Good afternoon, everyone. I'm Santiago Donato, Investor Relations Officer of Cresud. I welcome you to the 3rd quarter of 2026 results conference call. First of all, I would like to remind you that both audio and slide show may be accessed through company's investor relations website at www.cresud.com.ar by clicking on the banner webcast link. The following presentation and the earnings release are also available for download on the company website. After management remarks, there will be a question and answer session for analysts and investors. If you want to make a question, please use the chat. Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risk and uncertainties. Actual results may differ materially.
Please refer to the detailed note in the company's earnings release regarding forward-looking statements. I will now turn the call over to Mr. Alejandro Elsztain, CEO.
Good afternoon, everybody. We are beginning the highlights of the first nine months of 2026, and we are progressing a very good campaign that it's a record planted area between owned and leased and with favorite conditions. We're going to see later how the yields are good in general, so we are surpassing our volumes of the past. Related to the prices of the commodities, there was some raising the price of commodities, but input costs, too. That is making margins not to be so profitable, but still very good for the year, and but the last two months, we began to see a bad context to fertilizers and fuel that is damaging farmer condition because of the cost of inputs. Related to Argentina, we had very good winter crop.
We were very good in yields on wheat mainly, but in summer crops, soybean and corn, we are good enough, too. We are surpassing the volumes of the past for all the history of Cresud this year in the combination of the North, Central, and South region of Argentina. In case of BrasilAgro, the production was lower. The main explanation in the balance sheet is because the sugarcane of 2025 that was damaged because of frozen and drought, the combination of the two, that made to suffer the operational business of BrasilAgro mainly, that affected some yields in some regions of Brazil. Related to livestock, this year is a record for the history of Cresud, record in prices, in margins, in production, and we are improving our activity mainly in Argentina and some in Paraguay.
The cattle business is spending a very good time, and I will explain later. Related to the real estate, up to the 31st of March, there were not sales, but there was a subsequent sale in the fourth quarter for a small portion in Paraguay, 921 hectares, but usually, net hectares are 500 hectares for $1.5 million. Small fraction of sale in our Paraguay operation. Related to capital markets, we are very active during this quarter. The whole year, we did $181 million on notes issuance on Argentine capital market and lowering the cost of financing of Cresud and extending the tenure of the debt.
Saying that, we can move now to page number 3. We can see the increasing surface of agriculture in the planted area evolution. We passed last year in 4% in size in hectares planted and the combination of the four countries. We can see the breakdown of 50% soybeans, 27% of corn, 9% of sugarcane. If we move to next page, the page number 4, we see the evolution of the price. The price was in the year, there was a little recovery in the soybean, but the net recovery of the soybean combining basis and exchange rate, mainly Brazil, is close to zero. Really, there is not a big effect of increasing prices in South America. It's a Chicago and South America combination. It's all would say it's almost flat to farmers in the region.
The good part, it's mainly because of the yields that we are achieving, and we can move now to next page. We had very good conditions on climate. In the wheat, we had more than 10% surpassing our forecast, our budget, and we are expecting good yields in the soybean and corn. Soybeans in some countries is done. Brazil finished and was very close to budget, a 1% drop, so zero. In Argentina, we are almost the same. This year is good in yields and in prices, not big, there is in soybean is good, little less in other crops. We have a good combination. The operational combination on the region is really very good in the highest size of our history. We are going to see forecasting part of the balance sheet of the year.
We are going to see a very good operational business, mainly in Argentina. Here, we can see that we finished harvest in Brazil. We finished harvest in Bolivia. In Argentina, few weeks ago was at 7, now we are advancing a lot. We are going to finish in 15, 30 days, we are going to finish Argentina crop in soybeans. The corn is the more delay that we'll need up to July, August to finish. The conditions are good, enough good, and good conditions for next campaign too. Now, in our autumn we are recovering a lot of water in Argentina, mainly Argentina, we are going to plant a lot of winter crops too. Operational business of agriculture, very positive. If we move to the forecast here, we see we are forecasting an increase comparing to last year of 22% in total crop production.
From the 829,000 tons, we are forecasting 1 million tons, our record in production in our history, in the combination of the region, Argentina and the region. In sugarcane too, here we are forecasting the sugarcane of 2026, comparing to last year that we have the damage that is showing on the balance sheet, and we are expecting a recovery of 12% in yields. We are much hard, high in crops and in sugarcane for the year. We can see when we compare corn, we went from 550 to 593. In the soybeans, 260 to close to 90. This is the combination of first soybean, second soybean of the whole region. In the combination of the region, we have a very important increase.
