A. Operating Results
The following management’s discussion and analysis of our financial condition and results of operations should be read together with our Audited Consolidated Financial Statements and related notes appearing elsewhere in this Annual Report. This discussion and analysis of our financial condition and results of operations contains forward-looking statements that involve risks, uncertainties and assumptions. These forward-looking statements include such words as, “expects,” “anticipates,” “intends,” “believes” and similar language. Our actual results may differ materially and adversely from those anticipated in these forward-looking statements as a result of many factors, including without limitation those set forth elsewhere in this Annual Report. See Item 3 “Key Information – D. Risk Factors” for a more complete discussion of the economic and industry-wide factors relevant to us.
The objective of this Management’s Discussion and Analysis section is to provide a description of our economic and financial condition as of June 30, 2025, and for the fiscal year then ended. In this sense, the purpose of this management’s discussion and analysis is to describe the impact of the macroeconomic or operational drivers over our business segments in order to explain the reasons or causes that originate our results of operations.
General
We prepare our Audited Consolidated Financial Statements in Pesos and in accordance with IFRS Accounting Standards, as issued by the IASB, and with CNV Rules.
We have determined that, as of July 1, 2018, the Argentine economy qualifies as a hyperinflationary economy according to the guidelines of IAS 29 since the total cumulative inflation in Argentina in the 36 months prior to July 1, 2018, exceeded 100%. IAS 29 requires that the financial information recorded in a hyperinflationary currency be adjusted by applying a general price index and expressed in the measuring unit (the hyperinflationary currency) at the end of the reporting period. Therefore, our Audited Consolidated Financial Statements included in this Annual Report have been adjusted by applying a general price index and expressed in the measuring unit (the hyperinflationary currency) currently at the end of the reporting period (June 30, 2025). See “Item 3. Key Information - Risk Factors—Risks Relating to Argentina—Continuing high rates of inflation may have an adverse effect on the economy and our business, financial condition and results of operations.”
Revenue recognition
The Company identifies contracts with customers and evaluates the goods and services committed therein to determine performance obligations and their classification between performance obligations that are satisfied at a given time or over time.
Revenue from satisfaction of performance obligations at a given time is recognized when the client obtains control of the committed asset or service considering whether there is a right to collection, if the client has the physical possession, if the client has the legal right and if they have transferred the risks and benefits.
In accordance with IFRS Accounting Standards 15, the Company recognizes revenues over time from the sales of real estate developments in which there is no alternative use for the asset and the Company has the right to demand payment of the contract. When these conditions are not met, the income is recognized at the time of delivery or deed, depending on the case, when the risk transfers are completed, the collection is reasonably assured and there is a price already determined.
Revenue from satisfaction of performance obligations over time for real estate developments is recognized by measuring progress towards compliance with the obligation when it can be measured reliably. For this measurement, the Company uses the input method, that is, the effort consumed by the entity and determines the percentage of progress based on the estimate of the total development costs.
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The Company’s revenue is recognized at the probable value of the consideration to which it will be entitled in exchange for transferring the products or services to the customer which is not expected to suffer significant changes.
Agricultural activities
Revenue from our agricultural activities comes primarily from sales of agricultural produce and biological assets, from provision of services related to the activity and from leases of farmlands.
We also provide agricultural-related (including but not limited to watering and feedlot services) and brokerage services to third parties. Revenue from services is recognized when services are effectively rendered.
We also lease land to third parties under operating lease agreements. Lease income is recognized on a straight-line basis over the period of the lease.
· Sale of goods
Revenue from sales of grains and sugarcane sales is recognized when performance obligations are met, which consists of transforming the significant risks and benefits of ownership of the goods are transferred to the purchaser, usually when the products are delivered to the purchaser at the determined location, according to the agreed sales terms.
In the case of grains, the Company normally enters into forward contracts under which the Company is entitled to determine the sale price for the total or partial volume of grains sold, through the delivery date, based on formulas contractually agreed upon. In some cases, the formulas used to determine the sales price are stated in U.S. dollars.
Upon the delivery of grains, revenue is recognized based on the price determined for each client considering the foreign exchange rate on the delivery date when applicable. After the grains are delivered to the client, the quality and final weight are assessed, and the final price of the transaction is agreed upon, which result in adjusting the original contractual amounts, and any foreign exchange rate variation through the settlement date.
· Sale of farms
Revenue from sale of farms is not recognized until performance obligations are met, which consists of: (i) the sale be in completed, (ii) the Company has determined that it is probable the buyer will pay, (iii) the amount of revenue can be measured reliably, and (iv) the Company has transferred all risks and rewards to the buyer and does not have a continuing involvement. Usually this coincides with the buyer making the first down payment, moment when the transfer of possession is completed, according to the contractual terms. The result from sales of farms is presented in the Consolidated Statement of Income and Other Comprehensive Income as “Gain from disposal of farmlands” net of the related cost.
· Sales of beef cattle
Revenue from the sale of beef cattle is recognized when performance obligations are met, which consists of transferring the material risks and the benefits of cattle ownership to the buyer, usually when the cattle is delivered to the buyer at the specified place, in accordance with the terms of the sale agreed upon.
As for the sale of beef cattle, the Company’s operation consists basically of a project involving the production and sale of beef calves after weaning (this process is called rearing). However, some animals that prove to be infertile may be sold to meat packers for slaughtering. At Paraguay operations, the project consists in fattening and selling these animals for slaughtering. The pricing for sale of cattle is based on the market price of the arroba of fed cattle in the respective market (the arroba price is verified on the transaction date), the animal weight, plus the premium related to the category. The sale of cattle in Brazil and Paraguay operations, in turn, considers the price of the arroba of fed cattle or heifer/cow on the date of sale in the respective market, applied to carcass yields.
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Urban properties and investments activities
· Rental and services - Shopping malls portfolio
Revenues derived from business activities developed in our shopping malls mainly include rental income under operating leases, admission rights, commissions and revenue from several complementary services provided to our lessees.
The Argentine Civil and Commercial Code section 1221 provides that tenants may rescind commercial lease within the initial six months by means of written notification. If option is used within the first year of the lease, the Tenant shall pay the Lessor, as compensation, the equivalent of one-and-a-half month’s rent, and one month’s rent if the tenant makes use of the option after that period. Given that the rule does not provide for advance notice, Lease Agreements include a provision whereby the lessee must give at least 60 days advance notice of its intention to terminate the lease. The exercise of such early termination could materially and adversely affect us.
We have determined that, in all operating leases, the lease term for accounting purposes matches the term of the contract. We concluded that, even though a lease is cancellable under law, tenants would incur significant “economic penalties” if the leases are terminated prior to expiry. We considered that these economic penalties are of such amount that continuation of the lease contracts by tenants appears to be reasonably certain at the inception of the respective agreements. We reached this conclusion based on factors such as: (i) the strategic geographical location and accessibility to customers of our investment properties; (ii) the nature and tenure of tenants (mostly well-known local and international retail chains); (iii) limited availability of identical revenue-producing space in the areas where our investment properties are located; (iv) the tenants’ brand image and other competitive considerations; (v) tenants’ significant expenses incurred in renovation, maintenance and improvements on the leased space to fit their own image; (vi) the majority of our tenants only have stores in shopping malls with a few or none street stores. See details in Note 24 to our Audited Consolidated Financial Statements.
Lessees of rental space located within shopping malls are generally required to pay the higher of: (i) a base monthly rent (the “Base Rent”) and (ii) a specific percentage of gross monthly sales recorded by the Lessee (the “Contingent Rent”), which generally ranges between 2% and 12% of the lessees’ gross sales. In addition, in accordance with the standard terms of the typical commercial lease, the Base Rent is usually adjusted at that time by the Consumer Price Index (CPI) in Argentina.
In addition, some leases include provisions that set forth variable rent based on specific volumes of sales revenue and other types of ratios.
Rental income from shopping malls, admission rights and commissions, are recognized in the Consolidated Statement of Income and Other Comprehensive Income on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.
Contingent rents, i.e. lease payments that are not fixed at the inception of a lease, are recorded as income in the periods in which they are known and can be determined. Rent increases are recognized when such increases have been agreed with tenants.
Tenants in our shopping malls are also generally charged a non-refundable admission right upon entering a lease contract or renewing an existing one. Admission rights are treated as additional rental income and recognized in the Consolidated Statement of Income and other Comprehensive Income on a straight-line basis over the term of the respective lease agreement.
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We act as our own leasing agent for arranging and closing lease agreements for our shopping malls properties and consequently earn letting fees. Letting fees are paid by tenants upon the successful closing of an agreement. A transaction is considered successfully concluded when both parties have signed the related lease contract. Letting fees received by us are treated as additional rental income and are recognized in the Consolidated Statement of Income and Other Comprehensive Income on a straight-line basis over the term of the lease agreements.
Our lease contracts also provide that common area maintenance charges and collective promotion funds of our shopping malls are borne by the corresponding lessees, generally on a proportional basis. These common area maintenance charges include all expenses necessary for various purposes including, but not limited to, the operation, maintenance, management, safety, preservation, repair, supervision, insurance and enhancement of the shopping malls. The lessor is responsible for determining the need and suitability of incurring a common area expense. We make the original payment for such expenses, which are then reimbursed by the lessees. We consider that it acts as a principal in these cases. Service charge income is presented separately from property operating expenses. Property operating expenses are expensed as incurred.
Under the terms of the leases, lessees also agree to participate in CPF to be used in advertising and promoting our shopping malls. Each lessee’s participation generally equals a percentage calculated based on the monthly accrued rental prices.
Revenue so derived is also included under rental income and services segregated from advertising and promotion expenses. Such expenses are charged to income when incurred.
On the other hand, revenue includes income from managed operations and other services such as car parking spaces. Those revenues are recognized on an accrual basis as services are provided.
· Rental and services - Offices and other rental properties
Rental income from offices and other rental properties include rental income from offices leased out under operating leases, income from services and expenses recovery paid by tenants.
Rental income from offices and other rental properties is recognized in the Consolidated Statement of Income and Other Comprehensive on a straight-line basis over the term of the leases. When lease incentives are granted, they are recognized as an integral part of the net consideration for the use of the property and are therefore recognized on the same straight-line basis.
A substantial portion of our leases requires the tenant to reimburse us for a substantial portion of operating expenses, usually a proportionate share of the allocable operating expenses. Such property operating expenses include necessary expenses such as property operating, repairs and maintenance, security, janitorial, insurance, landscaping, leased properties and other administrative expenses, among others. We manage the majority of our own rental properties. We make the original payment for these expenses, which are then reimbursed by the lessees. We consider that we act as a principal in these cases. We accrue reimbursements from tenants as service charge revenue in the period the applicable expenditures are incurred and are presented separately from property operating expenses. Property operating expenses are expensed as incurred.
· Sales and Development activities
Revenue from sale and developments of real estate properties primarily comprises the results from the sale of properties. Results from the sale of properties are recognized only when the posession has been transferred to the buyer. This normally takes place on unconditional exchange of contracts (except where payment or completion is expected to occur significantly after exchange). For conditional exchanges, sales are recognized when these conditions are satisfied.
IRSA also enters into barter transactions where IRSA normally exchanges undeveloped parcels of land with third-party developers for future property to be constructed on the bartered land and on occasion IRSA also receives cash as part of the transactions. Legal title to the land together with all risks and rewards of ownership are transferred to the developer upon sale. IRSA generally requires the developer to provide guarantees in compliance with its obligations. If the developer does not accomplishment with its obligations, IRSA executes the guarantees granted through a monetary penalty.
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IRSA determines that its barters have commercial substance and that the conditions for recording the income from the transfer of parcels or land are met at the time the swap transaction is carried out. Revenues are recorded at the fair value of the goods delivered, adjusted as appropriate by the amount of cash received, and it will be recognized in the Consolidated Statement of Income and Other Comprehensive Income and other comprehensive income depending on the specific category in which the exchanged asset is classified. If the asset falls under the Investment properties category, the revenue will be recognized under the line “Net gain from fair value adjustment of investment properties.” However, if the asset is classified as Trading properties, the revenue will be recognized as operating income from the sale of trading properties. In exchange for the parcels or land transferred, IRSA generally receives cash and a right to receive future units that are part of the projects to be built on the parcels or land exchanged. This right is initially recognized at cost (this being the fair value of the land transferred) as an intangible asset in the statement of financial position denominated “Future units to be received from barters”. The intangible asset is not adjusted in subsequent years unless it is impaired.
IRSA may sell the residential apartments to third-party homebuyers once they are finalized and transferred from the developer. In these circumstances, revenue is recognized when the control is transferred to the buyer. This will normally take place when the deeds of title are transferred to the homebuyer.
However, IRSA may market residential apartments during construction or even before construction commences. In these situations, buyers generally surrender a down payment to IRSA with the remaining amount being paid when the developer completes the property and transfers it to IRSA, and IRSA in turn transfers it to the buyer or in installments. In these cases, revenue is not recognized until the apartments are completed and the transaction is legally completed, that is when the apartments are transferred to the homebuyers and deeds of title are executed. This is because in the event the residential apartments are not completed by the developer and consequently not delivered to the homebuyer, IRSA is contractually obligated to return to the homebuyer any down payment received plus a penalty amount. IRSA may then seek legal remedy against the developer for non-performance of its obligations under the agreement. IRSA exercised judgment and considered that the most significant risk associated with the asset IRSA holds (i.e., the right to receive the apartments) consisting of the non-fulfillment of the developer’s obligations (i.e., to complete the construction of the apartments) has not been transferred to the homebuyers upon reception of the down payment.
· Revenue from hotels
Revenue income from hotel operations mainly includes room services, gastronomy and other services. Revenue from the sale of products is recognized when the product is delivered and the significant risks and rewards of ownership are transferred to the buyer. Revenue from the sale of services is recognized when the service is provided.
Effects of the global macroeconomic factors
Most of our assets are located in Argentina, where we conduct our operations. Therefore, our financial condition and the results of our operations are significantly dependent upon economic conditions prevailing in such country.
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The table below shows Argentina’s GDP, inflation rates, dollar exchange rates, the appreciation (depreciation) of the Peso against the U.S. dollar for the indicated periods (inter-annual information—which is the 12 month period preceding the dates presented—is presented to conform to our fiscal year periods).
Fiscal year ended June 30,
2025 2024 2023
(inter‑annual data)
GDP (1) 6.3 % (1.7 )% (4.9 )%
Inflation (IPIM) (2) 21.2 % 284.4 % 112.8 %
Inflation (CPI) 39.4 % 271.5 % 115.6 %
Depreciation of the Peso against the U.S. dollar (29.6 %) (255.0 %) (105.0 %)
Average exchange rate per USD 1.00 (3) ARS 1,200.5 ARS 910.5 ARS 256.5
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(1) Represents inter annual growth of the second quarter GDP at constant prices (2004). Historical data is maintained, as exposed originally by us in previous 20-Fs.
(2) IPIM (Índice de Precios Internos al por Mayor) is the wholesale price index as measured by the Argentine Ministry of Treasury.
(3) Represents average of the selling and buying exchange rate quoted by Banco de la Nación Argentina as of June 30. As of October 22, 2025, the exchange rate was ARS 1,484.50 per U.S. dollar.
Sources: INDEC and Banco de la Nación Argentina.
Argentine GDP increased 6.3% interannually during the second quarter of 2025, compared to a decrease of 1.7% in the same period of 2024. Nationally, shopping mall sales at current prices in the month of June 2025 relevant to the survey reached a total of ARS 592,710 million, which represents an increase of 27.8% compared to June 2024. Accumulated sales for the first six months of 2025 represent a 205.8% increase in current terms and a 1.7% decrease in real terms as compared to the same period of 2024. The monthly EMAE as of June 30, 2025, decreased by 0.7% compared to the previous month and 4.5% compared to the same month in 2024. As of June 30, 2025, the unemployment rate was at 7.6% of the country’s economically active population, compared to 7.6% as of June 30, 2024. On the other hand, in the second quarter of 2025, the activity rate stood at 48.1% compared to 48.5% in the same quarter of the previous year, while the employment rate was 44.5% compared to 44.8% in the second quarter of 2024.
Changes in short- and long-term interest rates, persistently high inflation and the recent increase in unemployment may reduce the availability of consumer credit and the purchasing power of individuals who frequent shopping malls. Although GDP showed a rebound in the first half of 2025, the decline in real sales at shopping malls indicates a weakening of consumption in this sector. Since most of the lease agreements at our shopping malls, our main source of revenue, require tenants to pay a percentage of their total sales as rent, a contraction in real consumption may adversely affect our revenues. In addition, a lower number of visitors to our shopping malls and, consequently, reduced demand for parking and other services, may also negatively impact our service income.
Effects of inflation
The following are annual inflation rates during the fiscal years indicated, based on information published by the INDEC, an entity dependent of the Argentine Ministry of Treasury.
Consumer price index Wholesale price index
Fiscal year ended June 30, (inter‑annual data)
2023 115.6 % 112.8 %
2024 271.5 % 284.4 %
2025 39.4 % 21.2 %
The current structure of IRSA lease contracts for shopping mall tenants generally includes provisions that provide for payment of variable rent, which is a percentage of IRSA’s shopping mall tenants’ sales. Therefore, the projected cash flows for these shopping malls generally are highly correlated with GDP growth and consumption power.
For the leases of spaces at our shopping malls we use for most tenants a standard lease agreement, the terms and conditions of which are described elsewhere in this Annual Report. However, our largest tenants generally negotiate better terms for their respective leases. No assurance can be given that lease terms will be as set forth in the standard lease agreement.
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The rent specified in our leases generally is the higher of (i) a monthly Base Rent and (ii) a specified percentage of the store’s monthly gross sales, which generally ranges between 2% and 12% of such sales. In addition, pursuant to the rent escalation clause in most of our leases, a tenant’s Base Rent generally increases on a monthly or quarterly and cumulative basis following the IPC index. In the event of litigation regarding these adjustment provisions, there can be no assurance that we may be able to enforce such clauses contained in our lease agreements. See “Item 4. Information of the Company—Business Overview—Our Shopping Malls—Principal Terms of our Leases.”
Continuing increases in the rate of inflation are likely to have an adverse effect on our operations. Although higher inflation rates in Argentina may increase minimum lease payments, given that tenants tend to pass on any increases in their expenses to consumers, higher inflation may lead to an increase in the prices our tenants charge consumers for their products and services, which may ultimately reduce their sales volumes and consequently the portion of rent we receive based on our tenants’ gross sales. In addition, we measure the fair market value of our shopping malls based upon the estimated cash flows generated by such assets which, as discussed in previous paragraphs, is directly related to consumer spending since a significant component of the rent payment received from our tenants is tied to the sales realized by such tenants (i.e is a percentage of the sales of our tenants). Therefore, macroeconomic conditions in Argentina have an impact on the fair market value of our shopping malls as measured in Pesos. Specifically, since our tenant’s products have been adjusted (increased) to account for inflation of the Argentine Peso, our expected cash flows from our shopping malls have similarly increased in nominal terms since rent is largely dependent on sales of our tenants in Pesos.
Seasonality
Our agricultural business is highly seasonal due to its nature and cycle. The harvest and sale of crops (corn, soybean and sunflower) generally occurs from February to June. Wheat is harvested from December to January. Our operations and sales are affected by the growing cycle of the crops we process and by decreases during the summer in the price of the cattle we fatten. As a result, our results of operations have varied significantly from period to period, and are likely to continue to vary, due to seasonal factors.
Our urban business is directly affected by seasonality, influencing the level of our tenants’ sales. During Argentine summer holidays (January and February) our tenants’ sales typically reach their lowest level, whereas during winter holidays (July) and in Christmas (December) they reach their maximum level. Clothing retailers generally change their collections in spring and autumn, positively affecting our shopping malls’ sales. Discount sales at the end of each season are also one of the main seasonal factors affecting our business.
Effects of interest rate fluctuations
Most of our U.S. dollar-denominated debt accrues interest at a fixed rate. An increase in interest rates will result in a significant increase in our financing costs and may materially affect our financial condition or our results of operations.
In addition, a significant increase of interest rates could deteriorate the terms and conditions in which our tenants obtain financing from banks and financial institutions in the market. As a consequence of that, if they suffer liquidity problems the collection of our lease contracts could be affected by an increase in the level of delinquency.
Effects of foreign currency fluctuations
A significant portion of our financial debt is denominated in U.S. dollars. Therefore, a devaluation or depreciation of the Peso against the U.S. dollar would increase our indebtedness measured in Pesos and materially affect our results of operations. Foreign currency exchange restrictions imposed by the Argentine Government could prevent or restrict our access to U.S. dollars, affecting our ability to service our U.S. dollar denominated‑ liabilities.
In addition, contracts for the rental of office buildings are generally stated in U.S. dollars, so a devaluation or depreciation of the Peso against the U.S. dollar would increase the risk of delinquency on our lease receivables.
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As discussed above, we calculate the fair market value of our office properties based on comparable sales transactions. Typically, real estate transactions in Argentina are transacted in U.S. dollars. Therefore, a devaluation or depreciation of the Peso against the U.S. dollar would increase the value of our real estate properties measured in Pesos and an appreciation of the Peso would have the opposite effect. In addition, foreign currency exchange restrictions imposed by Argentine Government could prevent or restrict the access to U.S. dollars for the acquisition of real estate properties, which are denominated and transacted in U.S dollars in Argentina, that could affect our ability to sell or acquire real estate properties and could have an adverse impact in real estate prices.
For more information about the evolution of the U.S. dollar / Peso exchange rate, see “Item 3. Key Information - A1. Local Exchange Market and Exchange Rates.”
Fluctuations in the market value of our investment properties as a result of revaluations
Currently, our interests in investment properties are revalued quarterly. Any increase or decrease in the fair value of our investment properties, based on appraisal reports prepared by appraisers, is recorded in our consolidated statement of income and other comprehensive income for the fiscal year during which the revaluation occurs. The revaluation of our properties may therefore result in significant fluctuations in the results of our operations.
Property values are affected by, among other factors:
a) shopping malls, which are mainly impacted by the discount rate used (WACC), the projected GDP growth and the projected inflation and devaluation of the Argentine Peso for future periods.
b) office buildings, other rental properties, land reserves and buildable potentials, which are mostly impacted by the supply and demand of comparable properties and the U.S. dollar / Peso exchange rate at the reporting period, as office buildings fair value is generally established in U.S. dollars.
The value of the Company investment properties is determined in U.S. dollar pursuant to the methodologies further described in “Critical Accounting Policies and estimates” and then determined in Pesos (the Company functional and presentation currency).
In the past, purchases and sales of office buildings were usually settled in U.S. dollars, However, as a consequence of the restrictions imposed by the Central Bank on foreign exchange transactions, purchase and sales of office buildings and other properties are now usually settled in Argentine Pesos, using an implicit exchange rate that is higher than the official one (as it was the case in the operations carried out by IRSA in the last two years).
Factors Affecting Comparability of our Results
Comparability of information
Office buildings
During the year ended June 30, 2020, we have incorporated as an investment property the building “Della Paolera” located in Catalinas District in Buenos Aires. It consists of 35,208 square meters of GLA over 30 office floors and includes 316 parking spaces in 4 basements. During the fiscal years 2025, 2024 and 2023, we sold and transferred floors of the building for a total area of approximately 1,197 sqm, 3,579 sqm and 9,500 sqm, respectively. As of June 30, 2025, IRSA retains its rights for 3 floors of the building with an approximate leasable area of 3,740 sqm.
On April 19, 2022, we sold 100% of the “República” building, located next to the “Catalinas Norte” area in the City of Buenos Aires. The tower has 19,885 sqm of GLA on 20 office floors and 178 parking spaces.
On July 24, 2023, we sold the “Suipacha 652/64” office building, located in the Microcentro district of the Autonomous City of Buenos Aires. The class B building, with 7 office floors and 62 parking lots, acquired by IRSA in 1991, has a GLA of 11,465 sqm, which was vacant at the moment of the transaction.
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Shopping malls
During the fiscal years ended June 30, 2024 and 2023, we maintained the same portfolio of operating shopping malls.
During fiscal year ended June 30, 2025, we incorporated “Terrazas de Mayo” to our portfolio after we completed the acquisition on December 3, 2024. This property is located in the Malvinas Argentina’s district, northwest of Greater Buenos Aires. The shopping mall has approximately 33,720 GLA sqm.
Business Segment Information
IFRS Accounting Standards 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the CODM. According to IFRS Accounting Standards 8, the CODM represents a function whereby strategic decisions are made and resources are assigned. The CODM function is carried out by the President of the Company, Mr. Eduardo S. Elsztain.
Segment information is reported from the perspective of products and services: (i) agricultural business and (ii) urban properties and investment business.
Below is the segment information prepared as follows:
Agricultural business
· Agricultural production: segment consists of planting, harvesting and sale of crops as wheat, corn, soybeans, cotton and sunflowers; the sale of grain derivatives, such as flour and oil, breeding, purchasing and/or fattening of free-range cattle for sale to meat processors and local livestock auction markets.; agricultural services; leasing of the Company’s farms to third parties; and planting, harvesting and sale of sugarcane
· Land transformation and sales: comprises gains from the disposal and development of farmlands activities.
· Corporate: includes corporate expenses related to agricultural business.
· Other segments: includes, principally, brokerage activities, among others.
Urban properties and investments business
· Shopping Malls: includes results principally comprised of lease and service revenues related to rental of commercial space and other spaces in the shopping malls of the Company.
· Offices: includes the operating results from lease revenues of offices, other rental spaces and other service revenues related to the office activities.
· Sales and Developments: includes the operating results of the development, maintenance and sales of undeveloped parcels of land and/or trading properties. Real estate sales results are also included.
