Dolce & Gabbana, the Decathlon in some of our malls. Victoria's Secret, we have already set in Alto Palermo, in Abasto and is planning to expand. We are also having conversations and negotiations with very important retailers from abroad that will that are willing to come to Argentina. This is really positive news for IRSA. We'll diversify our tenant mix and bring very good proposals for our shopping malls. Here we have the performance of the office buildings. This is more stable. We have today we have a small portfolio of 58,000.

It's gonna be increased a little bit with this new development that Jorge will give you some color later. Rents of our premium portfolio today, almost all of our portfolio is A+ or A, except for the Philips Building that today is a workplace. It's like a co-working. That today we have a rent of around $26 per sq m, and it's fully occupied. We are seeing a gradual, the office work is coming back, and we are seeing huge demand in our offices, in our premium offices. Finally, the hotel segment, which is our third rental segment, is performing very well. We come from a year, a year and a half with some challenge due to the appreciation of the peso against the dollar.

We are seeing very good performance, mainly in Buenos Aires. Tourism is coming to Buenos Aires. Occupancy reached, like, 74%. It's a combination between tourism and corporate events that are doing very well in the city. The Llao Llao Resort, our exclusive hotel in Bariloche, occupancy was mainly affected this last two year and a half because of renovation works in one section of the hotel. If we exclude those rooms that are under construction, the hotel and the occupancy shows a positive and a stable trend. Very good numbers in the three segments. The rental adjusted EBITDA increased in the three segments in real terms and in dollars as well. I will give the word now to Jorge Cruces, our CIO for the projects under development.

Thank you, Santiago. Good evening, everybody. Well, we're moving forward with a new office expansion project at our Zetta building. The property currently totals around 32,000 sq m of GLA. It's mostly occupied by Mercado Libre. In December, we signed an amendment to our lease with Mercado Libre, agreeing to expand the leased space. Upon completion, the building will exceed 47,500 sq m of GLA. Around 72% will be occupied by Mercado Libre. We've already kicked off the initial works, site preparation, and earthworks. We are now in the process of tendering the concrete structure. The Zetta building expansion is part of the Polo DOT mixed-use master development, which already features DOT Baires Shopping as a key anchor, along with DOT building offices and the existing Zetta building.

The whole project is located within the city of Buenos Aires, in the northern part of the city, and stands at one of the most important highway intersections of Buenos Aires. Polo DOT brings together a dynamic mix of businesses, offices, residential spaces, entertainment, dining, and top retail brands. In the near future, our plan is to move forward with the next phases of the development, including the Giga office building with close to 16,000 sq m of GLA and the EXA residential building, 19,000 sellable sq m. Last but not least, the Philips Building redevelopment will complete the master development. Ramblas del Plata is our most significant project to date. It is strategically located along the riverfront in a natural setting. The master plan features an open metropolitan park and 36,000 sq m of retail spaces, all connected by a 2 km pedestrian promenade.

The neighborhood also includes a 7 ha central bay. Within it, there is a 1,600 sq m covered space delivered in April, formerly a hangar used by the company that operated on the site, which we now plan to transform into Ramblas multipurpose event building. Recently, we signed swaps for plots M1 and K3 for a total amount of $11.3 million. These two transactions represent over 30, 13,000 sellable sq m. That's around 3,700 sellable sq m for IRSA. To date, we've sold two lots and swapped another 15, and the combined value of these deals totals $105 million, covering over 137 sellable sq m to be developed. So far, IRSA will receive almost 25,000 sellable sq m from the swaps agreed, agreements already executed. As happened in phase one, the environmental public hearing for phase II will soon be taking place.

Overall construction progress is around 23%, with an average of 72 people currently working on site and around 12 units of heavy equipment in operation. To date, 52% of the works for phase I is already been constructed. All sheet piling works around the central bay have been completed. Tree buffer planting and bay remediation are now in the maintenance phase. Last month, we kicked off work on water, sewer, electrical duct networks, and we also awarded the contract for the gas network. This week, we started paving works. Now I'll give the floor back to Mati, our CFO.

Thank you, Jorge. To understand the figures during this period, also we have to understand what happened with inflation and the currency, since, as you know, in Argentina, we have to adjust our balance sheet by inflation.

During the nine-month period, there was an appreciation of the peso. The nominal devaluation of the exchange rate was 15%, while the inflation index in the same period was 25%. That generates negative results when we have to value assets in dollar terms and post the results in pesos, as well as generates gain when we have to re-express our debt in pesos term. That generate some volatility in the results. Going to the next page, we can see first on the adjusted EBITDA, there was a positive numbers in the three main business lines, shopping centers growing at 2% in pesos term. That number in dollars is around 6%. Offices growing at 15% and hotels at 37%.

Keeping margins in line with the last year and a slight increase in hotels. About the change in the fair value of the investment properties, as I said, this generate volatility. Last year that was an important loss in the nine-month period. For this nine-month period generated positive numbers. When we have a breakdown between malls and land bank and offices, we see a negative numbers in offices and land bank in pesos term because we maintain the same value in dollars. We value the properties once a year that we engage a third party appraisal to do the work.

In shopping malls we are adjusting in this quarter valuation in dollar terms from almost $1.3 billion to $1.4 billion. That was a result of using in the DCF, the current exchange rate and the projected numbers. As I said in the net financial results that you can see in the table in the first line that the devaluation of our debt in pesos term generate positive numbers. The net effects result is mainly the conversion of our debt in pesos, so that generate ARS 90.7 billion gain.

In the net interest, we have a higher gross debt than the previous year, that generate more interest to pay, and part was compensated in the line of fair value of financial assets and other financial results that is the result of the investment of our cash. Also, it's important to mention that the income tax start to be representative again. After many years that IRSA used to have a tax grade, we already consume all that tax grade. Now, we will see probably more stable numbers in this line that IRSA has to afford. With all these numbers, we are finishing the net result the nine-month period with a net result of ARS 239.7 billion compared with the previous year that was ARS 46.5 billion.

If we go to next page, this, the adjusted EBITDA, the rental adjusted EBITDA, in dollar terms, we see the evolution. We finished this period with $151 million. Probably when we finish this fiscal year, we will have a record high rental EBITDA in dollar terms. We are happy for that. About the debt, during the quarter there was no significant news. Remember that we tapped the International Capital Market in December last year, so that we raised it $180 million additional notes of the existing 235 notes. During the quarter, there was no news about that. The net debt to rental EBITDA remains at 1.4x EBITDA with an LTV very low of 11.3%.

Probably we will see an increase in the net debt going forward since we have plans of new developments and CapEx. We will start to use more our cash so that will result in a higher debt but with very conservative numbers anyway. With this we finish the formal presentation. Now we open the line to receive your questions.

If you have a question, please use the chat. We will take the questions in the order we receive them. Here we have some. The first ones, for Jorge. Any plans to enter into logistics and into data center business?

Data center business, we've been analyzing that and in the near future, that's not We don't think that's going to happen. We are analyzing the possibility of going into logistics. We're very confident that in the near future we should be one of starting a long road on logistics and maybe in Maybe someday we can be a strong player, a strong local player in Argentina in logistics, hopefully. Yes, we are analyzing becoming in real estate logistics.

Good. Second question, on the mall segment. How are you seeing consumption trends in shoppings for April and May? There was someone else asking for this quarter, the one that we are entering now, or we enter in April. With this new pricing dynamic mentioned, at what point could you expect tenants Give me one second. Would you expect tenants to begin pushing for contract revisions? Which is IRSA strategy for that scenario? Regarding this is the fourth quarter that we have just April, we are seeing similar trend than on the first quarter of the calendar year. Similar decline. The second question, the strategy of pricing coming forward.

