Company: CRESW
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001654954-25-012195
Chunk: 106

Company: CRESUD INC
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 106
---
 period to period and are likely to continue to fluctuate due to seasonal factors.

A substantial portion of our assets consists of farmland, which is an illiquid asset.

We have been able to partially rotate and monetize certain farmland investments. The ownership of a significant portion of the land we operate is a key component of our business model. However, farmland is generally considered an illiquid asset. In addition, the adoption of laws and regulations imposing restrictions on the ownership of rural land by foreigners in the jurisdictions where we operate may further limit the liquidity of our farmland holdings. Consequently, it is unlikely that we would be able to quickly adjust our farmland portfolio in response to changes in economic, business or regulatory conditions. The lack of liquidity in local markets may adversely affect our ability to dispose of farmland, collect proceeds from such sales or repatriate such proceeds.

30

Restrictions on dividend payments from our subsidiaries may adversely affect us.

We operate through subsidiaries, and cash dividends and other permitted payments from our subsidiaries constitute an important source of our revenues. Debt agreements entered into by our subsidiaries contain covenants that may restrict their ability to pay dividends or make other distributions. If our subsidiaries are restricted from making payments to us, or are only able to make limited payments, we may be unable to pay dividends or service our debt.

We could be materially and adversely affected by our investment in BrasilAgro.

We consolidated our financial statements with BrasilAgro. BrasilAgro was formed on September 23, 2005 to exploit opportunities in the Brazilian agricultural sector. BrasilAgro seeks to acquire and develop future properties to produce a diversified range of agricultural products (which may include sugarcane, grains, cotton, forestry products and livestock). BrasilAgro is a company that has been operating since 2006. As a result, it has a developing business strategy and an established track record. BrasilAgro’s business strategy may not be successful, and if not successful, BrasilAgro may be unable to successfully modify its strategy. BrasilAgro’s ability to implement its proposed business strategy may be materially and adversely affected by many known and unknown factors. If we were to write-off our investments in BrasilAgro, this would likely materially and adversely affect our business. As of June 30, 2025, we owned 35.22% (net of treasury shares) of the outstanding common shares of BrasilAgro.

Changes in facts and circumstances may affect our accounting consolidation over BrasilAgro.

As of June 30,