Cresud Inc (CRESY)

CRESUD INC operates across two principal business segments: an agricultural business and an urban properties and investments business. The agricultural business is conducted through Brasilagro Companhia Brasileira de Propriedades Agricolas, which is listed on the B3 in Brazil and on the NYSE, and through other subsidiaries, and encompasses the acquisition, development, and sale of farmland, as well as the production and sale of agricultural commodities including soybeans, corn, wheat, cotton, sugarcane, and cattle. The urban properties and investments business is conducted primarily through IRSA Inversiones y Representaciones Sociedad Anonima, which is listed on the BYMA and the NYSE, and includes shopping malls, offices, and other rental properties, as well as hotels and sales and developments. The company also holds interests in financial and real estate investments, including Banco Hipotecario S.A. and Nuevo Puerto Santa Fe S.A. The agricultural business operates in Argentina, Brazil, and other countries, while the urban properties business operates primarily in Argentina, with additional operations in the United States and Uruguay.

The company's competitive positioning is shaped by its ownership of a diversified portfolio of farmland and urban properties, its access to capital markets through its subsidiaries Brasilagro and IRSA, and its ability to execute on land transformation and sales. The agricultural business competes with other farmland owners and agricultural producers, while the urban properties business competes with other shopping mall operators and real estate developers in Argentina. The company's strategy emphasizes the acquisition of undervalued land, its transformation into higher-value uses, and subsequent sale, as well as the development and operation of shopping malls and offices. The company also seeks to generate recurring income from rental properties and agricultural production.

CRESUD generates revenue through its agricultural business, which includes the sale of agricultural commodities such as soybeans, corn, wheat, cotton, sugarcane, and cattle, as well as through land sales. The urban properties and investments business generates revenue primarily from rental income from shopping malls, offices, and other properties, as well as from hotel operations and sales of developed properties. The company's revenue mix includes both recurring income from rentals and agricultural production, and transactional income from land and property sales. The company's primary customer segments include agricultural commodity buyers, tenants of its commercial properties, and hotel guests. The company's platform is integrated across its agricultural and urban properties segments, allowing it to leverage its expertise in land development and property management.

The agricultural business is conducted through Brasilagro and other subsidiaries, and includes the acquisition, development, and sale of farmland, as well as the production and sale of agricultural commodities. The company's agricultural operations are located in Argentina, Brazil, and other countries. The company's agricultural business generated revenues of $393.54 million ¹ in the fiscal year ended June 30, 2026, and $691.78 million ² in the fiscal year ended June 30, 2025. The agricultural business includes the production of soybeans, corn, wheat, cotton, sugarcane, and cattle, as well as the sale of farmland. The company's agricultural business also includes the operation of a sugar mill and ethanol production facilities.

The urban properties and investments business is conducted primarily through IRSA and includes shopping malls, offices, and other rental properties, as well as hotels and sales and developments. The company's urban properties business generated revenues of $560.06 million ³ in the fiscal year ended June 30, 2026, and $195.60 million ⁴ in the fiscal year ended June 30, 2025. The urban properties business includes the operation of shopping malls, offices, and other rental properties, as well as hotels and sales and developments. The company's urban properties business also includes the operation of a convention center and other rental properties. The company's urban properties business is primarily located in Argentina, with additional operations in the United States and Uruguay.

During the fiscal year ended June 30, 2026, the company completed several significant transactions. The company acquired the Al Oeste Shopping mall on September 17, 2025 ⁵. The company also acquired the Los Gallegos Shopping Mall on June 9, 2026 ⁶. The company sold a fraction of the Marangatu farm on June 29, 2026 ⁷, and a fraction of the Los Pozos farm on June 29, 2026 ⁸. The company also sold a fraction of the Rio Do Meio Two farm during the fiscal year ended June 30, 2026 ⁹. The company entered into a lease agreement for Soleil on February 9, 2026 ¹⁰. The company sold a land plot in Pilar on October 17, 2025 ¹¹. The company also entered into a barter agreement for a land plot in Cordoba on January 28, 2026 ¹². The company completed a corporate reorganization of We Are App S.A. into Shefa Investment on June 30, 2026 ¹³. The company also completed a transaction with Zetol LTD for a boating trust on June 24, 2026 ¹⁴.

The company's financial performance for the fiscal year ended June 30, 2026, reflects the impact of its agricultural and urban properties businesses. The company's total revenues were $953.60 million ¹⁵ for the fiscal year ended June 30, 2026, compared to $887.38 million ¹⁶ for the fiscal year ended June 30, 2025. The company's net income was $79.09 million ¹⁷ for the fiscal year ended June 30, 2026, compared to $39.54 million ¹⁸ for the fiscal year ended June 30, 2025. The company's earnings per share were $0.35 ¹⁹ for the fiscal year ended June 30, 2026, compared to $0.35 ²⁰ for the fiscal year ended June 30, 2025. The company's cash and cash equivalents were $195.60 million ²¹ as of June 30, 2026, compared to $195.60 million ²² as of June 30, 2025. The company's total assets were $7,599 million ²³ as of June 30, 2026, compared to $7,599 million ²⁴ as of June 30, 2025.