Let me add something else, Santi. When we analyze consumption, the shape of our shopping malls, of course we see weaker sales, no? We have to do a deeper analysis on that. First of all, as we saw during the last years, the inflation on the clothing sector was much higher than the CPI of Argentina. What happened last year, since there is an open in the economy and more international brands and more goods imported, we start to see a lower evolution on prices in the clothing segment. That means that first when we have to compare last year numbers, we are adjusting by CPI while the compensation of the new sales during this year are in a lower pace than inflation.

When we do an analysis on tickets, sales, and traffic, we see a good evolution. Probably in tickets we are similar than the previous year. Probably more the push is on prices. We probably in terms of amount of sales, we are maintaining similar numbers. Second, on shape of the industry, you have to analyze occupancy. Occupancy is very high in our malls. Third is delinquency. If we have delayed in payments. We don't have delayed in payments at all, that driver is normal, completely normal. Fourth is the renovation of new leases. We keep collecting good numbers on key money.

In fact, when we adjust base rent, although we are adjusting the base rent by inflation, every time that we have to renew agreements, we have some increase in value. All the numbers are the triggers that you saw during the period that we keep increasing EBITDA in real pesos compared with the previous year. We don't believe that we have to change our strategy. Of course, if the trend on consumption is weak, of course that is not a good signal for us. As we can see for the recent trend in the market, mainly from the government, we start to see an increase in collection of taxes on IVAs, VAT and also in the tax on movements of money, [Non-English content] That's are positive numbers that the government start to show. We hope to see that trend as well in our shopping malls.

Good. Next question. The Polo DOT launch is your first new office development in some time. Is this a one-off driven especially by Mercado Libre high quality as tenant, or you are seeing something different, a potential in the office sector going forward?

We are seeing something different in the office sector. The occupancy is doing better year by year. There's not so many new developments. In the question you're right. Because it's Polo DOT, we are very confident with Polo DOT as a master development. Mercado Libre is a very important tenant for us also. It's very, it's gonna be very important for us to finish the Polo DOT, and it's one of the necessary steps to continue with our master development. I would say, yes to all of above. Yes, we're seeing that the office is doing better.

It's very specific where, you have to be very careful. Two, yes, Mercado Libre is a very important tenant for us and it's very helpful to make this decision. Yes, Polo DOT is part of a master development that we were planning to do it anyways in some time, and well, the time is, well, we got to that point that it's a very good business for us to continue with office space in Polo DOT.

Let me add something else, Jorge. As we always said, we don't have any specific target on weight on our portfolio regarding shopping malls, office, hotels or even logistics that we want to enter. We will analyze each project like a unique project, and if we believe that is a good return, we will move forward. We are not here trying to, I don't know, balance the portfolio or change the strategy. We always said that IRSA is a diversified real estate company between rental real estate, but also with Ramblas, that with all the projects that we have in residential, the residential part will be important for IRSA going forward.

Although IRSA is not developing directly, we are doing, so far the strategy is doing swaps agreements with developers when IRSA is buying the land and then entering in agreements with developers. They develop and pay us with finished units. IRSA has a tremendous portfolio of units to be received in the future. We calculate that between now until, I don't know, the next three, four years, IRSA will have, like, more than $300 million of units to be sold. If you calculate, compare with our existing rental EBITDA, is much lower, but will be an important business line as well for IRSA in the future. A financial question here. It's in Spanish, we're gonna translate.

Due to the enough cash that IRSA has today and the recent drop in IRSA shares, do you expect to implement a new share repurchase program? Well, the formal answer is that we never anticipate what we're gonna do. We will communicate when we do it, no? If you analyze our behavior in the past, we launched many buyback projects, buyback plans in the past. This is part of what we like to do when we see an opportunity in our shares. There is always the analysis is, first of all, we need accumulated results, audited accumulated results. If we use most part of the results in the last dividend payment in October last year. We need to finish the fiscal year to have the audit financial statement.

After that, we can decide what to do with the results. If we distribute as dividends and any shareholder can buy shares or if we will buy back shares, no. I can't anticipate what we're going to do. I have one more here. Any update on the progress of Al Oeste development? The shopping mall that we are.

Well, the refurbish of the shopping of Haedo, it's on schedule. That's regarding the construction, and we're doing great with the tenants. There's a lot of expectations. It's, yeah, what I would say, it's on schedule. I can't say exactly the month we're gonna start with, it's gonna be public, but we are on a schedule as we thought so.

Yeah, it's a one-year development.

Exactly.

By the end of the year is according to what we originally planned.

We planned for the end of the year, and we can make it. We're still on schedule, but we're deciding if finally it's gonna be at the end of this year or beginning of the other. It should be the, at the end of this year, maybe.

Good. Well, I don't see more questions, but I give you one minute more. If you have any additional question, you can use the chat. Also, you can raise your hand. Okay, I don't see more questions. I will now give back to Matías Gaivironsky for his closing remarks.

Thank you, Santi. Thank you everyone to participate in the call. We are happy so far with the results. We are confident in this new trend of four years of new expansions. We hope to communicate many of the negotiations that we are trying to close soon, that we are in different transactions acquiring more land or entering to logistics or new expansions that we hope to announce in the next quarter. The rest, we hope to see that a recovery in the economy after what happened last year because of the elections and the constraint on the monetary side, the lack of credit in Argentina and the interest rate that were very high.

We hope to see that the, already touched the floor regarding consumption and start to see better numbers in the coming quarters. Thank you very much and then see you in for our fiscal year end in September. Thank you very much.

Have a nice afternoon. Bye-bye.

Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of IRSA, and I welcome you to the Second Quarter of Fiscal Year 2026 Results Conference Call. First of all, I would like to remind you that both audio and a slide show may be accessed through 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 the information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks 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 Mr. Matias Gaivironski, CFO.

Good morning, everybody. So we are finishing this semester with a net gain of ARS 248.8 billion compared with a loss during the same period last year that was mainly driven by a gain in fair value of our investment properties. About the operational side, we have good numbers in Malls, in Offices, and Hotels. Malls have grown in terms of revenues and EBITDA. Offices also remain fully occupied with an increase in the EBITDA. And we have a recovery in the Hotels rates and margins. At Ramblas del Plata, we will see later with deeper analysis, and we have very good progress in development and in commercialization. We signed during the period 2 additional swaps agreements with different developers. So Eduardo will enter in more details later. Also during the quarter, we issued an additional $180 million in the existing notes maturing 2035. So the company today has a strong cash position to take advantage of opportunities and also to finance our growth. Finally, during the quarter, also, we finished the payment of our dividends of the year. We paid a dividend yield of 10% during 2025. So with this, let me introduce Santiago Donato, our IRO, to follow the presentation.

Thank you, Matias. Moving to Page 3 to the Shopping Malls segment. Here, we can see our GLA slightly increased during this quarter. We have done some small expansion in [indiscernible]. Last year, we bought Terrazas de Mayo. So we did a big increase. And we are also working in some -- in the new development in La Plata, and we are also working in Oeste Shopping, doing some development there. We're going to have the mall closed. So we are growing in Shopping Malls in recent years. Occupancy have reached almost 98%, so very, very strong occupancy. Regarding consumption, over the last 2 quarters, we have seen a decline in our tenants' real sales, minus 7% last quarter, it's minus 9% this quarter. What we are seeing -- there was some impact of all the electoral context during October -- September, October, but we are also seeing now currently some pressure on prices. Prices are going a little bit down, while volumes continue to grow. And also, we are seeing a strong consumer traffic in our malls. So we hope we can increase at the level of the economic activity. Our sales are in general -- shopping sales follows inflation plus GDP, and the economy is expected to grow in this 2026 in Argentina. Despite these lower sales in real terms, our revenues and our EBITDA are growing plus 4% revenues in the 6 months compare period and plus 2% EBITDA -- the adjusted EBITDA in the compare 6 months period. And this is basically because of our inflation-linked fixed lease structure. As you can see on the right, almost 84% of our components of revenues in the malls are fixed or -- well, you have the monthly base rent and then some other concepts like key money, parking, generally adjusted by inflation. And the variable today is just 16% of the total structure. In the next page, we can see Office evolution. This segment, we have maintained a small portfolio today. We currently manage 58,000 square meters. This is mostly A and A+. We have just 1 building that is B category that is Philips, today is transforming in a coworking in the workplace by IRSA. In occupancy, we are in 100% of our portfolio and rents are stable in levels of $25, $26 per square meter per month. Hotels, we have seen this quarter a gradual recovery, mainly improvements in occupancy that reached 69% in the 3 hotels in the total portfolio, average rates at $227 per room and slight increase also in margins. And this has mainly been explained by good performance in our hotels in Buenos Aires, which benefits from stronger activity in sports and corporate-related events. In the case of the [ Llao Llao ], the occupancy was a little bit affected by renovation works in 1 section of the hotel. If you exclude the rooms that are currently under construction, occupancy shows a more stable trend. So this is the rental portfolio of the 3 segments that have shown strong results. I will introduce Jorge Cruces, our CIO, for all the CapEx and the development projects.

