IRSA Inversiones

IRSA dominates Argentine real estate with 336,000 square meters of leasable mall space running at 98% occupancy. Their malls generate steady cash flow through inflation-adjusted leases, and they recently reported rental EBITDA of 188 million dollars, up over 15% year over year. The company trades at a steep 43% discount to the actual value of its buildings and land.

IRSA owns 870,000 square meters of buildable waterfront land in one of Buenos Aires' most exclusive neighborhoods. Instead of spending their own money to build, they swap land for finished apartments, meaning zero construction costs. This Ramblas del Plata project alone could generate 50 to 80 million dollars per year and analysts see a potential 91% upside to the stock price by mid-2027.

Argentina has a long history of economic crises, currency collapses, and political instability. The Argentine peso has been losing value, making the country expensive for tourists and hurting mall sales, which fell 7% in the most recent quarter. If the government reverses its current economic reforms, it could crush the real estate recovery that IRSA is counting on.

Because IRSA earns revenue in Argentine pesos but reports in US dollars, currency devaluation directly eats into returns for American investors. The real exchange rate dropped 29% year over year, and if the peso keeps weakening faster than rents can adjust, it could drag down the stock price even if the actual business is performing well.