Cresud Inc. (NASDAQ:CRESY, BYMA:CRES), a leading real estate and agribusiness company based in Argentina, announced today that its shareholders approved a significant dividend distribution. The decision was made during the company's Shareholders' Meeting, where a majority of votes favored the payout of up to ARS 45,000,000,000 in cash and/or in-kind dividends to shareholders, proportional to their ownership stakes.
The approval of this dividend distribution represents a notable financial decision for the company, which operates within the real estate sector under SIC [6500]. Cresud's business encompasses a range of activities, including commercial, financial, and agricultural operations.
Saúl Zang, responsible for the Relationship with the Markets at Cresud, confirmed the approval of the dividend in a statement filed with the Bolsa de Comercio de Buenos Aires and the Comisión Nacional de Valores. This report was also submitted to the U.S. Securities and Exchange Commission in a Form 6-K, which is a requirement for foreign issuers listed on U.S. exchanges to provide information equivalent to that which would be filed domestically.
The company's executive offices are located in Buenos Aires, Argentina, at Carlos Della Paolera 261, 9th Floor. Cresud's fiscal year ends on June 30, and it is incorporated in the Republic of Argentina.
This announcement follows the company's commitment to transparency and compliance with international financial reporting standards. The information provided in this article is based on a press release statement without additional commentary or speculation.
In other recent news, Cresud Inc. reported significant financial developments. The company issued additional shares following the exercise of warrants, leading to the registration of 2,283,822 ordinary shares and an increase in total shares from 596,355,320 to 598,639,142. This resulted in a collection of USD 982,729 from the warrant exercises.
On another note, Cresud successfully sold a portion of its "Los Pozos" property, a 3,630-hectare section of their farm in Salta Province, Argentina, for a total of $2.23 million. This sale will be reflected in Cresud's financial statements for the first quarter of fiscal year 2025.
In the capital market, Cresud issued Series XLVI notes, raising an equivalent of USD 28.6 million, a move in line with the company's efforts to strengthen its capital structure and diversify its financing sources.
InvestingPro Insights
The recent dividend approval by Cresud's shareholders aligns well with the company's financial profile, as revealed by InvestingPro data. Cresud's dividend yield stands at an impressive 7.7%, underscoring its commitment to returning value to shareholders. This high yield is complemented by an InvestingPro Tip noting that Cresud "pays a significant dividend to shareholders," which is now further reinforced by the newly approved distribution.
InvestingPro data also shows that Cresud has been profitable over the last twelve months, with a revenue of $780.44 million USD and an EBITDA of $166.88 million USD. The company's profitability is reflected in its attractive valuation metrics, with a P/E Ratio (Adjusted) of 2.26 for the last twelve months as of Q4 2024, indicating that the stock may be undervalued relative to its earnings.
Another InvestingPro Tip highlights Cresud as a "prominent player in the Food Products industry," which aligns with its diverse operations in agribusiness and real estate. This positioning, combined with its strong financial performance, has contributed to a robust 38.28% one-year price total return as of the latest data.
For investors seeking more comprehensive insights, InvestingPro offers 7 additional tips for Cresud, providing a deeper understanding of the company's financial health and market position.
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