IRSA Propiedades Comerciales S.A.

Unaudited Condensed Interim Consolidated Financial Statements for the three-month period ended September 30, 2021, presented comparatively

Legal Information

Denomination: IRSA PROPIEDADES COMERCIALES S.A.

Fiscal year N°: 132, beginning July 1, 2021.

Legal address: Carlos Della Paolera 261, 8nd floor, Autonomous City of Buenos Aires, Argentina.

Main business: Real estate investment and development.

Date of registration with the Public Registry of Commerce of the By-laws: August 29, 1889.

Date of registration of last amendment: May 14, 2021.

Expiration of company charter: August 28, 2087.

Registration number with the Supervisory Board of Companies: 801,047.

Capital stock: 541,230,019 common shares.

Subscribed, issued and paid up (in millions of ARS): 54,123.

Direct Majority Shareholder: IRSA Inversiones y Representaciones Sociedad Anónima (IRSA).

Majority Shareholder of the Group: Consultores Assets Management S.A.

Legal Address: Bolívar 108, 1st floor, Autonomous City of Buenos Aires, Argentina.

Main business: Real estate investment.

Direct and indirect ownership interest: 432,570,149 common shares.

Voting stock (direct and indirect equity interest): 79.92%.

Type of shares	CAPITAL STRUCTURE
	Outstanding shares	Shares authorized for public offering	Subscribed, issued and paid-in
			(in millions of ARS)
Registered, common shares with a nominal value of ARS 100 each, 1 vote per share	541,230,019	541,230,019	54,123

IRSA Propiedades Comerciales S.A.

Unaudited Condensed Interim Consolidated Statements of Financial Position

as of September 30, 2021 and June 30, 2021

(All amounts in millions of Argentine Pesos, except profit per share and otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	09.30.21	06.30.21
ASSETS
Non-current assets
Investment properties	8	153,034	158,311
Property, plant and equipment	9	1,544	1,502
Trading properties	10	254	254
Intangible assets	11	1,470	1,611
Rights of use assets	12	871	886
Investments in associates and joint ventures	7	4,628	4,701
Deferred income tax assets	19	507	487
Income tax credits		12	13
Trade and other receivables	14	1,255	1,337
Investments in financial assets	13	10	11
Total non-current assets		163,585	169,113
Current Assets
Trading properties	10	5	5
Inventories		44	46
Income tax credits		128	157
Trade and other receivables	14	10,408	14,824
Investments in financial assets	13	11,600	8,857
Cash and cash equivalents	13	988	867
Total current assets		23,173	24,756
TOTAL ASSETS		186,758	193,869
SHAREHOLDERS’ EQUITY
Total capital and reserves attributable to equity holders of the parent (according to corresponding statement)		77,482	79,189
Non-controlling interest		5,972	6,064
TOTAL SHAREHOLDERS’ EQUITY		83,454	85,253
LIABILITIES
Non-current liabilities
Trade and other payables	16	1,591	1,443
Borrowings	17	36,247	38,454
Income tax liabilities		1,362	-
Deferred income tax liabilities	19	50,902	53,348
Provisions	18	86	88
Derivative financial instruments	13	4	10
Leases liabilities		830	931
Total non-current liabilities		91,022	94,274
Current liabilities
Trade and other payables	16	4,506	4,345
Income tax liabilities		946	1,029
Payroll and social security liabilities		224	313
Borrowings	17	6,364	8,452
Derivative financial instruments	13	41	53
Provisions	18	87	92
Leases liabilities		114	58
Total current liabilities		12,282	14,342
TOTAL LIABILITIES		103,304	108,616
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES		186,758	193,869

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Propiedades Comerciales S.A.

Unaudited Condensed Interim Consolidated Statements of Income and Other Comprehensive Income for the three-month periods ended September 30, 2021 and 2020

(All amounts in millions of Argentine Pesos, except profit per share and otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	09.30.21	09.30.20
Income from sales, rentals and services	20	2,915	1,365
Income from expenses and collective promotion fund	20	963	619
Operating costs	21	(1,406)	(999)
Gross profit		2,472	985
Net (loss)/gain from fair value adjustments of investment properties	8	(5,679)	24,801
General and administrative expenses	21	(449)	(707)
Selling expenses	21	(263)	(614)
Other operating results, net	22	51	15
(Loss)/ profit from operations		(3,868)	24,480
Share of (loss)/ profit of associates and joint ventures	7	(102)	904
(Loss)/ profit from operations before financing and taxation		(3,970)	25,384
Finance income	23	87	644
Finance cost	23	(1,481)	(1,720)
Other financial results	23	2,004	1,988
Inflation adjustment	23	515	414
Financial results, net		1,125	1,326
(Loss)/ profit before income tax		(2,845)	26,710
Income tax expense	19	1,044	(6,435)
(Loss)/ profit for the period		(1,801)	20,275

Other comprehensive income/ (loss) for the period: (i)
Items that can be reclassified subsequently to profit or loss:
Currency translation adjustment in associates	7	2	(18)
Other comprehensive income/ (loss) for the period		2	(18)
Total comprehensive (loss)/ income for the period		(1,799)	20,257

Total comprehensive (loss)/ income attributable to:
Equity holders of the parent		(1,709)	18,828
Non-controlling interest		(92)	1,447

Attributable to:
Equity holders of the parent		2	(18)

(Loss)/ profit per share attributable to equity holders of the parent for the period: (ii)
Basic		(3.16)	34.80
Diluted		(3.16)	34.80

(i) The components of other comprehensive income have no impact on income tax.

(ii) (Loss)/ Profit per share have been calculated using 541,230,019 shares. Instead 126,014,050 shares were used for this calculation, the basic and diluted result per share would be ARS (13.56) and ARS 149.43 corresponding to September 30, 2021 and September 30, 2020, respectively. See Note 17 to the annual consolidated financial statements as of June 30, 2021.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Propiedades Comerciales S.A.

