Company: CRESW
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001654954-25-012195
Chunk: 274

Company: CRESUD INC
Filing Date: 2025-10-24
Form: 20-F
Item: Item 5
Chunk 274
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 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