Thank you, Santiago. Good morning. Distrito Diagonal; in the city of La Plata, construction works are gaining momentum. Overall progress currently stands at around 23% and close to 78% of the contracts have already been awarded. We remain on track to open in May 2027, and it will become a milestone for beginning -- for being La Plata's first and only shopping mall. This new project will add 22,000 square meters of GLA to our shopping portfolio. Including the acquisitions of additional shopping centers and expansion projects we have mentioned lately, our GLA is expected to reach 458,000 square meters over the next years. Ramblas del Plata; recently, we added several new plots to our commercialization pipeline. So now we have a total of 26 plots, representing almost 207,000 sellable square meters. We signed swaps for plots L-1 and J-1 for a total amount of $11.7 million. These 2 transactions represent almost 4,000 sellable square meters for IRSA. To date, we've sold 2 lots and swapped another 13 and the combined value of these deals stands at $93 million, covering over 124,000 sellable square meters to be developed. Looking ahead, we are planning to implement early activation programs in the future development of area of Phase 3. These initiatives may include a golf driving range and practice areas, paddle courts, a gym, driving test circuits, as well as food trucks. To support these [ temporary ] uses up to 20 parcels scheduled for development in the final phase may be leased in a short-term basis. This approach will allow us to create an on-site destination, encouraging the public to discover Ramblas del Plata. Construction is progressing in line with schedule currently at 20%. The consolidation works of the Central Bay and the riverfront along the future [ access to ] boulevard have been completed totally. We have nearly finished the planting of the buffer forest of Phase 1, along with its irrigation system. To date, more than 1,900 trees have been planted. At the same time, construction of road works, sewers, and drainage infrastructure for Phase 1 is progressing well and has now reached 60%. Through a public auction, we acquired the former Israelita Hospital on the property located in Flores neighborhood of the city of Buenos Aires. Our plan is to transform this iconic asset into a mixed-use development. The property sits on a land of approximately 8,850 square meters and includes an existing developed area of about 17,000 square meters. The acquisition was completed for a total purchase price of $6.8 million, which has been fully paid. In Uruguay, Distrito Calcagno, is a unique urban development located along the shores of Lake Calcagno. Another swap agreement was signed in October at $9.3 million. Back in Argentina, in the province of C�rdoba last week, we signed a new swap for Tower 3 at C�rdoba Shopping. IRSA will receive around 1,000 square meters of GLA, the whole third floor and 146 parking spaces. The agreement also includes an option for fourth floor at a cost price plus a 12.5% of development fee. Well, now I'll give the floor back to our CFO, Mr. Matias Gaivironski. Thank you.

Thank you. Thank you, Jorge. So about the results of the semester, we have to understand what happened on the variables of FX and inflation. During this semester, we have a real devaluation of the peso compared with an appreciation of the peso last year. That generated -- but during the last year, we have losses in our investment properties since the value are mostly related to dollars. And this semester, we have significant gains. Also, when we express our debt in pesos term, the devaluation this year generate a negative result compared with a positive result last year. So we will see it in the next pages. So about the operational side first, on Page 12, we have good results in the Rental segment with a 4.9% increase in pesos -- in real pesos terms compared with the previous year, 2% increase in Shopping Malls, 15% increase in Offices, and 44.8% increase in Hotels. When we see margins, we see a slight decrease in Shopping Malls, most related to [ 1 short ] event during the quarter. So we expect the recovery in the coming quarters. And in Offices, in line with this with the previous year and hotels an increase, as [indiscernible] mentioned. About the fair value of the investment properties, that was the most important change. As I said, last year, we posted a significant loss, ARS 306 billion compared with ARS 185 billion gain this year. If we analyze numbers in dollar terms, we will see that during this year, prices or value of our properties remained stable. This is only the effect of the devaluation of the pesos that when we express the dollars into pesos generate a higher gain than the inflation effect. About the net financial results. As I said, you can see in the table below the first line, the net FX results that during this year, we are generating a loss of ARS 15.9 billion compared with a gain last year of ARS 28 billion. That is basically the main important effect. About the net interest remained stable compared with the previous year, but probably for the rest of the year will increase a little since we increased our debt as we can see later. So we expect that to pay higher interest compared with the previous year. The income tax, here, we are giving effect on the deferred tax on the investment properties. You know that every time that we generate a gain in the investment properties, we have to post a deferred tax in this line. So last year, we generated losses. And because of that, we generated gains in the income tax, and this year is the opposite. Although the company started to pay income tax again, last year, we started to pay, so that has a cash effect on the current tax. So we expect that, going forward, the company will keep paying income tax again after consuming all the credits -- the tax credit that we used to have. So finally, we finished the quarter or the semester with a net income of ARS 248 billion compared with the loss last year. About the evolution of the rental segment, the EBITDA and the adjusted EBITDA in dollar terms, we can see that the progress has remained positive. We are finishing the semester with $102 million. So if we continue with this trend, we anticipate very good numbers compared with the previous year. So the company remains strong in the cash generation. About the debt, the news is that the company tapped the international market again during December. So we closed -- we did the reopening of the existing bond that we issued in March 2025. So we issued an additional $180 million at a yield of 8.25%. Remember that the bond has a coupon of 8%. So you can see on the bottom right that the debt amortization schedule, we almost don't have any debt in the short term. So with the proceeds and the cash position that we have, we will cancel the $226 million amortizations, and most of the debt today [ outstanding ] will expire during 2023 (sic) [ 2033 ], 2034, and 2035. With this, we -- the ratios remain very conservative with a net debt to rental EBITDA of 1.6x, LTV of only 13%, and coverage ratio of almost 7x. And remember that only 60% of our assets today are generating EBITDA. The other 40% are land reserves or other assets that are not generating EBITDA. So we believe that we have a very conservative debt structure. Finally, we saw that during the last quarter, but we finished the payment of the dividend of the year. We paid a dividend yield of 10%, so $116 million that were paid during November and October. So that was the [ arrears ]. So with this, we finish the formal presentation. Now we open the line to receive your questions.

Well, now is the time for the Q&A session. If you have a question, please click the button labeled Raise Hand or use the chat. We'll take the questions in the order we receive them. Okay, here, we have the first question regarding tenant sales that impacted by -- were impacted by softer consumptions in the second half of the year. What are your expectations for consumption trends this year?