Unaudited Condensed Interim Consolidated Statement of Changes in Shareholders’ Equity

for the three-month period ended September 30, 2021

(All amounts in millions of Argentine Pesos, except profit per share and otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share capital	Inflation adjustment of share capital	Legal reserve	Other reserves	Accumulated deficit	Subtotal	Non-controlling interest	Total shareholders' equity
Balance as of June 30, 2021	54,123	34,716	1,622	11,032	(22,304)	79,189	6,064	85,253
Loss for the period	-	-	-	-	(1,709)	(1,709)	(92)	(1,801)
Other comprehensive income for the period	-	-	-	2	-	2	-	2
Balance as of September 30, 2021	54,123	34,716	1,622	11,034	(24,013)	77,482	5,972	83,454

	Special reserve	Other reserves	Currency translation adjustment	Revaluation surplus (1)	Changes in non-controlling interest	Total other reserves
Balance as of June 30, 2021	10,727	110	(62)	618	(361)	11,032
Other comprehensive income for the period	-	-	2	-	-	2
Balance as of September 30, 2021	10,727	110	(60)	618	(361)	11,034

(1) See Note 17 to the Annual Consolidated Financial Statements as of June 30, 2021.

There are no cumulative unpaid dividends on preferred shares.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Propiedades Comerciales S.A.

Unaudited Condensed Interim Consolidated Statement of Changes in Shareholders’ Equity

for the three-month period ended September 30, 2020

(All amounts in millions of Argentine Pesos, except profit per share and otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Share capital	Inflation adjustment of share capital	Share premium	Legal reserve	Special reserve CNV 609/12 (1)	Other reserves	Retained earnings	Subtotal	Non-controlling interest	Total shareholders' equity
Balance as of June 30, 2020	126	5,646	15,857	220	15,153	52,284	28,050	117,336	6,712	124,048
Profit for the period	-	-	-	-	-	-	18,828	18,828	1,447	20,275
Other comprehensive loss for the period	-	-	-	-	-	(18)	-	(18)	-	(18)
Changes in non-controlling interest	-	-	-	-	-	(63)	-	(63)	(18)	(81)
Balance as of September 30, 2020	126	5,646	15,857	220	15,153	52,203	46,878	136,083	8,141	144,224

	Reserve for future dividends	Special reserve	Currency translation adjustment	Revaluation surplus (1)	Changes in non-controlling interest	Total other reserves
Balance as of June 30, 2020	51,921	247	(35)	448	(297)	52,284
Other comprehensive loss for the period	-	-	(18)	-	-	(18)
Changes in non-controlling interest	-	-	-	-	(63)	(63)
Balance as of September 30, 2020	51,921	247	(53)	448	(360)	52,203

(1)

See Note 17 to the Annual Consolidated Financial Statements as of June 30, 2021.

There are no cumulative unpaid dividends on preferred shares.

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Propiedades Comerciales S.A.

Unaudited Condensed Interim Consolidated Statements of Cash Flows

for the three-month periods ended September 30, 2021 and 2020

(All amounts in millions of Argentine Pesos, except profit per share and otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

	Note	09.30.21	09.30.20
Operating activities:
Cash generated from/ (used in) operations	15	1,620	(5,867)
Income tax paid		(6)	(5)
Net cash generated from/ (used in) operating activities		1,614	(5,872)

Investing activities:
Capital contributions in associates and joint ventures		(27)	(14)
Changes in non-controlling interest in subsidiaries		-	(81)
Acquisition of investment properties		(370)	(1,075)
Proceeds from sales of investment properties		85	14,639
Acquisition of property, plant and equipment		(82)	(8)
Advance payments		(9)	(17)
Acquisition of intangible assets		(3)	(6)
Acquisitions of investments in financial assets		(819)	(8,480)
Proceeds from investments in financial assets		614	9,054
Loans granted to related parties		-	(337)
Loans payment received from related parties		1,971	-
Collection of financial assets interests and dividends		189	239
Net cash generated from investing activities		1,549	13,914

Financing activities:
Repurchase of non-convertible notes		-	(101)
Sales of non-convertible notes in portfolio		-	768
Borrowings obtained		-	1,525
Payment of borrowings		(271)	(1,994)
Payment of finance leases		-	(15,477)
Payment of leases liabilities		(6)	(8)
Payment of derivative financial instruments		(15)	(326)
Proceeds from derivative financial instruments		-	14
Payment of interest		(1,945)	(2,436)
Short-term loans, net		(512)	6,364
Net cash used in financing activities		(2,749)	(11,671)

Net increase/ (decrease) in cash and cash equivalents		414	(3,629)
Cash and cash equivalents at beginning of the period	13	867	7,595
Foreign exchange gain on cash and fair value result for cash equivalents		44	50
Inflation adjustment		(337)	(11)
Cash and cash equivalents at end of the period	13	988	4,005

The accompanying notes are an integral part of these Unaudited Condensed Interim Consolidated Financial Statements.

IRSA Propiedades Comerciales S.A.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

(All amounts in millions of Argentine Pesos, except profit per share and otherwise indicated)

Free translation from the original prepared in Spanish for publication in Argentina

Group’s business and general information

IRSA PROPIEDADES COMERCIALES S.A. (“IRSA Propiedades Comerciales” or the “Company”, and together with its subsidiaries, the “Group”) is an Argentine real estate company mainly engaged in holding, leasing, managing, developing, operating and acquiring shopping malls and office buildings and holds a predominant position within the Argentine market. IRSA Propiedades Comerciales was incorporated in 1889 under the name Sociedad Anonima Mercado de Abasto Proveedores (SAMAP) and until 1984 operated the main fresh product market in the Autonomous City of Buenos Aires. SAMAP’s core asset was the historical building of Mercado de Abasto, which served as site of the market from 1889 until 1984, when a sizable part of its operations was interrupted.

Since the Company was acquired by IRSA Inversiones y Representaciones Sociedad Anónima (hereinafter, IRSA) in 1994, it has grown through a series of acquisitions and development projects that resulted in a corporate reorganization pursuant to which the company was renamed Alto Palermo S.A. which was subsequently changed to our current denomination.