We see 13% in Argentina, 5% in Brazil, 65% in Bolivia and Paraguay, a big increase. We are going to normal, 2.58 in Paraguay, 178 comparing to bad year of last year in Paraguay. In the corn, 8% combined in the 3 countries. Here we see 11% in Argentina, 4% in Brazil, 36% in Paraguay, so more normalized in the northern part of Argentina and in Paraguay region too. Highest in volume and in yield of the history. If we move now to next page, we can see the livestock activity in Argentina, the recovery of prices of Argentina that was at the bottom and went to the very high prices for the kilogram of beef.
We, in Argentina, in the graph on the right part, we see there is not still a recovery on the inventory of the livestock of the country. With these prices still, we'll be expecting a recovery, but still is not. Still it's going down to a 51 million heads in Argentina, and the prices are flying, and with those prices and achieving very high productivity, 10.7 million kilograms. Big production having not so big stock, but very efficient. We are expecting a very, very profitable year. Here we're putting the production forecast, but the margins are really incredible, the highest of the history of cattle business in Argentina.
Here we are expanding our feedlot in Artigas, La Pampa, we are increasing the volume on the cattle business in Argentina because of the combination of very good price and low price of the inputs of the, mainly the grains, making a very profitable activity comparable to agriculture. Today, Cresud, and probably in the fourth quarter, we are going to show the expansion and the evolution of the cattle business that is making a much more comparable than in the past to the agriculture. Not even, but very comparable in margins. Saying that, we can move now to page number 8, and looking at what is happening in FyO, our company, service company and commercial company, where Cresud own 51%. We are expecting to keep growing.
The forecast was 7.60, we think that Argentine crop will keep growing and FyO will keep growing from this number too. Representing a big portion of Argentine volume through the trading volume, no? This company is servicing farmers in advising them, helping in capital, in all kind of inputs and outputs for the farmers, and making an EBITDA of $35 million of last 4 years. We are expecting to have a comparable number this year. With that proceeds is not only doing the business in Argentina, inputs and outputs. We can here see the Biondi is the Brazilian name, and this company is going to a half a million tons of volume in Brazil. It's expanding globally in the South American region.
These companies keep growing in a very fast pace. Saying that, I will now introduce to Matías Gaivironsky to explain us about the investment in IRSA that Cresud owns.
Thank you, Alejandro. Good afternoon, everybody. When we move to page 9 about our investment in IRSA, remember that Cresud today control 53.44% of IRSA, but after the exercise of the warrants on a fully diluted basis, we will have 55%. IRSA during this 9-month period posted very good numbers with a net gain of ARS 239.7 billion, with all the lines growing in real terms against last year, shopping malls increase in revenues and EBITDA, the same in the office and the hotel portfolio. The hotel, the office portfolio is running at 100% occupancy, and the hotels also we saw an improvement in rates and occupancy and in margins. Also, IRSA announced a new development of a new office building, adjoining, just adjacent to the Mercado Libre, the Zetta building in Polo Dot.
IRSA already signed an agreement with Mercado Libre that they will rent most part of the building. Regarding Ramblas, the main project of IRSA, we continue with the development and the commercialization of the different plot of lands. During the quarter, we signed 2 additional lots. We already signed 15 lots, plus 2 lots that we sold in cash. As you can see in the graph, the evolution or the increase against last year on the rental segment was 3.5% in real terms. Going to the next page. To understand the results on our balance sheet, you have to understand the drivers on inflation and devaluation, what is impacting in our numbers.
As you know, we have to adjust our balance sheet by inflation, while our revenues in most part of the business line in the agriculture business is more related to dollars. In this nine-month period, we have an inflation that was 55% against the devaluation that was 15%. That generate a lot of distortions that I will try to explain. Many are related to that. If we probably post numbers or results in dollar terms will be completely different. Going to the next page, you can see that regarding the operational results on the agribusiness, we see a drop. Basically, are two drivers.
