Shares of IRSA Inversiones y Representaciones SA (IRS), Argentina's leading real estate company, plummeted 5.32% in intraday trading on Friday following the release of its financial results for the second quarter of fiscal year 2025 ended December 31, 2024.

The company reported a net loss of ARS 40,971 million for the first semester of fiscal year 2025, compared to a gain of ARS 319,226 million in the same period of the previous year. This significant decline was primarily driven by losses recorded from changes in the fair value of investment properties, which was an accounting effect that did not involve any cash flow.

Despite the fair value losses, IRSA Inversiones' operational performance remained relatively stable. Real tenant sales in shopping malls continued to recover on a quarterly basis, increasing by 21.4% compared to the previous quarter, although they declined by 8.5% compared to the same period of fiscal year 2024. The company's adjusted EBITDA for the segment reached ARS 94,539 million, just 2.0% below the same period of the previous year.