As of the end of these Unaudited Condensed Interim Consolidated Financial Statements (hereinafter, Financial Statements), the Group operates 335,641 square meters (sqm) in 14 shopping malls, 113,451 sqm in 7 premium offices and an extensive land reserve for future commercial developments; operates and holds a majority interest (with the exception of La Ribera Shopping Center, of which it has a 50% ownership interest) in a portfolio of 14 shopping malls in Argentina, six of which are located in the Autonomous City of Buenos Aires (Abasto Shopping, Alcorta Shopping, Alto Palermo, Patio Bullrich, Dot Baires Shopping and Distrito Arcos), two in Buenos Aires province (Alto Avellaneda and Soleil Premium Outlet) and the rest are situated in different provinces (Alto Noa in the City of Salta, Alto Rosario in the City of Rosario, Mendoza Plaza in the City of Mendoza, Córdoba Shopping Villa Cabrera in the City of Córdoba, Alto Comahue in the City of Neuquén and La Ribera Shopping in the City of Santa Fe). The Group also owns the historic building where the Patio Olmos Shopping Mall is located, operated by a third party.

The Company’s shares are traded on the Buenos Aires Stock Exchange (MERVAL: IRCP) and in United States of America on the NASDAQ (NASDAQ: IRCP).

IRSA Propiedades Comerciales and its subsidiaries are hereinafter referred to jointly as "the Group". Our main shareholder and parent Company is IRSA and Consultores Assets Management S.A. is our ultimate parent Company.

These Financial Statements have been approved by the Board of Directors to be issued on November 4, 2021.

Summary of significant accounting policies

2.1.

Basis of preparation

These Financial Statements have been prepared in accordance with IAS 34 “Interim Financial Reporting” and therefore must be read together with the Group's Annual Consolidated Financial Statements as of June 30, 2021 prepared in accordance with IFRS. Likewise, these Financial Statements include additional information required by Law No. 19,550 and / or CNV regulations. This information is included in the notes to these Financial Statements, as allowed by IFRS.

These Financial Statements for the interim of three-month periods ended September 30, 2021 and 2020 have not been audited. Management considers that they include all the necessary adjustments to fairly present the results of each period. Intermediate period results do not necessarily reflect the proportion of the Group's results for the entire fiscal years.

IRSA Propiedades Comerciales S.A.

IAS 29 "Financial Reporting in Hyperinflationary Economies" requires that the Financial Statements of an entity whose functional currency is one of a hyperinflationary economy be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. To do so, in general terms, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be calculated for non-monetary items. This requirement also includes the comparative information of the Financial Statements.

In order to conclude on whether an economy is categorized as a hyperinflationary, in the terms of IAS 29, the standard details a series of factors to be considered, including the existence of an accumulated inflation rate in three years that approaches to or exceeds 100%. Accumulated inflation in Argentina in three years has been over 100%. For this reason, in accordance with IAS 29, the Argentine economy must be considered as a hyperinflationary economy starting July 1, 2018.

In relation to the inflation index to be used and according to FACPCE Resolution No. 539/18, the inflation index is determinated based on the Wholesale Price Index (IPIM) until 2016, considering the average variation of Consumer Price indices (CPI) of the Autonomous City of Buenos Aires for the months of November and December 2015, because during those two months there were no national IPIM measurements. Then, from January 2017, the National Consumer Price Index (National CPI) will be considered. The table below shows the evolution of this index during the three months period ended September 30, 2021, according to official statistics by Argentine Institute of Statistics and Census (INDEC) and following the guidelines described in Resolution 539/18:

Price variation:	09.30.21 (three months)
	9%

As a consequence of the aforementioned, these Financial Statements as of September 30, 2021 were restated in accordance with IAS 29.

2.2.

Significant accounting policies

The accounting policies adopted for these Financial Statements are consistent with those used in the preparation of information under IFRS as described in Note 2 to the Annual Consolidated Financial Statements as of June 30, 2021.

2.3.

Comparability of information

The amounts as of June 30, 2021 and September 30, 2020, which are disclosed for comparative purposes, arise from the Financial Statements at said dates restated in accordance with IAS 29. Certain figures have been reclassified for comparison purposes in these Financial Statements.

See Note 27 for information on the context in which the Group operates.

2.4.

Use of estimates

The preparation of Financial Statements at a certain date requires the Group’s Management to make estimations and evaluations affecting the amount of assets and liabilities recorded and contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual results might differ from the estimates and evaluations made at the date of preparation of these Financial Statements. In the preparation of these Financial Statements, the significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same applied by the Group in the preparation of the Annual Consolidated Financial Statements of the information are described in Note 3 as of June 30, 2021, except for what is mentioned in Note 27 to these Financial Statements.

Seasonal effects on operations

The operations of the Group’s shopping malls are subject to seasonal effects, which affect the level of sales recorded by tenants. During summertime (January and February), the tenants of shopping mall experience the lowest sales levels in comparison with the winter holidays (July) and during the period of Christmas’ Seasons (December) when they tend to record peaks of sales. Apparel stores generally change their collections during Spring and Autumn, which impacts positively on shopping mall sales. Sale discounts at the end of each season also impact the business. Consequently, a higher level of revenues is generally expected in shopping mall operations during the second half of the year.

IRSA Propiedades Comerciales S.A.

Acquisitions and disposals

Significant acquisitions and disposals for the three-month period ended September 30, 2021 are detailed below. Significant acquisitions and disposals for the fiscal year ended June 30, 2021, are detailed in Note 4 to the Annual Consolidated Financial Statements.

Sale of real estate parcels in Hudson

On August 2, 2021, a bill was signed for the sale of several parcels of the property called Casonas located in Hudson, Berazategui district.

The price of the transaction was USD 0.6 million.

Financial risk management and fair value estimates

These Financial Statements do not include all the information and disclosures on financial risk management; therefore, they should be read along with Note 5 to the Consolidated Financial Statements as of June 30, 2021. There have been no changes in risk management or risk management policies applied by the Group since year-end.

Since June 30, 2021 as of the date of this Financial Statements, there have been no significant changes in business or economic circumstances affecting the fair value of the Group's assets or liabilities of the Group except for that the indicated in Note 27. Furthermore, there have been no transfers between the different hierarchies used to assess the fair value of the Group’s financial instruments.

