Cresud Navigates Hyperinflation, Political Uncertainty in 2025 Filing

TL;DR

**CRESY is a high-risk play on Argentine real estate and agriculture, with hyperinflation and political instability making it a wild ride for investors.**

AI Summary

CRESUD INC's 20-F filing for the fiscal year ended June 30, 2025, indicates a complex financial landscape, primarily influenced by the hyperinflationary Argentine economy. The company prepares its financial statements in Argentine Pesos (ARS) in accordance with IFRS Accounting Standards, specifically applying IAS 29 for hyperinflationary economies. While specific revenue and net income figures are not provided in the excerpt, the emphasis on inflation adjustment suggests significant volatility and challenges in financial reporting. Key business changes and strategic outlook are not detailed in this introductory section, but the company's core operations involve real estate and agricultural activities, as implied by its full name, Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria. Risks highlighted include changes in general economic, financial, business, political, legal, and social conditions in Argentina and Brazil, fluctuations in exchange rates, inflation, and interest rates. The company also faces risks related to governmental intervention, increased competition in real estate, and climate change. The strategic outlook is implicitly tied to navigating these macroeconomic and political uncertainties, particularly with upcoming national mid-term legislative elections in Argentina on October 26, 2025.

Why It Matters

This filing is crucial for investors as it reveals CRESUD's operational environment, heavily impacted by Argentina's hyperinflationary economy and political instability, including upcoming national elections on October 26, 2025. The application of IAS 29 means reported financial figures are adjusted for inflation, which can obscure underlying operational performance and make year-over-year comparisons challenging. For employees and customers, the economic volatility and potential governmental interventions could affect job security and service stability. The broader market, especially in Latin America, will watch CRESUD as a bellwether for companies operating in similar high-inflation, politically sensitive regions, providing competitive context on how firms adapt to such challenging conditions.

Risk Assessment

Risk Level: high — The risk level is high due to the explicit mention of Argentina's hyperinflationary economy, requiring financial statements to be measured under IAS 29. Furthermore, the filing details significant political and economic risks, including 'changes in general economic, financial, business, political, legal, social or other conditions in Argentina' and 'fluctuations and decreases in exchange rates relative to the Peso, Brazilian real, and U.S. dollar against other currencies,' directly impacting CRESUD's financial stability and operational predictability.

Analyst Insight

Investors should approach CRESY with extreme caution, recognizing the significant macroeconomic and political risks in Argentina. A deep dive into the full financial statements, particularly the impact of IAS 29 adjustments, is essential to understand the true operational performance. Consider CRESY only as a highly speculative investment with a small portion of a diversified portfolio.

Key Numbers

• 614,074,273 — Outstanding shares of common stock (As of the close of the period covered by the Annual Report, indicating the total shares in circulation.)
• 10 — Shares per ADS (Each American Depositary Share (ADS) represents ten shares of CRESUD's common stock, impacting ADS valuation.)
• ARS 1.00 — Par value per common stock share (The nominal value of each common stock share, denominated in Argentine Pesos.)
• June 30, 2025 — Fiscal year end date (The period covered by this annual report, providing the latest financial reporting cycle.)
• October 23, 2025 — Board of Directors' meeting date (Date when the Audited Consolidated Financial Statements were approved, indicating timely review.)
• October 26, 2025 — Date of national mid-term legislative elections in Argentina (A significant political event that could introduce further economic and regulatory uncertainty for CRESUD.)

Key Players & Entities

• CRESUD INC (company) — Registrant for the 20-F filing
• Matías Iván Gaivironsky (person) — Chief Financial and Administrative Officer
• Argentina (regulator) — Jurisdiction of incorporation and primary operational focus
• Nasdaq National Market (regulator) — Exchange where ADSs and Common Stock are registered
• SEC (regulator) — United States Securities and Exchange Commission
• The Bank of New York (company) — ADS Depositary
• Price Waterhouse & Co S.R.L. (company) — Independent registered public accounting firm
• IMF (company) — International Money Fund, involved in Argentina's sovereign debt restructuring
• Carlos M. Della Paolera 261, 9th Floor (company) — Address of principal executive offices
• October 26, 2025 (date) — Date of national mid-term legislative elections in Argentina