There is a big debate these days in Argentina about the prices of clothing. What we saw, and probably if you visit Argentina, for the locals, price of clothes were expensive in dollar terms compared with other countries. What happened in the last, I would say, year that if you compare prices of cloth compared with the CPI, the clothes increased much lower than inflation. So when we show our tenant sales, we are doing the [indiscernible]. So if we see the quantity, the tickets that we are generating in the malls, this remain in good levels. So when we compare with the previous year are at very good levels. And also in terms of traffic, the public that are entering the malls remain stable compared with the previous year. So only when -- probably what is happening, the price of the clothes start to reduce compared with the previous year. So when you do the equation, then that result in lower consumption or lower pesos compared with the previous year. Going forward, as I always said, the company will be tied to the evolution of the economy. So if we see Argentina growing, probably we will grow in terms of consumption, and we will have the volatility according to what happened in the economy of Argentina. But this trend of reducing prices is something that is happening. So probably it's a new trend in Argentina.

There is a question here from [ Lorena Reich ] that is in that direction. Given the impact on consumption and crisis in the textile sector in Argentina, do you expect this to impact the rental income? Do you expect more tenants to base rents instead of percentage of sales?

Well, this also was new for the company in the last years. You know that in the past, we were not allowed to adjust rents by CPI. So we always include a step-up clause in our agreements, putting some estimation of the inflation, but we always misestimate inflation. Unfortunately, inflation were much higher than what we expected. That means that the base rent was lower than we expected, and then we compensated our revenues by the variable part. After the change in the law, we started to adjust all the agreements by CPI. So today, all the agreements are adjusted on a monthly basis by CPI. So we captured that part. So that means that in terms of percentage, today, the base rent is much higher or it is more important than what was in the last years. That is a protection for the company [indiscernible] you have a slowdown in consumption. But also, what we see is that if that is sustainable or not. So of course, we can't charge in the long term an occupancy cost to our tenants that are not sustainable for them, so that is the equation. So -- and we will see that in renovations and in negotiation with tenants every time that the agreements expire.

I will give the word to Gordon Lee from BTG. He probably want to ask. Gordon, are you there?

Yes. Can you hear me?

Yes.

A couple of questions. The first, I guess, is a follow-up to the previous one, which is more specifically whether you've had requests from tenants to rebalance the structure of the contracts or whether your new contracts are seeing a different balance between base and variable overage? And then just a question on the lease up of the Philips building, which was significant during the quarter. The workspace that you're referring to, just to confirm, that's being leased to a third-party provider of these services. You're not doing the workspace management yourself. And then the second question, if you are leasing it to third parties, does IRSA underwrite any of their re-leasing risk? Or is that completely absorbed by the tenant?

Thank you, Gordon. So the first part of the question. Sorry, I...

Given the weakness in [indiscernible] existing tenants.

Sorry, the balance -- no, typically, Gordon, what you have to analyze to see the shape of the industry is some drivers: first of all, occupancy; second, delinquency; third, consumption; and fourth, the prices that you are able to sign with the tenants. All the variables are okay today. So we see good levels of occupancy, good levels of traffic, good levels of renovations, delinquency remain very low. So we haven't seen yet any [ signal ] that force us or make us to think that we should change some of our drivers in commercialization. So far, all the renegotiations were good. Something else that is happening is that is a new trend that we have more demand for international brands coming to Argentina. So that probably gives us a sustainability in demand for new spaces. So no, today, all the signals are good. And regarding the second part about the workplace, if I understood well the question, no, IRSA is managing everything. So it's a property that is under the control of IRSA, and we have the operations. So we operate directly. So we are in charge of the services and everything. And it's a new segment for offices that is performing very, very well. What is happening there is amazing and the community that we are building there is great. So it's a new business for IRSA. So far, the performance we compare with what happened if we just rent to a traditional tenant and the results so far are good. So we are happy on this new business line.

And is that -- if I could follow up, is that a business line that is, let's say, uniquely intended to address the vacancy of Philips? Or is this something that you could see reproducing by maybe looking at B-class properties?

Yes, it's something that we will try to replicate in other locations. So we are thinking probably to launch the second workplace soon. So yes, it's something that we will try to replicate.

There is a question related to the sector in general. How do you see the sector? I imagine, in general, real estate sectors going forward from sales, well, the experience across shopping malls, you have talked about retail. So perhaps Jorge can give some color on the real estate sector, how do you see it going forward?

Well, actually, going forward, we're very optimistic. It's about the time. It's about when actually the things that are happening to the country is people are going to be able to get a credit to buy an apartment, the middle class. So that's going to -- that sooner or later is going to happen. The demand is fantastic. It should be incredible. It's going to be a thing of pricing, and we have a lot of land reserve. We have a lot of products. So I'm very optimistic. The thing is just about time. It should take some time, but we're going to get there. And that's residential. And we talked about the Retail -- well, office buildings. We're optimistic regarding mixed uses, close to our shopping malls, residential office buildings. So we've been selling office buildings in these late years. So we're looking at office buildings to develop and to have some more spaces in office buildings in good locations. So generally, we're optimistic. We're even -- I think we told this before, we're looking at maybe logistics or maybe warehouses. So we've been shopping around and sooner or later, we're going to get there with warehouses also. So we're very optimistic with real estate in general and especially here in Argentina.

There is a question here regarding Ramblas, Jorge. How much is already sold of the total project? I think it's around 20% approximately.

We had that in the presentation.

Yes. I think it's approximately 20% that is the big part of the Stage 1 over the total project. And if prices are ahead of expectation compared to your initial plans, prices of the land and what the prices of the residential apartments that you could sell if are ahead of the first [ plans ].

Our balance sheet is very, very conservative. We talked about that before that we have to be conservative. So in our balance sheet, you're going to see and Ramblas everything that we -- all...

It is at $600 the square meter of the land...

All the swaps, the price of the swaps are $3,000 for each square meter. And well, that's -- I believe that's very, very cheap. I believe the residential is going to be over -- I think it should be already $4,500, but it should be -- it's going to be more than $5,000 for each square meter of residential. And when the buildings are finished, it will be more than $5,000. And well, we have a lot of commercial area. Commercial area is going to be a little bit cheaper, but it should be more than $4,000 anyway. So I think the prices in residential is going to be higher than $5,000 average when the buildings are finished.

I have 2 questions on the financial front. With the deterioration of the net leverage from 1.2x to 1.6x, what is the maximum level of net leverage that you feel confident? Any targets?

Well, I don't see this as a deterioration of the leverage [ broadly ]. As we increased a little, the debt was [ ridiculous ] low during the last year. Remember that the company were not executing any CapEx during the last year. So we feel very, very comfortable with the cash position before. And now that the company is entering a more aggressive expansion plan, we decided to increase a little the debt. But remember that this company with an EBITDA margin of around 80% is a cash machine. So after you open the properties that we are developing, then the leverage will go very fast down if we don't execute new CapEx or pay dividends. So with the plans that we have going forward, we believe that we have enough cash to finance all the expansions and acquisitions. So the company is not expecting to raise more debt. Probably the net debt will increase because we will use the cash. So we will use part of the cash. Today, the company has more than $300 million in cash. So part of that, definitely, we will use it in the expansion. So for that reason, the leverage will go up. But I would say that, I don't know, 2x EBITDA is probably the possible outcome during the year. But I feel comfortable with probably less than 3x EBITDA, I feel very comfortable. But it will be tough to see the company with that leverage because we should increase significantly the acquisitions or the development. So take into consideration that any development for real estate will take like 3 years. So if we, I don't know, launch $100 million projects, the cash that we will need per year is $30 million per year. And the free cash flow of the company today is more than $100 million. So we have enough cash generation to finance in the future the expansion. So we don't expect to see much more leverage going forward.

And also all those projects that we are putting into production will bring additional EBITDA, of course, in the next years.

