IRSA INVESTMENTS & REPRESENTATIONS INC

IRSA Inversiones y Representaciones Sociedad Anónima operates as a leading Argentine real estate and investment conglomerate whose business spans shopping malls, offices, hotels, sales and developments, and a portfolio of equity interests in associates and joint ventures. The company's operations are concentrated in Argentina, with additional activities in Uruguay, the United States, and other countries, and its results are reported under IFRS Accounting Standards with Argentine peso figures adjusted for inflation under IAS 29. The Argentine macroeconomic environment is a defining structural force for the business, with the filing noting the country's history of economic volatility, high inflation, and exchange rate controls that shape both operating performance and asset valuations. The company's real estate assets are concentrated in prime urban locations, particularly in the Buenos Aires metropolitan area, and its investment portfolio includes significant stakes in Banco Hipotecario S.A., Cresud S.A.C.I.F. y A., and other listed and unlisted entities. The competitive landscape for shopping centers and offices in Argentina is shaped by location quality, tenant mix, occupancy levels, and the purchasing power of consumers, while the company's investment segment is exposed to the performance of Argentine capital markets and the broader financial system.

IRSA's competitive positioning rests on its ownership of a portfolio of premium shopping malls and office buildings in Argentina, including properties such as Alto Palermo, Abasto Shopping, Dot Baires Shopping, and others that are among the most recognized retail destinations in the country. The company's scale, long-standing tenant relationships, and the strategic locations of its properties provide a degree of competitive insulation, though the filing notes that the Argentine real estate market remains fragmented and subject to competition from new developments and alternative retail formats. In the office segment, the company competes for corporate tenants in the Buenos Aires central business district and other prime areas, where occupancy and rental rates are sensitive to broader economic conditions. The company's investment in Banco Hipotecario gives it exposure to the Argentine banking sector, while its stake in Cresud provides exposure to agricultural real estate and related businesses. The filing describes the company as one of the largest real estate companies in Argentina by asset value and gross leasable area, though it does not provide a specific market share percentage.

IRSA generates revenue primarily through lease and services income from its shopping malls, offices, and other rental properties, as well as through sales of properties and developments, and through its share of results from associates and joint ventures. The lease and services segment provides recurring income tied to contractual rental agreements with tenants, while the sales and developments segment is more transactional and dependent on market conditions and project timing. The company's customer base for its rental properties consists primarily of retail tenants, corporate office tenants, and hotel guests, while its investment activities are directed at generating returns from equity stakes in listed and unlisted Argentine companies. The filing describes the company's business model as one that combines the operation of income-producing real estate with a portfolio of financial investments, creating a hybrid model that is exposed to both real estate fundamentals and capital markets performance. The company's shopping malls serve as platforms that bring together retailers, consumers, and entertainment providers, and the filing notes that the company actively manages its tenant mix and property renovations to maintain foot traffic and rental income.

The shopping mall segment represents the core of IRSA's real estate operations, with the company owning and operating a portfolio of shopping centers across Argentina that generate lease and services income from retail tenants. The filing describes the company's shopping malls as offering a mix of national and international brands, entertainment options, and dining, and notes that the company has undertaken renovations and expansions at certain properties to enhance their competitive position. The company's offices segment includes prime office buildings in Buenos Aires, which generate rental income from corporate tenants and are managed to maintain occupancy and rental rates. The hotels segment includes the company's interests in hotel properties, which generate revenue from room bookings and related services, and the filing notes that the company's hotel operations are sensitive to tourism flows and business travel. The sales and developments segment involves the sale of land plots and developed properties, and the filing describes the company's activities in this segment as including the development and sale of residential and commercial projects. The filing does not provide a detailed breakdown of revenue by segment in the summary section, but the financial statements provide segment information.

During the fiscal year ended June 30, 2026, IRSA completed several significant operational and strategic developments. The company acquired the Al Oeste Shopping mall, as described in the filing, and also acquired the Los Gallegos Shopping mall, expanding its shopping center portfolio. The company entered into a barter agreement for Ramblas del Plata, and completed a corporate reorganization of We Are Appa S.A. into Shefa Investment. The company also engaged in transactions involving Zetol LTD and Boating Trust, and completed the acquisition of the Los Gallegos Shopping mall in June 2026. The company's capital structure includes global depositary shares listed on the New York Stock Exchange under the symbol IRS, each representing ten shares of common stock, and the company had 846,115,922 shares outstanding as of the close of the period covered by the annual report. The company also has warrants outstanding, and the filing notes that warrants were exercised during the fiscal year. The company's debt structure includes series of notes, including Series XXV Notes issued in June 2026, and the company has borrowings with related parties.

IRSA's financial performance for the fiscal year ended June 30, 2026 reflects the challenging Argentine macroeconomic environment, with results reported in Argentine pesos adjusted for inflation. The company's total revenues and net income for the fiscal year are reported in the consolidated financial statements, and the filing provides detailed segment information. The company's investment in associates and joint ventures contributed to its results, with the filing noting that the company's share of results from associates and joint ventures is a significant component of its overall performance. The company's cash and cash equivalents, borrowings, and other financial assets and liabilities are detailed in the financial statements, and the filing provides information on the company's liquidity and capital resources. The company's financial statements are prepared under IFRS Accounting Standards and are audited by an independent registered public accounting firm, which issued an attestation report on the company's internal control over financial reporting.

The company's forward-looking statements are subject to risks and uncertainties, and the filing notes that actual results may differ materially from those expressed or implied. The company's strategic priorities include the continued operation and enhancement of its real estate portfolio, the pursuit of selective acquisitions, and the management of its investment portfolio. The filing describes the company's focus on maintaining occupancy levels, optimizing rental income, and managing costs in a challenging macroeconomic environment.

IRSA's business is subject to significant risks related to the Argentine macroeconomic environment, including high inflation, exchange rate volatility, and the potential for economic recession, which could adversely affect consumer spending, tenant occupancy, and property valuations. The company's operations are concentrated in Argentina, and the filing notes that the Argentine economy has experienced periods of high inflation and currency devaluation, which could impact the company's financial results and the value of its assets. The company's investment portfolio is exposed to the performance of Argentine capital markets and the financial condition of its associates and joint ventures, including Banco Hipotecario S.A. and Cresud S.A.C.I.F. y A. The company's debt structure includes borrowings that may be subject to interest rate and refinancing risks, and the filing notes that the company has borrowings with related parties. The company's real estate assets are subject to risks related to tenant defaults, occupancy rates, and competition from new developments, which could affect rental income and property values. The company's operations are also subject to regulatory risks, including changes in tax laws and exchange controls, which could impact its financial performance.

Management's message to shareholders emphasizes the company's resilience in a difficult macroeconomic environment and its focus on long-term value creation through its real estate and investment portfolio. The company's strategic priorities include the acquisition and integration of shopping malls, such as the Al Oeste Shopping and Los Gallegos Shopping acquisitions, the optimization of its capital structure, and the management of its investment in associates and joint ventures. The filing notes that the company completed a corporate reorganization of We Are Appa S.A. into Shefa Investment and engaged in transactions involving Zetol LTD and Boating Trust. Management also highlights the company's efforts to maintain liquidity and manage debt, including the issuance of Series XXV Notes in June 2026.