Cresud Inc. (NASDAQ: CRESY, BYMA:CRES), an Argentine real estate company, announced today that it has completed the sale of a portion of its "Los Pozos" property. The transaction involved a 3,630-hectare section of the farm located in Salta Province, Argentina, with the company retaining approximately 231,700 hectares.
The deal was finalized for a total of $2.23 million, equivalent to $614 per hectare. To date, Cresud has received $1.1 million, with the remaining $1.13 million—secured by a mortgage on the property—to be paid in a single installment in September 2025.
The sold land had a book value of ARS 56 million, and the sale resulted in a gain of approximately ARS 2,150 million for Cresud. This profit will be reflected in the company's financial statements for the first quarter of the fiscal year 2025.
The sale is part of Cresud's ongoing operations, which encompass a diverse portfolio of properties in the real estate and agriculture sectors. The company's activities include the development and sale of properties, as well as agricultural production.
In other recent news, Cresud Inc. has been actively engaging in major financial undertakings. The company has successfully issued Series XLVI notes in the local capital markets, raising an equivalent of USD 28.6 million. These notes, offered at a face value of 100 percent and an interest rate of 1.50%, are set to mature on July 18, 2027, with semiannual interest payments starting from January 18, 2025. This move reflects Cresud's ongoing efforts to strengthen its capital structure and diversify its financing sources.
In addition to the notes issuance, Cresud Inc. has announced an upcoming virtual General Ordinary and Extraordinary Shareholders' Meeting. The meeting agenda includes the approval of financial statements, allocation of a substantial net income of approximately 70.8 billion Argentine pesos, and the distribution of dividends.
The company has also proposed the reallocation of existing voluntary reserves and delegated the application and disposition of these funds to the board of directors. These recent developments highlight Cresud's commitment to robust corporate governance practices and active engagement in the capital markets.
InvestingPro Insights
Cresud's recent land sale aligns with its position as a prominent player in the Food Products industry, as highlighted by InvestingPro Tips. The company's strategic decision to sell a portion of its "Los Pozos" property while retaining a substantial land holding demonstrates its active management of assets.
InvestingPro data reveals that Cresud has a market capitalization of $651.59 million USD, reflecting its significant presence in the market. The company's P/E ratio (Adjusted) of 2.26 for the last twelve months as of Q4 2024 suggests that it may be undervalued relative to its earnings, which is consistent with the InvestingPro Tip indicating that Cresud is trading at a low earnings multiple.
Moreover, Cresud's dividend yield of 8.08% as of the latest data underscores the InvestingPro Tip that the company pays a significant dividend to shareholders. This high yield may be particularly attractive to income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips on Cresud, providing a more comprehensive view of the company's financial health and market position.
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