Of course. And a question regarding the dividend that we paid to ADR holders in December, if it was net of the 7% Argentine tax retention? Yes, it was. I think we covered all the questions. I give some minutes more. There is one related to, if you could give some details on Golden Juniors Segregated Portfolio. Yes, that is a fund that we created last year to put some of our liquidity with the diversification. Most of our liquidity was -- is in dollars or dollar-related instruments. And that was a way to diversify the liquidity. The company has a strong liquidity, as I said, $300 million, and we invested $6.5 million in that fund that basically invest in companies or in gold and silver. So the performance of that fund was very good during the last 6 months, but it's a small part of the liquidity of the company.

Thank you, Matias. Well, if there are no more questions, we conclude the session and the presentation. We thank you all. I would like to turn back to Matias for his ending or final remarks.

Thank you, Santi. So finally, what we see at IRSA is that we are entering -- we have entered in a new expansion phase for the company. We were very conservative during the last years about growth, but we changed that during the probably last years, and the company is trying to execute a lot of projects [ broadly ]. We will launch new projects in the coming quarter or in the coming -- the rest of the year. We will announce new developments that the company is planning to execute. Also, we are working in different M&A transactions. So hopefully, we will announce some acquisitions also going forward. So the company is very concentrated trying to speed up the process of growth. So we hope to see that happening during the rest of the year. And the rest of the operational segments remain in good shape with very good levels of cash generation and good drivers. So we are very confident for the rest of the year. So thank you very much, and see you next quarter.

Good morning, everyone. I'm Santiago Donato, Investor Relations Officer of IRSA, and I welcome you to the First Quarter 2026 Results Conference Call. First of all, I would like to remind you that both audio and a slideshow may be accessed through 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 analyst 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 the information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks 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 Mr. Matias Gaivironski, CFO.

Good morning, everybody. So we are starting the fiscal year 2026 with good results. We closed the quarter with a gain of ARS 163.4 million compared with a loss last year of ARS 143.6 million. That was mainly driven by the gain of fair value of our investment properties and also the good results from the rental segment. Regarding our malls, there was a growth in revenues and occupancy that we will see later, and despite the decline in tenant sales during the first quarter, that was 7% Third, there was a busy quarter regarding acquisitions. There was an acquisition of a new mall, Al Oeste Shopping mall in Haedo. We paid $9 million for that, and we will see later the details of the transaction. Also it was a stable quarter for rents and occupancy in our office portfolio and good progress in the ongoing developments, mainly Distrito Diagonal, the shopping mall in La Plata and Ramblas del Plata that Jorge will explain later. And also, we started the distribution of a new dividend that our shareholders meeting approved in October. So we started the distribution. It's a payment of around 10% of dividend yield. So with this, I would like to introduce Santiago Donato, our IRO, to continue the presentation.

Thank you, Matias. Here, we move to the shopping mall segment. As we can see here, we increased the GLA on the year due to the acquisition of Terrazas de Mayo. And now we are going to add -- well, probably after the development that we have to do in Al Oeste, we are going to incorporate our 17th shopping mall. So we are growing and increasing the portfolio, reaching an occupancy of almost 98%. So very, very, very high levels of occupancy. Regarding the business, continues to be in a good phase. Revenues and EBITDA of the segment increased by 6% and 4%, respectively, despite this 7% decrease in the quarter -- in the first quarter of 2026 compared to the first quarter of 2025. And this is because we have most of our revenues linked to fixed structure. With the elections outcome, we are expecting more stability and continuity of this economic policy. So we expect consumer confidence to gradually improve as well as our activity in our malls. We are seeing a lot of more interest of international brands wanting to come to Argentina and to our malls. We have some of them already under construction works. So we think that the evolution of the economic activity and the consumption in Argentina should be positive and recover in the next -- in the upcoming quarters. This quarter was particularly weak in terms of sales due to the elections, the volatility and higher rates, and tighter monetary conditions due to all the electoral process. But now we have a clearer picture of the model and the conditions coming forward. Moving to next page, here we have the office segments. This is quite stable, no greater news. Stock still at the level of 58,000 square meters of GLA, mostly A+ and A. We have only one building, which is B category. And we are reconverting into the workplace by IRSA, another format and that targets start-ups and all the entrepreneur world. We are very happy with that performance of Philips building. But the rest are all A+ and A buildings, which are stable in rents in levels of $25 per square meter per month and reached again 100% occupancy. That's been in those levels top, say, for the last 4 quarters. Moving to hotels, our last rental segment, continue to show a decline in revenues and occupancy, consistent with the trend observed in the last year due to the appreciation of the FX of the peso compared to the dollar. Even though the last quarter, there was a real depreciation of the FX, it is too early to anticipate a sustained recovery in the hotels activity or business. And additionally, the hotel -- they show -- as you can see in the picture, reduced its occupancy from 67% last year to 52% due to a really weak winter period. There was no snow, and we have lower visits in our Llao Llao Hotel and in the city of Bariloche, in the Patagonia, Argentina. The average hotel portfolio is at 58% and the average rate per room at levels of $230 with slight lower margins in the segment. I will now turn the call to Jorge Cruces, our CIO, for all the real estate chapter.

Good morning. We are pleased to announce the acquisition of our 17th shopping mall, Al Oeste Shopping. It's located in Moron District, that's west Greater Buenos Aires. It has approximately 32,000 square meters of GLA, including 46 stores, food courts, 14 cinema screens, 5 padel courts and over a 1,000 parking spaces. Purchase price is $9 million, of which $4.5 million has already been paid, while the remaining balance will be settled in 4 annual installments. Currently, the mall is operating way below its full potential. As part of our strategic development plan for the province of Buenos Aires, we intend to reposition the asset as an outlet center and relaunch it throughout next year. The first phase of the transformation will focus on the 20,000 square meters of GLA of the ground floor. We're planning to invest approximately $7 million in this stage, while the remaining area will be developed in a later phase. With this acquisition, the company's shopping mall portfolio now reaches 390,000 square meters of GLA. Southeast of Buenos Aires in the city of La Plata, we are making great progress on our upcoming 18th shopping center, Distrito Diagonal. This new development will add 22,000 square meters of GLA to our shopping portfolio, strengthening even further our presence in strategic urban locations. The mall's opening is estimated for May 2027. The growth projected in the coming years totals over 458,000 square meters of GLA, representing an expansion of our portfolio of more than 1/3 altogether. We have acquired through an auction what used to be the Israelita Hospital, an emblematic property located in the neighborhood of Flores in the city of Buenos Aires. We intend to reverse this iconic property into a mixed-use concept. The land plot has around 8,850 square meters and an existing built area of approximately 17,000 square meters. The purchase price was $6.8 million, which has been fully paid. In Uruguay, at the Distrito Calcagno, a new land-swap agreement was signed last week for $9.3 million. Casa FOA is being held in Uruguay for the first time ever. Casa FOA is an annual exhibition of architecture and interior design, and it's being held in the Distrito Calcagno. The opening event was attended by the President of Uruguay, the Mayor of Canelones, and Mr. Eduardo Elsztain. We believe this exposure could be a gamechanger for the Distrito Calcagno. Ramblas del Plata. We decided to expand the initial sales stage, so 20 lots are now being commercialized. That's around 164 sellable square meters. To date, we've sold 2 lots and swapped another 11 and the combined value of these deals stands at $81 million, covering 110 sellable square meters to be developed. Regarding construction works, the overall progress of Phase A currently stands at 15%. Construction is advancing according to schedule with the execution of road works, sewers, drainages and the recovery of the water body of central bay. We are undergoing the environmental review and expect to schedule the public hearing for the second phase by the end of this year. Now I'll give back the floor to our CFO, Mr. Matias Gaivironski. Thank you.