The first one is related to farmland sales that, as Alejandro mentioned, during the last year, we sold significant assets, and this year, we only sold small portions. We already signed one, but the result will be posted in the next quarter. Regarding the farming activity, we see a drop in grains. We have negative numbers in the balance sheet. Part is related, as I mentioned, we have to adjust all the costs via inflation and the income that we are estimating in part of the goods, we haven't finished the harvest. Also, we will see final results in the next quarter, but some are impacted by this effect on an estimation in prices and adjusting the cost by inflation.
When we split this result in between Brazil and Argentina, in Argentina, we have better results. In Brazil, although we have very good numbers in terms of yield, prices are not the are lower than the previous year, so we are not posting a loss because of that. Regarding the sugarcane, as Alejandro mentioned, during this period, we have an impact in yields because of weather conditions and also increasing costs of production. For that reason, we have this loss. About the cattle segment, as well, we have very good numbers in yields, very good numbers in price. All the drivers are very positive.
When we express the numbers in pesos term, we are not seeing the same results that if we see these numbers in dollar terms. Going to the next page. Also an important driver when you analyze this nine-month period for Cresud is the change in the fair value of investment properties. Almost all of the results came from our investment in IRSA. IRSA has to value every quarter the investment properties, the shoppings, the offices, and land bank in fair value. Last year, because of the evolution of the inflation and devaluation, there was a drop during last year. This year, we see a positive number because we revaluated part of the malls portfolio in dollar terms.
About the other important number comes in the net financial results that we still see a positive number. It's basically related to the net effects result that, since we have much lower devaluation than inflation, that generates a positive number. This year, ARS 146.1 billion. About the net interest, we see an increase here compared with the previous year. We have a little more debt at IRSA level, at BrasilAgro level. In Cresud, it's stable, but last year, the composition was a little.
Of the debt in ARS term, we valued or we adjust that by inflation. You have to segregate inflation from the interest rates. For that reason appears to be lower than what really it is. With all these drivers, we finished the nine months period with a gain of ARS 231.3 billion attributable to our controlling shareholders was ARS 121.6 billion compared with last year, ARS 77.3 billion. If we move to next page about our debt, the net debts remain stable, but was a very active quarter regarding our financial activity. We took an advantage of market conditions. We decided to move forward refinancing most part of the upcoming amortizations for this year and almost the next year.
We issue $181.4 million in different transactions for 4 different tranches with interest rate that goes from 4.75% to 7.25%. With this, we extend the tenure of our debt and also reduce the interest payment for the future. Also during the quarter, finally, there was the expiration of the warrants that we issued in 2021. Almost all the warrants were exercised, and today the total shares outstanding are 709 million shares. We haven't any more warrants outstanding. With this, we finish the formal presentation. Now I like to open the line for any question that you may have. We begin the Q&A session. If you have a question, please use the chat.
We are gonna take the questions in the order we receive them. Here we have the first question related to hectares that we own in Argentina excluding BrasilAgro, and just the owned land, not under concession. We have a farm in the north of Argentina that accounts for 132,000 hectares under concession, and then we have some lease activity. I think the question is just for the owned land in Argentina and how is the mix between crops and cattle.
From the agriculture of Argentina, we can see in page number 3, Argentina is close to 150,000 hectares. From those it's almost half and half the owned and the leased. That would be a good breakdown of 50-50 in Argentina. In Brazil is a little bigger, the leased to the, I would say 60-40. In Bolivia it's almost all owned, Paraguay 100% owned. Talking about agriculture to total. In Argentina is close to a 50-50. From the 150, 75, almost that.
Thank you, Alejandro. A question regarding, from BTG Pactual regarding land values in Argentina. You mentioned recovering land values in the country and a stronger interest in your assets. Can you give us a sense of the pipeline of land sales heading into the fourth quarter or next fiscal year?
In general, we don't speak about the things that are not ready and not done. In Argentina, there is a big increase on the land. You know that it's from 2013, Argentina disconnected to the world, mainly because of the 2 big effects, taxes on exports and gap on the dollars. In the combination of the 2, a recovery of the price of the land of the world came, but not to Argentina. Now, in the world, there is an adjustment on the price of the land. I would speak about a small decrease in the American U.S. prices, a bigger decrease in Brazilian, but a recovery in Argentina because of the disconnection of 2013. At the same time, the price of the land is decreasing at 5, 10 or more in Brazil, that it's suffering a lot.