FAQ

Risk Factors

• Hyperinflationary Economy Impact [high — financial]: The company's financial statements are prepared in Argentine Pesos (ARS) and are subject to IAS 29 due to Argentina's hyperinflationary economy. This requires constant adjustment of financial information to reflect the current purchasing power at the end of the reporting year, leading to significant volatility and complexity in financial reporting.
• Economic and Political Instability in Argentina and Brazil [high — market]: CRESUD faces substantial risks from changes in general economic, financial, business, political, legal, and social conditions in both Argentina and Brazil. Upcoming national mid-term legislative elections in Argentina on October 26, 2025, could introduce further uncertainty.
• Exchange Rate Fluctuations [medium — financial]: Fluctuations in exchange rates between the Argentine Peso, Brazilian Real, and U.S. Dollar pose a significant risk. The company's financial performance and the value of its assets and liabilities can be materially impacted by these currency movements.
• Inflation and Interest Rate Volatility [high — market]: High inflation rates and fluctuating interest rates in the regions of operation directly affect the company's cost of capital, profitability, and the valuation of its real estate and agricultural assets.
• Governmental Intervention [medium — regulatory]: The company is exposed to risks associated with potential governmental intervention in the economies of Argentina and Brazil. Such interventions could include changes in regulations, taxes, or economic policies that negatively impact business operations.
• Increased Competition in Real Estate [medium — market]: The real estate sector in which CRESUD operates may experience increased competition. This could lead to pressure on rental income, property values, and development margins.
• Climate Change Impact [medium — operational]: As a company with significant agricultural operations, CRESUD is vulnerable to the impacts of climate change. Adverse weather conditions, such as droughts or floods, can affect crop yields and agricultural land values.

Industry Context

CRESUD operates in the real estate and agricultural sectors, primarily in Argentina and Brazil. The real estate market is subject to competition and economic cycles, while the agricultural sector is influenced by commodity prices, weather patterns, and government policies. Both sectors are significantly impacted by the macroeconomic conditions of their operating countries.

Regulatory Implications

The company's operations are subject to the regulatory frameworks of Argentina and Brazil, including potential changes in economic policies, taxation, and land use regulations. The hyperinflationary status of Argentina mandates strict adherence to IAS 29 for financial reporting, adding a layer of regulatory complexity.

What Investors Should Do

1. Monitor upcoming Argentine elections (October 26, 2025) for potential policy shifts impacting CRESUD's business environment.
2. Analyze the impact of hyperinflation and currency fluctuations on reported financial results and underlying asset values.
3. Assess the company's hedging strategies and capital structure in light of high interest rates and exchange rate volatility.
4. Evaluate the performance of both real estate and agricultural segments, considering sector-specific risks like competition and climate change.

Key Dates

• 2025-06-30: Fiscal year end date — Marks the end of the reporting period for the Audited Consolidated Financial Statements.
• 2025-10-23: Board of Directors' meeting date — The date on which the Audited Consolidated Financial Statements for the fiscal year ended June 30, 2025, were approved.
• 2025-10-26: National mid-term legislative elections in Argentina — A significant political event that could lead to changes in economic policies and regulatory environments, impacting CRESUD's operations.
• 2018-07-01: Argentina's cumulative three-year inflation rate exceeded 100% — Triggered the requirement for financial information to be adjusted for inflation in accordance with IAS 29, starting from this date.

Glossary

IAS 29

An International Accounting Standard that requires financial statements of entities operating in hyperinflationary economies to be stated in terms of the measuring unit current at the end of the reporting period. (Crucial for understanding how CRESUD's financial statements are adjusted for the high inflation in Argentina, impacting comparability and interpretation.)

IFRS Accounting Standards

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB). (The framework under which CRESUD prepares its financial statements, ensuring a degree of global comparability, though modified by IAS 29.)

Argentine Peso (ARS)

The official currency of Argentina. (The functional and presentation currency for CRESUD's financial statements, heavily impacted by hyperinflation.)

American Depositary Share (ADS)

A U.S. dollar-denominated equity share of a foreign-based company available for purchase outside of that company's home country. (Each ADS represents ten shares of CRESUD's common stock, affecting how U.S. investors hold and value their investment.)

Functional Currency

The currency of the primary economic environment in which an entity operates. (For CRESUD, this is the Argentine Peso, necessitating inflation adjustments under IAS 29.)

Presentation Currency

The currency in which the financial statements are presented. (CRESUD's presentation currency is also the Argentine Peso, meaning the entire financial report is inflation-adjusted.)

Year-Over-Year Comparison

This excerpt does not provide comparative figures from the previous year's filing. However, the consistent emphasis on hyperinflation adjustments under IAS 29 suggests that the challenges of reporting in an unstable economic environment remain a primary concern. New risks related to upcoming elections in Argentina are highlighted, indicating a dynamic political landscape that investors must monitor.