Thank you, Jorge. So going to Page 12, we can see what happened with the evolution of the FX and inflation that has an impact in our numbers. So this quarter was higher devaluation than inflation, because of the opposite of what happened last year. That generates a positive result for our investment properties that I will explain in the next pages. About our adjusted EBITDA, we see a decline in the total number of 7.5%. The rental segment are increasing by 3.5%, 4% is in shopping malls, 16% is in the offices. This is mainly related to higher occupancy and when we convert the number -- the dollar numbers into pesos with a higher devaluation than inflation, we have better numbers in pesos terms and the decline of 22% in the hotels that Santi explained before. In terms of margins, we maintain probably similar margins than last year. In the following page, we can see the big difference in the change in the fair value of our investment properties. That is the valuation in pesos term. When we value in dollar terms, all the portfolio, the numbers are exactly the same. So this is more related to converting those dollars into pesos and adjusted by inflation that this generate this big difference. But in real or in dollar terms, that is the way that we -- all real estate in Argentina is valued, that numbers remain stable. So finally, the last 2 numbers that affect the net income line are the net financial results that here we can see a decline in the numbers. This is related to the devaluation, the real devaluation, we have to convert into pesos, all our dollar-denominated debt. So that generates a loss this quarter compared with a gain last year that because it was an appreciation of the peso. So this is the most important part of the net financial results. In terms of the interest paid, we have a little decrease compared with the previous year. About the income tax, here, we are recognizing the deferred tax that is -- that we have to recognize every time that we have an appreciation of the fair value of the investment properties, we have to adjust the deferred tax by the 35% of what was the increase in the value. Last year, we have the opposite. Every time that you have a decrease on impairment in the investment properties, you recognize a gain in the income tax. So with those drivers, we finished the quarter with a ARS 163 billion gain compared with the loss last year of ARS 139.2 billion. The next page, when we see the numbers in dollar terms, this is the evolution of the rental EBITDA. We finished the quarter with $51 million. So if we multiply this by 4, it's not the way that we -- that it works, but that gives you an idea of where we will be for the fiscal year 2026. So finally, on Page 17, the evolution of our net debt. There was no news in terms of our debt. The only news is related to the dividend payment. So the net debt increased a little because of the distribution. Here, we included on a pro forma basis after the dividend distribution. So net debt today stands at $308 million, that is 1.6x EBITDA, less than 9% in LTV and more than 11x coverage ratio. So still very conservative our debt position, even after paying this dividend that we can see in the next page. So there was a distribution of ARS 173.8 million. That is roughly the blue chip swap today, $116 million with a dividend yield of 10%. We started the payment or we paid in the local market on November 4. And for our GDS holders will take some days. So probably we will have the record date established probably in the next, I would say, 5 to 7 days. So, with this, we finished the formal presentation. Now we open the line to receive your questions.

Well, now it's time for the Q&A session. If you have a question, please use the chat. We're going to take the questions in the order we receive them. Here we have the first questions. If the company is entering a period of higher investment, higher CapEx, why was it decided to distribute such a large dividend? Has something changed?

Good question. Well, first of all, we are not changing the strategy. It's true that compared with the previous year, it's starting to accelerate the process of new investment acquisition development. So we, probably for the next year, we have a CapEx of around $75 million that we plan to spend. So this is without any new acquisition. But the company has a strong cash generation. Today, we are generating like $180 million or $190 million of cash. And our debt was too low. So the company will start to pay taxes this year again. We used to have a tax credit for many years. So now we will start to pay taxes again. And it's not the most efficient capital structure to have that low leverage. So for that reason, we had before the payment, a cash position very strong. So after paying this $120 million of dividends, we still have $180 million of cash. So we feel comfortable that with that $180 million plus the cash generation of every year, we have enough money to finance the projects. So we still feel very, very comfortable with the debt structure and the capital structure. If we need to finance new acquisitions, we will see the way to finance, but with the cash position that we have that give us a lot of room to keep doing things in Argentina.

Here, I have a second questions related to Ramblas del Plata. What are the medium-term time lines for the projects? When will the construction of the first buildings begin? When is the park's construction expected to be completed?

Well, we have 3 stages in Ramblas. As I said before, part of the second stage is becoming like part of the first stage. The first stage is bigger than before. But then again, we do -- we still have 3 phases, and we're working on the first phase. That first phase of infrastructure we'll be finishing most of it for next year. That's when we have to give the plots to the developers who are going to be making those buildings, and they're going to be starting next year. And these phases also has to do with the parks. Every time we finish the phase, we're going to be finishing that part of the park also. So answering the question, we will be finishing Phase 1 next year, and that's when the first of the buildings are going to be beginning its construction.

Thank you. Here, I have another one related to the exercise of the warrants of Cresud and [ Alto ], here we are in IRSA, Matias can explain both. If we're going to update the ratios after the dividend, I think has to do with that.

Its related to dividends, the question?

No, to warrants, but if we're going to --

The cost of the dividend.

Yeah, I imagine we're going to --

Okay. Yes. As you know, the warrants outstanding has a clause that every time that we pay dividends, we have to adjust the strike price and the ratio of that warrant. So yes, probably in the next days, we will announce the new ratios. The next window to exercise the warrant is next week, so before that.

2017 to '25 of --

Before that we will announce the ratios.

We give some more minutes if there is any additional questions, you can use the chat. Okay. With this, we can conclude the presentation and the Q&A. I will now turn the call to Matias Gaivironski for his closing remarks.

Thank you, Santi. So, we are starting this year with a lot of optimism. The last quarter was a little volatile because of all the political environment and noise because of the elections. Now that it is much more clear the direction of Argentina, at least for the next years, so we see that with a lot of optimism. So we hope to see much more normal environment and much easier to take decisions for many, many companies in Argentina. So we see that with a lot of optimism. And about our plans, we will continue with all our development projects and Ramblas del Plata, the commercialization. So we are very optimistic about just -- to show more transactions in the coming months. And regarding consumption and the operation of our malls, we expect with more confidence from the people, our malls will keep receiving all the consumption and flow of people inside of our shopping malls. So with this, we finished the presentation. We hope to see you in the next quarter. Thank you very much. Have a nice day. Bye-bye.

Bye-bye.

Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of IRSA, and I welcome you to the Fiscal Year '25 Results Conference Call. First of all, I would like to remind you that both audio and a slide show may be accessed through 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 the information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks 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 Mr. Eduardo Elsztain, CEO.

Thank you so much. Good afternoon, everybody -- everyone, and thank you for joining us today. We are closing fiscal year 2025 with strong progress and important milestones for IRSA. First, we delivered a net gain of ARS 196 billion compared to a significant loss in the previous year. Second, our Shopping Malls show a solid recovery with adjusted EBITDA growing by 10% year-over-year. Third point, we express our Malls portfolio through acquisition and developments, including Terrazas de Mayo, that's one we acquired from Carrefour, the adjoining piece land of Alto Avellaneda, which is 8 hectares next to our shopping and the launch of a shopping center in La Plata, which has no shop in that city. Four, regarding the Office segment, rents remained stable and occupancy of our premium portfolio reached almost 100%. Hotels were challenging by the appreciation of the Argentine peso against the U.S. dollar and registered lower revenues and occupancy. Five, we also achieved significant progress in Ramblas del Plata with 13 transactions completed, including cash sales and swaps totaling approximately 111,000 sellable square meters. That's a big, big change for an asset that was in the company for more than 28 years. Six, on the financial side, we successfully returned to the international capital market after nearly a decade issuing $300 million in a Series XXIV notes with a 10-year tenure and executing the exchange of Series XIV notes. And seven, we distribute an 8% dividend during this fiscal year and treasury shares equivalent to 3.6% of our capital stocks. These achievements demonstrate IRSA resilience and our continued focus on creating long-term value for our shareholders. Now I will leave you with the team to guide you through the presentation and the details of all the whole year, which has been a very special year. Thank you.