· Hotels: includes the operating results mainly comprised of room, catering and restaurant revenues.
· Others: includes the entertainment activities through ALG Golf Center S.A., La Rural S.A. and Buenos Aires Convention Center (Concession), We Are Appa investments in associates such as GCDI (former TGLT) and the financial activities carried out through Banco Hipotecario / BACS, as well as other investments in associates.
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The CODM periodically reviews the operating results and certain asset categories and assesses performance of operating segments based on a measure of profit or loss of the segment composed by the operating income plus the share of profit / (loss) of joint ventures and associates. The valuation criteria used in preparing this information are consistent with IFRS Accounting Standards used for the preparation of our Audited Consolidated Financial Statements, except for the following:
o Operating results from joint ventures are evaluated by the CODM applying proportional consolidation method. Under this method, the profit/loss generated and assets are reported in the Consolidated Statement of Income and Other Comprehensive line-by-line based on the percentage held in joint ventures rather than in a single item as required by IFRS Accounting Standards. Management believes that the proportional consolidation method provides more useful information to understand the business return. On the other hand, the investment in the joint venture La Rural S.A. is accounted for under the equity method since this method is considered to provide more accurate information in this case.
o Operating results from Shopping Malls and Offices segments do not include the amounts pertaining to building administration expenses and FPC as well as total recovered costs, whether by way of expenses or other concepts included under financial results (for example default interest and other concepts). The CODM examines the net amount from these items (total surplus or deficit between building administration expenses and FPC and recoverable expenses).
The assets’ categories reviewed by the CODM are: investment properties, property, plant and equipment, trading properties, inventories, rights to receive units under barter transactions, investments in associates and goodwill. The sum of these assets, classified by business segment, is disclosed as “reportable assets”. Assets are assigned to each segment based on operations and/or their physical location.
Most of the revenues from the operating segments are generated and the assets are physically located in Argentina, with the exception of part of the results of associates included in the “Other” segment located in the United States.
Revenues for each reporting segment derive from a large and diverse client base and, therefore, there is no revenue concentration in any particular segment.
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Below is a summarized analysis of the lines of business for the year ended June 30, 2025:
06.30.2025
Agricultural business (I) Urban Properties and Investment business (II) Total segment information Joint ventures (i) Adjustments (ii) Elimination of inter-segment transactions and non-reportable assets / liabilities (iii) Total Statement of Income and Other Comprehensive Income/ Financial Position
(million of ARS)
Revenues 448,266 374,662 822,928 (2,172 ) 96,036 (2,635 ) 914,157
Costs (386,762 ) (87,606 ) (474,368 ) 204 (96,575 ) (3 ) (570,742 )
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 17,715 — 17,715 — — 2,282 19,997
Changes in the net realizable value of agricultural products after harvest 4,642 — 4,642 — — — 4,642
Gross profit / (loss) 83,861 287,056 370,917 (1,968 ) (539 ) (356 ) 368,054
Net gain from fair value adjustment of investment properties 12,467 9,135 21,602 (2,527 ) — — 19,075
Gain from disposal of farmlands 41,992 — 41,992 — — — 41,992
General and administrative expenses (42,463 ) (69,103 ) (111,566 ) 299 — 265 (111,002 )
Selling expenses (59,225 ) (24,108 ) (83,333 ) 126 — 108 (83,099 )
Other operating results, net 11,956 (17,199 ) (5,243 ) (2 ) 344 (93 ) (4,994 )
Management fees — — — — (9,081 ) — (9,081 )
Profit / (loss) from operations 48,588 185,781 234,369 (4,072 ) (9,276 ) (76 ) 220,945
Share of (loss) / profit of associates and joint ventures (1,034 ) 25,332 24,298 2,592 — — 26,890
Segment profit / (loss) 47,554 211,113 258,667 (1,480 ) (9,276 ) (76 ) 247,835
Reportable assets 1,038,536 2,759,963 3,798,499 (602 ) — 1,290,925 5,088,822
Reportable liabilities (*) — — — — — (2,875,030 ) (2,875,030 )
Net reportable assets 1,038,536 2,759,963 3,798,499 (602 ) — (1,584,105 ) 2,213,792
Below is a summarized analysis of the lines of business for the year ended June 30, 2024:
06.30.2024
Agricultural business (I) Urban Properties and Investment business (II) Total segment information Joint ventures (i) Adjustments (ii) Elimination of inter-segment transactions and non-reportable assets / liabilities (iii) Total Statement of Income and Other Comprehensive Income/ Financial Position Restated (iv)
(million of ARS)
Revenues 503,614 377,202 880,816 (2,027 ) 82,884 (2,314 ) 959,359
Costs (418,830 ) (68,167 ) (486,997 ) 225 (84,539 ) — (571,311 )
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 7,444 — 7,444 — — 989 8,433
Changes in the net realizable value of agricultural products after harvest 10,002 — 10,002 — — — 10,002
Gross profit / (loss) 102,230 309,035 411,265 (1,802 ) (1,655 ) (1,325 ) 406,483
Net loss from fair value adjustment of investment properties (10,392 ) (476,237 ) (486,629 ) 508 — — (486,121 )
Gain from disposal of farmlands 73,352 — 73,352 — — — 73,352
General and administrative expenses (46,954 ) (71,737 ) (118,691 ) 242 — 150 (118,299 )
Selling expenses (61,022 ) (24,387 ) (85,409 ) 187 — 1,035 (84,187 )
Other operating results, net 38,904 (9,780 ) 29,124 (28 ) 584 120 29,800
Management fees — — — — (12,945 ) — (12,945 )
Profit / (loss) from operations 96,118 (273,106 ) (176,988 ) (893 ) (14,016 ) (20 ) (191,917 )
Share of (loss) / profit of associates and joint ventures (1,511 ) 47,068 45,557 386 — — 45,943
Segment profit / (loss) 94,607 (226,038 ) (131,431 ) (507 ) (14,016 ) (20 ) (145,974 )
Reportable assets 1,017,398 2,716,344 3,733,742 955 — 1,107,520 4,842,217
Reportable liabilities (*) — — — — — (2,663,976 ) (2,663,976 )
Net reportable assets 1,017,398 2,716,344 3,733,742 955 — (1,556,456 ) 2,178,241
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Below is a summarized analysis of the lines of business for the year ended June 30, 2023:
06.30.2023
Agricultural business (I) Urban property and investment business (II) Total segment information Joint ventures (i) Adjustments (ii) Elimination of inter-segment transactions and non-reportable assets / liabilities (iii) Total Statement of Income and Other Comprehensive Income / Financial Position Restated (iv)
(million of ARS)
Revenues 527,192 374,521 901,713 (2,352 ) 90,317 (3,404 ) 986,274
Costs (437,501 ) (68,825 ) (506,326 ) 1,026 (91,947 ) — (597,247 )
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest (7,847 ) — (7,847 ) — — 1,142 (6,705 )
Changes in the net realizable value of agricultural products after harvest (13,148 ) — (13,148 ) — — — (13,148 )
Gross profit / (loss) 68,696 305,696 374,392 (1,326 ) (1,630 ) (2,262 ) 369,174
Net loss from fair value adjustment of investment properties (12,276 ) (265,944 ) (278,220 ) 10,539 — — (267,681 )
Gain from disposal of farmlands 77,831 — 77,831 — — — 77,831
General and administrative expenses (43,988 ) (101,152 ) (145,140 ) 347 — 897 (143,896 )
Selling expenses (48,410 ) (23,507 ) (71,917 ) 142 — 1,557 (70,218 )
Other operating results, net (9,043 ) (37,730 ) (46,773 ) (129 ) 857 (128 ) (46,173 )
Management fees — — — — (24,823 ) — (24,823 )
Profit / (loss) from operations 32,810 (122,637 ) (89,827 ) 9,573 (25,596 ) 64 (105,786 )
Share of (loss) /profit of associates and joint ventures (5,372 ) 20,145 14,773 (6,584 ) — (6 ) 8,183
Segment profit / (loss) 27,438 (102,492 ) (75,054 ) 2,989 (25,596 ) 58 (97,603 )
Reportable assets 1,093,128 3,288,882 4,382,010 (18,197 ) — 1,175,300 5,539,113
Reportable liabilities (*) — — — — — (3,037,296 ) (3,037,296 )
Net reportable assets 1,093,128 3,288,882 4,382,010 (18,197 ) — (1,861,996 ) 2,501,817
(i) Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(ii) Includes ARS (539) million, ARS (1,655) million and ARS (1,630) million corresponding to Expenses and FPC as of June 30, 2025, 2024 and 2023, respectively, and ARS 9,081 million, ARS 12,945 million and ARS 24,823 million to management fees, as of June 30, 2025, 2024 and 2023, respectively.
(iii) Includes deferred income tax assets, income tax and MPIT credits, trade and other receivables, investment in financial assets, cash and cash equivalents and intangible assets except for rights to receive future units under barter agreements, net of investments in associates with negative equity which are included in provisions in the amount of ARS 162 million, ARS 22 million and ARS 7 million, as of June 30, 2025, 2024 and 2023, respectively.
(iv) See Note 1 to these Consolidated Financial Statements.
(*) The CODM focuses its review on reportable assets.
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(I) Agriculture line of business
The following tables present the reportable segments of the agriculture line of business:
06.30.2025
Agricultural production Land transformation and sales Corporate Others Total Agricultural business
(million of ARS)
Revenues 326,975 — — 121,291 448,266
Costs (280,439 ) (389 ) — (105,934 ) (386,762 )
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 17,715 — — — 17,715
Changes in the net realizable value of agricultural products after harvest 4,642 — — — 4,642
Gross profit / (loss) 68,893 (389 ) — 15,357 83,861
Net gain from fair value adjustment of investment properties — 12,467 — — 12,467
Gain from disposal of farmlands — 41,992 — — 41,992
General and administrative expenses (23,258 ) (86 ) (5,925 ) (13,194 ) (42,463 )
Selling expenses (35,685 ) (1,552 ) — (21,988 ) (59,225 )
Other operating results, net 5,987 3,497 — 2,472 11,956
Profit / (loss) from operations 15,937 55,929 (5,925 ) (17,353 ) 48,588
Share of profit / (loss) of associates and joint ventures 368 — — (1,402 ) (1,034 )
Segment profit / (loss) 16,305 55,929 (5,925 ) (18,755 ) 47,554
Investment properties — 74,005 — — 74,005
Property, plant and equipment 582,108 43,315 — 3,639 629,062
Investments in associates and joint ventures 9,091 — — 228 9,319
Other reportable assets 248,498 — — 77,652 326,150
Reportable assets 839,697 117,320 — 81,519 1,038,536
From all of the revenues corresponding to Agricultural Business, ARS 236,332 million are originated in Argentina and ARS 211,934 million in other countries, principally in Brazil for ARS 207,158 million. From all of the Company’s assets included in the segment corresponding to Agricultural Business, ARS 370,013 million are located in Argentina and ARS 668,523 million in other countries, principally in Brazil.
06.30.2024
Agricultural production Land transformation and sales Corporate Others Total Agricultural business
(million of ARS)
Revenues 374,179 — — 129,435 503,614
Costs (333,264 ) (318 ) — (85,248 ) (418,830 )
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 7,444 — — — 7,444
Changes in the net realizable value of agricultural products after harvest 10,002 — — — 10,002
Gross profit / (loss) 58,361 (318 ) — 44,187 102,230
Net loss from fair value adjustment of investment properties — (10,392 ) — — (10,392 )
Gain from disposal of farmlands — 73,352 — — 73,352
General and administrative expenses (27,383 ) (88 ) (6,390 ) (13,093 ) (46,954 )
Selling expenses (40,340 ) (1,658 ) — (19,024 ) (61,022 )
Other operating results, net 11,849 19,151 — 7,904 38,904
Profit / (loss) from operations 2,487 80,047 (6,390 ) 19,974 96,118
Share of profit / (loss) of associates and joint ventures 2,161 — — (3,672 ) (1,511 )
Segment profit / (loss) 4,648 80,047 (6,390 ) 16,302 94,607
Investment properties — 89,955 — — 89,955
Property, plant and equipment 624,602 1,758 — 4,616 630,976
Investments in associates and joint ventures 9,336 — — 1,782 11,118
Other reportable assets 193,322 3,619 — 88,408 285,349
Reportable assets 827,260 95,332 — 94,806 1,017,398
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From all of the Company’s revenues corresponding to Agricultural Business, ARS 275,874 million are originated in Argentina and ARS 227,740 million in other countries, principally in Brazil for ARS 225,596 million. From all of the Company’s assets included in the segment corresponding to Agricultural Business, ARS 707,205 million are located in Argentina and ARS 310,193 million in other countries, principally in Brazil.
06.30.2023
Agricultural production Land transformation and sales Corporate Others Total Agricultural business
(million of ARS)
Revenues 388,107 — — 139,085 527,192
Costs (348,470 ) (383 ) — (88,648 ) (437,501 )
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest (7,847 ) — — — (7,847 )
Changes in the net realizable value of agricultural products after harvest (13,148 ) — — — (13,148 )
Gross profit / (loss) 18,642 (383 ) — 50,437 68,696
Net loss from fair value adjustment of investment properties — (12,276 ) — — (12,276 )
Gain from disposal of farmlands — 77,831 — — 77,831
General and administrative expenses (24,371 ) (73 ) (7,231 ) (12,313 ) (43,988 )
Selling expenses (35,549 ) (67 ) — (12,794 ) (48,410 )
Other operating results, net 871 (13,084 ) — 3,170 (9,043 )
(Loss) / profit from operations (40,407 ) 51,948 (7,231 ) 28,500 32,810
Share of loss of associates and joint ventures (876 ) — — (4,496 ) (5,372 )
Segment (loss) / profit (41,283 ) 51,948 (7,231 ) 24,004 27,438
Investment properties — 136,013 — — 136,013
Property, plant and equipment 645,055 3,072 — 5,485 653,612
Investments in associates 8,666 — — 4,460 13,126
Other reportable assets 212,659 — — 77,718 290,377
Reportable assets 866,380 139,085 — 87,663 1,093,128
From all of the Company’s revenues corresponding to Agricultural Business, ARS 258,632 million are originated in Argentina and ARS 257,240 million in other countries, principally in Brazil for ARS 237,601 million. From all of the assets included in the segment corresponding to Agricultural Business, ARS 247,302 million are located in Argentina and ARS 482,982 million in other countries, principally in Brazil.
(II) Urban properties and investments line of business
Below is a summarized analysis of the urban properties and investments line of business for the fiscal years ended June 30, 2025, 2024 and 2023:
06.30.2025
Shopping Malls Offices Sales and developments Hotels Others Total
(million of ARS)
Revenues 270,531 20,065 12,761 64,596 6,709 374,662
Costs (20,705 ) (1,742 ) (17,929 ) (43,149 ) (4,081 ) (87,606 )
Gross profit / (loss) 249,826 18,323 (5,168 ) 21,447 2,628 287,056
Net gain / (loss) from fair value adjustment of investment properties (i) 443,974 (148,941 ) (285,328 ) — (570 ) 9,135
General and administrative expenses (28,999 ) (2,365 ) (11,605 ) (11,972 ) (14,162 ) (69,103 )
Selling expenses (13,536 ) (891 ) (3,116 ) (5,052 ) (1,513 ) (24,108 )
Other operating results, net (500 ) 182 (19,070 ) (474 ) 2,663 (17,199 )
Profit / (Loss) from operations 650,765 (133,692 ) (324,287 ) 3,949 (10,954 ) 185,781
Share of profit of associates and joint ventures — — — — 25,332 25,332
Segment profit / (loss) 650,765 (133,692 ) (324,287 ) 3,949 14,378 211,113
Investment and trading properties 1,458,243 252,868 786,014 — 2,106 2,499,231
Property, plant and equipment 4,747 511 26,708 47,580 4,107 83,653
Investment in associates and joint ventures — — — — 169,700 169,700
Other reportable assets 2,050 1,746 — 584 2,999 7,379
Reportable assets 1,465,040 255,125 812,722 48,164 178,912 2,759,963
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From all the revenues, ARS 374,042 million originated in Argentina, and ARS 620 million in other countries, principally in Uruguay for ARS 547 million and USA for ARS 73 million. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets corresponding to the business of urban properties and investments ARS 2,746,732 million are located in Argentina and ARS 13,231 million in other countries, principally in the USA for ARS 1,620 million and Uruguay for ARS 11,472 million.
06.30.2024
Shopping Malls Offices Sales and developments Hotels Others Total
(million of ARS)
Revenues 250,468 22,646 12,891 85,840 5,357 377,202
Costs (14,937 ) (1,648 ) (7,451 ) (40,350 ) (3,781 ) (68,167 )
Gross profit 235,531 20,998 5,440 45,490 1,576 309,035
Net loss from fair value adjustment of investment properties (20,824 ) (97,015 ) (357,995 ) — (403 ) (476,237 )
General and administrative expenses (30,126 ) (2,875 ) (12,283 ) (13,025 ) (13,428 ) (71,737 )
Selling expenses (12,558 ) (251 ) (4,512 ) (5,863 ) (1,203 ) (24,387 )
Other operating results, net (3,960 ) (88 ) (5,305 ) (1,577 ) 1,150 (9,780 )
Profit / (Loss) from operations 168,063 (79,231 ) (374,655 ) 25,025 (12,308 ) (273,106 )
Share of profit of associates and joint ventures — — — — 47,068 47,068
Segment profit / (loss) 168,063 (79,231 ) (374,655 ) 25,025 34,760 (226,038 )
Investment and trading properties 962,417 423,239 995,336 — 3,152 2,384,144
Property, plant and equipment 3,034 452 26,717 42,803 4,184 77,190
Investment in associates and joint ventures — — — — 173,401 173,401
Other reportable assets 1,302 987 75,411 948 2,961 81,609
Reportable assets 966,753 424,678 1,097,464 43,751 183,698 2,716,344
From all the revenues, ARS 367,827 million originated in Argentina and ARS 9,375 million in other countries, principally in Uruguay for ARS 9,273 million and USA for ARS 102 million. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets corresponding to the business of urban properties and investments ARS 2,701,718 million are located in Argentina and ARS 14,626 million in other countries, principally in the USA for ARS 2,446 million and Uruguay for ARS 12,086 million.
06.30.2023
Shopping Malls Offices Sales and developments Hotels Others Total
(million of ARS)
Revenues 245,723 23,745 22,698 77,512 4,843 374,521
Costs (16,643 ) (1,963 ) (6,905 ) (39,450 ) (3,864 ) (68,825 )
Gross profit 229,080 21,782 15,793 38,062 979 305,696
Net loss from fair value adjustment of investment properties (57,854 ) (25,666 ) (181,839 ) — (585 ) (265,944 )
General and administrative expenses (34,612 ) (4,325 ) (13,260 ) (16,964 ) (31,991 ) (101,152 )
Selling expenses (11,230 ) (534 ) (5,817 ) (5,325 ) (601 ) (23,507 )
Other operating results, net (3,030 ) (357 ) (4,579 ) (741 ) (29,023 ) (37,730 )
Management fees — — — — — —
Profit / (Loss) from operations 122,354 (9,100 ) (189,702 ) 15,032 (61,221 ) (122,637 )
Share of profit of associates and joint ventures — — — — 20,145 20,145
Segment profit / (loss) 122,354 (9,100 ) (189,702 ) 15,032 (41,076 ) (102,492 )
Investment and trading properties 967,683 607,034 1,414,939 — 4,165 2,993,821
Property, plant and equipment 3,030 18,383 26,593 47,815 4,547 100,368
Investment in associates and joint ventures — — — — 148,654 148,654
Other reportable assets 2,051 1,772 38,119 1,031 3,066 46,039
Reportable assets 972,764 627,189 1,479,651 48,846 160,432 3,288,882
From all the revenues, ARS 361,377 million originated in Argentina and ARS 9,375 million in other countries, principally in Uruguay for ARS 13,031 million and USA for ARS 113 million. No external client represents 10% or more of revenue of any of the reportable segments. From all of the assets corresponding to the business of urban properties and investments ARS 3,269,246 million are located in Argentina and ARS 19,636 million in other countries, principally in the USA for ARS 2,735 million and Uruguay for ARS 16,801 million.
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Results of Operations for the fiscal years ended June 30, 2025 and 2024
Agricultural business Urban Properties and Investment business Total segment information Joint ventures (i) Adjustments (ii) Elimination of inter-segment transactions and non-reportable assets / liabilities Total Statement of Income / Financial Position
30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24Restated Var.
(in million of ARS)
Revenues 448,266 503,614 (55,348 ) 374,662 377,202 (2,540 ) 822,928 880,816 (57,888 ) (2,172 ) (2,027 ) (145 ) 96,036 82,884 13,152 (2,635 ) (2,314 ) (321 ) 914,157 959,359 (45,202 )
Costs (386,762 ) (418,830 ) 32,068 (87,606 ) (68,167 ) (19,439 ) (474,368 ) (486,997 ) 12,629 204 225 (21 ) (96,575 ) (84,539 ) (12,036 ) (3 ) — (3 ) (570,742 ) (571,311 ) 569
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 17,715 7,444 10,271 — — — 17,715 7,444 10,271 — — — — — — 2,282 989 1,293 19,997 8,433 11,564
Changes in the net realizable value of agricultural products after harvest 4,642 10,002 (5,360 ) — — — 4,642 10,002 (5,360 ) — — — — — — — — — 4,642 10,002 (5,360 )
Gross profit / (loss) 83,861 102,230 (18,369 ) 287,056 309,035 (21,979 ) 370,917 411,265 (40,348 ) (1,968 ) (1,802 ) (166 ) (539 ) (1,655 ) 1,116 (356 ) (1,325 ) 969 368,054 406,483 (38,429 )
Net gain/ (loss) from fair value adjustment of investment properties 12,467 (10,392 ) 22,859 9,135 (476,237 ) 485,372 21,602 (486,629 ) 508,231 (2,527 ) 508 (3,035 ) — — — — — — 19,075 (486,121 ) 505,196
Gain from disposal of farmlands 41,992 73,352 (31,360 ) — — — 41,992 73,352 (31,360 ) — — — — — — — — — 41,992 73,352 (31,360 )
General and administrative expenses (42,463 ) (46,954 ) 4,491 (69,103 ) (71,737 ) 2,634 (111,566 ) (118,691 ) 7,125 299 242 57 — — — 265 150 115 (111,002 ) (118,299 ) 7,297
Selling expenses (59,225 ) (61,022 ) 1,797 (24,108 ) (24,387 ) 279 (83,333 ) (85,409 ) 2,076 126 187 (61 ) — — — 108 1,035 (927 ) (83,099 ) (84,187 ) 1,088
Other operating results, net 11,956 38,904 (26,948 ) (17,199 ) (9,780 ) (7,419 ) (5,243 ) 29,124 (34,367 ) (2 ) (28 ) 26 344 584 (240 ) (93 ) 120 (213 ) (4,994 ) 29,800 (34,794 )
Management fees — — — — — — — — — — — — (9,081 ) (12,945 ) 3,864 — — — (9,081 ) (12,945 ) 3,864
Profit / (loss) from operations 48,588 96,118 (47,530 ) 185,781 (273,106 ) 458,887 234,369 (176,988 ) 411,357 (4,072 ) (893 ) (3,179 ) (9,276 ) (14,016 ) 4,740 (76 ) (20 ) (56 ) 220,945 (191,917 ) 412,862
Share of (loss) / profit of associates and joint ventures (1,034 ) (1,511 ) 477 25,332 47,068 (21,736 ) 24,298 45,557 (21,259 ) 2,592 386 2,206 — — — — — — 26,890 45,943 (19,053 )
Segment profit / (loss) 47,554 94,607 (47,053 ) 211,113 (226,038 ) 437,151 258,667 (131,431 ) 390,098 (1,480 ) (507 ) (973 ) (9,276 ) (14,016 ) 4,740 (76 ) (20 ) (56 ) 247,835 (145,974 ) 393,809
(i) Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(ii) Includes gross profit / (loss) of ARS (539) million and ARS (1,655) million corresponding to Building Administration Expenses and Collective Promotion Fund (FPC), as of June 30, 2025 and 2024, respectively.
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Agricultural Business
The following table shows a summary of the Agricultural Business lines for the fiscal years ended June 30, 2025 and 2024.
Agricultural production Land transformation and sales Corporate Others Total
30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var.
(in million of ARS)
Revenues 326,975 374,179 (47,204 ) — — — — — — 121,291 129,435 (8,144 ) 448,266 503,614 (55,348 )
Costs (280,439 ) (333,264 ) 52,825 (389 ) (318 ) (71 ) — — — (105,934 ) (85,248 ) (20,686 ) (386,762 ) (418,830 ) 32,068
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 17,715 7,444 10,271 — — — — — — — — — 17,715 7,444 10,271
Changes in the net realizable value of agricultural products after harvest 4,642 10,002 (5,360 ) — — — — — — — — — 4,642 10,002 (5,360 )
Gross profit / (loss) 68,893 58,361 10,532 (389 ) (318 ) (71 ) — — — 15,357 44,187 (28,830 ) 83,861 102,230 (18,369 )
Net gain from fair value adjustment of investment properties — — — 12,467 (10,392 ) 22,859 — — — — — — 12,467 (10,392 ) 22,859
Gain from disposal of farmlands — — — 41,992 73,352 (31,360 ) — — — — — — 41,992 73,352 (31,360 )
General and administrative expenses (23,258 ) (27,383 ) 4,125 (86 ) (88 ) 2 (5,925 ) (6,390 ) 465 (13,194 ) (13,093 ) (101 ) (42,463 ) (46,954 ) 4,491
Selling expenses (35,685 ) (40,340 ) 4,655 (1,552 ) (1,658 ) 106 — — — (21,988 ) (19,024 ) (2,964 ) (59,225 ) (61,022 ) 1,797
Other operating results, net 5,987 11,849 (5,862 ) 3,497 19,151 (15,654 ) — — — 2,472 7,904 (5,432 ) 11,956 38,904 (26,948 )
Profit / (Loss) from operations 15,937 2,487 13,450 55,929 80,047 (24,118 ) (5,925 ) (6,390 ) 465 (17,353 ) 19,974 (37,327 ) 48,588 96,118 (47,530 )
Share of profit/ (loss) of associates and joint ventures 368 2,161 (1,793 ) — — — — — — (1,402 ) (3,672 ) 2,270 (1,034 ) (1,511 ) 477
Segment profit / (loss) 16,305 4,648 11,657 55,929 80,047 (24,118 ) (5,925 ) (6,390 ) 465 (18,755 ) 16,302 (35,057 ) 47,554 94,607 (47,053 )
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Urban Properties and Investment Business
The following table shows a summary of the Urban Properties and Investment Business lines for the fiscal years ended June 30, 2025 and 2024.
