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Press release from PR Newswire

IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the Six-Month Period of FY 2012 Ended December 31, 2011

Monday, February 13, 2012

IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the Six-Month Period of FY 2012 Ended December 31, 201120:11 EST Monday, February 13, 2012BUENOS AIRES, Argentina, Feb. 13, 2012 /PRNewswire/ -- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, announces its results for the first six month of FY 2012 Ended December 31, 2011IRSA's revenues for the first six months of 2012 increased 6% to ARS 739.6 million, and EBITDA grew 19.3% to ARS 453.0 million.The Shopping Center segment continues to show significant growth in terms of revenues and EBITDA, of 31.8% and 37.9% respectively, reaching an EBITDA/Sales ratio of 80% and occupancy levels close to 98%.As concerns the Office segment, revenues and EBITDA increased by 11.6% and 22.1% respectively, reaching an occupancy rate of 96% in the second quarter of fiscal year 2012 and higher rental price levels.Net income for the second quarter of 2012 was ARS 127.4 million, a 11.4% increase compared to the net income recorded in the same period of the previous fiscal year and a substantial improvement from the ARS 5.7 million income recorded in the previous quarter. This improvement is explained mainly by the increase in operating income, higher income from Banco Hipotecario and the appreciation in the market value of the option held by IRSA in Hersha Hospitality Trust as a consequence of the 41% increase of its stock price during the quarter. For the first six months ended December 31, there was a fall in net income of 22%.After the closing of the first six months of fiscal year 2012, IRSA, through its subsidiary Real Estate Strategies, L.P., entered into an agreement with Supertel Hospitality Inc. (NYSE:SPPR) for the purchase of 3,000,000 convertible preferred shares to be issued by Supertel for an aggregate amount of US$ 30 million.During the month of November, a cash dividend of ARS 211.6 million was made available, equivalent to a dividend yield of 8.6% at the time of its announcement, an amount per share of ARS 0.366 and an amount per ADR of ARS 3.66.On February 10, 2012, the Company closed the period for subscribing Notes for a total amount of ARS 300 million through public offering in Argentina. The proceeds will be used to repay short term debt and for working capital purposes.HIGHLIGHTSSix month period of Fiscal Year 2012 Financial Highlights(In thousands of Argentine Pesos)Ended December 31, 201112-31-1112-31-10  Total sales                     739,613697,675   Operating Income                      366,103300,683    Net Income (Loss)                      133,052170,558    Net Income per GDS                        2.302.9512-31-1112-31-10    Total Current Assets                1,067,0461,045,180    Total Non Current Assets            5,354,9755,270,130    Total Assets                       6,422,0216,315,310    Short-Term debt                      792,174683,813    Total Current Liabilities          1,401,5341,305,757    Long-term debt                      1,840,9471,756,919    Total Non Current Liabilities        2,275,8782,210,912    Total Liabilities                    3,677,4123,516,669    Minority interest                      315,304316,826    Shareholders' Equity                2,429,3052,481,815IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BASE: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on both the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. Additionally, IRSA owns a stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: WWW.IRSA.COM.AR IRSA cordially invites you to participate in its six month FY 2012  Results Conference Call on Thursday, February 16, 2012 at 08:00 a.m. Eastern TimeTo participate, please call:888?734-0544 If you are in the US or+1-706-758-3363 for international callsTo access the webcast, click on the link below:http://webcast.mz-ir.com/publico.aspx?codplataforma=3567SOURCE IRSA Inversiones y Representaciones Sociedad AnonimaFor further information: Investor Relations Department, IRSA Inversiones y Representaciones S.A., +011-54-11-4323-7449, ir@irsa.com.ar