Segment reporting

The following is a summary analysis of the Group's business segments, corresponding to the periods ended September 30, 2021 and 2020. Additionally, a reconciliation between results of operations corresponding to segment information and the results of operations as per the Statements of Income and Other Comprehensive Income and total assets by segment and total assets according to the statement of financial position. The information by segments has been prepared and classified according to the businesses in which the Group carries out its activities, which are described in Note 6 of the Annual Consolidated Financial Statements as of June 30, 2021.

IRSA Propiedades Comerciales S.A.

	09.30.21
	Shopping Malls	Offices	Sales and developments	Others	Total segment reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in (profit) / loss of joint ventures	Unreportable assets	Total as per Statements of Income and Other Comprehensive Income/Statements of Financial Position
Revenues	2,225	705	-	9	2,939	963	(24)	-	3,878
Operating costs	(274)	(47)	(17)	(85)	(423)	(998)	15	-	(1,406)
Gross profit/ (loss)	1,951	658	(17)	(76)	2,516	(35)	(9)	-	2,472
Net (loss)/ gain from fair value adjustments in investment properties	(3,698)	(1,586)	(517)	8	(5,793)	-	114	-	(5,679)
General and administrative expenses	(312)	(76)	(30)	(32)	(450)	-	1	-	(449)
Selling expenses	(208)	(46)	(6)	(2)	(262)	-	(1)	-	(263)
Other operating results, net	26	9	(2)	-	33	17	1	-	51
Loss from operations	(2,241)	(1,041)	(572)	(102)	(3,956)	(18)	106	-	(3,868)
Share of loss of associates and joint ventures	-	-	-	(31)	(31)	-	(71)	-	(102)
Loss before financing and taxation	(2,241)	(1,041)	(572)	(133)	(3,987)	(18)	35	-	(3,970)
Investment properties	56,144	79,211	22,531	165	158,051	-	(5,017)	-	153,034
Property, plant and equipment	307	1,240	-	-	1,547	-	(3)	-	1,544
Trading properties	-	-	259	-	259	-	-	-	259
Goodwill	17	51	-	149	217	-	(68)	-	149
Right to receive units (barters)	-	-	1,143	-	1,143	-	-	-	1,143
Inventories	45	-	-	-	45	-	(1)	-	44
Investments in associates and joint ventures	-	-	-	1,179	1,179	-	3,449	-	4,628
Other assets	-	-	-	-	-	-	-	25,957	25,957
Total assets	56,513	80,502	23,933	1,493	162,441	-	(1,640)	25,957	186,758

	09.30.20
	Shopping Malls	Offices	Sales and developments	Others	Total segment reporting	Adjustment for expenses and collective promotion funds	Adjustment for share in (profit) / loss of joint ventures	Unreportable assets	Total as per Statements of Income and Other Comprehensive Income/Statements of Financial Position
Revenues	560	811	3	3	1,377	619	(12)	-	1,984
Operating costs	(204)	(67)	(11)	(37)	(319)	(698)	18	-	(999)
Gross profit/ (loss)	356	744	(8)	(34)	1,058	(79)	6	-	985
Net gain from fair value adjustments in investment properties	1,796	19,209	5,045	27	26,077	-	(1,276)	-	24,801
General and administrative expenses	(500)	(130)	(52)	(27)	(709)	-	2	-	(707)
Selling expenses	(111)	(50)	(453)	(2)	(616)	-	2	-	(614)
Other operating results, net	(28)	-	(3)	-	(31)	46	-	-	15
Profit/ (loss) from operations	1,513	19,773	4,529	(36)	25,779	(33)	(1,266)	-	24,480
Share of (loss)/ profit of associates and joint ventures	-	-	-	(36)	(36)	-	940	-	904
Profit/ (loss) before financing and taxation	1,513	19,773	4,529	(72)	25,743	(33)	(326)	-	25,384
Investment properties	82,524	106,065	21,616	151	210,356	-	(6,270)	-	204,086
Property, plant and equipment	351	209	-	-	560	-	(3)	-	557
Trading properties	-	-	310	-	310	-	-	-	310
Goodwill	17	47	-	-	64	-	(64)	-	-
Right to receive units (barters)	-	-	1,142	-	1,142	-	-	-	1,142
Inventories	63	-	-	-	63	-	(2)	-	61
Investments in associates and joint ventures	-	-	-	3,661	3,661	-	4,832	-	8,493
Other assets	-	-	-	-	-	-	-	39,127	39,127
Total assets	82,955	106,321	23,068	3,812	216,156	-	(1,507)	39,127	253,776

IRSA Propiedades Comerciales S.A.

Investments in associates and joint ventures

The table below lists information about the Group’s investments in associates and joint ventures:

	% of ownership interest held by non-controlling interests		Value of Group’s interest in equity		Group’s interest in comprehensive income
Name of the entity	09.30.21	06.30.21	09.30.21	06.30.21	09.30.21	06.30.21
Joint Ventures
Quality Invest S.A.	50.00%	50.00%	3,154	3,198	(72)	949
Nuevo Puerto Santa Fe S.A.	50.00%	50.00%	295	294	1	(9)
La Rural S.A. (2)	50.00%	50.00%	178	185	(6)	24
Associates						-
TGLT S.A. (3)(4)	27.82%	27.82%	1,001	1,024	(23)	(78)
Total interests in associates and joint ventures			4,628	4,701	(100)	886

The table below lists information of the latest Financial Statements issued by associates and joint ventures:

				Last Financial Information issued
Name of the entity	Place of business / Country of incorporation	Main activity	Common shares	Share capital (nominal value)	(Loss)/ income for the period	Equity
Joint Ventures
Quality Invest S.A. (2)	Argentina	Real estate	406,316,259	406	(144)	6,206
Nuevo Puerto Santa Fe S.A. (1)(2)	Argentina	Real estate	138,750	28	2	555
La Rural S.A. (2)	Argentina	Event organization and others	714,498	1	(2)	101
Associates
TGLT S.A. (3)(4)	Argentina	Real estate	257,320,997	925	(82)	4,635

(1) Nominal value per share ARS 100.

(2) Correspond to (loss)/ profit for the three-month period ended at September 30, 2021 and 2020, respectively.