Shopping Malls Offices Sales and developments Hotels Others Total
30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var. 30.06.25 30.06.24 Var.
(in millions of ARS)
Revenues 270,531 250,468 20,063 20,065 22,646 (2,581 ) 12,761 12,891 (130 ) 64,596 85,840 (21,244 ) 6,709 5,357 1,352 374,662 377,202 (2,540 )
Costs (20,705 ) (14,937 ) (5,768 ) (1,742 ) (1,648 ) (94 ) (17,929 ) (7,451 ) (10,478 ) (43,149 ) (40,350 ) (2,799 ) (4,081 ) (3,781 ) (300 ) (87,606 ) (68,167 ) (19,439 )
Gross profit / (loss) 249,826 235,531 14,295 18,323 20,998 (2,675 ) (5,168 ) 5,440 (10,608 ) 21,447 45,490 (24,043 ) 2,628 1,576 1,052 287,056 309,035 (21,979 )
Net gain/ (loss) from fair value adjustment of investment properties 443,974 (20,824 ) 464,798 (148,941 ) (97,015 ) (51,926 ) (285,328 ) (357,995 ) 72,667 — — — (570 ) (403 ) (167 ) 9,135 (476,237 ) 485,372
General and administrative expenses (28,999 ) (30,126 ) 1,127 (2,365 ) (2,875 ) 510 (11,605 ) (12,283 ) 678 (11,972 ) (13,025 ) 1,053 (14,162 ) (13,428 ) (734 ) (69,103 ) (71,737 ) 2,634
Selling expenses (13,536 ) (12,558 ) (978 ) (891 ) (251 ) (640 ) (3,116 ) (4,512 ) 1,396 (5,052 ) (5,863 ) 811 (1,513 ) (1,203 ) (310 ) (24,108 ) (24,387 ) 279
Other operating results, net (500 ) (3,960 ) 3,460 182 (88 ) 270 (19,070 ) (5,305 ) (13,765 ) (474 ) (1,577 ) 1,103 2,663 1,150 1,513 (17,199 ) (9,780 ) (7,419 )
Profit / (loss) from operations 650,765 168,063 482,702 (133,692 ) (79,231 ) (54,461 ) (324,287 ) (374,655 ) 50,368 3,949 25,025 (21,076 ) (10,954 ) (12,308 ) 1,354 185,781 (273,106 ) 458,887
Share of (loss)/ profit of associates and joint ventures — — — — — — — — — — — — 25,332 47,068 (21,736 ) 25,332 47,068 (21,736 )
Segment profit / (loss) 650,765 168,063 482,702 (133,692 ) (79,231 ) (54,461 ) (324,287 ) (374,655 ) 50,368 3,949 25,025 (21,076 ) 14,378 34,760 (20,382 ) 211,113 (226,038 ) 437,151
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Revenues 2025 vs. 2024
Agricultural Business
Agricultural Production. Revenues from the Agricultural Production segment decreased by 12.6%, from ARS 374,179 million for the fiscal year ended June 30, 2024, to ARS 326,975 million for the fiscal year ended June 30, 2025. Such decrease is mainly attributable to:
· ARS 61,577 million decrease in revenues from crop sales, as a result of the decline in international commodity prices (USD/Tn) and a reduction in the volume of tons traded in Argentina, partially offset by an increase in the volume traded in Brazil;
· ARS 749 million decrease in revenues from leases and services, was mainly due to lower lease income, following the termination of one of the lease agreements related to the Los Pozos property (3,697 hectares). This was partially offset by higher revenues from seed multiplication services, driven by an increased volume of tons invoiced;
· ARS 9,176 million increase in revenues from cattle sales, due to improved price performance in Argentina; and
· ARS 5,946 million increase in revenues from sugarcane sales, resulting from a higher volume of tons traded and better prices.
Others. Revenues from the Others segment decreased by 6.3%, from ARS 129,435 million for the fiscal year ended June 30, 2024, to ARS 121,291 million for the fiscal year ended June 30, 2025. This variation is mainly explained by an ARS 8,144 million decrease in revenues from brokerage, consignment, and others.
Urban Properties and Investment Business
Shopping Malls. Revenues from the Shopping Malls segment increased by 8.0% from ARS 250,468 million during the fiscal year ended June 30, 2024, to ARS 270,531 million during the fiscal year ended June 30, 2025. Rental income increased by 5.8% compared to the prior year, mainly due to changes in lease negotiations with tenants and to a higher income from retail stands. During the fiscal year ended June 30, 2025, the increase in revenues was mainly due to: (i) an increase of ARS 44,813 million in base rental revenues, mainly explained by contract renegotiations under more favorable terms; (ii) an increase of ARS 3,164 million in parking revenues, mainly explained by rate adjustments above inflation; (iii) an increase of ARS 2,764 million in admission rights mainly due to contract renegotiations; (iv) an increase of ARS 2,037 million in commissions; (v) an increase of ARS 263 million in revenues from management and administrative services; partially offset by (vi) a decrease of ARS 32,943 million in contingent rental revenues.
Offices. Revenues from the Offices segment decreased by 11.4% from ARS 22,646 million during the fiscal year ended June 30, 2024, to ARS 20,065 million during the fiscal year ended June 30, 2025. This variation is mainly explained by a decrease in revenue from leases by 12.1% from ARS 22,555 million during the fiscal year ended June 30, 2024, to ARS 19,830 million during the fiscal year ended June 30, 2025. The decrease is primarily attributable to the stability of lease rates expressed in U.S. dollars and to a foreign exchange variation that was lower than inflation rate.
Sales and Developments. Revenues from the Sales and Developments segment recorded a 1.0% decrease from ARS 12,891 million during the fiscal year ended June 30, 2024, to ARS 12,761 million during the fiscal year ended June 30, 2025. The decrease was mainly attributable to: (i) a decrease of ARS 1,562 million in rental income, due to lower occupancy of units during the fiscal year ended June 30, 2025, and because in the fiscal year ended June 30, 2024, spaces had been leased for events and filming; partially offset by (ii) an increase of ARS 1,212 million in revenues from the sale of trading properties, as during the current fiscal year 37 lots in the “Nuevo Quilmes 2” neighborhood and a plot of land located in Tigre, the assignment of rights for a unit in the “Human Abasto Towers” and the payment in kind of units from Towers 1 and 2 located in Canelones (Uruguay) by VAM, while in the fiscal year ended June 30, 2024, two plots of land in Canelones (Uruguay) had been sold by VAM.
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Hotels. Revenues from our Hotels segment decreased by 24.7% from ARS 85,840 million during the fiscal year ended June 30, 2024, to ARS 64,596 million during the fiscal year ended June 30, 2025. This decrease is mainly explained by a drop in international tourism arrivals as a result of reduced currency competitiveness in the country.
Others. Revenues from the Others segment increased by 25.2% from ARS 5,357 million during the fiscal year ended June 30, 2024, to ARS 6,709 million during the fiscal year ended June 30, 2025, mainly due to the greater number of congresses and fairs held at the Buenos Aires Convention Centre (LA RURAL S.A. - OFC S.R.L. - OGDEN S.A - ENTRETENIMIENTO UNIVERSAL S.A. - Unión transitoria - (administrator of the Convention and Exhibition Centre of the City of Buenos Aires)) and the fee charged by We are appa for the services of the APPA application for promotions and actions of the Shopping Malls.
Costs 2025 vs. 2024
Agricultural Business
Agricultural Production. The costs of the Agricultural Production segment decreased by 15.9%, from ARS 333,264 million for the fiscal year ended June 30, 2024, to ARS 280,439 million for the fiscal year ended June 30, 2025, primarily due to:
· ARS 62,869 million decrease in crop sales costs, as a result of a lower volume of tons sold in Argentina, partially offset by a higher volume of tons sold in Brazil;
· ARS 3,209 million decrease in lease and service costs, mainly due to lower lease costs in Brazil;
· ARS 8,952 million increase in cattle sales costs, primarily as a result of a higher volume of kilograms sold during the current fiscal year compared to the fiscal year ended June 30, 2024; and
· ARS 4,301 million increase in sugarcane sales costs, mainly due to an increase in the volume of sugarcane sold.
Costs of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 89.1% during the fiscal year ended June 30, 2024, to 85.8% during the fiscal year ended June 30, 2025.
Land transformation and sales. The costs of the Land Transformation and Sales segment increased by 22.3%, from ARS 318 million for the fiscal year ended June 30, 2024, to ARS 389 million for the fiscal year ended June 30, 2025. This variation is mainly explained by farmland sales that occurred during both fiscal years, considering that in the fiscal year ended June 30, 2025, there was a higher number of hectares sold compared to the fiscal year ended June 30, 2024.
Others. The costs of the Others segment increased by 24.3%, from ARS 85,248 million for the fiscal year ended June 30, 2024, to ARS 105,934 million for the fiscal year ended June 30, 2025. This increase is mainly related to higher consignment and storage costs. Costs of the Others segment, measured as a percentage of revenues from this segment, increased from 65.9% during the fiscal year ended June 30, 2024, to 87.3% during the fiscal year ended June 30, 2025.
Urban Properties and Investment Business
Shopping Malls. Costs associated with the Shopping Malls segment increased by 38.6%, from ARS 14,937 million during the fiscal year ended June 30, 2024, to ARS 20,705 million during the fiscal year ended June 30, 2025, primarily due to higher activity levels at the shopping malls, which led to higher operating costs, mainly explained by: (i) an increase of ARS 1,406 million in amortization and depreciation charges, partially due to the recognition of the Terrazas de Mayo brand acquired during the fiscal year ended June 30, 2025, as well as the capitalization of construction works in progress; (ii) an increase of ARS 1,293 million in rents and expenses; (iii) an increase of ARS 1,141 million in fees and compensations for services; (iv) an increase of ARS 961 million in salaries, social security charges and other personnel administrative expenses; (v) an increase of ARS 598 million in maintenance, security, cleaning, repairs and related expenses; (vi) an increase of ARS 547 million in taxes; partially offset by (vii) a decrease of ARS 96 million in bank expenses; and (viii) a decrease of ARS 91 million in travel, transportation and stationery. Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, increased from 6.0% during the fiscal year ended June 30, 2024, to 7.7% during the fiscal year ended June 30, 2025.
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Offices. Costs associated with the Offices segment increased by 5.7%, from ARS 1,648 million during the fiscal year ended June 30, 2024, to ARS 1,742 million during the fiscal year ended June 30, 2025. Office costs were influenced by higher occupancy in Class A+ and A buildings, as well as by the costs associated with the Coworking Philips space. The variation was mainly due to: (i) an increase of ARS 148 million in rents and expenses, partially explained by higher expenses from the Coworking Philips space; (ii) an increase of ARS 188 million in maintenance, security, cleaning, repairs and related expenses; (iii) an increase of ARS 74 million in travel, transportation and stationery; (iv) an increase of ARS 37 million in amortization and depreciation charges; partially offset by (v) a decrease of ARS 356 million in fees and compensations for services. Costs associated with the Offices segment, measured as a percentage of the revenues from this segment, increased from 7.3% during the fiscal year ended June 30, 2024, to 8.7% during the fiscal year ended June 30, 2025.
Sales and Developments. Costs associated with our Sales and Developments segment recorded a 140.6% increase from ARS 7,451 million during the fiscal year ended June 30, 2024, to ARS 17,929 million during the fiscal year ended June 30, 2025 (a rise aligned with sales growth, thus justifying the higher costs), mainly due to: (i) an increase of ARS 9,563 million in cost of goods sold and services, mainly explained by the sale of 37 lots in the “Nuevo Quilmes 2” neighborhood and a plot of land located in Tigre, the assignment of rights for a unit in the “Human Abasto Towers”, and the payment in kind of units from Towers 1 and 2 located in Canelones (Uruguay) by VAM; (ii) an increase of ARS 534 million in rents and expenses; (iii) an increase of ARS 303 million in salaries, social security charges and other personnel administrative expenses; (iv) an increase of ARS 117 million in taxes; (v) an increase of ARS 61 million in maintenance, security, cleaning, repairs and related expenses; partially offset by (vi) a decrease of ARS 74 million in fees and compensations for services. Costs in the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 57.8% during the fiscal year ended June 30, 2024, to 140.5% during the fiscal year ended June 30, 2025.
Hotels. Costs in the Hotels segment increased by 6.9%, from ARS 40,350 million during the fiscal year ended June 30, 2024, to ARS 43,149 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) an increase of ARS 4,347 million in salaries, social security charges and other personnel administrative expenses; partially offset by (ii) a decrease of ARS 721 million in food, beverages and other hotel expenses; (iii) a decrease of ARS 526 million in fees and compensations for services; (iv) a decrease of ARS 217 million in maintenance, security, cleaning, repairs and related expenses; and (v) a decrease of ARS 153 million in amortization and depreciation charges. Costs in the Hotels segment, measured as a percentage of revenues from this segment, increased from 47.0% during the fiscal year ended June 30, 2024, to 66.8% during the fiscal year ended June 30, 2025.
Others. Costs in the Others segment increased by 7.9%, from ARS 3,781 million during the fiscal year ended June 30, 2024, to ARS 4,081 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) an increase of ARS 204 million in taxes; (ii) an increase of ARS 150 million in fees and compensations for services; (iii) an increase of ARS 72 million in amortization and depreciation charges; (iv) an increase of ARS 43 million in travel, transportation and stationery; partially offset by (v) a decrease of ARS 116 million in other charges; (vi) a decrease of ARS 29 million in salaries, social security charges and other personnel administrative expenses; (vii) a decrease of ARS 23 million in maintenance, security, cleaning, repairs and related expenses. Costs in the Others segment, measured as a percentage of revenues from this segment, decreased from 70.6% during the fiscal year ended June 30, 2024, to 60.8% during the fiscal year ended June 30, 2025.
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest 2025 vs. 2024
According to information by segments (taking into account the result from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), the result from the initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest increased by ARS 10,271 million (138.0%), from a gain of ARS 7,444 million for the fiscal year ended June 30, 2024, to a gain of ARS 17,715 million for the fiscal year ended June 30, 2025.
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Such variation was mainly as a result of:
· An increase of ARS 4,292 million in sugarcane production results, driven by a higher volume of tons produced and an increase in international market prices;
· A positive result of ARS 16,685 million from cattle production and holding, due to prices performing better relative to inflation compared to the previous fiscal year, along with an increase in kilograms produced;
· A decrease of ARS 10,706 million in grain production results, explained by a loss in the 2024-2025 crop season due to a decline in average NRV of grains and lower average yields in Argentina, partially offset by a gain in Brazil, supported by favorable weather conditions.
Changes in the net realizable value of agricultural produce after harvest 2025 vs. 2024
Results from changes in the net realizable value of agricultural produce after harvest, according to the statement of income, decreased by ARS 5,360 million (53.6%), from a gain of ARS 10,002 million during the fiscal year ended June 30, 2024, to a gain of ARS 4,642 million during the fiscal year ended June 30, 2025.
This variation originated mainly in Argentina, due to lower international prices and a depreciation of the Argentine peso below the inflation rate compared to the previous fiscal year.
Gross profit/(loss) 2025 vs. 2024
Agricultural Business
Agricultural Production. Gross profit from this segment increased by 18.0%, from a profit of ARS 58,361 million in the fiscal year ended June 30, 2024, to a profit of ARS 68,893 million in the fiscal year ended June 30, 2025.
Land Transformation and Sales. Gross loss from this segment increased by 22.3%, from a loss of ARS 318 million in the fiscal year ended June 30, 2024, to a loss of ARS 389 million in the fiscal year ended June 30, 2025.
Others. Gross profit from this segment decreased by 65.2%, from a profit of ARS 44,187 million in the fiscal year ended June 30, 2024, to a profit of ARS 15,357 million in the fiscal year ended June 30, 2025.
Urban Properties and Investment Business
Shopping Malls. Gross profit from the Shopping Malls segment increased by 6.1%, from a profit of ARS 235,531 million during the fiscal year ended June 30, 2024, to a profit of ARS 249,826 million during the fiscal year ended June 30, 2025, mainly as a result of the previously mentioned increase in revenue. Gross profit from the Shopping Malls segment, measured as a percentage of revenues from this segment, decreased from 94.0% positive during the fiscal year ended June 30, 2024, to 92.4% positive during the fiscal year ended June 30, 2025.
Offices. Gross profit from the Offices segment decreased by 12.7%, from a profit of ARS 20,998 million during the fiscal year ended June 30, 2024, to a profit of ARS 18,323 million profit during the fiscal year ended June 30, 2025. Gross profit from the Offices segment, measured as a percentage of revenues from this segment, decreased from 92.7% positive during the fiscal year ended June 30, 2024, to 91% positive during the fiscal year ended June 30, 2025.
Sales and Developments. Gross profit from the Sales and Developments segment decreased by 195.0%, from a profit of ARS 5,440 million during the fiscal year ended June 30, 2024, to a loss of ARS 5,168 million during the fiscal year ended June 30, 2025. Gross profit from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 42.2% positive during the fiscal year ended June 30, 2024, to 40.5% negative during the fiscal year ended June 30, 2025.
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Hotels. Gross profit from the Hotels segment decreased by 52.9%, from a profit of ARS 45,490 million during the fiscal year ended June 30, 2024, to a profit of ARS 21,447 million during the fiscal year ended June 30, 2025. Gross profit from the Hotels segment, measured as a percentage of revenues from this segment, decreased from 53.0% positive during the fiscal year ended June 30, 2024, to 33.2% positive during the fiscal year ended June 30, 2025.
Others. Gross profit from the Others segment increased by 66.8%, from a profit of ARS 1,576 million during the fiscal year ended June 30, 2024, to a profit of ARS 2,628 million during the fiscal year ended June 30, 2025. Gross profit from the Others segment, measured as a percentage of revenues from this segment, increased from 29.4% positive during the fiscal year ended June 30, 2024, to 39.2% positive during the fiscal year ended June 30, 2025.
The variations described in this section relate to the previously mentioned effects on revenues and costs.
Net loss from changes in the fair value of investment properties 2025 vs. 2024
Agricultural Business
According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the result from changes in the fair value of investment properties varied by ARS 22,859 million (220.0%), from a net loss of ARS 10,392 million in the fiscal year ended June 30, 2024, to a net gain of ARS 12,467 million in the fiscal year ended June 30, 2025. This variation was mainly driven by the revaluation of agricultural land in Brazil, due to the increase in market prices of rural properties, improved productive outlook for main crops, and the effect of currency conversion.
Urban Properties and Investment Business
Total consolidated net gain from fair value adjustment of investment properties, according to the income statement, varied by ARS 482,337 million, from a net loss of ARS 475,729 million during the fiscal year ended June 30, 2024, to a net gain of ARS 6,608 million during the fiscal year ended June 30, 2025.
According to information by segments, the net gain/(loss) from fair value adjustment of investment properties went from a loss of ARS 476,237 million (of which an ARS 20,824 million loss derives from our Shopping Malls segment; an ARS 97,015 million loss from our Offices segment; an ARS 357,995 million loss from our Sales and Developments segment; and an ARS 403 million loss from our Others segment) during the fiscal year ended June 30, 2024, to a gain of ARS 9,135 million (of which an ARS 443,974 million gain derives from our Shopping Malls segment; an ARS 148,941 million loss from our Offices segment; an ARS 285,328 million loss from our Sales and Developments segment; and an ARS 570 million loss from our Others segment) during the fiscal year ended June 30, 2025.
The net impact on the Argentine Peso values of our shopping malls was primarily attributable to: (i) more favorable macroeconomic projections related to the projected real exchange rate and inflation; the variation of the official exchange rate, which is used to measure these properties, was 27 percentage points below inflation; and (ii) the discount rate used to discount cash flows, mainly affected by a decrease of approximately 400 basis points in the country risk premium compared to the prior fiscal year.
The Argentine market for offices, land reserves, and other properties is a liquid market, in which a great number of counterparties participate carrying out sale-purchase transactions. This situation results in significant and representative sale-purchase prices in the market. In this regard, the “Market Approach” technique (comparable market values) is employed to determine the fair value of the Offices and Other segment, with the price per square meter being the most representative metric. In our Office segment and Developments segment, the value was primarily impacted by the appreciation of the peso against the “MEP dollar” during the fiscal year ended June 30, 2025, as in real terms, the variation in the MEP exchange rate, which is used to measure these properties, was 77 points below inflation. Dollar-denominated valuations remained at levels similar to those of the fiscal year ended June 30, 2024.
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Gain from disposal of farmlands 2025 vs. 2024
The total result from the sale of farmland, according to the income statement, decreased by ARS 31,360 million (42.8%), from ARS 73,352 million for the fiscal year ended June 30, 2024, to ARS 41,992 million for the fiscal year ended June 30, 2025.
Fiscal year ended June 30, 2025
· On September 26, 2024, BrasilAgro completed the sale of the remaining balance of 1,157 hectares of the Alto Taquari farm, a rural property located in the municipalities of Alto Taquari and Araputanga - Mato Grosso, Brazil. The contract was signed on September 1, 2021 and established the transfer of possession in two stages, the first being on October 10, 2021. The amount to be paid was 1,272,274 bags of soybeans, equivalent to BRL 189.4 million (ARS 43,395 million) at the date of the transaction.
· On September 30, 2024, BrasilAgro transferred 190 hectares due to the sale of the Rio do Meio farm, a rural property located in the municipality of Correntina-Bahia. The contract was signed on November 8, 2022 and established the transfer of ownership in four stages, this being the third, with the deadline for the fourth and final transfer set for May 2025. The sale price was 54,053 bags of soybeans, equivalent to BRL 7 million (ARS 1,604 million) at the date of the transaction. On May 23, 2025, an additional 660 hectares of the same property were transferred, corresponding to the fourth and final stage of the schedule. The sale price was 75,454 bags of soybeans, equivalent to BRL 10 million (ARS 2,132 million) at the date of the transaction, to be collected in annual installments maturing between July 31, 2027 and 2028.
· On September 30, 2024, Cresud signed the transfer of ownership deed for the sale of a fraction of the farmland of the property called “Los Pozos”, located in the Province of Salta, with a total area of 3,630 hectares, leaving a remainder of approximately 231,700 hectares of said property in the hands of the Company. The total price was USD 2.23 million (USD/ha 614), equivalent to ARS 2,742 million, of which USD 1.1 million (ARS 1,347 million) has been collected to date. The remaining balance of USD 1.13 million (ARS 1,395 million), guaranteed with a mortgage on the property, has been collected in a single installment in September 2025.
· As of June 30, 2025, BrasilAgro completed the sale of the entire Preferencia farm, a rural property located in the municipality of Baianópolis, Bahia State, with a total area of 17,799 hectares. The sale price was agreed at 452,342 arrobas of cattle (6,785,130 kg), equivalent to BRL 140.0 million (ARS 29,854 million) at the date of the transaction. As of June 30, 2025, the buyer made an initial payment of BRL 2.0 million (ARS 425 million), and in July 2025 paid the first installment of BRL 40.0 million (ARS 8,530 million), equivalent to 135,703 arrobas of cattle (2,035,545 kg). The remaining balance of 316,640 arrobas (4,749,600 kg) will be paid in six annual installments of 52,773 arrobas (791,595 kg) each, maturing between October 31, 2026 and October 31, 2031.
Fiscal year ended June 30, 2024
· On October 5, 2023, Cresud signed a transfer deed of ownership for the sale of a fraction of field land known as Registration 5,421 of the property called “Los Pozos” located in the province of Salta, with a total area of 4,262 hectares. The total price was USD 2.3 million, which has been fully collected.
· On December 14, 2023, Cresud signed a transfer deed of ownership for the sale of a fraction of 500 hectares of agricultural activity from its “El Tigre” farm, located in the department of Trenel, province of La Pampa, Argentina. The total price was USD 3.8 million, of which USD 0.9 million remains to be received, which will be paid in two installments, the last of which is dated December 12, 2025, with a mortgage guarantee for said balance. After this transaction, the Company keeps the ownership of approximately 7,860 hectares of “El Tigre” farm.
· On March 26, 2024, BrasilAgro sold a fraction of 12,335 hectares (8,796 productive hectares) of the “Chaparral” farm located in Correntina, State of Bahia, Brazil, that was acquired in 2007. After this operation, a remaining surface of 24,847 hectares of this farm is still owned by BrasilAgro. The total amount of the operation was set at BRL 364.5 million, subject to variations in the soybean bag price, and the portion of the farm that was sold was valued on the books at BRL 34.0 million.