Thank you, Eduardo. Moving to the following page. Here, we can see the Shopping Malls performance. They continued their recovery process and observed very good results in the fourth quarter of fiscal year '25. Tenant sales grew by 3.2%, compared to the same quarter in 2024 and ended the fiscal year a little bit below inflation, just 2.8% below due to the quarter performance during the first half of the fiscal year, but then EBITDA and revenues in the segment grew by 10% and 8%, respectively, in fiscal year '25 compared to 2024 as we have a big part of the revenues linked directly to inflation. The stock increased due to the incorporation of Terrazas de Mayo that Jorge Cruces will explain later, adding almost 34,000 square meters to the portfolio and reaching a little bit more than 370,000 square meters of GLA. Occupancy remained at very, very high levels, close to 98%. This excludes Terrazas de Mayo, as we have recently acquired it, and we expect to improve its occupancy during -- in the upcoming months. In fact, we bought it with an 81% occupancy and currently is at levels of 89% Terrazas de Mayo. In Page #4, here we have the Office segment. This segment remained quite stable. We sold a floor, an additional floor of Della Paolera so we have today a stock 58,000 square meters. Then rents remains quite stable in levels of $25 per square meter per month, and occupancy was reached almost full occupancy in our premium portfolio at almost 100%, 99.6%. Moving to the Hotel. The Hotel segment has represented the challenge this year after 2 years of record EBITDA and occupancy. The tourism activity in Argentina faced this year a situation of lower inflow of international tourism in the country due to the FX appreciation of the peso compared to the dollar. So occupancy decreased from levels of 66%, 2 years ago to levels of 60% -- 61% and rates per room also adjusted a little bit, and we observed lower margins in this segment. Here, we have -- I mean, the ESG progress during the year. We made a lot of progress on our ESG agenda during this fiscal year '25. Today, over 90% of our malls are transitioned to LED lighting, and we have the solar panels in 3 additional malls, Alto Palermo, Dot and Distrito Arcos in addition to Mendoza Plaza. This is still incipient in our portfolio, but if conditions allow the plan is to increase our exposure to renewable energy in our malls. We also completed our third carbon balance measurement, and we are currently working on mitigation plans and a climate risk metric to guide future actions in our malls and offices. 80% of our balance -- carbon balance comes from electricity. So it's a Scope 2, and we are working very, very hard in mitigating that measurement. On the social front, remember that we own. We have a very -- an old from 1996 foundation called IRSA Foundation together with directly and through Fundacion. This year, IRSA invested like ARS 500 million in different type of actions benefiting like 70,000 people. We also have a contact center serving more than 400,000 customers in our malls. So reinforcing inclusion through different certifications and programs. So these are good milestones that reflects our focus on sustainability and long-term value creation. I will now turn to Jorge Cruces, CIO of the company, for the projects of the year.

Thank you, Santiago, good morning, everybody. Well, we started our fiscal year with 336,000 square meters of GLA, having 15 shopping centers. In December, we bought our 16th shopping center, Terrazas de Mayo which added 34,000 square meters more to our portfolio, reaching 371,000 square meters. The acquisition of the plot next to Alto Avellaneda mall increased another 32,700 square meters. We are developing La Plata shopping mall amplifying another 22,000 square meters of GLA. By the way, we estimate its opening for May 2027. Altogether, the growth adds up to 426,000 square meters of GLA, boosting 27% our portfolio. There's also been strong real estate activity on the residential development side. Del Plata Building Trust, located in the heart of the theater district of Buenos Aires, kind of like the Broadway of Buenos Aires, this development has 720 residential units in 8 retail spaces, altogether, 35,000 square meters of sellable area. To date, we've sold 76 units for $11.4 million at an average price above of $4,000 per square meters. Most of the trusters are not selling yet. Some of them even want to keep the apartment for themselves. As for the construction phase, we are currently running tenders for demolition, concrete structure, masonry and basin level installations. Nuevo Quilmes II, we own 124 single-family lots, to date 41 lots have been sold for $6.3 million at an average price of $247 per square meter. We expect that the infrastructure will be completed by next summer. Coto Abasto towers, the project is located across the street, Abasto shopping mall. We've sold 8 units for $1.1 million. The average price sale is currently around $2,600 per square meter. The handover of these units is planned for the next couple of weeks. Actually, we started yesterday. Ramblas del Plata, is one of the most outstanding real estate developments ever undertaken in the City of Buenos Aires, set in a premium location right next to Puerto Madero. Given the strong interest in the project, we decided to expand the initial sales stage from 14 lots to 20, meaning stage 1 plus now covers around 164,000 sellable square meters. We sold 2 lots A#2 and A#13, both with approximately 45,000 sellable square meters. The total transaction value was $30.5 million. Additionally, we swapped 11 lots, totaling approximately [ 6,500 ] sellable square meters. -- with a total value of $50.6 million. The combined value of these deals stands at $81 million covering [ 110,000 ] sellable square meters to be developed. Now I'll give the floor to our CFO, Matias Gaivironsky. Thank you.

Thank you, Jorge. Going to page 11. So here we can see the some information about our stake in Banco Hipotecario. IRSA has a 29% stake in the bank. So the main milestone for the year for the bank, there was a reduction in the ratios, basically because of lower margins in the financial area, the interest rate and the gaps today are much lower than the year ago. So that are generating a reduction in the ratios. The results to IRSA reflect that. So that year, Banco Hipotecario contributed with ARS 40.8 billion to IRSA, this year is ARS 13.6 billion. The ratios are in good -- the solvency ratios and NPL are in good shape. And something important was that Banco Hipotecario started to distribute dividends. Last year distributed, was -- the part of IRSA was ARS 13 billion. This year IRSA will receive ARS 18 billion from the bank. This was for the first time in many years that bank paid 2 year in a row dividends. Also important to mention that Banco Hipotecario was the first Argentinian bank to restore the mortgage loans in the country. And after that, many other banks also started to provide mortgages. Remember that Banco Hipotecario has around 2% market share of the banking industry. And in this market, we are one of the leaders and the market share is 4%. Going to our financial results. So we can see that during the year, we finished the -- with a net income of ARS 196 billion compared with a loss last year of ARS 32 billion. There are some effects in different lines. The main line is -- line 4, the change in the fair value of our investment properties. During the year, there was an appreciation of the peso and also there was a big reduction in the Blue Chip Swap Exchange Rate. Remember that we value the offices and the land bank at the Blue Chip Swap. And since we saw an appreciation in real time -- in real term, of that exchange rate, we posted significant losses regarding both offices and land bank. But when we also include the shopping malls, there was also almost a flat results in that line, only ARS 2.5 billion reduction against ARS 488 billion last year. About the shopping malls, we increased valuation because we are performing a DCF model where the cost of capital released in Argentina and also the performance of shopping malls were much better than previous year. The combination of the 2 drivers generate an appreciation of the Malls in dollar terms of almost ARS 500 million. So today, our malls in our books are valued at ARS 1.2 billion -- $1.2 billion that in terms of ratios, it's more or less 7.5x EBITDA. And the other important effects are in the line 10, the income tax and in line 9, the net financial results that we can see in the following pages. The next one entering more detail about the adjusted EBITDA. As Santi mentioned, there was a very good performance in our shopping malls, increasing 10% in real terms against last year. This is in pesos and a reduction in Offices and in Hotels. The Hotel segment is the most affected because of the current macro situation and an increasing cost in pesos term adjusted by inflation with a rate in dollars that was flat during the year and some reduction in occupancy. The Office segment remained stable. We have today a smaller portfolio of 58, 000 square meters that is fully occupied with a stable tariff in dollar terms. But when we compare with the previous year, that inflation was higher than the valuation. And since this year, we sold a floor in one of our office buildings. That is the reduction that business remained stable. In terms of margins, you can see an improvement in shopping malls, a little reduction in offices and the hotels that there we have a big impact this year. About the net financial results. There was a reduction in the numbers, but still positive that line. Part is generated by appreciation of the peso part is generated by the valuation of our liquidity and the investment of our liquidity and the inflation adjustment. And about taxes, this year, IRSA started to pay taxes again. We used to have a tax credit during the last years. There was that we already consumed all the tax credit and now we will start to pay cash component this year. With all this, we finished the year with this profit of ARS 196 billion. Here, we can see information in dollar terms and evolution of our rental EBITDA for the last 10 years. So leaving aside the pandemic that was a crisis for the company ever. We can see the resiliency in dollar terms, no matter the context of Argentina and the volatility of Argentina we were able to maintain good levels of cash generation in dollar terms in all the years. This year, especially, we had a record in the Shopping Malls, $169 million generated from the Shopping Mall segment that is record for the last 10 years. About our debt structure. We believe that we have a very healthy debt position today with only $184 million of net debt in terms of ratio, this is 1x EBITDA or 8% of our assets or 12% of coverage ratios are very, very conservative. So we are ready to grow and to increase our debt if we find good opportunities to acquire or to develop interest projects. So our debt today is very well structured and long-term spread about the next 10 years. So the duration, we extend the tenure significantly with the issuance that we did in March, extending the debt for the next 10 years. So with this, we finished the formal presentation. Now we open the line to receive your questions.

