AGRO3 BrasilAgro

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas is a Brazilian joint-stock company founded on September 23, 2005, focused on investment and operations in agribusiness. Since its initial public offering in April 2006, when it began trading on B3 under the ticker AGRO3, the company has structured a business model that combines large-scale agricultural production with active management of a portfolio of farmland. Over its history, it has acquired and developed properties in different regions of Brazil and in neighboring countries, going through successive cycles of transformation, productive use, and sale of these rural assets.

BrasilAgro’s business model is based on two main economic drivers: the real estate appreciation of its farms and the operating results of its agricultural production. The company is engaged in acquiring rural properties with development potential, implementing infrastructure, technology, and intensive cultivation systems, and later selling these areas in whole or in part, capturing capital gains. In parallel, it directly operates in the production of grains, sugarcane, cotton, and livestock, in addition to leasing part of its areas. AGRO3 shares on B3 represent an interest in a business that combines characteristics of rural real estate development with recurring agricultural activity, with strong exposure to the agricultural commodities cycle and the land market.

As of June 30, 2025, BrasilAgro’s portfolio totaled 252,796 hectares of total area, of which 188,727 hectares correspond to arable land for production, spread across properties located in Mato Grosso, Minas Gerais, Maranhão, Bahia, Piauí, and São Paulo, as well as assets in Paraguay and Bolivia. Since the beginning of operations, the company has acquired 18 properties in seven Brazilian states and in the two neighboring countries, totaling more than 320 thousand hectares, and over time has sold several farms in whole or in part, recycling capital and adjusting the portfolio mix. The strategy also includes lease agreements, both as lessee – to expand the cultivated area with lower need for fixed capital – and as lessor, monetizing areas at different stages of agricultural development.

From an operational standpoint, BrasilAgro operates in multiple production segments. In grains, it focuses especially on soybeans, corn, and beans, with planting mainly between September and December and harvesting through May, using rotation and second-crop practices to increase area productivity. In sugarcane, it cultivates thousands of hectares at different properties in Brazil and Bolivia, with an annual cutting cycle and an average useful life of sugarcane fields of about seven years, supplying raw material to partner sugar and ethanol mills. In cotton, it allocates significant areas in the Midwest region, with harvesting generally between June and August and ginning carried out by third parties. Livestock is used as a diversification component and a hedge against climate risk, with breeding in Bahia and pasture- and feedlot-based finishing in Paraguay, taking advantage of edaphoclimatic conditions favorable to pastures.

The company’s revenue generation is diversified between the sale of agricultural products and real estate activity. In the fiscal year ended June 30, 2025, net revenue totaled approximately R$ 1.23 billion, composed mainly of sales of grains, sugarcane, cotton, livestock, leases, other operating income, and gains from farm sales. Grains accounted for about half of net operating revenue, while sugarcane represented just over one-third, with smaller contributions from cotton, livestock, and leases. The sale of farms and changes in fair value of biological assets also contributed significantly to results, reinforcing the hybrid nature of the business between agricultural operations and land asset management. The client base is concentrated in large trading companies and agro-industrial firms, with three clients individually accounting for more than 10% of consolidated revenue in 2025, especially in sugarcane and grains/cotton.

Geographically, BrasilAgro structures its portfolio to dilute climate and market risks across regions and countries. In Brazil, its farms are distributed across different biomes and agricultural production zones, which allows it to stagger planting and harvesting periods and take advantage of different climate and logistics windows. In Paraguay, it maintains a large property focused on grain and pasture production, with a cattle finishing system that benefits from local soil quality and forage. In Bolivia, it operates grain and sugarcane areas, with sugarcane supply contracts to local mills. Sales of agricultural production are directed to clients located in Brazil, Paraguay, and Bolivia, with a significant share of soybeans, corn, and cotton destined for export through global trading companies, while part of the corn, cottonseed, and other byproducts serves industrial and livestock demand in the domestic market.

Distribution of production is based essentially on road transportation, with intensive use of contracted logistics service providers. For soybeans and corn, most operations are carried out on an FOB basis, in which trading companies are responsible for picking up the products at farms or warehouses, although the company also operates on a CIF basis in certain contracts. In the sugarcane segment, BrasilAgro maintains long-term supply and rural partnership agreements with mills such as Brenco and Agro Serra, under which it delivers 100% of production from certain farms, in arrangements that ensure regular crop flow. In Bolivia, there are supply contracts with local sugar and ethanol mills without minimum volume commitments, which provides production flexibility. In cotton, lint is mostly exported via trading companies, while cottonseed is delivered to crushing plants or directly to the livestock sector.

In terms of regulation and sustainability, BrasilAgro is subject to extensive Brazilian environmental legislation at the federal, state, and municipal levels, especially regarding licensing, use of water resources, erosion control, waste management, and maintenance of conservation areas. The company maintains legal reserve and permanent preservation areas in compliance with the Forest Code, with registrations in the Rural Environmental Registry (CAR) and programs for recovery of degraded areas when necessary. It also monitors surface and groundwater withdrawals, respecting water rights limits and conducting water quality tests for human consumption. In Paraguay and Bolivia, it follows similar local requirements regarding environmental licenses and conditions, including preservation of legal reserves where applicable. The adoption of corporate governance practices consistent with B3’s Novo Mercado and the listing of ADRs on the NYSE demonstrate a corporate structure focused on transparency, alignment with shareholders, and professional management of environmental and operational risk in agribusiness.

BrasilAgro’s governance structure reflects its presence in capital markets in Brazil and abroad. The company was the first agricultural producer to go public on B3’s Novo Mercado and also the first Brazilian agribusiness company to list ADRs on the New York Stock Exchange, which imposed high standards of disclosure, internal controls, and compliance. Share capital has gone through different increases via share offerings and the exercise of warrants since the IPO, resulting in dilution and the entry of new institutional investors. The board of directors and executive management are responsible for capital allocation decisions among land acquisitions, productivity investments, farm sales, and expansion through partnerships and leases, seeking to balance agricultural operating return, real estate appreciation, and management of risks associated with weather, commodity prices, exchange rates, and the farmland market.