Filing Documents

• cresud_20f.htm (20-F) — 11144KB
• cresud_ex420.htm (EX-4.20) — 63KB
• cresud_ex81.htm (EX-8.1) — 48KB
• cresud_ex121.htm (EX-12.1) — 11KB
• cresud_ex122.htm (EX-12.2) — 12KB
• cresud_ex131.htm (EX-13.1) — 5KB
• cresud_ex132.htm (EX-13.2) — 6KB
• cresud_ex991.htm (EX-99.1) — 347KB
• cresud_20fimg6.jpg (GRAPHIC) — 6KB
• cresud_20fimg5.jpg (GRAPHIC) — 6KB
• 0001654954-25-012195.txt ( ) — 37375KB
• cresud-20250630.xsd (EX-101.SCH) — 338KB
• cresud-20250630_lab.xml (EX-101.LAB) — 1077KB
• cresud-20250630_cal.xml (EX-101.CAL) — 106KB
• cresud-20250630_pre.xml (EX-101.PRE) — 1023KB
• cresud-20250630_def.xml (EX-101.DEF) — 769KB
• cresud_20f_htm.xml (XML) — 9566KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court. Yes No Please send copies of notices and communications from the Securities and Exchange Commission to: Carolina Zang Juan M. Naveira Zang Bergel & Vies Abogados Simpson Thacher & Bartlett LLP Eduardo Madero Avenue 942, 25th Floor C1106ACW City of Buenos Aires, Argentina. 425 Lexington Avenue New York, NY 10017 United States of America TABLE OF CONTENTS Page No. GLOSSARY i DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS iii AVAILABLE INFORMATION v PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION vi Part I 1

Identity of Directors, Senior Management, Advisers and Auditors

ITEM 1. Identity of Directors, Senior Management, Advisers and Auditors 1

Offer Statistics and Expected Timetable

ITEM 2. Offer Statistics and Expected Timetable 1

Key Information

ITEM 3. Key Information 1 A. Reserved 1 A.1. Local Exchange Market and Exchange Rates 1 B. Capitalization and Indebtedness 1 C. Reasons for the Offer and Use of Proceeds 1 D. Risk Factors 2

Information on the Company

ITEM 4. Information on the Company 55 A. History and Development of the Company 55 B. Business Overview 62 C. Organizational Structure 126 D. Property, Plant and Equipment 127

Unresolved staff comments

ITEM 4A. Unresolved staff comments 130

Operating and Financial Review and Prospects

ITEM 5. Operating and Financial Review and Prospects 130 A. Operating Results 130 B. Liquidity and Capital Resources 175 C. Research and Development, Patents and Licenses, Etc 186 D. Trend Information 187 E. Critical Accounting Estimates 190

Directors, Senior Management and Employees

ITEM 6. Directors, Senior Management and Employees 192 A. Directors and Senior Management 192 B. Compensation 198 C. Board Practices 201 D. Employees 201 E. Share Ownership 202 F. Disclosure of Registrant's Action to Recover Erroneously Awarded Compensation 203

Major Shareholders and Related Party Transactions

ITEM 7. Major Shareholders and Related Party Transactions 203 A. Major Shareholders 203 B. Related Party Transactions 205 C. Interests of Experts and Counsel 209

Financial Information

ITEM 8. Financial Information 209 A. Consolidated Statements and Other Financial Information 209 B. Significant Changes 217

The Offer and Listing

ITEM 9. The Offer and Listing 217 A. Offer and Listing Details 217 B. Plan of Distribution 218 C. Markets 218 D. Selling Shareholders 221 E. Dilution 221 F. Expenses of the Issue 221 Table of Contents

Additional Information

ITEM 10. Additional Information 221 A. Share Capital 221 B. Memorandum and Articles of Association 221 C. Material Contracts 229 D. Exchange Controls 229 E. Taxation 243 F. Dividends and Paying Agents 252 G. Statement by Experts 252 H. Documents on Display 252 I. Subsidiary Information 252

Quantitative and Qualitative Disclosures about Market Risk

ITEM 11. Quantitative and Qualitative Disclosures about Market Risk 252

Description of Securities Other than Equity Securities

ITEM 12. Description of Securities Other than Equity Securities 253 A. Debt Securities 253 B. Warrants and Rights 253 C. Other Securities 253 D. American Depositary Shares 253 Part II 255

Defaults, Dividend Arrearages and Delinquencies

ITEM 13. Defaults, Dividend Arrearages and Delinquencies 255

Material Modifications to the Rights of Security Holders and Use of Proceeds

ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 255

Controls and Procedures

ITEM 15. Controls and Procedures 256 A. Disclosure Controls and Procedures 256 B. Management's Annual Report on Internal Control Over Financial Reporting 256 C. Attestation Report of the Registered Public Accounting Firm 256 D. Changes in Internal Control Over Financial Reporting 256