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General and administrative expenses 2025 vs. 2024
Agricultural Business
Agricultural Production. General and administrative expenses associated with the Agricultural Production segment decreased by 15.1%, from ARS 27,383 million in the fiscal year ended June 30, 2024, to ARS 23,258 million in the fiscal year ended June 30, 2025, mainly due to: a decrease of ARS 3,473 million in expenses related to crop operations; a decrease of ARS 332 million in expenses related to sugarcane operations; a decrease of ARS 167 million in expenses related to cattle operations; and a decrease of ARS 153 million in expenses associated with the agricultural leases and services business. General and administrative expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, decreased from 7.3% during the fiscal year ended June 30, 2024, to 7.1% during the fiscal year ended June 30, 2025.
Land Transformation and Sales. General and administrative expenses associated with the Land Transformation and Sales segment decreased by 2.3%, from ARS 88 million during the fiscal year ended June 30, 2024, to ARS 86 million during the fiscal year ended June 30, 2025.
Corporate. General and administrative expenses associated with the Corporate segment decreased by 7.3%, from ARS 6,390 million during the fiscal year ended June 30, 2024, to ARS 5,925 million during the fiscal year ended June 30, 2025.
Others. General and administrative expenses associated with the Others segment increased by 0.8%, from ARS 13,093 million during the fiscal year ended June 30, 2024, to ARS 13,194 million during the fiscal year ended June 30, 2025. General and administrative expenses of the Others segment, measured as a percentage of revenues from this segment, increased from 10.1% during the fiscal year ended June 30, 2024, to 10.9% during the fiscal year ended June 30, 2025.
Urban Properties and Investment Business
Shopping Malls. General and administrative expenses of the Shopping Malls segment decreased by 3.7%, from ARS 30,126 million during the fiscal year ended June 30, 2024, to ARS 28,999 million during the fiscal year ended June 30, 2025, mainly due to: (i) a decrease of ARS 980 million in directors’ fees; (ii) a decrease of ARS 444 million in fees and compensations for services due to the discontinuation of some suppliers’ services and lower charges for certifications; (iii) a decrease of ARS 119 million in maintenance, security, cleaning, repairs and related expenses; (iv) a decrease of ARS 92 million in amortization and depreciation charges; partially offset by (v) an increase of ARS 449 million in salaries, social security charges and other personnel administrative expenses; (vi) an increase of ARS 40 million in travel, transportation and stationery; and (vii) an increase of ARS 20 million in rents and expenses. General and administrative expenses of the Shopping Malls segment, measured as a percentage of revenues from this segment, decreased from 12.0% during the fiscal year ended June 30, 2024, to 10.7% during the fiscal year ended June 30, 2025.
Offices. General and administrative expenses of the Offices segment decreased by 17.7%, from ARS 2,875 million during the fiscal year ended June 30, 2024, to ARS 2,365 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) a decrease of ARS 442 million in amortization and depreciation charges; (ii) a decrease of ARS 86 million in directors’ fees; (iii) a decrease of ARS 37 million in fees and compensations for services due to the discontinuation of some suppliers’ services and lower charges for certifications; (iv) a decrease of ARS 10 million in maintenance, security, cleaning, repairs and related expenses; partially offset by (v) an increase of ARS 39 million in salaries, social security charges and other personnel administrative expenses; and (vi) an increase of ARS 21 million in rents and expenses. General and administrative expenses of the Offices segment, measured as a percentage of revenues from this segment, decreased from 12.7% during the fiscal year ended June 30, 2024, to 11.8% during the fiscal year ended June 30, 2025.
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Sales and Developments. General and administrative expenses associated with our Sales and Developments segment decreased by 5.5%, from ARS 12,283 million during the fiscal year ended June 30, 2024, to ARS 11,605 million during the fiscal year ended June 30, 2025. General and administrative expenses, measured as a percentage of revenues from this segment, decreased from 95.3% during the fiscal year ended June 30, 2024, to 90.9% during the fiscal year ended June 30, 2025.
Hotels. General and administrative expenses associated with our Hotels segment decreased by 8.1%, from ARS 13,025 million during the fiscal year ended June 30, 2024, to ARS 11,972 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) a decrease of ARS 1,103 million in fees and compensations for services; (ii) a decrease of ARS 154 million in bank expenses; (iii) a decrease of ARS 114 million in taxes; (iv) a decrease of ARS 85 million in other charges; partially offset by (v) an increase of ARS 214 million in maintenance, security, cleaning, repairs and related expenses; (vi) an increase of ARS 167 million in salaries, social security charges and other personnel administrative expenses; and (vii) an increase of ARS 37 million in amortization and depreciation charges. General and administrative expenses associated with the Hotels segment, measured as a percentage of revenues from this segment, increased from 15.2% during the fiscal year ended June 30, 2024, to 18.5% during the fiscal year ended June 30, 2025.
Others. General and administrative expenses associated with our Others segment increased by 5.5%, from ARS 13,428 million during the fiscal year ended June 30, 2024, to ARS 14,162 million during the fiscal year ended June 30, 2025, mainly due to: (i) an increase of ARS 1,087 million in directors’ fees; (ii) an increase of ARS 42 million in fees and compensations for services; (iii) an increase of ARS 14 million in amortization and depreciation charges; partially offset by (iv) a decrease of ARS 174 million in salaries, social security charges and other personnel administrative expenses; (v) a decrease of ARS 143 million in other charges; (vi) a decrease of ARS 56 million in taxes; (vii) a decrease of ARS 18 million in maintenance, security, cleaning, repairs and related expenses; and (viii) a decrease of ARS 11 million in travel, transportation and stationery. General and administrative expenses of the Others segment, measured as a percentage of revenues from this segment, increased from 250.7% during the fiscal year ended June 30, 2024, to 211.1% during the fiscal year ended June 30, 2025.
Selling expenses 2025 vs. 2024
Agricultural Business
Agricultural Production. Selling expenses from the Agricultural Production segment decreased by 11.5%, from ARS 40,340 million in the fiscal year ended June 30, 2024, to ARS 35,685 million in the fiscal year ended June 30, 2025, mainly due to: a decrease of ARS 5,115 million in expenses related to crop operations; a decrease of ARS 144 million in expenses associated with the agricultural leases and services business; a decrease of ARS 39 million in expenses related to sugarcane operations; partially offset by an increase of ARS 643 million in expenses related to cattle operations. Selling expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, increased from 10.8% during the fiscal year ended June 30, 2024, to 10.9% during the fiscal year ended June 30, 2025.
Land Transformation and Sales. Selling expenses from the Land Transformation and Sales segment decreased by 6.4%, from ARS 1,658 million during the fiscal year ended June 30, 2024, to ARS 1,552 million during the fiscal year ended June 30, 2025.
Others. Selling expenses from the Others segment increased by 15.6%, from ARS 19,024 million during the fiscal year ended June 30, 2024, to ARS 21,988 million during the fiscal year ended June 30, 2025, mainly due to an increase of ARS 2,964 million in selling expenses related to other segments. Selling expenses from the Others segment, measured as a percentage of revenues from this segment, increased from 14.7% during the fiscal year ended June 30, 2024, to 18.1% during the fiscal year ended June 30, 2025.
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Urban Properties and Investment Business
Shopping Malls. Selling expenses of the Shopping Malls segment increased by 7.8%, from ARS 12,558 million during the fiscal year ended June 30, 2024, to ARS 13,536 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) an increase of ARS 1,058 million in taxes due to an increase in ABL rates and real estate taxes, which are adjusted by CPI; (ii) an increase of ARS 47 million in amortization and depreciation charges; (iii) an increase of ARS 31 million in bad debts (charge and recovery, net); partially offset by (iv) a decrease of ARS 89 million in fees and compensations for services; (v) a decrease of ARS 59 million in advertising, promotions, and other marketing expenses; and (vi) a decrease of ARS 12 million in salaries, social security charges and other personnel administrative expenses. Selling expenses, measured as a percentage of revenues from the Shopping Malls segment, remained stable at 5.0% during the fiscal years presented.
Offices. Selling expenses associated with our Offices segment increased by 255.0%, from ARS 251 million during the fiscal year ended June 30, 2024, to ARS 891 million during the fiscal year ended June 30, 2025. Such variation was mainly generated as a result of: (i) an increase of ARS 334 million in fees and compensations for services; (ii) an increase of ARS 182 million in bad debts (charge and recovery, net), primarily due to higher provisions for uncollectible accounts at the Intercontinental Building; (iii) an increase of ARS 138 million in advertising, promotions, and other marketing expenses; partially offset by (iv) a decrease of ARS 19 million in taxes. Selling expenses associated with our Offices segment, measured as a percentage of revenues from this segment, increased from 1.1% during the fiscal year ended June 30, 2024, to 4.4% during the fiscal year ended June 30, 2025.
Sales and Developments. Selling expenses associated with our Sales and Developments segment decreased by 30.9%, from ARS 4,512 million during the fiscal year ended June 30, 2024, to ARS 3,116 million during the fiscal year ended June 30, 2025. The variation was mainly explained by lower expenses incurred in the sale of properties, caused by a decrease in sales compared to the prior year. Among the most significant variations were: (i) a decrease of ARS 1,091 million in fees and compensations for services due to lower notary fees; (ii) a decrease of ARS 667 million in taxes due to lower sealing expenses; (iii) a decrease of ARS 11 million in bad debts (charge and recovery, net); partially offset by (iv) an increase of ARS 384 million in advertising, promotions, and other marketing expenses. Selling expenses associated with our Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 35.0% during the fiscal year ended June 30, 2024, to 24.4% during the fiscal year ended June 30, 2025.
Hotels. Selling expenses associated with our Hotels segment decreased by 13.8%, from ARS 5,863 million during the fiscal year ended June 30, 2024, to ARS 5,052 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) a decrease of ARS 1,769 million in taxes; (ii) a decrease of ARS 70 million in salaries, social security charges and other personnel administrative expenses; (iii) a decrease of ARS 64 million in fees and compensations for services; partially offset by (iv) an increase of ARS 44 million in advertising, promotions, and other marketing expenses; and (v) an increase of ARS 41 million in other charges. Selling expenses associated with our Hotels segment, measured as a percentage of revenues from this segment, increased from 6.8% during the fiscal year ended June 30, 2024, to 7.8% during the fiscal year ended June 30, 2025.
Others. Selling expenses associated with our Others segment increased by 25.8%, from ARS 1,203 million during the fiscal year ended June 30, 2024, to ARS 1,513 million during the fiscal year ended June 30, 2025. This increase is mainly due to higher commercial activities carried out by We are appa. Selling expenses associated with our Others segment, measured as a percentage of revenues from this segment, increased from 22.5% during the fiscal year ended June 30, 2024, to 22.6% during the fiscal year ended June 30, 2025.
Other operating results, net 2025 vs. 2024
Agricultural Business
Agricultural Production. Other operating results, net, associated with our Agricultural Production segment decreased by ARS 5,862 million, from a profit of ARS 11,849 million in the fiscal year ended June 30, 2024, to a profit of ARS 5,987 million in the fiscal year ended June 30, 2025. This decrease was primarily driven by lower results from commodity transactions, reflecting reduced trading volumes and average selling prices below prevailing market levels, which adversely impacted the valuation of the positions held.
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Land Transformation and Sales. Other operating results, net, from this segment decreased by ARS 15,654 million, from a profit of ARS 19,151 million in the fiscal year ended June 30, 2024, to a profit of ARS 3,497 million in the fiscal year ended June 30, 2025. This decrease is mainly explained by the valuation effect of accounts receivable related to farmland sales agreed in soybean bags, whose fair value measurement reflected the decline in soybean prices during the fiscal year.
Others. Other operating results, net, associated with the Others segment decreased by ARS 5,432 million, from a profit of ARS 7,904 million in the fiscal year ended June 30, 2024, to a profit of ARS 2,472 million in the fiscal year ended June 30, 2025. This decrease is mainly due to lower interest income generated by operating assets related to interest on late payment of trade receivables, as well as lower interest income from advances granted in brokerage transactions in Argentine pesos. During the period, the amount granted grew below the inflation rate, and interest rates fell by 35%. Additionally, interest income from the sale of inputs and loans in U.S. dollars to clients was also affected, as these were granted at lower rates through FyO.
Urban Properties and Investment Business
Shopping Malls. Other operating results, net, associated with our Shopping Malls segment varied by 87.4%, from a net loss of ARS 3,960 million during the fiscal year ended June 30, 2024, to a net loss of ARS 500 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) a lower charge from lawsuits of ARS 4,172 million, primarily explained by a change in the interest rate applied to employment-related claims; partially offset by (ii) a decrease of ARS 795 million in interest income generated by operating assets due to improved collection periods, leading to lower interest earned. Other operating results, net, from this segment, as a percentage of revenues from this segment, decreased from 1.6% negative during the fiscal year ended June 30, 2024, to 0.2% negative during the fiscal year ended June 30, 2025.
Offices. Other operating results, net, associated with our Offices segment varied by 306.8%, from a net loss of ARS 88 million during the fiscal year ended June 30, 2024, to a net profit of ARS 182 million during the fiscal year ended June 30, 2025, mainly as a result of: (i) a lower charge from lawsuits of ARS 179 million; (ii) an increase of ARS 131 million in interest income generated by operating assets; partially offset by (iii) a higher charge of ARS 32 million for donations. Other operating results, net, from this segment, as a percentage of revenues from this segment, increased from 0.4% negative during the fiscal year ended June 30, 2024, to 0.9% positive during the fiscal year ended June 30, 2025.
Sales and Developments. Other operating results, net, associated with our Sales and Developments segment varied by 259.5%, from a net loss of ARS 5,305 million during the fiscal year ended June 30, 2024, to a net loss of ARS 19,070 million during the fiscal year ended June 30, 2025, mainly due to: (i) a loss of ARS 19,125 million due to the impairment of properties trading properties for the fiscal year ended June 30, 2025, which resulted from the Company’s comparison between the inflation-adjusted cost (ARS 57,107 million) and the net realizable value (ARS 37,982 million) of these assets; partially offset by (ii) a lower negative result of ARS 2,746 million from the sale of property, plant and equipment corresponding to the sale of the 9th floor of the “261 Della Paolera” Tower (located in the Catalinas area of Buenos Aires City) during the fiscal year ended June 30, 2024; (iii) a lower negative result of ARS 2,181 million from the sale of a joint venture corresponding to the sale of Quality Invest S.A. during the fiscal year ended June 30, 2024; (iv) an increase of ARS 417 million in management fees; (v) a lower charge for lawsuits of ARS 327 million; and (vi) a lower charge for donations of ARS 151 million. Other operating results, net, from this segment, as a percentage of revenues from this segment, increased from 41.2% negative during the fiscal year ended June 30, 2024, to 149.4% negative during the fiscal year ended June 30, 2025.
Hotels. Other operating results, net, associated with the Hotels segment varied by 69.9%, from a net loss of ARS 1,577 million during the fiscal year ended June 30, 2024, to a net loss of ARS 474 million during the fiscal year ended June 30, 2025, mainly due to a decrease in lawsuit charges of ARS 1,224 million, primarily explained by lower labor contingencies related to Nuevas Fronteras S.A. Other operating results, net, from this segment, as a percentage of revenues from this segment, decreased from 1.8% negative during the fiscal year ended June 30, 2024, to 0.7% negative during the fiscal year ended June 30, 2025.
Others. Other operating results, net, associated with the Others segment varied by 131.6%, from a net profit of ARS 1,150 million during the fiscal year ended June 30, 2024, to a net profit of ARS 2,663 million during the fiscal year ended June 30, 2025, mainly due to: (i) a positive result from the sale of associates of ARS 2,488 million during the fiscal year ended June 30, 2025; (ii) an increase of ARS 289 million in management fees; (iii) a lower charge of ARS 113 million for donations; partially offset by (iv) a lower gain of ARS 1,273 million generated from other operating results, mainly explained by a recovery of provisions recorded in the comparative year related to La Arena S.A.; (v) a higher charge of ARS 88 million for lawsuits and other contingencies; and (vi) a lower gain of ARS 16 million from interest earned from operating assets. Other operating results, net, from this segment, as a percentage of revenues from this segment, increased from 21.5% positive during the fiscal year ended June 30, 2024, to 39.7% positive during the fiscal year ended June 30, 2025.
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Management fees 2025 vs. 2024
The company entered into a management agreement with Consultores Asset Management S.A., which provides for the payment of a fee equivalent to 10% of our results for advisory services related to all types of matters connected with activities and investments, such as farming, real estate, finance, hotels, etc. The charge for this fee decreased by 29.8%, from ARS 12,945 million in the fiscal year ended June 30, 2024, to ARS 9,081 million in the fiscal year ended June 30, 2025, as a consequence of lower results in the current fiscal year.
Operating results 2025 vs. 2024
Agricultural Business
Agricultural Production. Operating results of the Agricultural Production segment increased by ARS 13,450 million, from a profit of ARS 2,487 million in the fiscal year ended June 30, 2024, to a profit of ARS 15,937 million in the fiscal year ended June 30, 2025.
Land Transformation and Sales. Operating results of the Land Transformation and Sales segment decreased by ARS 24,118 million, from a profit of ARS 80,047 million in the fiscal year ended June 30, 2024, to a profit of ARS 55,929 million in the fiscal year ended June 30, 2025.
Corporate. Operating results of the Corporate segment increased by ARS 465 million, from a loss of ARS 6,390 million in the fiscal year ended June 30, 2024, to a loss of ARS 5,925 million in the fiscal year ended June 30, 2025.
Others. Operating results of the Others segment decreased by ARS 37,327 million, from a profit of ARS 19,974 million in the fiscal year ended June 30, 2024, to a loss of ARS 17,353 million in the fiscal year ended June 30, 2025.
Urban Properties and Investment Business
Shopping Malls. Operating results from operations associated with the Shopping Malls segment increased by 287.2%, from a net profit of ARS 168,063 million during the fiscal year ended June 30, 2024, to a net profit of ARS 650,765 million during the fiscal year ended June 30, 2025. Operating results from the Shopping Malls segment, as a percentage of revenues from this segment, increased from 67.1% positive during the fiscal year ended June 30, 2024, to 240.6% positive during the fiscal year ended June 30, 2025.
Offices. Operating results from operations associated with our Offices segment decreased by 68.7%, from a net loss of ARS 79,231 million during the fiscal year ended June 30, 2024, to a net loss of ARS 133,692 million during the fiscal year ended June 30, 2025. Such variation was mainly due to ARS 51,926 million decrease in the loss from fair value adjustments of investment properties. Operating results from the Offices segment, as a percentage of revenues from this segment, increased from 349.9% negative during the fiscal year ended June 30, 2024, to 666.3% negative during the fiscal year ended June 30, 2025.
Sales and Developments. Operating results from operations associated with our Sales and Developments segment varied by 13.4%, from a net loss of ARS 374,655 million during the fiscal year ended June 30, 2024, to a net loss of ARS 324,287 million during the fiscal year ended June 30, 2025. Such improvement is mainly due to the result from changes in the fair value of investment properties. Operating results from this segment, as a percentage of revenues from this segment, decreased from 2,906.3% negative during the fiscal year ended June 30, 2024, to 2,541.2% negative during the fiscal year ended June 30, 2025.
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Hotels. Operating results from operations associated with the Hotels segment decreased by 84.2%, from a net profit of ARS 25,025 million during the fiscal year ended June 30, 2024, to a net profit of ARS 3,949 million during the fiscal year ended June 30, 2025. This decrease is mainly due to a drop in international tourism arrivals as a result of reduced currency competitiveness in the country. Operating results from the Hotels segment, as a percentage of revenues from this segment, decreased from 29.2% positive during the fiscal year ended June 30, 2024, to 6.1% positive during the fiscal year ended June 30, 2025.
Others. Operating results from operations associated with the Others segment varied by 11.0%, from a net profit of ARS 12,308 million during the fiscal year ended June 30, 2024, to a net loss of ARS 10,954 million during the fiscal year ended June 30, 2025. This decrease is mainly due to higher administrative expenses and a positive result in other operating results, net. Operating results from the Others segment, as a percentage of revenues from this segment, varied from 229,8% positive during the fiscal year ended June 30, 2024, to 163.3% positive during the fiscal year ended June 30, 2025.
Share of (loss)/profit of associates and joint ventures 2025 vs. 2024
Agricultural Business
According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total share of loss of associates and joint ventures increased by ARS 477 million (31.6%), from a loss of ARS 1,511 million in the fiscal year ended June 30, 2024, to a loss of ARS 1,034 million in the fiscal year ended June 30, 2025.
Agricultural Production. The share of profit of associates and joint ventures in the Agricultural Production segment decreased by 83.0%, from a profit of ARS 2,161 million in the fiscal year ended June 30, 2024, to a profit of ARS 368 million in the fiscal year ended June 30, 2025.
Others. The share of loss of associates and joint ventures in the Others segment improved by 61.8%, from a loss of ARS 3,672 million in the fiscal year ended June 30, 2024, to a loss of ARS 1,402 million in the fiscal year ended June 30, 2025.
Urban Properties and Investment Business
The share of profit of associates and joint ventures, according to the income statement, decreased by 41.2%, from a net profit of ARS 47,454 million during the fiscal year ended June 30, 2024 to a net profit of ARS 27,924 million during the fiscal year ended June 30, 2025, mainly due to a decrease in positive results from the Others segment.
Also, the net share of profit of joint ventures, mainly from Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), and Cyrsa S.A. and Puerto Retiro S.A. (Sales and Developments segment), showed a 571.5% increase, from a profit of ARS 386 million during the fiscal year ended June 30, 2024, to a profit of ARS 2,592 million during the fiscal year ended June 30, 2025. Mainly due to results from the joint venture Nuevo Puerto Santa Fe S.A., mainly attributable to the (loss) / gain from fair value adjustments of investment properties.
Shopping Malls. In the information by segments, the share of profit / (loss) of the joint venture Nuevo Puerto Santa Fe S.A. is recorded on a consolidated basis, line by line in this segment.
Offices. This segment does not show results from the share of profit / (loss) of associates and joint ventures.
Sales and Developments. The share of profit / (loss) of the joint ventures Puerto Retiro S.A and Cyrsa S.A. is recorded on a consolidated basis, line by line.
Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.
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Others. The share of profit of associates from the Others segment decreased by 46.2%, from a net profit of ARS 47,068 million during the fiscal year ended June 30, 2024, to a net profit of ARS 25,332 million during the fiscal year ended June 30, 2025, mainly as a result of the variation from our investments La Rural S.A. by ARS 632 million positive, GCDI by ARS 7,615 million positive, and Banco Hipotecario S.A. by ARS 27,143 million negative. This variation is mainly explained by the macroeconomic conditions in Argentina, which affected the operations of the associated companies.
Financial results, net 2025 vs. 2024
The Company’s financial results, net, recorded a variation of ARS 160,976 million, decreasing from a profit of ARS 208,552 million in the fiscal year ended June 30, 2024, to a profit of ARS 47,576 million in the fiscal year ended June 30, 2025. The decrease is mainly due to a lower positive result from the fair value measurement of financial assets and liabilities through profit or loss, together with a decrease in interest income and in the gain from foreign exchange differences, partially offset by a lower negative result from derivative financial instruments (except commodities), a gain generated by exposure to changes in the purchasing power of the currency, and a decrease in interest expense.
Income Tax 2025 vs. 2024
The Company applies the deferred tax method to calculate income tax for the reported periods, thus recognizing temporary differences as tax assets and liabilities. The income tax charge for the year changed from a profit of ARS 86,261 million in the fiscal year ended June 30, 2024, to a loss of ARS 71,045 million in the fiscal year ended June 30, 2025, of which a loss of ARS 22,707 million relates to the Agricultural Business and a loss of ARS 48,338 million relates to the Urban Properties and Investment Business.
Net profit 2025 vs. 2024
As a result of the factors described above, our net profit for the year increased by ARS 75,527 million, from ARS 148,839 million in the fiscal year ended June 30, 2024, to ARS 224,366 million in the fiscal year ended June 30, 2025, of which ARS 23,109 million derive from the Agricultural Business and ARS 201,257 million from the Urban Properties and Investment Business.
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Results of Operations for the fiscal years ended June 30, 2024 and 2023
Agricultural business Urban Properties and Investment business Total segment information Joint ventures (i) Adjustments (ii) Elimination of inter-segment transactions and non-reportable assets / liabilities Total Statement of Income / Financial Position Restated
06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var.