(3) Includes ARS 2 included in other comprehensive income. For the purposes of the valuation of the investment in the Group, the financial information prepared by TGLT S.A. has been considered.

(4) For transfer of shares, see Note 4 to the Annual Consolidated Financial Statements as of June 30, 2021.

Changes in the Group’s investments in associates and joint ventures for the period ended September 30, 2021 and for the year ended June 30, 2021 were as follows:

	09.30.21	06.30.21
Beginning of the period / year	4,701	7,611
Loss sharing, net	(100)	(2,214)
Currency translation adjustment in associates	2	(27)
Impairment of associates and joint ventures (i)	(2)	(684)
Reclassification to financial instruments (ii)	-	(17)
Irrevocable contributions (Note 24)	27	32
End of the period / year	4,628	4,701

(i) Corresponds to the investment in TGLT S.A. See Note 7 to the annual consolidated financial statements as of June 30, 2021.

(ii) Corresponds to the reclassification to the Avenida Inc. investment due to decrease of the share ownership below 5%.

IRSA Propiedades Comerciales S.A.

Investment properties

Changes in the Group’s investment properties for the three-month period ended September 30, 2021 and for the year ended June 30, 2021 were as follows:

	Shopping Malls	Office and Other rental properties	Undeveloped parcels of land	Properties under development	Others	09.30.21	06.30.21
Fair value at beginning of the period / year	55,532	75,863	23,130	3,629	157	158,311	192,854
Additions (iv)	222	2	3	260	-	487	1,072
Disposals (iii)	-	-	(85)	-	-	(85)	(19,750)
Transfers (v)	-	-	-	-	-	-	(634)
Capitalized lease costs	3	2	-	-	-	5	23
Amortization of capitalized lease costs (i)	(2)	(3)	-	-	-	(5)	(14)
Net (loss) / gain from fair value adjustment on investment properties (ii)	(3,652)	(1,492)	(517)	(26)	8	(5,679)	(15,240)
Fair value at end of the period / year	52,103	74,372	22,531	3,863	165	153,034	158,311

(i) As of September 30, 2021 the depreciation charge was included in “Costs” in the amount of ARS (5) in the Statement of Income and Other Comprehensive Income (Note 21).

(ii) For the three-month period ended September 30, 2021, the net loss from fair value adjustment on investment properties was ARS 5,679 million. The net impact of the values in Argentine pesos of our properties was mainly a consequence of the change in macroeconomic conditions:

Net gain of ARS 1,498 million as a result of the conversion to Argentine pesos of the value of the shopping malls in dollars based on the exchange rate at the end of the period.

an increase of 30 basis points in the discount rate, mainly caused by a rise in the country risk component of the WACC discount rate used to discount the cash flow, which generated a decrease in the value of the shopping centers of ARS 1,232.

In addition, for the impact of the inflation adjustment the Group reclassified by shopping malls ARS 4,717 million to Inflation adjustment.

The value of our office buildings and other rental properties measured in real terms decrease by 2.4% during the three-month period as of September 30, 2021, due to a devaluation of the Argentine peso exceeding the inflation rate of the period.

(iii) See Note 4. As of June 30, 2021 includes the disposals of Torre Boston and Bouchard buildings.

(iv) As of June 30, 2021, includes addition for the acquisition of the building "200 Della Paolera" according to the degree of progress of the construction work. See Note 4 to the Annual Consolidated Financial Statements as of June 30, 2021.

(v) As of June 30, 2021, it includes the registration by transfer of the 24th floor of the Intercontinental Building from Property, plant and equipment and the cancellation by transfer of 77% of the area of the 8th floor of "200 Della Paolera" to Property, plant and equipment.

The following amounts have been recognized in the Statements of Income and Other Comprehensive Income:

	09.30.21	09.30.20
Revenues from rental and services (Note 20)	2,915	1,362
Expenses and collective promotion fund (Note 20)	963	619
Rental and services costs (Note 21)	(1,385)	(988)
Net unrealized gain from fair value adjustment on investment properties	(5,611)	24,516
Net realized gain from fair value adjustment on investment properties (i)(ii)	18	8,163

(i) As of September 30, 2021, includes ARS 18 from the sale of Casona Hudson. As of September 30, 2020 includes ARS 2,732 for the sale of Torre Boston and ARS 5,431 for the sale of Bouchard 710.

(ii) As of September 30, 2021 correspond ARS (68) to the result for changes in the fair value realized for the year and ARS 86 to the result for changes in the fair value realized in previous years from the sale of Casona Hudson. As of September 30, 2020, ARS 285 corresponds to the result for changes in the fair value realized for the year (ARS 797 for the sale of Torre Boston and ARS (512) for the sale of Bouchard 710) and ARS 7,878 for the result for changes in the fair value realized in previous years (ARS 1,935 for the sale of Torre Boston and ARS 5,943 for the sale of Bouchard 710).

Valuation techniques are described in Note 9 to the Annual Consolidated Financial Statements as of June 30, 2021. There were no changes to the valuation techniques. The Group has reassessed the assumptions at the end of the period, incorporating the effect of the changes in macroeconomics conditions.

Property, plant and equipment

Changes in the Group’s property, plant and equipment for the three-month period ended September 30, 2021 and for the year ended June 30, 2021 were as follows:

	Other buildings and facilities	Furniture and fixtures	Machinery and equipment	Vehicles	Others	09.30.21	06.30.21
Costs	1,626	510	2,494	32	1	4,663	3,584
Accumulated depreciation	(465)	(350)	(2,314)	(32)	-	(3,161)	(3,005)
Net book amount at beginning of the period / year	1,161	160	180	-	1	1,502	579
Additions	8	54	20	-	-	82	192
Disposals	-	-	-	-	-	-	(8)
Transfers	-	-	-	-	-	-	895
Depreciation charges (i)	(13)	(7)	(20)	-	-	(40)	(156)
Net book amount at end of the period / year	1,156	207	180	-	1	1,544	1,502
Costs	1,634	564	2,514	32	1	4,745	4,663
Accumulated depreciation	(478)	(357)	(2,334)	(32)	-	(3,201)	(3,161)
Net book amount at end of the period / year	1,156	207	180	-	1	1,544	1,502

(i) On September 30, 2021 depreciation charges were included in “Costs” in the amount of ARS 24, and in “General and administrative expenses” in the amount of ARS 16 in the Statement of Income and Other Comprehensive Income (Note 21).