Reserved

ITEM 16. Reserved 257 A. Audit Committee Financial Expert 257 B. Code of Ethics 257 C. Principal Accountant Fees and Service 257 D. Exemption from the Listing Standards for Audit Committees 258 E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 259 F. Change In Registrant's Certifying Accountant 260 G. Corporate Governance 260 H. Mine Safety Disclosures 264 I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 264 J. Insider Trading Policies 264 K. Cybersecurity 264 Part III 266

Financial Statements

ITEM 17. Financial Statements 266

Financial Statements

ITEM 18. Financial Statements 266

Exhibits

ITEM 19. Exhibits 266 Table of Contents GLOSSARY Glossary of certain terms used in this Annual Report Unless the context indicates otherwise, the following terms have the meanings shown below: "ADR": American Depositary Receipt which represent the ADSs; "ADS" or "ADSs": American Depositary Shares each representing 10 shares of our common stock issued pursuant to the deposit agreement, dated as of March 18, 1997 (the "Deposit Agreement"), between us and the ADS Depositary; "ADS Depositary": The Bank of New York; "AFIP": Federal Administration of Public Revenue ( Administracin Federal de Ingresos Pblicos) currently replaced by "ARCA" as defined below; "Agrofy": Agrofy Global LLC; "AMAUTA": Amauta Agro S.A.; "Annual Report": this annual report; "ANSES": National Social Security Agency ( Administracin Nacional de la Seguridad Social ); "ARCA": Revenue and Customs Control Agency (Agencia de Recaudacin y Control Aduanero) "ARS, Pesos or Peso": Argentine Pesos; "Anti-Money Laundering Law": Law No. 25,246, subsequently amended by, among others, Laws No. 26,087, 26,119, 26,268, 26,683, 26,733, 26,734 and Decree No. 27/2018; "Argentine Government": Federal government of Argentina; "Audited Consolidated Financial Statements": audited Consolidated Financial Statements as of June 30, 2025 and 2024 and for the years ended June 30, 2025, 2024 and 2023, and the notes thereto; "A3 Mercados": A3 Mercados S.A. (formerly Mercado Abierto Electrnico S.A. ); "BACS": Banco de Crdito y Securitizacin S.A.; "Banco Hipotecario": Banco Hipotecario S.A.; "BASE": Buenos Aires Stock Exchange; "Board of Directors": the board of directors of CRESUD; "BOPREAL": Bonds for the Reconstruction of a Free Argentina ("Bonos para la Reconstruccin de una Argentina Libre"); "BrasilAgro": BrasilAgro Companhia Brasileira de Propriedades Agricolas Ltda; "ByMA": Argentine stock exchange and markets ( Bolsas y Mercados Argentinos S.A. ); "CABA": Autonomus City of

Financial Statements

Financial Statements We prepare and maintain our financial books and records in Pesos (as defined below in section "—Currency") and in accordance with IFRS Accounting Standards, as issued by the IASB and the CNV Rules. Our fiscal year begins on July 1 of each year and ends on June 30 of each year thereafter. Our Audited Consolidated Financial Statements as of June 30, 2025 and 2024 and for the years ended June 30, 2025, 2024 and 2023, and the notes thereto are set forth on pages F-1 through F-99 of this Annual Report. Our Audited Consolidated Financial Statements have been approved by resolution of the Board of Directors' meeting held on October 23, 2025 and have been audited by Price Waterhouse & Co S.R.L., Argentina, member of PricewaterhouseCoopers International Limited, an independent registered public accounting firm whose report is included herein. Functional and Presentation Currency; Adjustment for Inflation Our functional and presentation currency is the Argentine Peso, and our Audited Consolidated Financial Statements included in this Annual Report are presented in Argentine Pesos. IAS 29 requires that the financial statements of any entity whose functional currency is one of a hyperinflationary economy be measured in terms of the current unit of measurement at the closing date of the financial statements, regardless of whether they are based on the historical cost method or the current cost method. This requirement also includes the comparative information of the financial statements. In order to conclude that an economy is "hyperinflationary," IAS 29 outlines a series of factors, including the existence of an accumulated inflation rate in three years that is approximately or exceeds 100%. As of July 1, 2018, Argentina reported a cumulative three-year inflation rate greater than 100% and therefore financial information published beginning on that date should be adjusted for inflation in accordance with IAS 29. Therefore, our Audited Consolidated

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