In Argentina, there is an increase, and if we talk about searches on the price of the land, they talk about the corn belt of Argentina moving from the 13,000, 14,000 dollars to the 50% increase, I would say, in the corn belt of Argentina. Transactions and liquidity is increasing. Many investors from abroad and from Argentina are deciding to go to the asset that is very discount. There were no transactions the first nine months. We expect the last quarter. There are some other transactions under discussion. I'm very optimistic on the liquidity on the real estate business of Cresud. Not having the first nine months, but I'm very optimistic. In Argentina and in Brazil, there are some regions that they are very, t hey are very big on the radar, mainly because of the irrigation projects.
A very big interest in Bahia region. I'm expecting for the next 3 quarters, many transactions on the real estate. We had very good 9 months of the production. I think real estate is bringing back and some probably purchases in Brazil in some more areas that they were more damaged in prices that Cresud, BrasilAgro is going to buy.
Thank you. There are some questions regarding stakes and the different subsidiaries of Cresud. I will try to answer them, summarizing. There are questions regarding the warrants exercise of Cresud in IRSA. Currently, the stake is 53%, but after they fully exercise, in the last window that is coming in the next week, it's gonna go to levels of 55% stake. Regarding BrasilAgro, the current stake is 35%. Banco Hipotecario, that is another question, is under IRSA, and IRSA owns 29% of the bank.
I think I answered different questions related to the stake of Cresud in different subsidiaries.
There is a question here related to the general outlook, the political situation and elections comings, and also the free trade agreements that Argentina is negotiating with the U.S. and Mercosur with the EU with Europe, if will help and will boost the sector.
Yes. I think macroeconomically speaking, Argentina is making a very good job. Between the taxes reduction that began, not was done, a promise of the government that we'll keep doing. We went from the 33 to the 24% in soybeans, a 20% decrease. The gaps on the dollars was dramatic. It's close to zero or 1 or 2%, but it's coming from 100 or 170%, it's close to zero. The sector is spending very good time with the promise of keep reducing taxes. The government, I think, carefully is not giving that before the raising the activity or raising the amount of taxes through other things. The farmers are waiting patiently without a problem.
From other side, the government signed with U.S. and signed with the European Union two trade agreements that help mainly in the cattle business, increasing from 20,000 to 100,000 in the two cases, volumes increasing 80,000 tons of volumes with no taxes that will support a lot the activity for the cattle, and helping all the mission of agriculture for the country. This government understand the importance and is reducing on time. Yes, many good measures. China increased the volumes from Argentina from 400,000, it's going to 500,000 tons. All of the measures and rules that are coming to farmers are good. Yes, I think Argentina is connecting to the normal volume of the world and the normalization of the activity to the rest of the players like United States, Brazil, Australia or other exporters of agriculture.
There is, I think, one more here related to Agrofy, if you can give some color on the performance of the company.
Agrofy is a company that Cresud owns close to 17% of the shares, is not the controller. It's a company that began through many investors, big investors of the world, and it's a marketplace for agriculture. This company was made in many rounds. Finally, a year and a half ago, did the last round of $2.4 million. Now we are putting the last $400,000 of this round. The company, it's very close to breakeven. After many reorganization, this company grew a lot through capital issues, but finally understood that needs to be at a smaller size of headcount. Today, it's a company of 35 employees, very close to breakeven. We are now spending $100,000 per month, and we expect in three months to be breakeven.
This company is one of the survivors on the digitalization world of the agriculture. Still with a challenge. It's not positive as FyO is, making a $20 million-$25 million EBITDA, but Agrofy is surviving, and the investors are supporting the strategy, and the company is doing a very good job in this environment that they are not selling as much as we expected in the past. If we survive and we keep organically using the AI, this company has a lot of AI applied. We expect this company to be one of the players helping farmers to reduce costs and comparing to other companies. We are optimistic that past the worst part of the wave, and it's close to breakeven. After breakeven will be much different story.
I think we cover all the questions. Give you one second more for any additional question that you may have. Okay. If there are no more questions, we can conclude the presentation, the Q&A, and I turn back to Alejandro just for his final notes.
We have only 1 quarter left on the balance sheet. We have a good combination of factors in the very tough situation for many parts of the world in agriculture. Our company, having the 3 legs of real estate operation and servicing, it's a very well position, not big in debt and rotating the portfolio receivables of farms in the case of Brazil. We are in a very good condition to take advantage of these opportunities that are appearing. Just to thank you, and let's finish our next quarter, the balance sheet of the year. Thank you very much, and have a very good day.
Thank you.