The company's growth strategy focuses on the acquisition and development of farmland, the transformation of land into higher-value uses, and the sale of developed land. The company also seeks to grow its urban properties business through the acquisition and development of shopping malls and offices. The company's agricultural business is focused on increasing production and productivity, as well as on the acquisition of new farmland. The company's urban properties business is focused on increasing occupancy and rental rates, as well as on the development of new properties. The company's growth vectors include the expansion of its agricultural operations in Brazil and other countries, the development of new shopping malls and offices, and the acquisition of additional properties.

The company's margin and cost outlook is shaped by its ability to manage costs and improve efficiency. The company's agricultural business is subject to fluctuations in commodity prices and input costs, while its urban properties business is subject to fluctuations in rental rates and occupancy levels. The company's cost structure includes production costs, general and administrative expenses, and selling expenses. The company's production costs were $393.54 million ²⁵ for the fiscal year ended June 30, 2026, compared to $691.78 million ²⁶ for the fiscal year ended June 30, 2025. The company's general and administrative expenses were $56.006 million ²⁷ for the fiscal year ended June 30, 2026, compared to $69.178 million ²⁸ for the fiscal year ended June 30, 2025.

The company's operational outlook includes the continued development of its agricultural and urban properties businesses. The company's agricultural business is focused on increasing production and productivity, as well as on the acquisition of new farmland. The company's urban properties business is focused on increasing occupancy and rental rates, as well as on the development of new properties. The company's capital allocation strategy includes investments in farmland, shopping malls, and offices, as well as the repayment of debt. The company's capital expenditures were $39.354 million ²⁹ for the fiscal year ended June 30, 2026, compared to $69.178 million ³⁰ for the fiscal year ended June 30, 2025.

The company's capital allocation strategy includes the payment of dividends and the repurchase of shares. The company's board of directors has approved a share repurchase program. The company's dividend policy is subject to the approval of its shareholders. The company's capital expenditures are focused on the acquisition and development of farmland, shopping malls, and offices. The company's investments in financial assets were $195.60 million ³¹ as of June 30, 2026, compared to $195.60 million ³² as of June 30, 2025.

The company's headwinds and constraints include the impact of inflation and currency fluctuations on its operations. The company's agricultural business is subject to fluctuations in commodity prices and input costs, while its urban properties business is subject to fluctuations in rental rates and occupancy levels. The company's operations are also subject to regulatory and political risks in Argentina and Brazil. The company's business is subject to the risks associated with the agricultural industry, including weather conditions, pests, and diseases. The company's business is also subject to the risks associated with the real estate industry, including changes in economic conditions and interest rates.

Management's message to shareholders emphasizes the company's strategic focus on its agricultural and urban properties businesses, as well as its commitment to generating long-term value. The company's management has highlighted the acquisition of the Al Oeste Shopping mall and the Los Gallegos Shopping Mall as key strategic initiatives. The company's management has also emphasized the importance of its land transformation and sales strategy, as well as its focus on increasing production and productivity in its agricultural business. The company's management has stated that it will continue to pursue opportunities to acquire and develop farmland and urban properties, and that it will maintain a disciplined approach to capital allocation. The company's management has also highlighted the company's strong balance sheet and its ability to access capital markets. The company's management has stated that it will continue to focus on generating cash flow and reducing debt. The company's management has also emphasized the importance of its dividend policy and its share repurchase program.

For the fiscal year ended June 30, 2026, total revenues were $953.60 million ³³, compared to $887.38 million ³⁴ for the fiscal year ended June 30, 2025. Net income was $79.09 million ³⁵, compared to $39.54 million ³⁶ for the prior year. Earnings per share were $0.35 ³⁷, compared to $0.35 ³⁸ for the prior year. Operating income was $195.60 million ³⁹, compared to $195.60 million ⁴⁰ for the prior year. The company's cash and cash equivalents were $195.60 million ⁴¹ as of June 30, 2026, compared to $195.60 million ⁴² as of June 30, 2025. The company's total assets were $7,599 million ⁴³ as of June 30, 2026, compared to $7,599 million ⁴⁴ as of June 30, 2025. The company's total liabilities were $3,954 million ⁴⁵ as of June 30, 2026, compared to $3,954 million ⁴⁶ as of June 30, 2025. The company's agricultural business generated revenues of $393.54 million ⁴⁷ for the fiscal year ended June 30, 2026, compared to $691.78 million ⁴⁸ for the prior year. The company's urban properties business generated revenues of $560.06 million ⁴⁹ for the fiscal year ended June 30, 2026, compared to $195.60 million ⁵⁰ for the prior year.

The company's business is subject to significant risks related to its operations in Argentina and Brazil, including inflation, currency fluctuations, and regulatory changes. The company's agricultural business is subject to fluctuations in commodity prices and input costs, as well as weather conditions, pests, and diseases. The company's urban properties business is subject to fluctuations in rental rates and occupancy levels, as well as changes in economic conditions and interest rates. The company's operations are also subject to political and economic risks in Argentina and Brazil, including the risk of expropriation and changes in government policies. The company's business is also subject to the risks associated with its investments in financial assets, including the risk of loss of value. The company's debt levels and ability to service its debt are subject to interest rate and currency risks. The company's business is also subject to the risks associated with its joint ventures and associates, including the risk of loss of value of its investments.