(in million of ARS)
Revenues 503,614 527,192 (23,578 ) 377,202 374,521 2,681 880,816 901,713 (20,897 ) (2,027 ) (2,352 ) 325 82,884 90,317 (7,433 ) (2,314 ) (3,404 ) 1,090 959,359 986,274 (26,915 )
Costs (418,830 ) (437,501 ) 18,671 (68,167 ) (68,825 ) 658 (486,997 ) (506,326 ) 19,329 225 1,026 (801 ) (84,539 ) (91,947 ) 7,408 — — — (571,311 ) (597,247 ) 25,936
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 7,444 (7,847 ) 15,291 — — — 7,444 (7,847 ) 15,291 — — — — — — 989 1,142 (153 ) 8,433 (6,705 ) 15,138
Changes in the net realizable value of agricultural products after harvest 10,002 (13,148 ) 23,150 — — — 10,002 (13,148 ) 23,150 — — — — — — — — — 10,002 (13,148 ) 23,150
Gross profit / (loss) 102,230 68,696 33,534 309,035 305,696 3,339 411,265 374,392 36,873 (1,802 ) (1,326 ) (476 ) (1,655 ) (1,630 ) (25 ) (1,325 ) (2,262 ) 937 406,483 369,174 37,309
Net loss from fair value adjustment of investment properties (10,392 ) (12,276 ) 1,884 (476,237 ) (265,944 ) (210,293 ) (486,629 ) (278,220 ) (208,409 ) 508 10,539 (10,031 ) — — — — — — (486,121 ) (267,681 ) (218,440 )
Gain from disposal of farmlands 73,352 77,831 (4,479 ) — — — 73,352 77,831 (4,479 ) — — — — — — — — — 73,352 77,831 (4,479 )
General and administrative expenses (46,954 ) (43,988 ) (2,966 ) (71,737 ) (101,152 ) 29,415 (118,691 ) (145,140 ) 26,449 242 347 (105 ) — — — 150 897 (747 ) (118,299 ) (143,896 ) 25,597
Selling expenses (61,022 ) (48,410 ) (12,612 ) (24,387 ) (23,507 ) (880 ) (85,409 ) (71,917 ) (13,492 ) 187 142 45 — — — 1,035 1,557 (522 ) (84,187 ) (70,218 ) (13,969 )
Other operating results, net 38,904 (9,043 ) 47,947 (9,780 ) (37,730 ) 27,950 29,124 (46,773 ) 75,897 (28 ) (129 ) 101 584 857 (273 ) 120 (128 ) 248 29,800 (46,173 ) 75,973
Management fees — — — — — — — — — — — — (12,945 ) (24,823 ) 11,878 — — — (12,945 ) (24,823 ) 11,878
Profit / (loss) from operations 96,118 32,810 63,308 (273,106 ) (122,637 ) (150,469 ) (176,988 ) (89,827 ) (87,161 ) (893 ) 9,573 (10,466 ) (14,016 ) (25,596 ) 11,580 (20 ) 64 (84 ) (191,917 ) (105,786 ) (86,131 )
Share of (loss) / profit of associates and joint ventures (1,511 ) (5,372 ) 3,861 47,068 20,145 26,923 45,557 14,773 30,784 386 (6,584 ) 6,970 — — — — (6 ) 6 45,943 8,183 37,760
Segment profit / (loss) 94,607 27,438 67,169 (226,038 ) (102,492 ) (123,546 ) (131,431 ) (75,054 ) (56,377 ) (507 ) 2,989 (3,496 ) (14,016 ) (25,596 ) 11,580 (20 ) 58 (78 ) (145,974 ) (97,603 ) (48,371 )
(i) Represents the equity value of joint ventures that were proportionately consolidated for information by segment purposes.
(ii) Includes gross profit / (loss) of ARS (1,655) million and ARS (1,630) million corresponding to Building Administration Expenses and Collective Promotion Fund (FPC), as of June 30, 2024 and 2023, respectively.
Agricultural Business
The following table shows a summary of the Agricultural Business lines for the fiscal years ended June 30, 2024 and 2023.
Agricultural production Land transformation and sales Corporate Others Total
06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var.
(in million of ARS)
Revenues 374,179 388,107 (13,928 ) — — — — — — 129,435 139,085 (9,650 ) 503,614 527,192 (23,578 )
Costs (333,264 ) (348,470 ) 15,206 (318 ) (383 ) 65 — — — (85,248 ) (88,648 ) 3,400 (418,830 ) (437,501 ) 18,671
Initial recognition and changes in the fair value of biological assets and agricultural products at the point of harvest 7,444 (7,847 ) 15,291 — — — — — — — — — 7,444 (7,847 ) 15,291
Changes in the net realizable value of agricultural products after harvest 10,002 (13,148 ) 23,150 — — — — — — — — — 10,002 (13,148 ) 23,150
Gross profit / (loss) 58,361 18,642 39,719 (318 ) (383 ) 65 — — — 44,187 50,437 (6,250 ) 102,230 68,696 33,534
Net loss from fair value adjustment of investment properties — — — (10,392 ) (12,276 ) 1,884 — — — — — — (10,392 ) (12,276 ) 1,884
Gain from disposal of farmlands — — — 73,352 77,831 (4,479 ) — — — — — — 73,352 77,831 (4,479 )
General and administrative expenses (27,383 ) (24,371 ) (3,012 ) (88 ) (73 ) (15 ) (6,390 ) (7,231 ) 841 (13,093 ) (12,313 ) (780 ) (46,954 ) (43,988 ) (2,966 )
Selling expenses (40,340 ) (35,549 ) (4,791 ) (1,658 ) (67 ) (1,591 ) — — — (19,024 ) (12,794 ) (6,230 ) (61,022 ) (48,410 ) (12,612 )
Other operating results, net 11,849 871 10,978 19,151 (13,084 ) 32,235 — — — 7,904 3,170 4,734 38,904 (9,043 ) 47,947
Profit / (loss) from operations 2,487 (40,407 ) 42,894 80,047 51,948 28,099 (6,390 ) (7,231 ) 841 19,974 28,500 (8,526 ) 96,118 32,810 63,308
Share of profit/ (loss) of associates and joint ventures 2,161 (876 ) 3,037 — — — — — — (3,672 ) (4,496 ) 824 (1,511 ) (5,372 ) 3,861
Segment profit / (loss) 4,648 (41,283 ) 45,931 80,047 51,948 28,099 (6,390 ) (7,231 ) 841 16,302 24,004 (7,702 ) 94,607 27,438 67,169
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Urban Properties and Investment Business
The following table shows a summary of the Urban Properties and Investment Business lines for the fiscal years ended June 30, 2024 and 2023.
Shopping Malls Offices Sales and developments Hotels Others Total
06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var. 06.30.24 06.30.23 Var.
(in millions of ARS)
Revenues 250,468 245,723 4,745 22,646 23,745 (1,099 ) 12,891 22,698 (9,807 ) 85,840 77,512 8,328 5,357 4,843 514 377,202 374,521 2,681
Costs (14,937 ) (16,643 ) 1,706 (1,648 ) (1,963 ) 315 (7,451 ) (6,905 ) (546 ) (40,350 ) (39,450 ) (900 ) (3,781 ) (3,864 ) 83 (68,167 ) (68,825 ) 658
Gross profit 235,531 229,080 6,451 20,998 21,782 (784 ) 5,440 15,793 (10,353 ) 45,490 38,062 7,428 1,576 979 597 309,035 305,696 3,339
Net loss from fair value adjustment of investment properties (20,824 ) (57,854 ) 37,030 (97,015 ) (25,666 ) (71,349 ) (357,995 ) (181,839 ) (176,156 ) — — — (403 ) (585 ) 182 (476,237 ) (265,944 ) (210,293 )
General and administrative expenses (30,126 ) (34,612 ) 4,486 (2,875 ) (4,325 ) 1,450 (12,283 ) (13,260 ) 977 (13,025 ) (16,964 ) 3,939 (13,428 ) (31,991 ) 18,563 (71,737 ) (101,152 ) 29,415
Selling expenses (12,558 ) (11,230 ) (1,328 ) (251 ) (534 ) 283 (4,512 ) (5,817 ) 1,305 (5,863 ) (5,325 ) (538 ) (1,203 ) (601 ) (602 ) (24,387 ) (23,507 ) (880 )
Other operating results, net (3,960 ) (3,030 ) (930 ) (88 ) (357 ) 269 (5,305 ) (4,579 ) (726 ) (1,577 ) (741 ) (836 ) 1,150 (29,023 ) 30,173 (9,780 ) (37,730 ) 27,950
Profit / (loss) from operations 168,063 122,354 45,709 (79,231 ) (9,100 ) (70,131 ) (374,655 ) (189,702 ) (184,953 ) 25,025 15,032 9,993 (12,308 ) (61,221 ) 48,913 (273,106 ) (122,637 ) (150,469 )
Share of profit of associates and joint ventures — — — — — — — — — — — — 47,068 20,145 26,923 47,068 20,145 26,923
Segment profit / (loss) 168,063 122,354 45,709 (79,231 ) (9,100 ) (70,131 ) (374,655 ) (189,702 ) (184,953 ) 25,025 15,032 9,993 34,760 (41,076 ) 75,836 (226,038 ) (102,492 ) (123,546 )
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Revenues 2024 vs. 2023
Agricultural Business
Agricultural Production. Revenues from the Agricultural Production segment decreased by 3.6% from ARS 388,307 million during the fiscal year ended June 30, 2023 to ARS 374,179 million during the fiscal year ended June 30, 2024. Such decrease is mainly attributable to:
· ARS 24,051 million decrease in revenues from crop sales, as a result of a decrease in the sale price of soybeans compared to the previous year, which had the effect of the so-called “Soya Dollar”, partially offset by an increase in the volume of corn sold in the current fiscal year (45.0%);
· ARS 664 million decrease in revenues from leases and services as a result of a loss generated by leases to third parties in Brazil, partially offset by a higher profit from an increase in the operated volume of seed multiplication services in Argentina during the current fiscal year, with higher yields of the seed used (June 30, 2024: 24,065 Tn / June 30, 2023: 11,422 Tn);
· ARS 7,828 million increase in revenues from cattle sales as a result of the increase in the average sales price (approximately 3.0%), accompanied by a greater volume of kilograms sold (approximately 25.0%); and
· ARS 2,959 million increase in revenues from sugarcane as a result of a greater volume of tons sold in the current fiscal year compared to the previous fiscal year (+7.0%) due to a drop in prices (-14.0%).
Others. Revenue from the Others segment decreased by 6.9%, from ARS 139,085 million for the fiscal year ended June 30, 2023, to ARS 129,435 million for the fiscal year ended June 30, 2024. This decline was mainly driven by a reduction of ARS 9,650 million in consignment income, brokerage commissions, and other revenues, which were partially offset by an increase in input sales.
Urban Properties and Investment Business
Shopping Malls. Revenues from the Shopping Malls segment increased by 1.9% from ARS 245,723 million during the fiscal year ended June 30, 2023, to ARS 250,468 million during the fiscal year ended June 30, 2024. Although the number of new lease contracts in the fiscal year ended June 30, 2024, has been lower than the previous one, a 17% increase in admission rights has been observed. This increase is due to a change in negotiations, which includes a higher Minimum Insured Fixed Value in the total key money price, depending on the shopping mall. In the fiscal year ended June 30, 2024, the increase in revenues was mainly due to: (i) an increase of ARS 10,759 million in base rent revenue; (ii) an ARS 3,443 million increase in admission rights; (iii) an ARS 2,333 million increase in the revenue from averaging of scheduled rent escalation; (iv) an increase of ARS 1,814 million in commissions; and (v) an increase of ARS 821 million in revenue from parking; partially offset by: (vi) a decrease of ARS 14,325 million in contingent rent revenue caused by a lower billing in real terms from the tenants.
Offices. Revenues from the Offices segment decreased by 4.6% from ARS 23,745 million during the fiscal year ended June 30, 2023, to ARS 22,646 million during the fiscal year ended June 30, 2024. This variation is mainly explained by a decrease in revenue from leases by 4.6% from ARS 22,635 million during the fiscal year ended June 30, 2023, to ARS 22,555 million during the fiscal year ended June 30, 2024. The sale of floors in the “261 Della Paolera” Tower (located in the Catalinas neighborhood of the Autonomous City of Buenos Aires) results in a reduced leasable area.
Sales and Developments. Revenues from the Sales and Developments segment recorded a 43.2% decrease from ARS 22,698 million during the fiscal year ended June 30, 2023, to ARS 12,891 million during the fiscal year ended June 30, 2024. This segment often varies significantly from period to period due to the non-recurrence of different sales transactions carried out by the Company over time. During the fiscal year ended June 30, 2024, VAM. sold two of its properties in the Canelones department (Uruguay) to the Boating Trust for a price of USD 6.8 million.
Hotels. Revenues from our Hotels segment increased by 10.7% from ARS 77,512 million during the fiscal year ended June 30, 2023, to ARS 85,840 million during the fiscal year ended June 30, 2024, mainly due to an improvement in rates measured in terms of dollars, occupancy levels remained at good level; however, a decline in international tourism was noted in the last quarter.
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Others. Revenues from the Others segment increased by 10.6% from ARS 4,843 million during the fiscal year ended June 30, 2023, to ARS 5,357 million during the fiscal year ended June 30, 2024, mainly due to the greater number of congresses and fairs held at the Buenos Aires Convention Centre (LA RURAL S.A.—OFC S.R.L.—OGDEN S.A—ENTRETENIMIENTO UNIVERSAL S.A.—Unión transitoria —(administrator of the Convention and Exhibition Centre of the City of Buenos Aires)) and the fee charged by We are appa for the services of the APPA application for promotions and actions of the Shopping Malls.
Costs 2024 vs. 2023
Agricultural Business
Agricultural Production. The costs of the Agricultural Production segment decreased by 4.4% from ARS 348,470 million during the fiscal year ended June 30, 2023 to ARS 333,264 million during the fiscal year ended June 30, 2024, primarily as a consequence of:
· ARS 13,690 million decrease in costs of crop sales, mainly as a result of a decrease in the sales price of soybeans in the current fiscal year compared to the fiscal year ended June 30, 2023, which had the effect of the so-called “Soya Dollar”;
· ARS 7,961 million decrease in the costs of sugarcane sales, mainly as a result of a 7.0% drop in the prices of ethanol, a fuel component made from sugarcane;
· ARS 4,475 million increase in the costs of cattle sales, as a result of a greater volume of kilograms sold (approximately 25.0%) during the current fiscal year compared to the fiscal year ended June 30, 2023; and
· ARS 1,970 million increase in costs of leases and services, mainly as a result of an increase in the cost of leases in Brazil.
Costs of the Agricultural Production segment, measured as a percentage of the segment’s revenues, decreased from 89.8% for the fiscal year ended June 30, 2023, to 89.1% for the fiscal year ended June 30, 2024.
Land transformation and sales. The costs of the Land transformation and sales segment decreased by 17.0% from ARS 383 million during the fiscal year ended June 30, 2023 to ARS 318 million during the fiscal year ended June 30, 2024. The variation is mainly explained by the sales of farmlands that occurred during both fiscal years, considering that in the fiscal year ended June 30, 2024 there were a lower number of hectares sold compared to the year ended June 30, 2023.
Others. The costs of the Other segment decreased by 3.8%, from ARS 88,648 million for the fiscal year ended June 30, 2023, to ARS 85,248 million for the fiscal year ended June 30, 2024, mainly due to a reduction in consignment costs, slightly offset by an increase in commission and supply costs. The costs of the Other segment, measured as a percentage of the segment’s revenues, increased from 63.7% for the fiscal year ended June 30, 2023, to 65.9% for the fiscal year ended June 30, 2024.
Urban Properties and Investment Business
Shopping Malls. Costs associated with the Shopping Malls segment decreased by 10.3%, from ARS 16,643 million during the fiscal year ended June 30, 2023, to ARS 14,937 million during the fiscal year ended June 30, 2024, mainly due to: (i) a decrease in leases and expenses of ARS 2,128 million which is explained by a decrease in the cost of available commercial spaces given higher occupancy during the fiscal year ended June 30, 2024; (ii) a decrease in taxes, rates and contributions of ARS 322 million; partially offset by: (iii) an increase in fees and compensation for services of ARS 674 million. Costs associated with the Shopping Malls segment, measured as a percentage of the revenues from this segment, decreased from 6.8% during the fiscal year ended June 30, 2023, to 6.0% during the fiscal year ended June 30, 2024.
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Offices. Costs associated with the Offices segment decreased by 16.0%, from ARS 1,963 million during the fiscal year ended June 30, 2023, to ARS 1,648 million during the fiscal year ended June 30, 2024, mainly due to (i) a decrease in leases and expenses of ARS 346 million; (ii) a decrease in amortization and depreciation charges of ARS 208 million; (iii) a decrease in salaries, social security charges and other personnel administrative expenses of ARS 56 million; (iv) a decrease of ARS 35 million in maintenance, security, cleaning, repairs and other expenses; (v) a decrease in taxes, rates and contributions of ARS 34 million; partially offset by: (vi) an increase in fees and compensation for services of ARS 352 million. Costs associated with the Offices segment, measured as a percentage of the revenues from this segment, decreased from 8.3% during the fiscal year ended June 30, 2023, to 7.3% during the fiscal year ended June 30, 2024.
Sales and Developments. Costs associated with our Sales and Developments segment recorded a 7.9% increase from ARS 6,905 million during the fiscal year ended June 30, 2023, to ARS 7,451 million during the fiscal year ended June 30, 2024 mainly due to: (i) an increase of ARS 761 million in the cost of sale of goods and services, explained by the sale of two plots of land by VAM. (Canelones, Uruguay); (ii) an increase of ARS 219 million in maintenance, security, cleaning, repairs and other expenses; (iii) an increase of ARS 152 million in fees and compensation services; (iv) an increase in leases and expenses of ARS 62 million; partially offset by: (v) an ARS 644 million decrease in taxes, rates and contributions. Costs in the Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 30.4% during the fiscal year ended June 30, 2023, to 57.8% during the fiscal year ended June 30, 2024.
Hotels. Costs in the Hotels segment increased by 2.3%, from ARS 39,450 million during the fiscal year ended June 30, 2023, to ARS 40,350 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) an increase of ARS 896 million in maintenance, security, cleaning, repairs and other expenses; (ii) an increase of ARS 194 million in food, beverages and other hotel expenses; (iii) an increase of ARS 114 million in fees and compensation services; partially offset by: (iv) a decrease in the costs of salaries, social security and other personnel expenses of ARS 308 million. Costs in the Hotels segment, measured as a percentage of revenues from this segment, decreased from 50.9% during the fiscal year ended June 30, 2023, to 47.0% during the fiscal year ended June 30, 2024.
Others. Costs in the Others segment decreased by 2.1%, from ARS 3,864 million during the fiscal year ended June 30, 2023, to ARS 3,781 million during the fiscal year ended June 30, 2024, mainly as a result of (i) a decrease in the costs of salaries, social security and other personnel expenses of ARS 623 million; (ii) a decrease of ARS 47 million in fees and compensation services; (iii) a decrease in taxes, rates and contributions of ARS 46 million; partially offset by: (iv) an increase of ARS 457 million in maintenance, security, cleaning, repairs and other expenses; and (v) an increase of others charges of ARS 191 million. Costs in the Others segment, measured as a percentage of revenues from this segment, decreased from 79.8% during the fiscal year ended June 30, 2023, to 70.6% during the fiscal year ended June 30, 2024.
Initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest 2024 vs. 2023
According to information by segments (taking into account the result from operations from our joint ventures and excluding those related to building administration expenses and collective promotion fund and business inter-segment transactions), the result from the total initial recognition and changes in the fair value of biological assets and agricultural produce at the point of harvest increased by ARS 15,291 million (194.9%), from a loss of ARS 7,847 million in the fiscal year ended June 30, 2023 to a profit of ARS 7,444 million in the fiscal year ended June 30, 2024.
Such variation was mainly as a result of:
· A decrease in losses from production and cattle holding for ARS 19,306 million, due to the fact that prices had a better performance regarding inflation compared to the previous fiscal year, accompanied by an increase in kilograms produced (9.0%);
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· A decrease in profit from crops production of ARS 10,389 million, mainly caused by the drop in soybean and corn prices at the time of harvest in Brazil, compared to the fiscal year ended June 30, 2023, compared to productive yields lower results observed in soybeans, offset by a gain in Argentina explained mainly by the Detour of the 22-23 Campaign, as a result of a greater quantity of tons obtained from yellow corn and cotton, accompanied by better productive yields and average net realizable value higher than those projected , with higher direct costs, including leases (remnant of the Anta Canon) and harvest expenses as a result of greater production, together with an increase in the profit in the Production Result of the 23-24 Campaign, with higher margins production, as a result of higher yields observed in wheat and soybean crops compared to the previous season, which were affected by the drought; and
· An increase in profits from sugarcane production of ARS 6,374 million, mainly due to greater number of hectares planted (6.0%) during the current fiscal year compared to the previous one, which are impacted by a higher production of tons, accompanied by a reduction of costs (3.0%) in the face of a 7.0% drop in prices (lower price of ethanol, a fuel component made from sugarcane).
Changes in the net realizable value of agricultural produce after harvest 2024 vs. 2023
Results from total changes in the net realizable value of agricultural produce after harvest, according to information by segments, increased by ARS 23,150 million (176.1%), from a loss of ARS 13,148 million in the fiscal year ended June 30, 2023 to a profit of ARS 10,002 million in the fiscal year ended June 30, 2024.
This variation is due to better price performance, mostly explained by Brazil. This is complemented by the greater amount of corn and cotton sold.
Gross profit/(loss) 2024 vs. 2023
Agricultural Business
Agricultural Production. Gross profit from this segment increased by 213.1% from a profit of ARS 18,642 million in the fiscal year ended June 30, 2023 to a profit of ARS 58,361 million in the fiscal year ended June 30, 2024.
Land Transformation and Sales. Gross profit from this segment increased by 17.0% from a loss of ARS 383 million in the fiscal year ended June 30, 2023 to a loss of ARS 318 million in the fiscal year ended June 30, 2024.
Others. Gross profit from this segment decreased by 12.4% from a profit of ARS 50,437 million in the fiscal year ended June 30, 2023 to a profit of ARS 44,187 million in the fiscal year ended June 30, 2024.
Urban Properties and Investment Business
Shopping Malls. Gross profit from the Shopping Malls segment increased by 2.8%, from a profit of ARS 229,080 million during the fiscal year ended June 30, 2023, to an ARS 235,531 million profit during the fiscal year ended June 30, 2024, mainly as a result of the previously mentioned increase in revenue. Gross profit from the Shopping Malls segment, measured as a percentage of revenues from this segment, increased from 93.2% positive during the fiscal year ended June 30, 2023, to 94.0% positive during the fiscal year ended June 30, 2024.
Offices. Gross profit from the Offices segment decreased by 3.6%, from a profit of ARS 21,782 million during the fiscal year ended June 30, 2023, to an ARS 20,998 million profit during the fiscal year ended June 30, 2024. Gross profit from the Offices segment, measured as a percentage of revenues from this segment, increased from 91.7% positive during the fiscal year ended June 30, 2023, to 92.7% positive during the fiscal year ended June 30, 2024.
Sales and developments. Gross profit from the Sales and Developments segment decreased by 65.6%, from a profit of ARS 15,793 million during the fiscal year ended June 30, 2023, to an ARS 5,440 million profit during the fiscal year ended June 30, 2024. Gross profit from the Sales and Developments segment, measured as a percentage of revenues from this segment, decreased from 69.6% positive during the fiscal year ended June 30, 2023, to 42.2% positive during the fiscal year ended June 30, 2024.
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Hotels. Gross profit from the Hotels segment increased by 19.5%, from a profit of ARS 38,062 million during the fiscal year ended June 30, 2023, to an ARS 45,490 million profit during the fiscal year ended June 30, 2024. Gross profit from the Hotels segment, measured as a percentage of revenues from this segment, increased from 49.1% positive during the fiscal year ended June 30, 2023, to 53.0% positive during the fiscal year ended June 30, 2024.
Others. Gross profit from the Others segment increased by 61.0%, from a profit of ARS 979 million during the fiscal year ended June 30, 2023, to an ARS 1,576 million profit during the fiscal year ended June 30, 2024. Gross profit from the Others segment, measured as a percentage of revenues from this segment, increased from 20.2% positive during the fiscal year ended June 30, 2023, to 29.4% positive during the fiscal year ended June 30, 2024.
The variations described in this section relate to the previously mentioned effects on revenues and costs.
Net loss from changes in the fair value of investment properties 2024 vs. 2023
Agricultural Business
According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the result from changes in the fair value of investment properties increased by ARS 1,884 million (15.3%), from a net loss of ARS 12,276 million in the fiscal year ended June 30, 2023 to a net loss of ARS 10,392 million in the fiscal year ended June 30, 2024, mainly caused by a decrease in the value of the hectares, related to the decrease in soybean prices. This effect is offset by a smaller area of hectares leased to third parties: as of June 30, 2023, the leased hectares were 13,501 while as of June 30, 2024, 11,674 hectares were leased. The sum of these two factors explains the lower loss.
Urban Properties and Investment Business
Total consolidated net loss from fair value adjustment of investment properties, according to the income statement, decreased by ARS 220,324 million, from a net loss of ARS 255,405 million during the fiscal year ended June 30, 2023, to a net loss of ARS 475,729 million during the fiscal year ended June 30, 2024.
According to information by segments, the net loss from fair value adjustment of investment properties went from a loss of ARS 265,944 million (out of which an ARS 57,854 million loss derives from our Shopping Malls segment; an ARS 25,666 million loss from our Offices segment; an ARS 181,839 million loss from our Sales and Developments segment and an ARS 585 million loss from our Others segment) during the fiscal year ended June 30, 2023, to a loss of ARS 476,237 million during the fiscal year ended June 30, 2024 (out of which an ARS 20,824 million loss derives from our Shopping Malls segment; an ARS 97,015 million loss from our Offices segment; an ARS 357,995 million loss from our Sales and Developments segment and an ARS 403 million loss from our Others segment).
The net impact on the Argentine Peso values of our shopping malls was primarily attributable to: (i) more favorable macroeconomic projections related to the projected real exchange rate and inflation; in real terms, the variation of the official exchange rate, which is used to measure these properties, was 17 percentage points below inflation, and (ii) this was partially offset by the moderation of the projected growth rate for some shopping malls.
The Argentine market for offices, land reserves, and other properties is a liquid market, in which a great number of counterparties participate carrying out sale-purchase transactions. This situation results in significant and representative sale-purchase prices. This situation allows for the observation of relevant and representative buy-sell prices in the market. In this regard, the “Market Approach” technique (comparable market values) is employed to determine the fair value of the Offices and Other segment, with the price per square meter being the most representative metric. In our Office segment and Developments segment, the value was primarily impacted by the appreciation of the peso against the “MEP dollar” during the fiscal year ended June 30, 2024, as in real terms, the variation in the MEP exchange rate, which is used to measure these properties, was 93 points below inflation. Additionally, in our Office segment during the fiscal year ended June 30, 2024, we sold three floors of the “261 Della Paolera” tower and completed the sale of the Maple Building. Additionally, in fiscal year 2024, we sold our interest in Quality Invest S.A.