[Operator Instructions] We have a question from BTG says that with inflation coming down and early signs of mortgage market reemerging in Argentina, how do you see this impacting demand for residential projects and your broader land bank monetization strategy? And on the supply side, how do you see the construction activity responding in the upcoming months? I will repeat the question. With inflation coming down and early signs of mortgage market remerging in Argentina, how do you see this impacting demand for residential projects and your broader land bank monetization strategy? And on the supply side, how do you see construction activity responding in the coming months?

Well, we've been talking about this last, I don't know, 6 months that, obviously, with mortgages, the stock of apartments in Buenos Aires started to move, mostly Buenos Aires, but the whole Argentina has been great these last 6 months and we said there was a lot of activity. Prices even went up 20%, 30%, 50% depending the neighborhoods. Now regarding construction, construction it's a little bit higher because the labor higher in dollars. So in the near future, I suppose it's going to be less construction maybe than last year, but there's still some stock to be sold. So I think the mortgages has helped Argentina to get out of a crisis of stock. There's much more -- there's not much more apartments to be bought that have been invested during these last 10 or 15 years. So I think it's going to be -- from next year, there's going to be a lot of construction and new activity. But nowadays, I think the mortgages had mostly affected what was already in stock and some apartments that were rented were starting to be bought. And I think we're going to have a great year next year.

Something else about the mortgage industry, probably what is today missing in the sector that there is probably a lack of funding for the banks. Now the banks are providing mortgages, the demand over the banks is huge. Probably the banks today are limiting the offer because the lack of funding. What is missing is that the securitization market where the banks can sell part of the portfolio in the market. So we believe that there is a normalization in the market and no risk of devaluations and fluctuation of exchange rate and inflation maybe that market will appear, and that is what is today missing to have a real market and a real offer from different players in the market.

Another question regarding the electoral climate, how important is for IRSA -- what's going to happen next October? And if we expect some political economic stability in the coming months.

I don't know the answer. I hope to know, but we really don't know what will be the outcome of the elections, of course, always an election in Argentina generate uncertainty and volatility. What IRSA has proven during the last, I would say, 30 years is that no matter the context, we have a very resilient business that always the main drivers of volatility in Argentina came from inflation and devaluation. We have assets that are dollar-denominated and our structure of revenues are hedged against the inflation. Having said that, of course, we need an economy that grow and with a sustainable growth. Now of course, this volatility is not good for anyone in terms of taking major decisions. We're going to launch us. We are doing many projects. We need to see a stable economy, but this is for our growth. For our existing portfolio, I will say that we have growth in many different contexts, we are able to manage the company.

Here's a question regarding the financing. If we are considering tapping the domestic or international markets to fund projects, how do you see volatility and interest rates in the coming quarters?

No, we are not thinking to go to the market with our current capital structure and the cash position of the company and with current plans, as Jorge mentioned, the projects that we already launched, we can fund the operations without the need to go to the market. If we see a good opportunity to acquire something, of course, our capital structure and the net position allow us to increase. But with the organic growth, we don't need to go again to the market in the coming quarters. I'm sorry, and about the interest rates and what is happening about the peso curve today, we hope to see a normalization of that. IRSA today has no debt in pesos, but you know that Argentina during the last 2 months were very volatile in terms of the interest rate. That will affect definitely consumption. If the interest rates remain very high, and the consumer financing disappear that will affect consumption. So we hope to see a normalization of the peso curve after the elections.

Here, there is a question regarding the difference in the square meters sold at Ramblas and this is because we have recently made an addendum to one previous transaction, adding $7 million and approximately 5,000 additional square meters. That is something that we can discuss details, but it's just an addendum to a previous transaction. And this is why today, we are showing like 111,000 square meters from swaps and sales in the total Ramblas Del Plata.

That was a transaction that was signed for a specific plot of land. And then the buyer decided to change in a better location and better unit. So we received the deal. We charged them difference in price and they paid for that. And now they have a bigger project.

Another -- an additional question related to this is how do you see the pace of future sales in Ramblas evolving from here? If we should expect this to maintain or to accelerate at Ramblas. We're going to... No, the commercialization. We're going to start selling plots.

We're doing much faster than we thought we would. So we're very happy. We started by The Bay. The Bay is mostly completed. And now we're -- as I said before, we're going -- it's bigger. We went from 14 to 20 lots. And I think we're going to be -- it's going to continue. I think the developers are going to continue to be buying in Ramblas. We are very interested in having the best developers of Argentina and the region in Ramblas. So I think it's going to happen. I think we are going to be selling all 20 lots in the next 6 months or 8 months, what's left of what we have planned to be sold.

Perfect. One that we have already answered.

And prices, I don't know if they ask prices, but we've been -- I think the price that we've been selling, it's almost 800 and something for each sellable square meter. And the swaps, I think they're going to be going up. So the swaps might be close to 30 and the prices should be over 850 for each sellable square meter in the future.

Another question regarding Hotels. If we expect to divest our small position there in Hotels, or joining with our partner or what are the expectations there with hotels?

Well, we always analyze opportunities if appears in the market. You know that we haven't grew in the Hotel segment for many years now. So we have the portfolio of the 3 hotels. Last year was probably the record high in our history. This year is a little more affected, but we are not growing. And if there is opportunities to sell some of our assets, maybe we will analyze.

Questions regarding Manzana 35 project in Caballito, if it is advancing.

Yes. We're planning to launch Manzana 35, one of the towers between March and May next year. It all depends on the elections, the situation of the country next year. But it's most possibly, we're going to launch one of the towers next year between March and May.

Questions regarding dividends, are we expecting to pay this year?

Yes, we are expecting to pay like last years. We haven't defined yet the final proposals. So we will submit to our shareholders' meeting by the end of the month, the proposal. So we have time until that moment. But yes, the idea is to keep paying the dividends.

Some additional questions. Do you plan to build new offices as rental properties, something that the company is thinking today?

Yes, we actually are thinking about that. We are very concentrated at the moment, close to the Dot shopping mall. We already have 2 office buildings. And most possibly next year, we may start construction of more office buildings in the Dot section. At least 1 of the 2 that we have planned, we may start next year construction, adding around 15,000 square meters of GLA.

Perfect. Give some minutes more for some additional questions. I have a lot here, then you have my contact details or specific questions, we can go on a follow-up call. You have the IR department contact. But I give some minutes more for any additional questions that you may have. Okay. There is -- there are no more questions, we conclude the Q&A session and the presentation. Thank you very much for joining I hope to see you in the beginning of the first of the fiscal year '26. Thank you very much.

Thank you.

Good day, Bye-bye.