IRSA Propiedades Comerciales S.A.

10.

Trading properties

Changes in in the Group’s trading properties for the three-month period ended September 30, 2021 and for the year ended June 30, 2021 were as follows:

	Completed properties	Undeveloped sites	09.30.21	06.30.21
Net book amount at beginning of the period / year	13	246	259	310
Additions	-	-	-	8
Disposals (i)	-	-	-	(59)
Net book amount at end of the period / year	13	246	259	259
Non - current			254	254
Current			5	5
Total			259	259

(i) As of June 30, 2021 corresponds to the sale of two Astor Berutti apartments.

11.

Intangible assets

Changes in the Group’s intangible assets for the three-month period ended September 30, 2021 and for the year ended June 30, 2021 were as follows:

	Goodwill	Software	Right to receive units (Barters) (ii)	Others	09.30.21	06.30.21
Costs	149	764	1,151	543	2,607	2,557
Accumulated amortization	-	(567)	(8)	(421)	(996)	(887)
Net book amount at beginning of the period / year	149	197	1,143	122	1,611	1,670
Additions	-	3	-	-	3	50
Disposals	-	-	-	(122)	(122)	-
Amortization charge (i)	-	(22)	-	-	(22)	(109)
Net book amount at end of the period / year	149	178	1,143	-	1,470	1,611
Costs	149	767	1,151	421	2,488	2,607
Accumulated amortization	-	(589)	(8)	(421)	(1,018)	(996)
Net book amount at end of the period / year	149	178	1,143	-	1,470	1,611

(i) On September 30, 2021 amortization charges were included in “Costs” in the amount of ARS 6, and in “General and administrative expenses” in the amount of ARS 16 in the Statement of Income and Other Comprehensive Income (Note 21).

(ii) Corresponds to in kind receivables representing the right to receive residential apartments in the future under barter transactions.

12.

Rights of use assets

The composition of the Group's rights of use assets as of September 30, 2021 and June 30, 2021 is as follows:

	09.30.21	06.30.21
Convention center	218	222
Stadium DirecTV Arena	633	641
Machinery and equipment	8	11
Shopping malls	12	12
Total rights of use assets	871	886
Non-current	871	886
Total	871	886

The charges to income related to rights of use assets were the following:

	09.30.21	09.30.20
Convention center	(4)	(5)
Stadium DirecTV Arena	(8)	(8)
Machinery and equipment	(2)	(21)
Total amortizations and depreciation (i)	(14)	(34)

(i)

On September 30, 2021 amortization charges were included in “Costs” in the amount of ARS 11, and in “General and administrative expenses” in the amount of ARS 3 in the Statement of Income and Other Comprehensive Income (Note 21).

IRSA Propiedades Comerciales S.A.

13.

Financial instruments by category

The present note shows the financial assets and financial liabilities by category of financial instrument and a reconciliation to the corresponding line in the Consolidated Statements of Financial Position, as appropriate. Financial assets and liabilities measured at fair value are assigned based on their different levels in the fair value hierarchy. For further information, related to fair value hierarchy see Note 14 to the Financial Statements as of June 30, 2021.

Financial assets and financial liabilities as of September 30, 2021 are as follows:

	Financial assets at amortized cost (i)	Financial assets at fair value through profit or loss	Subtotal financial assets	Non-financial assets	Total
September 30, 2021		Level 1
Assets as per Statements of Financial Position
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)	9,935	-	9,935	2,684	12,619
Investments in financial assets:
- Public companies’ securities	-	245	245	-	245
- Mutual funds	10	206	216	-	216
- Bonds	-	11,149	11,149	-	11,149
Cash and cash equivalents:
- Cash at banks and on hand	697	-	697	-	697
- Short- term investments	-	291	291	-	291
Total	10,642	11,891	22,533	2,684	25,217

	Financial liabilities at amortized cost (i)	Financial liabilities at fair value through profit or loss	Subtotal financial liabilities	Non-financial liabilities	Total
		Level 2
Liabilities as per Statements of Financial Position
Trade and other payables (Note 16)	2,036	-	2,036	4,061	6,097
Derivative financial instruments
- Swaps of interest rate (ii)	-	45	45	-	45
Borrowings (Note 17)	42,611	-	42,611	-	42,611
Total	44,647	45	44,692	4,061	48,753

Group´s financial assets and financial liabilities as of June 30, 2021 were as follows:

	Financial assets at amortized cost (i)	Financial assets at fair value through profit or loss	Subtotal financial assets	Non-financial assets	Total
June 30, 2021		Level 1
Assets as per Statements of Financial Position
Trade and other receivables (excluding allowance for doubtful accounts) (Note 14)	14,073	-	14,073	3,005	17,078
Investments in financial assets:
- Public companies’ securities	-	356	356	-	356
- Mutual funds	11	22	33	-	33
- Bonds	-	8,479	8,479	-	8,479
Cash and cash equivalents:
- Cash at banks and on hand	547	-	547	-	547
- Short- term investments	-	320	320	-	320
Total	14,631	9,177	23,808	3,005	26,813

	Financial liabilities at amortized cost (i)	Financial liabilities at fair value through profit or loss	Subtotal financial liabilities	Non-financial liabilities	Total
		Level 2
Liabilities as per Statements of Financial Position
Trade and other payables (Note 16)	2,039	-	2,039	3,749	5,788
Derivative financial instruments
- Swaps of interest rate (ii)	-	63	63	-	63
Borrowings (Note 17)	46,906	-	46,906	-	46,906
Total	48,945	63	49,008	3,749	52,757

(i)

The fair value of financial assets and liabilities at their amortized cost does not differ significantly from their book value, except for borrowings (Note 17).

(ii)

The maturity date is February 16, 2023 and it is associated with the loan obtained through its subsidiary, Panamerican Mall S.A., with the purpose of paying for the work that is being carried out at the Polo Dot.

The valuation models used by the Group for the measurement at different levels of hierarchy are no different from those used as of June 30, 2021.