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Gain from disposal of farmlands 2024 vs. 2023
The total gain from disposal of farmlands, according to the income statement and the information by segment (taking into account all our joint ventures and inter-segment eliminations), decreased by ARS 4,479 million (5.8%), from ARS 77,831 million in the fiscal year ended June 30, 2023 to ARS 73,352 million in the fiscal year ended June 30, 2024.
Fiscal year ended June 30, 2024
· On October 5, 2023, Cresud signed a transfer deed of ownership for the sale of a fraction of field land known as Registration 5,421 of the property called “Los Pozos” located in the province of Salta, with a total area of 4,262 hectares. The total price was USD 2.3 million, which has been fully collected.
· On December 14, 2023, Cresud signed a transfer deed of ownership for the sale of a fraction of 500 hectares of agricultural activity from its “El Tigre” farm, located in the department of Trenel, province of La Pampa, Argentina. The total price was USD 3.8 million, of which USD 0.9 million remains to be received, which will be paid in two installments, the last of which is dated December 12, 2025, with a mortgage guarantee for said balance. After this transaction, the Company keeps the ownership of approximately 7,860 hectares of “El Tigre” farm.
· On March 26, 2024, BrasilAgro sold a fraction of 12,335 hectares (8,796 productive hectares) of the “Chaparral” farm located in Correntina, State of Bahia, Brazil, that was acquired in 2007. After this operation, a remaining surface of 24,847 hectares of this farm is still owned by BrasilAgro. The total amount of the operation was BRL 364.5 million, subject to variations in the soybean bag price, and the portion of the farm that was sold was valued on the books at BRL 34.0 million.
Fiscal year ended June 30, 2023
· On October 6, 2022, BrasilAgro completed the sale of a fraction of 863 hectares (498 arable hectares) of the "Morotí" farm located in the State of Boquerón, Paraguay. The sale value was USD 1.5 million and the buyer made an initial payment of USD 748.5 thousand. The remaining balance will be paid in three equal annual installments. This fraction of the field was valued on the books at BRL 853 thousand. After this operation, a remainder of 58,722 hectares of this field remains in the hands of BrasilAgro.
· On November 8, 2022, BrasilAgro signed a contract for the sale of 1,965 hectares (1,423 arable hectares) of the Rio do Meio farm, a rural property located in the municipality of Correntina – Bahia. The value to be paid was 291 soybeans bags, equivalent to BRL 62.4 million on the date of the transaction. The buyer made an initial payment of BRL 17.7 million. The contract establishes a schedule for the transfer of ownership and revenue is recognized in four stages. The first was completed on November 14, 2022 and a revenue of BRL 20 million was recognized. The other phases are scheduled for July of each year until 2025. This fraction of the field was valued on the books at BRL 17.7 million. After this operation, a remnant of 5,750 hectares of said farm remains in the hands of BrasilAgro.
· In March 2023, BrasilAgro signed two contracts for the sale of the remaining surface of 5,517 hectares (4,011 arable hectares) of its Araucaria farm, located in the municipality of Mineiros, State of Goiás, Brazil.
The first transaction was carried out on March 28, 2023, selling 5,185 hectares (3,796 arable hectares) at a value of 790 soybeans bags per arable hectare, equivalent to BRL 409.3 million on the date of the transaction. The amounts will be paid in 7 installments, the first on July 30, 2023 and the second on August 16, 2023 and the rest are scheduled for March 1 of each year until 2028. The domain transfer was made on June 15, 2023.
The second transaction was carried out on March 29, 2023, in which 332 hectares (215 arable hectares) were sold for a value of 297 soybeans bags per arable hectare, equivalent to BRL 8.5 million on the date of the transaction. The amounts will be paid in 5 installments, the first was collected on April 14, 2023 and the others are scheduled for March 30 of each year until 2027. The domain transfer was made on May 31, 2023.
· On June 29, 2023, BrasilAgro completed the sale of 4,408 hectares (3,202 arable hectares) of the ☐Jatobá VII☐ form, located in the municipality of Jaborandi – Bahia. The sale value was BRL 121.6 million (equivalent to 952,815 soybean bags). Payments will be in BRL and made in 7 annual installments, making the the first of them at the time of signing the contract. The remaining installments are scheduled for July 31 of each year until 2029.
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General and administrative expenses 2024 vs. 2023
Agricultural Business
Agricultural Production. General and administrative expenses associated with the Agricultural Production segment increased by 12.4 %, from ARS 24,371 million in the fiscal year ended June 30, 2023 to ARS 27,383 million in the fiscal year ended June 30, 2024, mainly due to an ARS 2,973 million increase in expenses associated with crop operations; an ARS 120 million decrease in expenses associated with sugarcane operations; an ARS 403 million increase in expenses associated with cattle activities; and a ARS 244 million decrease in expenses associated with the agricultural lease and services business. General and administrative expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, increased from 6.3% during the fiscal year ended June 30, 2023 to 7.3% during the fiscal year ended June 30, 2024.
Land Transformation and Sales. General and administrative expenses associated with the Land Transformation and Sales segment increased by 20.5% from ARS 73 million during the fiscal year ended June 30, 2023 to ARS 88 million during the fiscal year ended June 30, 2024.
Corporate. General and administrative expenses associated with the Corporate segment decreased by 11.6%, from ARS 7,231 million during the fiscal year ended June 30, 2023 to ARS 6,390 million during the fiscal year ended June 30, 2024.
Others. General and administrative expenses associated with the Others segment increased by 6.3%, from ARS 12,313 million during the fiscal year ended June 30, 2023 to ARS 13,093 million during the fiscal year ended June 30, 2024. General and administrative expenses of the Others segment, measured as a percentage of revenues from this segment, decreased from 8.9% during the fiscal year ended June 30, 2023 to 10.1% during the fiscal year ended June 30, 2024.
Urban Properties and Investment Business
Shopping Malls. General and administrative expenses of Shopping Malls decreased by 13.0%, from ARS 34,612 million during the fiscal year ended June 30, 2023, to ARS 30,126 million during the fiscal year ended June 30, 2024, mainly due to: (i) a decrease of ARS 3,129 million in fees payable to directors; (ii) a decrease of ARS 886 million in salaries, social security charges, and other personnel administrative expenses due to lower expenses related to bonuses paid to employees; (iii) a decrease of ARS 556 million in amortization and depreciation charges; (iv) a decrease of ARS 225 million in rents and expenses; partially offset by: (v) an increase in maintenance, security, cleaning, repairs, and related charges of ARS 301 million. General and administrative expenses of Shopping Malls, measured as a percentage of revenues from such segment, decreased from 14.1% during the fiscal year ended June 30, 2023, to 12.0% during the fiscal year ended June 30, 2024.
Offices. General and administrative expenses of our Offices segment decreased by 33.5%, from ARS 4,325 million during the fiscal year ended June 30, 2023, to ARS 2,875 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) a decrease of ARS 351 million in directors’ fees; (ii) a decrease of ARS 448 million in salaries, social security contributions, and other personnel expenses; (iii) a lower charge of ARS 244 million in amortization and depreciation; (iv) a decrease of ARS 92 million in fees and service charges; and (v) a lower charge of ARS 78 million in rent and utilities. General and administrative expenses measured as a percentage of the segment’s revenues decreased from a negative 18.2% for the fiscal year ended June 30, 2023, to a negative 12.7% for the fiscal year ended June 30, 2024. This variation was mainly explained by lower expenses related to employee bonuses. Additionally, there was a lower charge for directors’ fees.
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Sales and Developments. General and administrative expenses associated with our Sales and Developments segment decreased by 7.4%, from ARS 13,260 million during the fiscal year ended June 30, 2023, to ARS 12,283 million during the fiscal year ended June 30, 2024. General and administrative expenses, measured as a percentage of revenues from the same segment, increased from 58.4% during the fiscal year ended June 30, 2023, to 95.3% during the fiscal year ended June 30, 2024.
Hotels. General and administrative expenses associated with our Hotels segment decreased by 23.2%, from ARS 16,964 million during the fiscal year ended June 30, 2023, to ARS 13,025 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) a decrease of ARS 4,393 million in fees payable to directors; partially offset by (ii) an increase of ARS 261 million in taxes; (iii) an increase of ARS 50 million in salaries, social security charges, and other personnel administrative expenses; (iv) an increase of ARS 40 million in travel, transportation, and stationery; (v) an increase of ARS 28 million in amortization and depreciation charges; and (vi) an increase of ARS 21 million in maintenance, security, cleaning, repairs, and related expenses. General and administrative expenses associated with the Hotels segment, measured as a percentage of revenues from this segment, decreased from 21.9% during the fiscal year ended June 30, 2023, to 15.2% during the fiscal year ended June 30, 2024.
Others. General and administrative expenses associated with our Others segment decreased by 58.0%, from ARS 31,991 million during the fiscal year ended June 30, 2023, to ARS 13,428 million during the fiscal year ended June 30, 2024, mainly due to: (i) a decrease of ARS 19,290 million in fees payable to directors; (ii) a decrease of ARS 211 million in fees and compensations for services; (iii) a decrease of ARS 59 million in taxes; partially offset by: (iv) an increase of ARS 817 million in salaries, social security charges, and other personnel administrative expenses; (v) an increase of ARS 49 million in maintenance, repairs, and services; (vi) an increase of ARS 46 million in amortization and depreciation charges; (vii) an increase of ARS 36 million in travel, transportation, and stationery; and (viii) an increase of ARS 11 million in bank expenses. General and administrative expenses associated with the Others segment, measured as a percentage of revenues from this segment, decreased from 660.6% during the fiscal year ended June 30, 2023, to 250.7% during the fiscal year ended June 30, 2024.
Selling expenses 2024 vs. 2023
Agricultural Business
Agricultural Production. Selling expenses from the Agricultural Production segment increased by 13.5% from ARS 35,549 million in the fiscal year ended June 30, 2023 to ARS 40,340 million in the fiscal year ended June 30, 2024, mainly as a result of a ARS 5,008 million increase in selling expenses related with crop operations, an ARS 313 million decrease in expenses for sugarcane operations, a ARS 327 million increase in selling expenses for cattle and a ARS 231 million decrease in selling expenses associated with leases and agricultural services. Selling expenses of the Agricultural Production segment, measured as a percentage of revenues from this segment, increased from 9.2% during the fiscal year ended June 30, 2023 to 10.8% during the fiscal year ended June 30, 2024.
Land Transformation and Sales. Selling expenses from the Land Transformation and Sales segment increased by 2,374.6%, from ARS 67 million in the fiscal year ended June 30, 2023 to ARS 1,658 million in the fiscal year ended June 30, 2024. This increase is explained for the sales of farmlands that occurred during the current fiscal year. Although a comparatively smaller number of hectares were sold, expenses related to sales for the current fiscal year increased considerably, mainly due to the sale of the Chaparral farmland in Brazil.
Others. Selling expenses from the Others segment increased by 48.7% from ARS 12,794 million in the fiscal year ended June 30, 2023 to ARS 19,024 million in the fiscal year ended June 30, 2024, mainly due to the increase of ARS 6,230 million in selling expenses related to other segments. Selling expenses from the Others segment, measured as a percentage of revenues from this segment, increased from 9.2% during the fiscal year ended June 30, 2023 to 14.7% during the fiscal year ended June 30, 2024.
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Urban Properties and Investment Business
Shopping Malls. Selling expenses of the Shopping Malls segment increased by 11.8%, from ARS 11,230 million during the fiscal year ended June 30, 2023, to ARS 12,558 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) an increase of ARS 824 million in publicity, advertising, and other commercial expenses due to higher expenses for event organization and commercial settlements; (ii) an increase of ARS 409 million in amortization and depreciation charges; (iii) an increase of ARS 271 million in doubtful accounts (charge and recovery, net); (iv) an increase of ARS 131 million in salaries, social security charges, and other personnel administrative expenses; partially offset by: (v) a decrease of ARS 288 million in taxes; and (vi) a decrease of ARS 19 million in fees and compensations for services. Selling expenses, measured as a percentage of revenues from the Shopping Malls segment, increased from 4.6% during the fiscal year ended June 30, 2023, to 5.0% during the fiscal year ended June 30, 2024.
Offices. Selling expenses associated with our Offices segment decreased by 53.0%, from ARS 534 million during the fiscal year ended June 30, 2023, to ARS 251 million during the fiscal year ended June 30, 2024. Such variation was mainly generated as a result of: (i) an ARS 338 million decrease in fees and compensation for services due to improved negotiation of rates; (ii) a decrease of ARS 69 million in taxes; (iii) a decrease of ARS 20 million in salaries, social security charges, and other personnel administrative expenses; (iv) a decrease of ARS 9 million in publicity, advertising, and other commercial expenses; partially offset by: (v) an ARS 156 million increase in doubtful accounts (charge and recovery, net). Selling expenses associated with our Offices segment, measured as a percentage of revenues from this segment, decreased from 2.2% during the fiscal year ended June 30, 2023, to 1.1% during the fiscal year ended June 30, 2024.
Sales and Developments. Selling expenses associated with our Sales and Developments segment decreased by 22.4%, from ARS 5,817 million during the fiscal year ended June 30, 2023, to ARS 4,512 million during the fiscal year ended June 30, 2024. This variation is mainly explained by lower expenses related to property sales due to fewer sales compared to the previous fiscal year. Among the most significant variations were: (i) a decrease of ARS 2,351 million in fees and compensation for services; partially offset by (ii) an increase of ARS 930 million in taxes; (iii) an increase of ARS 92 million in salaries, social security charges, and other personnel administrative expenses; (iv) an increase of ARS 11 million in publicity, advertising, and other commercial expenses; and (v) an ARS 7 million increase in doubtful accounts (charge and recovery, net). Selling expenses associated with our Sales and Developments segment, measured as a percentage of revenues from this segment, increased from 25.6% during the fiscal year ended June 30, 2023, to 35.0% during the fiscal year ended June 30, 2024.
Hotels. Selling expenses associated with our Hotels segment increased by 10.1%, from ARS 5,325 million during the fiscal year ended June 30, 2023, to ARS 5,863 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) an ARS 326 million increase in fees and compensation for services; (ii) an ARS 122 million increase in publicity, advertising, and other commercial expenses; (iii) an ARS 98 million increase in taxes; (iv) an ARS 28 million increase in doubtful accounts (charge and recovery, net); partially offset by (v) an ARS 34 million decrease in salaries, social security charges, and other personnel administrative expenses. Selling expenses associated with our Hotels segment, measured as a percentage of revenues from this segment, decreased from 6.9% during the fiscal year ended June 30, 2023, to 6.8% during the fiscal year ended June 30, 2024.
Others. Selling expenses associated with our Others segment increased by 100.2%, from ARS 601 million during the fiscal year ended June 30, 2023, to ARS 1,203 million during the fiscal year ended June 30, 2024. This increase is mainly due to higher commercial activities carried out by We are appa. Selling expenses associated with our Others segment, measured as a percentage of revenues from this segment, increased from 12.4% during the fiscal year ended June 30, 2023, to 22.5% during the fiscal year ended June 30, 2024.
Other operating results, net 2024 vs. 2023
Agricultural Business
Agricultural Production. Other operating results, net, associated with our Agricultural Production segment increased by ARS 10,978 million, from a profit of ARS 871 million in the fiscal year ended June 30, 2023 to a profit of ARS 11,849 million in the fiscal year ended June 30, 2024. This increase is explained by a gain in the results of commodity derivative financial instruments due to the positions taken where tons of soybeans were sold at an average price higher than the market price.
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Land Transformation and Sales. Other operating results, net, from this segment increased by ARS 32,235 million from a loss of ARS 13,084 million in the fiscal year ended June 30, 2023 to a profit of ARS 19,151 million in the fiscal year ended June 30, 2024. This increase is explained by the valuation of accounts receivable in the current fiscal year due to the sales of farmlands in soybean bags in dollars, which was accompanied by an increase in the BRL/USD exchange rate, in yield premiums, offset by a drop in the price of soybeans.
Others. Other operating results, net, associated with the Others segment increased by ARS 4,734 million, from a profit of ARS 3,170 million in the fiscal year ended June 30, 2023 to a profit of ARS 7,904 million in the fiscal year ended June 30, 2024. This increase is due to higher interest income generated by operating assets related to interest on late payment of trade receivables.
Urban Properties and Investment Business
Shopping Malls. Other operating results, net associated with our Shopping Malls segment decreased by 30.7%, from a net loss of ARS 3,030 million during the fiscal year ended June 30, 2023, to a net loss of ARS 3,960 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) an ARS 458 million increase in the loss for lawsuits; partially offset by (ii) an ARS 766 million decrease in interest earned generated by operating assets due to improved collection periods, leading to lower interest earned; (iii) an ARS 612 million decrease in donations; and (iv) an ARS 31 million decrease in management fees. Other operating results, net, from this segment, as a percentage of revenues from this segment, increased from 1.2% negative during the fiscal year ended June 30, 2023, to 1.6% negative during the fiscal year ended June 30, 2024.
Offices. Other operating results, net associated with our Offices segment increased by 75.4%, from a net loss of ARS 357 million during the fiscal year ended June 30, 2023, to a net loss of ARS 88 million during the fiscal year ended June 30, 2024, mainly as a result of: (i) an ARS 217 million decrease in interest and allowances earned generated by operating credits; and (ii) a decrease of ARS 51 million in lawsuit charges. Other operating results, net from this segment, as a percentage of the revenues from this segment, decreased from 1.5% negative during the fiscal year ended June 30, 2023, to 0.4% negative during the fiscal year ended June 30, 2024.
Sales and Developments. Other operating results, net associated with our Sales and Developments segment increased by 15.9%, from a net loss of ARS 4,579 million during the fiscal year ended June 30, 2023, to a net loss of ARS 5,305 million during the fiscal year ended June 30, 2024, mainly due to the loss from sale of property, plant and equipment corresponding to the sale of the 9th floor of the “261 Della Paolera” tower (located in the Catalinas neighborhood of the Autonomous City of Buenos Aires). Other operating results, net from this segment, as a percentage of the revenues of this segment, increased from 20.2% negative during the fiscal year ended June 30, 2023, to 41.2% negative during the fiscal year ended June 30, 2024.
Hotels. Other operating results, net associated with the Hotels segment decreased by 112.8%, from a net loss of ARS 741 million during the fiscal year ended June 30, 2023, to a net loss of ARS 1,577 million during the fiscal year ended June 30, 2024, mainly due to an increase in lawsuit charges of ARS 943 million. Other operating results, net from this segment, as a percentage of the revenues from this segment, increased from 1.0% negative during the fiscal year ended June 30, 2023, to 1.8% negative during the fiscal year ended June 30, 2024.
Others. Other operating results, net associated with the Others segment increased by 104.0%, from a net loss of ARS 29,023 million during the fiscal year ended June 30, 2023, to a net profit of ARS 1,150 million during the fiscal year ended June 30, 2024, mainly due to: (i) a decrease in lawsuit and other contingency charges of ARS 30,769 million as the prior fiscal year had recognized a provision for the IDBD lawsuit; (ii) an increase in profit generated by other operating results of ARS 1,735 million; partially offset by (iii) a decrease in profit of ARS 1,937 million, mainly due to the liquidation of Condor, Real Estate Investment Group VII LP, and Jiwin S.A. in the previous fiscal year; (iv) an increase of ARS 298 million in management fees; and (v) higher expenses of ARS 112 million in donations. Other operating results, net from this segment, as a percentage of the revenues from this segment, decreased from 599.3% negative during the fiscal year ended June 30, 2023, to 21.5% positive during the fiscal year ended June 30, 2024.
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Management fees 2024 vs. 2023
The company entered into a management agreement with Consultores Asset Management S.A., which provides for payment of fees equivalent to 10% of our profits from our separate statement of income for advisory services in relation to any matters related to business and investments, such as farming, real estate, finance, hotel, etc. Management fees amounted to ARS 24,823 million and ARS 12,945 million for the fiscal years ended June 30, 2024 and 2023, respectively.
Operating results 2024 vs. 2023
Agricultural Business
Agricultural Production. Operating results of the Agricultural Production segment increased by ARS 42,894 million, from a loss of ARS 40,407 million in the fiscal year ended June 30, 2023 to a profit of ARS 2,487 million in the fiscal year ended June 30, 2024.
Land Transformation and Sales. Operating results of the Land Transformation and Sales segment increased by ARS 28,099 million, from a profit of ARS 51,948 million in the fiscal year ended June 30, 2023 to a profit of ARS 80,047 million in the fiscal year ended June 30, 2024.
Corporate. Operating results of this Corporate segment increased by ARS 841 million from a loss of ARS 7,231 million in the fiscal year ended June 30, 2023 to a loss of ARS 6,390 million in the fiscal year ended June 30, 2024.
Others. Operating results of the Others segment decreased by ARS 8,526 million from a profit of ARS 28,500 million in the fiscal year ended June 30, 2023 to a profit of ARS 19,974 million in the fiscal year ended June 30, 2024.
Urban Properties and Investment Business
Shopping Malls. Operating results from operations associated with the Shopping Malls segment increased by 37.4%, from a net profit of ARS 122,354 million during the fiscal year ended June 30, 2023, to a net profit of ARS 168,063 million during the fiscal year ended June 30, 2024. Operating results from the Shopping Malls segment, as a percentage of revenues from such segment, increased from 49.8% positive during the fiscal year ended June 30, 2023, to 67.1% positive during the fiscal year ended June 30, 2024.
Offices. Operating results from operations associated with our Offices segment decreased by 770.7%, from a net loss of ARS 9,100 million during the fiscal year ended June 30, 2023, to a net loss of ARS 79,231 million during the fiscal year ended June 30, 2024. Such variation was mainly due to an ARS 71,349 million decrease in the loss from fair value adjustments of investment properties. Operating results from operations associated with the Offices segment, as a percentage of revenues from such segment, increased from 38.3% negative during the fiscal year ended June 30, 2023, to 349.9% negative during the fiscal year ended June 30, 2024.
Sales and Developments. Operating results from operations associated with our Sales and Developments segment decreased by 97.5%, from a net loss of ARS 189,702 million during the fiscal year ended June 30, 2023, to a net loss of ARS 374,655 million during the fiscal year ended June 30, 2024. Such decrease is mainly due to the loss from fair value adjustments of investment properties. Operating results from operations associated with the Sales and Developments segment, as a percentage of revenues from this segment, increased from 835.8% negative during the fiscal year ended June 30, 2023, to 2,906.3% negative during the fiscal year ended June 30, 2024.
Hotels. Operating results from operations associated with the Hotels segment increased by 66.5%, from a net profit of ARS 15,032 million during the fiscal year ended June 30, 2023, to a net profit of ARS 25,025 million during the fiscal year ended June 30, 2024. This increase is mainly due to higher occupancy levels resulting in increased revenues, reaching, for the most part, pre-pandemic occupancy levels. Operating results from operations associated with the Hotels segment, as a percentage of revenues from such segment, increased from 19.4% positive during the fiscal year ended June 30, 2023, to 29.2% positive during the fiscal year ended June 30, 2024.
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Others. Operating results from operations associated with the Others segment increased from a net loss of ARS 61,221 million during the fiscal year ended June 30, 2023, to a net loss of ARS 12,308 million during the fiscal year ended June 30, 2024. Such decrease is mainly due to the decrease in administrative expenses and a positive result in other operating results, net. Operating results from operations associated with the Others segment, as a percentage of the revenues from this segment, varied from 1,264.1% negative during the fiscal year ended June 30, 2023, to 229.8% positive during the fiscal year ended June 30, 2024.
Share of (loss)/ profit of associates and joint ventures 2024 vs. 2023
Agricultural Business
According to information by segments (taking into account all our joint ventures and inter-segment eliminations), the total share of (loss) / profit of associates and joint ventures increased by ARS 3,861 million (71.9%), from a loss of ARS 5,372 million in the fiscal year ended June 30, 2023 to a loss of ARS 1,511 million in the fiscal year ended June 30, 2024.
Agricultural Production. The share of profit/ (loss) of associates and joint ventures in the Agricultural Production segment increased by 346.7% from a loss of ARS 876 million in the fiscal year ended June 30, 2023 to a profit of ARS 2,161 million in the fiscal year ended June 30, 2024.
Others. The share loss of associates and joint ventures in the Others segment increased by 18.3% from a loss of ARS 4,496 million in the fiscal year ended June 30, 2023 to a loss of ARS 3,672 million in the fiscal year ended June 30, 2024.
Urban Properties and Investment Business
The share of profit of associates and joint ventures, according to the income statement, increased by 249.4%, from a net profit of ARS 13,580 million during the fiscal year ended June 30, 2023 to a net profit of ARS 47,454 million during the fiscal year ended June 30, 2024, mainly due to the positive results from the Others segment.
Also, the net share of profit / (loss) of joint ventures, mainly from Nuevo Puerto Santa Fe S.A. (Shopping Malls segment), Quality Invest S.A. (Offices segment) and Cyrsa S.A. and Puerto Retiro S.A. (Sales and Developments segment), showed a 105.9% increase, from a loss of ARS 6,565 million during the fiscal year ended June 30, 2023, to a profit of ARS 386 million during the fiscal year ended June 30, 2024, Mainly due to results from the investment in Nuevo Puerto Santa Fe S.A., explained primarily by the impact of inflation on the fair value of its properties, and, in turn, as a consequence of the sale of Quality Invest S.A., an investment that, as of June 30, 2023, was generating losses of ARS 7,169 million.
Shopping Malls. In the information by segments, the share of profit / (loss) of the joint venture Nuevo Puerto Santa Fe S.A. is recorded on a consolidated basis, line by line in this segment.
Offices. This segment does not show results from the share of profit / (loss) of associates and joint ventures.
Sales and Developments. The share of profit / (loss) of the joint ventures Quality Invest S.A., Cyrsa S.A. and Puerto Retiro S.A is recorded on a consolidated basis, line by line. Given that we sold our interest in Quality Invest S.A. during the fiscal year ended on June 30, 2024, it generated results only in the fiscal year ended June 30, 2023.
Hotels. This segment does not show results from the share of profit / (loss) of associates and joint ventures.
Others. The share of profit / (loss) of associates from the Others segment increased by 133.6%, from a net profit of ARS 20,145 million during the fiscal year ended June 30, 2023, to a net profit of ARS 47,068 million during the fiscal year ended June 30, 2024, mainly as a result of the variation from our investments in Banco Hipotecario by ARS 24,813 million and La Rural S.A. by ARS 6,891 million positive.
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Financial results, net 2024 vs. 2023
The Company financial results, net recorded a variation of ARS 81,157 million, from a profit of ARS 127,395 million in the fiscal year ended June 30, 2023 to a profit of ARS 208,552 million in the fiscal year ended June 30, 2024. This was mainly due to a higher positive result from the fair value measurement of financial assets and liabilities at fair value through profit or loss, net, primarily driven by the country’s macroeconomic conditions, which caused fluctuations in bond values, along with an increase in earned interest. These were partially offset by a negative result from exposure to changes in the purchasing power of the currency, a loss in net results from derivative financial instruments (excluding commodities), and a decrease in the gain generated by exchange rate differences.
Income Tax 2024 vs. 2023
The Company adopts the deferred tax method to calculate the income tax for the reported periods, thus recognizing temporary differences as tax assets and liabilities. The income tax charge for the year went from a profit of ARS 376,685 million during the fiscal year ended June 30, 2023, to a profit of ARS 86,261 million during the fiscal year ended June 30, 2024, out of which a profit of ARS 25,162 million derives from the agricultural business and a profit of ARS 61,099 million derives from the urban properties and investment. During the fiscal year ended June 30, 2024, a positive deferred tax result was observed, affected by the fair value changes of investment properties, which was partially offset by a negative result from current income tax. Additionally, during the previous fiscal year, a reversal of the provision for income tax from prior fiscal years was made, see the Income Tax section for the fiscal year 2023.
Net profit 2024 vs. 2023
As a result of the factors described above, our net profit for the year decreased by ARS 257,638 million from a net profit of ARS 406,477 million in the fiscal year ended on June 30, 2023 to a net profit of ARS 148,839 million in the fiscal year ended June 30, 2024, out of which a profit of ARS 189,064 million derives from the agricultural business, and a loss of ARS 40,225 million derives from the urban properties and investment business.
B. Liquidity and Capital Resources
Liquidity
Our main sources of liquidity have historically been:
· cash generated by operations;
· cash generated by our issuance of common shares and non-convertible notes;
· cash proceeds from borrowings (including cash from bank loans and overdrafts) and financing arrangements (including cash from the exercise of warrants); and
· cash proceeds from sale of investment and trading properties and property, plant and equipment (including cash proceeds from the sale of farmlands).
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Our main cash requirements or uses (other than in connection with our operating activities) have historically been:
· acquisition of subsidiaries and non-controlling interest in subsidiaries;
· acquisition of interest in associates and joint ventures;
· capital contributions to associates and joint ventures;
· capital expenditures in property, plant and equipment (including acquisitions of farmlands) and investment and trading properties;
· payments of short-term and long-term debt and payment of the related interest expense; and
· payment of dividends.
Our liquidity and capital resources include our cash and cash equivalents, proceeds from operating activities, sales of investment properties, trading properties and farms, obtained bank borrowings, long-term debts incurred and capital funding.
Our material cash requirements from known contractual and other obligations mainly consist of obligations under our borrowings. As of June 30, 2025, we expected to incur a total of ARS 1,343,112 million under our borrowings, consisting of ARS 535,760 million due within one year, ARS 387,848 million due within one to four years, ARS 69,604 million due within four to five years, and ARS 349,900 million due after five years.
Cash Flow Information
The table below shows our cash flow for the fiscal years ended June 30, 2025, 2024 and 2023:
(in millions of ARS)
06.30.2025 06.30.2024 Restated (i) 06.30.2023 Restated (i)
Net cash generated from operating activities 151,319 115,446 188,028
Net cash (used in) / generated from investing activities (80,565 ) 129,064 77,262
Net cash generated from / (used in) financing activities 86,184 (310,520 ) (471,725 )
Net increase / (decrease) in cash and cash equivalents 156,938 (66,010 ) (206,435 )
(i) See Note 1 to the Annual Consolidated Financial Statements as of June 30, 2025.
As of June 30, 2025, we had positive working capital of ARS 244,916 million (calculated as current assets less current liabilities as of such date).
As of June 30, 2025, in our Agricultural Business, we had positive working capital of ARS 20,977 million (calculated as current assets less current liabilities as of such date).
As of June 30, 2025, in our Urban Properties and Investments Business, had positive working capital of ARS 233,939 million (calculated as current assets less current liabilities as of such date).
At the same date, our Agricultural Business had cash and cash equivalents of ARS 74,035 million and our Urban Properties and Investments Business had cash and cash equivalents of ARS 176,820 million.
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Operating activities
Fiscal year ended June 30, 2025
Our operating activities for the fiscal year ended June 30, 2025 generated net cash inflows of ARS 151,319 million, mainly due to (i) an operating income for ARS 226,724 million, (ii) a decrease in biological assets for ARS 78,592 million, partially offset by (iii) a decrease in trade and other payables for ARS 96,277 million, (iv) an increase in inventories for ARS 30,433 million, (v) an increase in trade and other receivables for ARS 21,487 million and (vi) income tax paid for ARS 8,393 million.
Fiscal year ended June 30, 2024
Our operating activities for the fiscal year ended June 30, 2024 generated net cash inflows of ARS 115,446 million, mainly due to (i) an operating income for ARS 183,727 million, (ii) a decrease in trade and other receivables for ARS 139,686 million, (iii) a decrease in biological assets for ARS 91,600 million, partially offset by (iv) a decrease in trade and other payables for ARS 234,042 million, (v) an increase in inventories for ARS 33,538 million, (vi) a decrease in salaries and social security liabilities for ARS 13,448 million, and (vii) income tax paid for ARS 11,807 million.
Fiscal year ended June 30, 2023
Our operating activities for the fiscal year ended June 30, 2023 generated net cash inflows of ARS 188,028 million, mainly due to (i) an operating income for ARS 248,748 million, (ii) a decrease in biological assets for ARS 116,247 million, (iii) a decrease in trade and other receivables for ARS 59,201 million partially offset by (iv) a decrease in trade and other payables for ARS 177,634 million, (v) income tax paid for ARS 29,956 million, (vi) a decrease in lease liabilities for ARS 19,113 million, and (vii) an increase in inventories for ARS 12,535 million.
Investment activities
Fiscal year ended June 30, 2025
Our investing activities resulted in net cash outflows of ARS 80,565 million for the fiscal year ended June 30, 2025, mainly due to (i) ARS 757,846 million acquisition of investments in financial assets, (ii) ARS 45,730 million acquisition and improvement in property, plant and equipment, (iii) ARS 39,301 million acquisition and improvement in investment properties, partially offset by (iv) ARS 690,063 million proceeds from disposal of investments in financial assets, (v) ARS 28,139 million interest received, (vi) ARS 27,938 million proceeds from sales of property, plant and equipment and (vii) ARS 7,759 million proceeds from sales of investment properties.
Fiscal year ended June 30, 2024
Our investing activities resulted in net cash inflows of ARS 129,064 million for the fiscal year ended June 30, 2024, mainly due to (i) ARS 789,139 million proceeds from disposal of investments in financial assets, (ii) ARS 108,837 million derived from proceeds from sales of property, plant and equipment, (iii) ARS 49,925 million derived from proceeds from sales of investment properties, (iv) ARS 33,155 million derived from proceeds from the sale of participation in joint ventures, (v) ARS 27,191 million derived from interest received, partially offset by (vi) ARS 771,929 million used in the acquisition of investments in financial assets, and (vii) ARS 109,280 million used in the acquisition and improvement in property, plant and equipment.
Fiscal year ended June 30, 2023
Our investing activities resulted in net cash inflows of ARS 77,262 million for the fiscal year ended June 30, 2023, mainly due to (i) ARS 270,716 million proceeds from disposal of investments in financial assets, (ii) ARS 117,293 million derived from proceeds from sales of investment properties, (iii) ARS 92,424 million derived from proceeds from sales of property, plant and equipment, partially offset by (iv) ARS 287,105 million used in the acquisition of investments in financial assets, (v) ARS 94,268 million used in the acquisition and improvement in property, plant and equipment and (vi) acquisitions and improvement of investment properties for ARS 30,582 million.
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Financing activities
Fiscal year ended June 30, 2025
Our financing activities for the fiscal year ended June 30, 2025 resulted in net cash inflows of ARS 86,184 million, mainly due to (i) ARS 697,993 million borrowings, issuance and new placement of non-convertible notes, partially offset by (ii) ARS 338,742 million payment of borrowings and non-convertible notes, (iii) ARS 89,339 million interest paid, (iv) ARS 87,431 million dividends paid, (v) ARS 75,711 million repurchase of non-convertible notes, and (vi) ARS 16,459 million repurchase of treasury shares.
Fiscal year ended June 30, 2024
Our financing activities for the fiscal year ended June 30, 2024 resulted in net cash outflows of ARS 310,520 million, mainly due to (i) the payment of borrowing and non-convertible notes for ARS 401,204 million, (ii) the payment of interest for ARS 176,005 million, (iii) dividends paid for ARS 172,303 million, partially offset by (iv) borrowings, issuance and new placement of non-convertible notes for ARS 423,653 million, and (v) repurchase of treasury shares for ARS 18,392 million.
Fiscal year ended June 30, 2023
Our financing activities for the fiscal year ended June 30, 2023 resulted in net cash outflows of ARS 471,725 million, mainly due to (i) the payment of borrowing and non-convertible notes for ARS 570,899 million, (ii) dividends paid for ARS 227,189 million, (iii) the payment of interest for ARS 177,504 million, (iv) repurchase of treasury shares for ARS 35,639 million, partially offset by (v) borrowings, issuance and new placement of non-convertible notes for ARS 543,599 million, and (vi) obtaining of short term loans, net for ARS 21,667 million.
Capital Expenditures
Our capital expenditures were ARS 119,434 million, ARS 86,761 million and ARS 164,887 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively, including other goods and equipment acquired in business combinations.
Our capital expenditures consisted of the purchase of real estate and farms, acquisition and improvement of productive agricultural assets, construction of real estate and acquisition of land reserves.
Fiscal year ended June 30, 2025
During the fiscal year ended June 30, 2025, we invested in our Urban Properties and Investments Business ARS 82,733 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 8,040 million, primarily i) ARS 72 million in buildings and facilities, ii) ARS 2,384 million in machinery and equipment and others and iii) improvements in our hotels Libertador, Llao Llao and Intercontinental (ARS 2,596 million, ARS 2,327 million and ARS 661 million, respectively); (b) improvements in our rental properties for ARS 51,185 million and (c) the development of properties for ARS 23,508 million.
During the fiscal year ended June 30, 2025, we invested in the Agricultural Business ARS 36,701 million mainly due to (a) acquisition and development of owner occupied farmland for ARS 17,823 million (ARS 14,735 million of subsidiary Brasilagro); (b) ARS 10,921 million in bearer plant; (c) ARS 3,978 million in other building and facilities; (d) ARS 3,088 million machinery and equipment; (e) ARS 621 million in vehicles, and (f) ARS 270 million in furniture and supplies.
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Fiscal year ended June 30, 2024
During the fiscal year ended June 30, 2024, we invested in our Urban Properties and Investments Business ARS 23,577 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 4,640 million, primarily (i) ARS 688 million in buildings and facilities, (ii) ARS 1,509 million in machinery and equipment and others and (iii) improvements in our hotels Libertador, Llao Llao and Intercontinental (ARS 89 million, ARS 1,026 million and ARS 1,328 million, respectively); (b) improvements in our rental properties for ARS 13,929 million and (c) the development of properties for ARS 5,008 million.
During the fiscal year ended June 30, 2024, we invested in the Agricultural Business ARS 63,184 million mainly due to (a) acquisition and development of owner occupied farmland for ARS 33,494 million (ARS 29,257 million of subsidiary Brasilagro); (b) ARS 18,098 million in bearer plant; (c) ARS 5,871 million in other building and facilities; (d) ARS 3,230 million machinery and equipment; (e) ARS 1,922 million in vehicles, and (f) ARS 569 million in furniture and supplies.
Fiscal year ended June 30, 2023
During the fiscal year ended June 30, 2023, we invested in our Urban Properties and Investments Business ARS 33,667 million, as follows: (a) acquisitions and improvements of property, plant and equipment of ARS 4,107 million, primarily (i) ARS 57 million in buildings and facilities, (ii) ARS 1,569 million in machinery and equipment and others and (iii) improvements in our hotels Libertador, Llao Llao and Intercontinental (ARS 67 million, ARS 2,238 million and ARS 176 million, respectively); (b) improvements in our rental properties for ARS 18,170 million and (c) the development of properties for ARS 13,390 million.
During the fiscal year ended June 30, 2023, we invested in the Agricultural Business ARS 129,220 million mainly due to (a) acquisition and development of owner occupied farmland for ARS 107,959 million (ARS 101,973 million of subsidiary Brasilagro); (b) ARS 9,552 million in bearer plant; (c) ARS 6,843 million in other building and facilities; (d) ARS 4,002 million machinery and equipment; (e) ARS 471 million in vehicles, and (f) ARS 393 million in furniture and supplies.
Indebtedness
As of June 30, 2025, we had total loans in the amount of ARS 1,343,112 million. The following table sets forth the scheduled maturities of our outstanding debt:
Capital Agricultural Business Urban properties and investments Total
Less than 1 year 387,238 123,253 510,491
More than 1 and up to 2 years 122,586 49,377 171,963
More than 2 and up to 3 years 131,122 57,316 188,438
More than 3 and up to 4 years 8,135 — 8,135
More than 4 and up to 5 years 8,140 61,464 69,604
More than 5 years 6,241 340,180 346,421
663,462 631,590 1,295,052
Interest
Less than 1 year 11,186 14,083 25,269
More than 1 and up to 2 years 861 492 1,353
More than 2 and up to 3 years 17,350 604 17,954
More than 3 and up to 4 years 5 — 5
More than 4 and up to 5 years — — —
More than 5 years 3,479 — 3,479
32,881 15,179 48,060
696,343 646,769 1,343,112
Agricultural Business Urban properties and investments Total
Non-convertible notes 471,602 630,071 1,101,673
Bank loans and others 204,184 4,596 208,780
Bank overdrafts 7,722 6,713 14,435
Others 12,835 5,389 18,224
696,343 646,769 1,343,112
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The composition and fair value of the loans as of June 30, 2025 and June 30, 2024 are as follows:
Book value Fair value
06.30.2025 06.30.2024 06.30.2025 06.30.2024
Non-convertible notes 1,101,673 1,026,693 1,094,559 995,222
Bank loans 208,780 59,609 208,780 59,609
Bank overdrafts 14,435 46,221 14,435 46,221
Other borrowings 18,224 14,256 18,224 14,256
Total borrowings 1,343,112 1,146,779 1,335,998 1,115,308
Non-current 807,352 663,070
Current 535,760 483,709
Total 1,343,112 1,146,779
The following tables describe our total debt as of June 30, 2025:
Agricultural Business
Agricultural business Currency Annual Average Interest Rate Nominal Value Book value (in million ARS)
Cresud’s Series XXXVIII Notes USD 8.00% 71 87,642
Cresud’s Series XL Notes USD 0.00% 38 44,824
Cresud’s Series XLII Notes(1) USD 0.00% 30 36,195
Cresud’s Series XLIV Notes USD 6.00% 40 48,970
Cresud’s Series XLV Notes USD 6.00% 10 12,399
Cresud’s Series XLVI Notes USD 1.50% 29 26,840
Cresud’s Series XLVII Notes USD 7.00% 64 77,581
Bank loans USD 1.50% to 6.00% 90 110,408
Bank overdrafts ARS Float — 7,721
Brasilagro—Notes BRL 106.50% e 110.00% e Pré 5.37 + TLP 100% 490 110,152
Brasilagro—Bank loans BRL 3.24% a 6.34% + CDI a 100% 202 45,485
Brasilagro—Bank loans BRL 3.50% 50 11,314
Brasilagro—Bank loans BRL 3.76% to 6.76% 8 1,861
Brasilagro—Bank loans USD 7.00% to 9.50% 135 30,430
FyO—Notes USD 0.00% — 26,999
FyO—Bank overdrafts USD Float — 1
FyO—Bank loans USD 0.00% 1 624
FyO—Bank loans USD 4.00% 2 1,824
FyO—Bank loans USD 6.00% 1 1,115
FyO—Others ARS 63.94% 6.200 6,200
FyO—Others USD 1.00%—8.50% 5 5,913
FyO—Others USD 4.00% 721 722
Biond—Bank loans BRL CDI + 3.37% 5 1,123
696,343
(1) On October 6, 2025, payment was made corresponding to the amortization of the first capital installments, for 33% of the nominal value.
Urban Properties and Investments Business
Urban Properties and Investments Business Currency Annual Average Interest Rate Nominal Value Book value (in million ARS)
IRSA’s 2028 Notes – Series XIV (1) USD 8.75% 103 81,873
IRSA’s 2025 Notes – Series XVI (2) USD 7.00% 28 35,020
IRSA’s 2025 Notes – Series XVII USD 5.00% 25 30,206
IRSA’s 2027 Notes – Series XVIII USD 7.00% 21 25,909
IRSA’s 2026 Notes – Series XX USD 6.00% 21 25,627
IRSA’s 2027 Notes – Series XXII USD 5.75% 16 19,635
IRSA’s 2029 Notes – Series XXIII USD 7.25% 51 64,544
IRSA’s 2035 Notes – Series XXIV USD 8.00% 293 347,257
Loans with non-controlling interests USD 2.00% 1 2,204
Loans with non-controlling interests USD 5.00% - 311
Loans with non-controlling interests USD 5.00% - 339
Related Party USD 1.00% - 855
Bank loans ARS TAMAR -1 % - +3% 4,500 4,596
Others USD 3.50% 1 1,680
Bank overdrafts ARS Float - 6,713
Total 646,769
(1) As of June 30, 2025, the amortization payment was made for 35% of the principal.
(2) As of July 25, 2025, the amortization payment was made for 100% of the principal.
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Agricultural Business
Series XXXVI Notes
On February 18, 2022, we issued in the local Series XXXVI Notes denominated in U.S. dollars and payable in Pesos at the applicable exchange rate for USD 40.6 million at a fixed rate of 2.0%, with semi-annual interest payments. The principal payment was in one installment, on February 18, 2025. The price of issuance was 100.0% of the nominal value. On February 18, 2025, Series XXXVI Notes were fully canceled at maturity.
The proceeds have been used to refinance short-term liabilities and working capital.
Series XXXVII Notes
On June 15, 2022, we issued in the local market Series XXXVII Notes denominated and payable in U.S. dollars for USD 24.4 million at a fixed rate of 5.5%, with semi-annual interest payments (except for the last installment, which will be due three months after the previous interest period). The principal payment was in one installment, on March 15, 2025. The price of issuance was 100.0% of the nominal value. On March 15, 2025, Series XXXVII Notes were fully canceled at maturity.
The proceeds have been used to refinance short-term liabilities and working capital.
Series XXXVIII Notes
As a consequence of the regulations established by the Central Bank, on July 6, 2022, we completed the exchange of our Series XXIII Notes, in an aggregate principal amount of USD 113.2 million, maturing on February 16, 2023. On July 6, 2022, the expiration of the exchange offer was announced, USD 98.4 million of Series XXIII Notes were validly tendered and accepted, representing 86.98% of acceptance. On July 8, the exchange offer was settled, the Series XXXVIII Notes were issued, for an amount of USD 70.6 million, and Series XXIII Notes were partially canceled, consequently the outstanding amount is USD 14.7 million and on February 16, 2023, Series XXIII notes was fully canceled.
The exchange offer provided two alternatives:
- Option A: Cash payment for up to 30% of the total amount of participation in the exchange, and the difference to complete the exchanged face value, in Series XXXVIII Notes. For every USD 1 offered, the holder received USD 0.6913 plus the remaining amount to complete USD 1 for each USD 1 of Series XXIII Notes presented for the exchange, in Series XXXVIII Notes. Under Option A, 43.40% of the notes which participated in the exchange were accepted.
- Option B: For each USD 1 of Series XXIII Notes tendered and accepted the bondholder received in exchange USD 1,03 Series XXXVIII Notes. Under Option B, 56.60% of the notes which participated in the exchange were accepted.
In both options, the interest accrued as of settlement date was paid.
Series XXXVIII Notes will mature on March 3, 2026 and will accrue interest at a fixed rate of 8.00%, with interest payable semi-annually on January 3 and July 3 from 2023 to 2026, and at maturity. Amortization of principal will be in one installment on March 3, 2026. The issue price was 100%.
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Series XL Notes
On December 21, 2022, we issued Series XL Notes in the local market, denominated in dollars for USD 38.2 million and payable in Pesos at the applicable exchange rate, at a fixed rate of 0.0%, for which reason it will not have interest installments. The capital payment was set in three installments: 33% to pay on December 21, 2025; 33% to pay on June 21, 2026, and 34% to pay on December 21, 2026, at maturity. The issue price was 100.0% of the face value.
The funds were mainly used to refinance short-term liabilities and working capital.
Series XLI and XLII Notes
On December 21, 2022, we issued a total amount of USD 50 million in the local market through Series XLI and XLII Notes, the main characteristics of the issuance are detailed below:
· Series XLI Notes: issued for a nominal value of ARS 4,147.3 million, maturing 18 months from the settlement, that is, October 4, 2024. They have a variable rate (private Badlar plus a margin of 1.0%), payable quarterly and will amortize its capital at maturity. The issue price was 100%. On October 4, 2024, Series XLI Notes were fully canceled at maturity.
· Series XLII Notes: issued for a nominal value of USD 30.0 and payable in Pesos at the applicable exchange rate, maturing 37 months from the settlement, that is, May 4, 2026; at a fixed rate of 0.0%, for which reason it will not have interest installments, and will repay its capital at maturity. The issue price was 100%. On October 6, 2025, payment was made corresponding to the amortization of the first capital installments, for 33% of the nominal value.
The funds were mainly used to refinance short-term liabilities and working capital.
Series XLIII and XLIV Notes
On January 17, 2024, we issued a total amount of USD 64.2 million in the local market through Series XLIII and XLIV Notes, the main characteristics of the issuance are detailed below:
· Series XLIII Notes: issued for a nominal value of ARS 19,886.0 million, maturing 12 months from the settlement, that is, January 17, 2025. They have a variable rate (private Badlar plus a margin of 0.0%), payable quarterly and will amortize its capital at maturity. The issue price was 100%.
· Series XLIV Notes: issued for a nominal value of USD 39.8 million, maturing 36 months from the settlement, that is, January 17, 2027; at a fixed rate of 6.0%, with semi-annual interest payments, and will repay its capital at maturity. The issue price was 100%.
Series XLV Notes
On April 22, 2024, we issued Series XLV Notes in the local market, denominated and payable in U.S. dollars for USD 10.2 million at a fixed rate of 6.0%, with semi-annual interest payments (except for the last installment, which will be due four months after the previous interest period), and will repay its capital at maturity on August 22, 2026. The issue price was 100.0% of the face value.
Series XLVI Notes
On July 18, 2024, we issued Series XLVI Notes in the local market, denominated in U.S. dollars and payable in Pesos at the applicable exchange rate for USD 28.6 million at a fixed rate of 1.5%, with semi-annual interest payments, and will repay its capital at maturity on July 18, 2027. The issue price was 100.0% of the face value.
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Series XLVII Notes
On November 15, 2024, we issued Series XLVII Notes in the local market, denominated and payable in U.S. dollars for USD 64.4 million at a fixed rate of 7.0%, with semi-annual interest payments, and will repay its capital at maturity on November 15, 2028. The issue price was 100.0% of the face value.
Series XLVIII Notes
As a subsequent event, on July 11, 2025, we issued Series XLVIII Notes in the local market, denominated and payable in U.S. dollars for USD 43.7 million at a fixed rate of 8.0%, with semi-annual interest payments, and will repay its capital at maturity on July 11, 2028. The issue price was 100.0% of the face value.
Series XLIX Notes
As a subsequent event, on September 2, 2025, we issued Series XLIX Notes in the local market, denominated and payable in U.S. dollars for USD 31.3 million at a fixed rate of 7.25%, with semi-annual interest payments, and will repay its capital at maturity on September 2, 2027. The issue price was 100.0% of the face value.
Issuance of BrasilAgro Non-Convertible Notes
On May 5, 2021, BrasilAgro issued Non-convertible Notes, unique series, for a nominal value of BRL 240 million. They will accrue interest at a variable rate made up for IPCA (Consumer Price Index) plus 5.3658% nominal per year, payable annually and will amortize their capital in two payments on April 13, 2027 and April 12, 2028.