IRSA Propiedades Comerciales S.A.

The Group uses a range of valuation models for the measurement of Level 2 instruments, details of which may be obtained from the following table. When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods.

Description	Pricing model	Parameters	Fair value hierarchy	Range
Foreign-currency contracts	Present value method - Theoretical price	Underlying asset price (Money market curve); Interest curve	Level 2	-
Foreign-currency contracts	Present value method - Theoretical price	Foreign exchange curve	Level 2	-

Swaps of interest rate	Discounted cash flow	Interest rate futures	Level 2	-

As of September 30, 2021, there have been no changes to the economic or business circumstances affecting the fair value of the financial assets and liabilities of the Group, except for what is indicated in Note 27.

14.

Trade and other receivables

The following table shows the amounts of Group's trade and other receivables as of September 30, 2021 and June 30, 2021:

	09.30.21	06.30.21
Lease and services receivables	1,961	1,781
Post-dated checks	651	620
Averaging of scheduled rent escalation	1,153	1,327
Debtors under legal proceedings	826	601
Property sales receivables	191	204
Consumer financing receivables	16	18
Less: allowance for doubtful accounts	(956)	(917)
Total trade receivables	3,842	3,634
Loans	1,480	1,566
Advance payments	641	691
Others (*)	313	321
Prepayments	356	457
Other tax receivables	339	346
Expenses to be recovered	43	41
Guarantee deposit	-	10
Total other receivables	3,172	3,432
Related parties (Note 24)	4,649	9,095
Total trade and other receivables	11,663	16,161
Non-current	1,255	1,337
Current	10,408	14,824
Total	11,663	16,161

(*) Includes ARS 281 and ARS 282 as of September 30, 2021 and June 30, 2021, respectively, consistent with the assumption of debt with the State Assets Administration Agency (AABE). (Note 17)

Movements on the Group’s allowance for doubtful accounts and other receivables are as follows:

	09.30.21	06.30.21
Beginning of the period / year	917	1,015
Additions (i)	146	457
Unused amounts reversed (i)	(34)	(245)
Inflation adjustment	(73)	(310)
End of the period / year	956	917

(i)

As of September 30, 2021 additions and unused amount reversed were charged to “Selling expenses”, in the amount of ARS 112 in the Statement of Income and Other Comprehensive Income (Note 21).

IRSA Propiedades Comerciales S.A.

15.

Cash flow and cash equivalent information

Following is a detailed description of cash flows generated by the Group’s operations for the three-month periods ended September 30, 2021 and 2020:

	Note	09.30.21	09.30.20
(Loss)/ profit for the period		(1,801)	20,275
Adjustments:
Income tax	19	(1,044)	6,435
Amortization and depreciation	21	81	108
Net loss/ (gain) from fair value adjustment on investment properties	8	5,679	(24,801)
Disposals by concession maturity		-	2
Averaging of schedule rent escalation	20	42	26
Directors’ fees	24	107	395
Financial results, net		(1,415)	(7,225)
Provisions and allowances		125	91
Share of loss/ (profit) of associates and joint ventures	7	102	(904)
Changes in operating assets and liabilities
Decrease in inventories		2	3
Decrease/ (increase) in trade and other receivables		21	(238)
(Decrease)/ increase in trade and other payables		(170)	104
Decrease in payroll and social security liabilities		(89)	(120)
Uses of provisions	18	(20)	(18)
Net cash generated from/ (used in) operating activities before income tax paid		1,620	(5,867)

	09.30.21	09.30.20
Non-cash transactions
Increase in trade and other receivables through a decrease in investment in financial assets	-	6,289
Increase in investment properties through an increase in trade and other payables	122	-
Increase in rights of use assets through an increase in leases liabilities	-	37
Increase in financial assets through an increase in borrowings	-	27
Currency translation adjustment in associates	2	18
Increase in investment in financial assets through a decrease in trade and other receivables	2,911	557
Increase in investment in financial assets through a decrease in investments in associates and joint ventures	-	17
Decrease in finance leases through a decrease in trade and other receivables	1	-

16.

Trade and other payables

The following table shows the amounts of Group's trade and other payables as of September 30, 2021 and June 30, 2021:

	09.30.21	06.30.21
Rent and service payments received in advance	1,469	1,486
Admission rights	1,181	1,180
Accrued invoices	412	431
Trade payables	656	725
Tenant deposits	80	95
Payments received in advance	277	298
Total trade payables	4,075	4,215
Tax payable	1,043	691
Others	220	239
Other payments received in advance to be accrued	83	85
Tax payment plans	6	7
Total other payables	1,352	1,022
Related parties (Note 24)	670	551
Total trade and other payables	6,097	5,788
Non-current	1,591	1,443
Current	4,506	4,345
Total	6,097	5,788

IRSA Propiedades Comerciales S.A.

17.

Borrowings

The following table shows the Group's borrowings as of September 30, 2021 and June 30, 2021:

	Book Value at 09.30.21	Book Value at 06.30.21	Fair Value at 09.30.21	Fair Value at 06.30.21
Non-Convertible notes	35,044	37,905	33,911	35,062
Bank loans	2,048	2,344	2,048	2,359
Bank overdrafts	4,733	5,766	4,733	5,766
AABE Debts	281	282	281	282
Finance leases	53	55	53	55
Related parties (Note 24)	452	554	452	554
Total borrowings	42,611	46,906	41,478	44,078
Non-current	36,247	38,454
Current	6,364	8,452
Total	42,611	46,906

18.

Provisions

The following table shows the movements in the Group's provisions at September 30, 2021 and June 30, 2021 categorized by type of provision:

	Labor, legal and other claims	09.30.21	06.30.21
Balances at the beginning of the period/ year	180	180	189
Inflation adjustment	(14)	(14)	(72)
Increases (i)	13	13	78
Recovery (i)	-	-	(5)
Used during the period / year	(6)	(6)	(10)
Balances at the end of the period/ year	173	173	180
Non-current		86	88
Current		87	92
Total		173	180

(i)

Increases and recovery provisions were charged to “Other operating results, net”, in the Statement of Income and Other Comprehensive Income (Note 22).