On November 16, 2023, BrasilAgro issued non-convertible Notes totaling BRL 165 million. It will pay interest at an annual rate of 12.16%, payable annually. The principal will be amortized in seven installments from 2027 to 2030.
Series II Notes (issued by FyO)
On July 25, 2022, FyO issued Series II Notes in the local market for an amount of USD 15.0 million. The note is dollar denominated and payable in Pesos at the applicable exchange rate, with an annual fixed rate of 0.0%, for which reason it will not have interest installments, and maturity on July 25, 2025. The issue price was 100.0% of the nominal value. On July 25, 2025, Series II Notes were fully canceled at maturity.
The proceeds have been used mainly to attend working capital needs.
Series III Notes (issued by FyO)
On April 25, 2023, FyO issued Series III Notes in the local market for an amount of USD 20.0 million. The note is dollar denominated and payable in Pesos at the applicable exchange rate, with an annual fixed rate of 0.0%, for which reason it will not have interest installments, and maturity on Abril 25, 2026. The issue price was 100.0% of the nominal value.
Urban Properties and Investments Business
Series XIV Notes (issued by IRSA)
As a consequence of the regulations established by the Central Bank, on July 6, 2022, IRSA completed the exchange of its Series II Notes, originally issued by IRSA Commercial Properties S.A., in an aggregate principal amount of USD 360 million, maturing on March 23, 2023. On July 6, 2022, the expiration of the exchange was announced, USD 238,985,000 of Series II Notes were validly tendered and accepted, representing an acceptance of 66.38%. On July 8, the exchange offer was settled, the new Series XIV Notes were issued for an amount of USD 171.2 million and the Series II Notes were partially canceled, the outstanding principal amount is USD 121,015,000. On February 3, 2023, we announced the full redemption of the Series II notes, which was effective on February 8, 2023, and the Series II notes were fully canceled.
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On March 31, 2025, the Company issued Class XXIV Notes in an aggregate principal amount of USD 300 million (see “Item 5. Operating and Financial Review and Prospects Operating Results - Series XXIV Notes”), which could be subscribed in cash or through an exchange offer for Class XIV Notes. As a result of the exchange, a total principal amount of USD 67.9 million of Class XIV Notes was accepted (USD 67.4 million through an early exchange and an additional USD 0.5 million up to the expiration date). In connection with the exchange settlements, accrued interest on the Class XIV Notes up to the issuance and settlement date was paid, as applicable in each case, and partial cancellations of the Class XIV Notes were made, leaving outstanding a principal amount of USD 103.3 million (USD 85.2 million outstanding as of such date).
Series XIV Notes were issued under New York Law, will mature on June 22, 2028 and will accrue interest at a fixed rate of 8.75%, with interest payable semi-annually on June 22 and December 22 of each year, until expiration. Amortization will be in annual installments payable on June 22 of each year, each for 17.5% from 2024 to 2027 and the remaining 30% on June 22, 2028. The issue price was 100%. On June 22, 2024; and on June 22, 2025; payments were made corresponding to the amortization of the first and second capital installments, each for 17.5% of the nominal value. As of the date of this Annual Report, the outstanding amount under these notes is USD 67.14 million.
Series XIV Notes due 2028 are subject to certain covenants, events of default and limitations, such as the limitation on incurrence of additional indebtedness, limitation on restricted payments, limitation on transactions with affiliates, and limitation on merger, consolidation and sale of all or substantially all assets.
Series XV and XVI Notes (issued by IRSA)
On January 31, 2023, IRSA issued in the local market a total amount of USD 90 million through the following Notes:
• Series XV Notes: denominated and payable in U.S. dollars for a total of USD 61.7 million at a fixed rate of 8.0%, with semi-annual payments. The principal payment was made in one installment at maturity on March 25, 2025. The issue price was 100.0% of the face value. On March 25, 2025, Series XV Notes were fully canceled at maturity.
• Series XVI Notes: denominated and payable in U.S. dollars for a total of USD 28.2 million at a fixed rate of 7.0%, with semi-annual payments. The principal payment was in one installment at maturity on July 25, 2025. The issue price was 100.0% of the face value. On July 25, 2025, Series XVI Notes were fully canceled at maturity.
The proceeds were used mainly to refinance short-term liabilities and working capital.
Series XVII Notes (issued by IRSA)
On June 7, 2023, IRSA issued in the local market a total amount of USD 25 million, the main characteristics of the issuance are detailed below:
• Series XVII Notes: denominated and payable in U.S. dollars for a total of USD 25 million at a fixed rate of 5.0%, with semi-annual payments (except for the first interest payment, which will be nine months from the settlement). The capital payment will be made in one installment at maturity on December 7, 2025. The issue price was 100.0% of the face value.
The proceeds were used mainly to refinance short-term liabilities and working capital.
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Series XVIII and XIX Notes (issued by IRSA)
On February 28, 2024, IRSA issued in the local market a total amount of USD 52.6 million through the following Notes:
• Series XVIII Notes: denominated and payable in U.S. dollars for a total of USD 21.4 million at a fixed rate of 7.0%, with semi-annual payments. The principal payment will be in one installment at maturity on February 28, 2027. The issue price was 100.0% of the face value.
• Series XIX Notes denominated and payable in Argentine Pesos for a total of ARS 26,203.8 million, matured on February 28, 2025. These notes have a variable rate (private Badlar plus a margin of 0.99%), payable quarterly and will amortize its capital at maturity. The issue price was 100%. On February 28, 2025, Series XIX Notes were fully canceled at maturity.
The proceeds were used mainly to refinance short-term liabilities and working capital.
Series XX and XXI Notes (issued by IRSA)
On June 10, 2024, IRSA issued in the local market a total amount of USD 42.0 million through the following Notes:
• Series XX Notes: denominated and payable in U.S. dollars for a total of USD 23.0 million at a fixed rate of 6.0%, with semi-annual payments. The principal payment will be in one installment at maturity on June 10, 2026. The issue price was 100.0% of the face value. The proceeds will mainly be used to refinance short-term liabilities and working capital.
• Series XXI Notes: denominated and payable in Pesos for a total of ARS 17,012.7 million, matured on June 10, 2025. These notes have a variable rate (private Badlar plus a margin of 4.50%), payable quarterly and amortized its capital at maturity. The issue price was 100%. The proceeds were used mainly to refinance short-term liabilities and working capital. On June 10, 2025, Series XXI Notes were fully canceled at maturity.
Series XXII and XXIII Notes (issued by IRSA)
On October 23, 2024, IRSA issued in the local market a total amount of USD 67.3 million through the following Notes:
• Series XXII Notes denominated and payable in U.S. dollars for a total of USD 15.8 million at a fixed rate of 5.75%, with semi-annual payments. The principal payment will be in one installment at maturity on October 23, 2027. The issue price was 100.0% of the face value.
• Series XXIII Notes denominated and payable in U.S. dollars for a total of USD 51.5 million at a fixed rate of 7.25%, with semi-annual payments. The principal payment will be in one installment at maturity on October 23, 2029. The issue price was 100.0% of the face value.
The proceeds were used mainly to refinance short-term liabilities and working capital.
Series XXIV Notes (issued by IRSA)
The Class XXIV Notes were issued under New York law, will mature on March 31, 2035, and will accrue interest at a fixed annual nominal rate of 8.00%, with interest payable semi-annually on March 31 and September 30 of each year until maturity. Principal amortization will occur in three installments: (i) 33% of the principal amount on March 31, 2033, (ii) 33% of the principal amount on March 31, 2034, and (iii) 34% of the principal amount on March 31, 2035. The issue price for the cash subscription was 96.803% of face value.
Of the total amount issued, USD 242,205 million was subscribed in cash, at an issue price of 96.903% of face value.
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In addition, USD 57.8 million resulted from the early exchange of Class XIV Notes, which carried an early exchange consideration of 1.04 times the amount exchanged. Subsequently, on April 11, 2025, as a result of the late exchange, USD 0.45 million was issued, which carried a consideration of 1.0 times the amount exchanged. In connection with the exchange settlements, accrued interest on the Class XIV Notes up to the issuance and settlement date was paid, as applicable in each case.
Upon the settlement dates (early and final) of the exchange, partial cancellations of the Class XIV Notes were made, resulting in an outstanding amount, as of such date, of USD 85.2 million. For further information, see (“– Class XIV Notes”).
The Class XXIV Notes contain certain Covenants, Events of Default, and Limitations, such as Limitation on Incurrence of Additional Indebtedness, Limitation on Restricted Payments, Limitation on Transactions with Affiliates, and Limitation on Consolidation, Merger and Sale of All or Substantially All Assets.
C. Research and Developments, Patents and Licenses
Investments in technology, in our agricultural business, amounted to ARS 256 million, ARS 89 million and ARS 803 million for fiscal years 2025, 2024 and 2023 respectively. Our total technology investments aimed to increase the productivity of purchased land have amounted to ARS 62,539 million since fiscal year 1995.
We reach our objectives within this area through the implementation of domestic and international technological development projects focusing mainly on:
· Quality and productivity improvement.
· Increase in appreciation value of land through the development of marginal areas.
· Increase in the quality of food in order to achieve global food safety standards. We aim to implement and perform according to official and private quality protocols that allow us to comply with the requirements of our present and future clients. Regarding official regulations, in 2003 we implemented the Servicio Nacional de Sanidad y Calidad Agroalimentaria law on animal identification for livestock in six farms. Simultaneously, in 2004 we implemented Global GAP Protocols (formerly EurepGap) with the objective of complying with European Union food safety standards and as a mean for continuous improvement of the internal management and system production of our farms. Our challenge is to achieve global quality standards.
· Certification of suitable quality standards, since in recent years worldwide agriculture has evolved towards more efficient and sustainable schemes in terms of environmental and financial standpoints, where the innocuousness and quality of the production systems is becoming increasingly important. In this context, Good Agricultural Practices (GAP) have emerged, as a set of practices seeking to ensure the innocuousness of agricultural products, the protection of the environment, the workers’ safety and well-being, and agricultural health, with a view to improving conventional production methods. Certification of such standards allows to demonstrate the application of Good Agricultural Practices to production systems and ensures product traceability, allowing to impose stricter controls to verify the enforcement of the applicable laws.
· The implementation of a system of control and assessment of agricultural tasks for analyzing and improving efficiency in the use of agricultural machinery hired. For each of the tasks, a minimum standard to be fulfilled by contractors was set, which has led to do an improvement in the plant stand upon sowing, a better use of supplies and lower harvesting losses.
We have several trademarks registered with the Instituto Nacional de la Propiedad Industrial, the Argentine institute for industrial property. We do not own any patents nor benefit from licenses from third parties.
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D. Trend Information
International Macroeconomic Outlook
As reported in the IMF’s WEO, worldwide GDP is expected to grow 3.2% in 2025 and 3.1% 2026, according to the October 2025 WEO projections. The persistence of services inflation is slowing the pace disinflation making monetary policy normalization more challenging. Upside risks have risen, with trade tensions and policy uncertainty raising the likelihood of interest rates staying higher for longer. Still, inflation in many emerging markets and developing economies is already close to pre-pandemic levels.
Global inflation is expected to decrease from 5.9% in 2024 to 4.2% in 2025 and to 3.7% in 2026, according to IMF’s WEO. The momentum on global disinflation is slowing, signaling bumps along the path. In advanced economies, the pace of disinflation is expected to moderate in 2025 and 2026, as services inflation remains persistent and commodity prices elevated. However, the gradual cooling of labor markets and the expected decline in energy prices should help bring inflation closer to target over the medium term. Inflation is expected to remain higher, and to decline more slowly, in emerging markets and developing economies than in advanced economies.
The persistence of inflation in the United States has delayed monetary easing, while renewed tariff tensions add to price pressures. At the same time, many central banks in emerging markets remain cautious about lowering rates, concerned that wider interest rate differentials could trigger currency depreciation against the U.S. dollar.
The escalation of trade tensions could further raise near-term inflation by increasing the cost of imported goods along the supply chain.
Renewed trade tariffs and the expansion of industrial policies worldwide risk generating adverse cross-border spillovers and retaliation. Conversely, stronger multilateral cooperation and faster macrostructural reforms could boost supply capacity, productivity, and global growth, with positive spillovers across economies.
Argentine macroeconomic context
The accumulated CPI, as of June 30, 2025, inflation was recorded at 1.6%, bringing the cumulative inflation between July 1, 2024, and June 30, 2025, reached 39.4%.
Shopping malls sales reached a total of ARS 592,710 million in June 2025, which represents a 27.8% increase as compared to June 2024. Accumulated sales for the first six months represent a 205.8% in current terms and 1.7% decrease in real terms as compared to the same period of 2024.
The INDEC reported that, for the six months ended June 30, 2025, industrial activity in Argentina increased by 7.1% compared to the same period in 2024. The textile industry accumulated 7.5% increases during the first six months of 2025 as compared to the same period last year. Moreover, the EMAE as of July 31, 2025, increased by 6.4% compared to the same month in 2024.
Regarding the balance of payments, in the second quarter of 2025 the current account posted a deficit of USD 3,016 million, explained by a USD 185 million surplus in the goods and services balance and a USD 4,080 million deficit in the primary income account, partially offset by a USD 879 million surplus in secondary income.
During the second quarter of 2025, the financial account recorded a net capital inflow of USD 2,835 million, which was the result of a net increase in external financial assets held by residents of USD 17,789 million and a net increase in external liabilities of USD 20,624 million. This represents a significant reversal compared to the outflows registered in the same quarter of the previous year.
As of June 30, 2025, international reserves reached USD 39,973 million, an increase of USD 14,987 million compared to the previous quarter. This variation was mainly explained by the disbursements received under the IMF program, including the initial disbursement and subsequent funds following the first program review, which were subject to the condition of easing foreign exchange restrictions.
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In local financial markets, the Private Badlar rate in Pesos ranged from 42.5% to 27.5% in the period from July 2024 to June 2025, averaging 34.51% during Fiscal Year 2025 compared to 93.60% in Fiscal Year 2024. As of June 30, 2025, the seller exchange rate quoted by Banco de la Nación Argentina was ARS 1190 per USD 1.00. As of June 30, 2025, Argentina’s country risk decreased by 754 basis points in year-on-year terms. The debt premium paid by Argentina was 701 basis points in June 2025, compared to 214 basis points paid by Brazil and 287 basis points paid by Mexico.
As of October 20, 2025, the Private Badlar rate in Pesos was at 49.38%. As of October 20, 2025, the seller exchange rate quoted by Banco de la Nación Argentina was ARS 1495.00 per USD 1.00. Additionally, as a result of small currency controls, there is a difference between the official exchange rate in Argentina (which is currently used for both commercial and financial transactions) and other informal exchange rates that emerged due to certain commonly performed operations in the foreign exchange market, leading to a positive gap of approximately 6.4% over the official exchange rate as of October, 20, 2025. As of October 20, 2025, Argentina’s country risk decreased by 485 basis points in year-on-year terms. The debt premium paid by Argentina was at 1048 basis points as of October 20, 2025, compared to 195 basis points paid by Brazil and 226 basis points paid by Mexico as of that same date.
Likewise, in the national and international framework described above, the Company periodically analyzes alternatives to appreciate its shares value. In that sense, the Board of Directors of the Company will continue focusing on the evaluation of financial, economic and / or corporate tools that allow the Company to improve its position in the market in which it operates and have the necessary liquidity to meet its obligations. Within the framework of this analysis, the indicated tools may be linked to corporate reorganization processes (merger, spin-off or a combination of both), disposal of assets in public and / or private form that may include real estate as well as negotiable securities owned by the Company, incorporation of shareholders through capital increases through the public offering of shares to attract new capital, repurchase of shares and instruments similar to those described that are useful to the proposed objectives.
Agriculture and Cattle Raising Sector in Argentina
Agriculture
Argentina has positioned itself over the years as one of the world’s leading food producers and exporters. It is the second largest country in South America after Brazil and has particularly favorable natural conditions for diversified agricultural production: vast extensions of fertile land and varied soil and weather patterns.
During the decade of the nineties, the Argentine agriculture and cattle raising industry experienced sweeping changes, such as a significant increase in production and yield (thanks to a sustained agricultural modernization process), relocation of production (crops vs. livestock) and a significant restructuring process within the industry, as well as increased land concentration. Taking advantage of a favorable international context, the agriculture and cattle raising sector has been one of the major drivers of the Argentine recovery after the economic and financial crisis of 2002.
According to the World Agricultural Supply and Demand Estimates Repro published by the United States Department of Agriculture on September 12, 2025, world soybean production for the season 2025/2026 is expected to be about 425.9 million tons, a decrease of 0.8% as compared to the season 2024/2025. Argentina, is one of the major exporters of Soybean together with Brazil, Paraguay and Uruguay. Argentina’s soybean production and soybean exports for the season 2025/2026 are expected to be about 48.50 million tons and 5.50 million tons, respectively. This means a 4.7% decrease in Argentina’s soybean production, and a 22.2% increase on its soybean exports; compared with the season 2024/2025.
World corn production is expected to be about 1,286.58 million tons for season 2025/2026, 5.5% more than in the previous season. Argentina is the world’s fourth largest corn exporter after China, United States and Brazil, and followed by Ukraine, Russia and South Africa. For the season 2025/2026 Argentina’s corn production and exports are expected to be about 54.0 million tons and 38 million tons, respectively. That means a 5.9% increase in Argentinia’s corn production, and a 5.6% increase on its corn exports; compared with the season 2024/2025.
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World wheat production is expected to be about 795.00 million tons for season 2025/2026, a decrease of 0.2% as compared to the season 2024/2025. Argentina’s wheat production and wheat exports for the season 2024/2025 are expected to be about 19.5 million tons and 13.00 million tons, respectively. This means a 8.3% increase in Argentina’s wheat production, and a 13.0% increase on its wheat exports; compared with the season 2024/2025.
Cattle
According to the Ministry of Agriculture, Livestock and Fisheries (“MAGyP”) and the Ministry of Economy (“MECON”), in June 2025, beef represented 44.1% of the total average per capita consumption of meat, followed by poultry with 40.2% and pigs with 15.7%.
In the accumulated of the first eight months of 2025, production (in terms of bone-beef) of beef jump 1.0%, while pork grew 0.35%; compared to the same period of the previous year.
According to the Rosario Stock Exchange, in the first half of 2025, beef exports fell by 16.4% in volume year-on-year terms. However due to higher international prices the value of these exports increased by around 17.6% compared to the previous year. Poultry meat exports grew in volume by 6.5% compared to the previous year; and although this balance exceeds that of the first half of the previous year by 21.6% measured in dollars, it is still 0.1% below the average of the last five years. On the other hand, pork exports were 30.2% over last year and 36% behind the average of the last five years in terms of volume.
In the first eight months of 2025, 1.0% fewer bovine animals were slaughtered compared to the same period of the previous year. Meanwhile, the slaughter of swine animals was 0.35% more in comparison to the first eight months of 2025 compared to the same period of the previous year.
Urban Properties and Investment Business
Evolution of Shopping Malls in Argentina
In August 2025, the CCI stood at 39.94, marking a 13.9% decrease compared to July 2025 (46.37) and a 3.6% decrease compared to August 2024. Shopping mall sales increased 27.8% in the fiscal year ended June 30, 2025, compared to fiscal year ended June 30, 2024. Accumulated sales for the first six months represent a 0.2% decrease in current terms and 13.3% decrease in real terms as compared to the same period of 2024.
Evolution of Office Properties in Argentina
The shift in corporate activity to remote or virtual work that resulted from the COVID-19 pandemic resulted in lower demand, increased vacancies, and a slight decrease in the rental prices of category A+ and A office buildings in Buenos Aires.
According to Colliers, the second quarter of 2025 closes with a vacancy in the order of 14.46% regarding the premium market of the City of Buenos Aires, stable when compared to the previous quarter.
Category “A+” properties have an average Rental price of 23.43 USD/sqm and class “A” properties of 19.94 USD/sqm during the second quarter of the year 2025. Regarding the average price per submarket, Plaza San Martín, Norte CABA, Plaza Roma, Puerto Madero, Macrocentro Norte and Catalinas reflect the highest with 26.30 USD/sqm, 25.78 USD/sqm, 24.73 USD/sqm, 23.90 USD/sqm, 23.25 USD/sqm and 23.00 USD/sqm respectively.
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Evolution of the Hotel industry in Argentina
According to the EOH prepared by INDEC, in June 2025, overnight stays at hotel and para-hotel establishments were estimated at 2.6 million, representing a 7.1% decrease compared to the same month of the previous year. Overnight stays by resident and nonresident travelers decreased by 7.4% and 5.8%, respectively. Total travelers who stayed at hotels during June 2025 were 1.2 million, a 0.4% decrease compared to the same month the previous year. The number of resident travelers increased by 0.4%, whereas nonresident travelers dropped 3.9%. The Room Occupancy Rate was around 34.0%, compared to 35.5% in June 2024, and the Bed Occupancy Rate was about 26.0%, down from 27.2% in the same month of the previous year.
Evolution of the Entertainment industry in Argentina
The upcoming fiscal year presents challenges for Argentina’s entertainment and events industry given the electoral context and the tight operating margins observed across the sector. Nevertheless, each fair or large gathering that is successfully organized continues to perform well, showing solid demand and positive reception from visitors and exhibitors. Looking ahead, the industry is expected to continue advancing toward a more comprehensive offering that combines venue rental with infrastructure, stand construction and associated services, adapting to new market requirements and enhancing its overall value proposition.
For fiscal year 2026, the outlook is positive, with expectations of attracting larger-scale and longer-term events that will expand the national agenda of shows and meetings and further strengthen Argentina’s position as a key hub in the regional entertainment and meetings industry.
E. Critical Accounting Estimates
Not all of these significant accounting policies require management to make subjective or complex judgments or estimates. The following is intended to provide an understanding of the policies that management considers critical because of the level of complexity, judgment or estimations involved in their application and their impact on the Consolidated Financial Statements. These judgments involve assumptions or estimates in respect of future events. Actual results may differ from these estimates.
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Estimation Main assumptions Potential implications Main references (1)
Recoverable amounts of cash-generating units (even those including goodwill), associates and assets. The discount rate and the expected growth rate before taxes in connection with cash-generating units.The discount rate and the expected growth rate after taxes in connection with associates.Cash flows are determined based on past experiences with the asset or with similar assets and in accordance with the Company’s best factual assumption relative to the economic conditions expected to prevail.Business continuity of cash-generating units.Appraisals made by external appraisers and valuators with relation to the assets’ fair value, net of realization costs (including real estate assets). Should any of the assumptions made be inaccurate; this could lead to differences in the recoverable values of cash-generating units. Note 8—Investments in associates and joint venturesNote 10 – Property, plant and equipmentNote 12 – Intangible assets
Control, joint control or significant influence Judgment relative to the determination that the Company holds an interest in the shares of investees (considering the existence and influence of significant potential voting rights), its right to designate members in the executive management of such companies (usually the Board of directors) based on the investees’ bylaws; the composition and the rights of other shareholders of such investees and their capacity to establish operating and financial policies for investees or to take part in the establishment thereof. Accounting treatment of investments as subsidiaries (consolidation) or associates (equity method) Note 2.3 – Scope of consolidation; “de facto control”
Estimated useful life of intangible assets and property, plant and equipment Estimated useful life of assets based on their conditions. Recognition of accelerated or decelerated depreciation by comparison against final actual earnings (losses). Note 10 – Property, plant and equipmentNote 12 – Intangible assets
Fair value valuation of investment properties Fair value valuation made by external appraisers and valuators. See Note 9. Incorrect valuation of investment property values Note 9 – Investment properties
Income tax The Company estimates the income tax amount payable for transactions where the Treasury’s Claim cannot be clearly determined.Additionally, the Company evaluates the recoverability of assets due to deferred taxes considering whether some or all of the assets will not be recoverable. Upon the improper determination of the provision for income tax, the Company will be bound to pay additional taxes, including fines and compensatory and punitive interest. Note 23 – Taxes
Allowance for doubtful accounts A periodic review is conducted of receivables risks in the Company’s clients’ portfolios. Bad debts based on the expiration of account receivables and account receivables’ specific conditions. Improper recognition of charges / reimbursements of the allowance for bad debt. Note 17 – Trade and other receivables
Level 2 and 3 financial instruments Main assumptions used by the Company are: · Discounted projected income by interest rate· Values determined in accordance with the shares in equity funds on the basis of its Financial Statements, based on fair value or investment assessments.· Comparable market multiple (EV/GMV ratio).· Underlying asset price (Market price); share price volatility (historical) and market interest rate (Libor rate curve). Incorrect recognition of a charge to income / (loss). Note 16 – Financial instruments by category
Probability estimate of contingent liabilities. Whether more economic resources may be spent in relation to litigation against the Company, such estimate is based on legal advisors’ opinions. Charge / reversal of provision in relation to a claim. Note 21 – Provisions
Qualitative considerations for determining whether or not the replacement of the debt instrument involves significantly different terms The entire set of characteristics of the exchanged debt instruments, and the economic parameters represented therein: Average lifetime of the exchanged liabilities; Extent of effects of the debt terms (linkage to index; foreign currency; variable interest) on the cash flows from the instruments. Classification of a debt instrument in a manner whereby it will not reflect the change in the debt terms, which will affect the method of accounting recording. Note 16 – Financial instruments by category(Financial liabilities)
Biological assets Main assumptions used in valuation are yields, production costs, selling expenses, forwards of sales prices, discount rates. Wrong recognition/valuation of biological assets. See sensitivities modeled on these parameters in Note 13. Note 14 – Biological assets
(1) Reference to notes to our Audited Consolidated Financial Statements.
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