19.

Current and deferred income tax

The details of the Group’s income tax expense are as follows:

	09.30.21	09.30.20
Current income tax (i)	(1,422)	(2)
Deferred income tax	2,466	(6,433)
Income tax - Profit/ (Loss)	1,044	(6,435)

(i)

If the merger with IRSA Inversiones y Representaciones S.A. is approved by the Shareholders' Meeting, the income tax liability will be absorbed with the tax loss carryforward that owns the absorbing company. (See Note 27).

Changes in the deferred tax account are as follows:

	09.30.21	06.30.21
Beginning of the period / year	(52,861)	(38,997)
Income tax	2,466	(13,773)
Revaluation surplus	-	(91)
Period / year end	(50,395)	(52,861)

IRSA Propiedades Comerciales S.A.

Below there is a reconciliation between the income tax recognized and that which would result from applying the prevailing tax rate to the profit before income tax for the three-month period ended September 30, 2021 and 2020:

	09.30.21	09.30.20
Loss/ (profit) for the period before income tax at the prevailing tax rate	996	(8,013)
Tax effects of:
Rate change	-	1,926
Share of (loss)/ profit of associates and joint ventures	(36)	271
Result by rate transparency	(157)	91
Special tax revaluation	56	-
Loss forecast	(48)	(53)
Expiration of carry-forwards	(2)	(3)
Non-taxable, non-deductible items	(1)	(3)
Difference between provisions and affidavits	(2)	3
Minimum presumed income tax	-	8
Inflation adjustment	977	(287)
Tax inflation adjustment	(738)	(520)
Others	(1)	145
Income tax - Profit/ (loss)	1,044	(6,435)

20.

Revenues

	09.30.21	09.30.20
Base rent	1,465	969
Contingent rent	1,098	96
Admission rights	197	224
Averaging of scheduled rent escalation	(42)	(26)
Commissions	54	44
Property management fees	36	41
Parking fees	62	4
Others	45	10
Total revenues from rentals and services	2,915	1,362
Sale of trading properties	-	3
Total revenues from sale of properties	-	3
Total revenues from sales, rentals and services	2,915	1,365
Expenses and collective promotion fund	963	619
Total revenues from expenses and collective promotion funds	963	619
Total revenues	3,878	1,984

21.

Expenses by nature

The Group disclosed expenses in the Statements of Income and Other Comprehensive Income by function as part of the line items “Costs”, “General and administrative expenses” and “Selling expenses”. The following table provides additional disclosure regarding expenses by nature and their relationship to the function within the Group.

	Costs (ii)	General and administrative expenses	Selling expenses	09.30.21	09.30.20
Salaries, social security costs and other personnel administrative expenses (i)	508	174	10	692	623
Maintenance, security, cleaning, repairs and other	437	28	-	465	360
Taxes, rates and contributions	153	4	126	283	433
Directors' fees	-	107	-	107	395
Fees and payments for services	39	70	5	114	244
Advertising and other selling expenses	175	-	6	181	35
Amortization and depreciation (Notes 8, 9, 11 and 12)	46	35	-	81	108
Leases and expenses	35	10	1	46	52
Traveling, transportation and stationery	10	8	3	21	3
Bank expenses	1	12	-	13	6
Allowance for doubtful accounts (additions and unused amounts reversed) (Note 14)	-	-	112	112	61
Other expenses	2	1	-	3	-
Total expenses by nature 09.31.21	1,406	449	263	2,118	-
Total expenses by nature 09.31.20	999	707	614	-	2,320

(i)

For the three-month period ended September 30, 2021, includes ARS 681 of Salaries, Bonuses and Social Security and ARS 11 of other concepts. For the three-month period ended September 30, 2020, includes ARS 618 of Salaries, Bonuses and Social Security and ARS 5 of other concepts.

(ii)

For the three-month period ended September 30, 2021, includes ARS 1,385 of Rental and services costs and ARS 21 of Cost of sales and developments. For the three-month period ended September 30, 2020, includes ARS 988 of Rental and services costs, ARS 11 of Cost of sales and developments.

IRSA Propiedades Comerciales S.A.

22.

Other operating results, net

	09.30.21	09.30.20
Interest generated by operating credits	63	60
Management fees	2	2
Others	6	2
Donations	(7)	(19)
Lawsuits (Note 18)	(13)	(30)
Total other operating results, net	51	15

23.

Financial results, net

	09.30.21	09.30.20
- Interest income	87	644
Finance income	87	644
- Interest expense	(1,369)	(1,507)
- Others financial costs	(112)	(213)
Finance costs	(1,481)	(1,720)
Foreign exchange, net	2,137	(139)
- Fair value (loss)/ gain of financial assets at fair value through profit or loss	(135)	2,370
- Gain/ (loss) from derivative financial instruments	3	(274)
- (Loss)/ gain from repurchase of non-convertible notes	(1)	31
Other financial results	2,004	1,988
- Inflation adjustment	515	414
Total financial results, net	1,125	1,326

IRSA Propiedades Comerciales S.A.

24.

Related parties transactions

The following is a summary of the balances with related parties:

Item	09.30.21	06.30.21
Trade and other receivables	4,649	9,095
Investments in financial assets	10,485	7,980
Trade and other payables	(670)	(551)
Borrowings	(452)	(554)
Leases liabilities	(2)	(7)
Total	14,010	15,963

Related parties	09.30.21	06.30.21	Description of transaction
IRSA Inversiones y Representaciones Sociedad Anónima (IRSA)	(118)	(155)	Received advances
	8,192	5,530	Non-convertible notes
	4,188	8,639	Loans granted
	62	55	Corporate services
	12	13	Equity incentive plan
	18	7	Reimbursement of expenses
	3	1	Averaging
	(255)	(276)	Borrowings
	3	11	Leases and/or rights to use space
	(15)	(16)	Equity incentive plan to pay
	-	2	Lease collections
Total direct parent company	12,090	13,811
Cresud S.A.CI.F. y A.	2,282	2,450	Non-convertible notes
	(3)	(3)	Equity incentive plan to pay
	14

IRSA PROPIEDADES COMERCIALES S.A. 6-K