Cresud Inc. (NASDAQ: CRESY, BYMA:CRES), a prominent real estate and agricultural company, has declared a significant cash dividend distribution for its shareholders today. The Buenos Aires-based firm will be disbursing a total of ARS 45,000,000,000, a move that follows the resolutions passed in the company's recent Ordinary and Extraordinary General Shareholders' Meeting.
The dividend, which is charged to the fiscal year that concluded on June 30, 2024, represents 7.527% of the share capital eligible for collection. This capital is represented by 597,827,605 shares. The provision for this dividend will be made available to shareholders as of November 7, 2024, or on a subsequent date as determined by the applicable regulations in the jurisdictions where Cresud's shares are traded.
Shareholders will receive ARS 75.27 per individual share, while holders of American Depositary Shares (ADS) will receive ARS 752.73 per ADS. Eligibility for the dividend is determined by shareholder status as of November 5, 2024, based on the records maintained by Caja de Valores S.A. The payment process will be facilitated by Caja de Valores S.A. at their location in Buenos Aires and by The Bank of New York Mellon (NYSE:BK) for ADS holders, in accordance with the regulatory framework in their respective listing jurisdictions.
It is important for shareholders to note that the dividend distribution is subject to a 7% withholding tax as per article 97 of the Income Tax Law. Additionally, in line with RG AFIP 4478/2019, the withholding tax on the dividend payment will be directly deducted from the cash dividend.
This financial move by Cresud reflects the company's performance and its commitment to providing value to its investors. The company, categorized under the Real Estate & Construction sector, has its primary executive offices located in Buenos Aires, Argentina, and operates under the jurisdiction of the Republic of Argentina.
In other recent news, Cresud Inc. announced a substantial dividend distribution of up to ARS 45 billion, approved by its shareholders. The company also reported an increase in total shares from 596,355,320 to 598,639,142, following the exercise of warrants which collected USD 982,729.
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 addition, Cresud issued Series XLVI notes, raising an equivalent of USD 28.6 million, strengthening its capital structure and diversifying its financing sources. These developments are part of Cresud's recent financial activities.
The company has also announced an upcoming virtual General Ordinary and Extraordinary Shareholders' Meeting. The meeting agenda includes the approval of financial statements, allocation of a substantial net income of approximately 70.8 billion Argentine pesos, and the distribution of dividends. Cresud has also proposed the reallocation of existing voluntary reserves and delegated the application and disposition of these funds to the board of directors.
InvestingPro Insights
Cresud's recent dividend announcement aligns with its strong financial position and shareholder-friendly policies. According to InvestingPro data, the company's dividend yield stands at an impressive 7.7%, underscoring its commitment to returning value to shareholders. This high yield is complemented by Cresud's profitability, as evidenced by its positive earnings over the last twelve months.
InvestingPro Tips highlight Cresud's strength in the Food Products industry and its impressive returns. The company has delivered a high return over the last year, with a one-year price total return of 38.28%. This performance is particularly noteworthy given the company's attractive valuation, trading at a low earnings multiple with a P/E ratio of 9.88.
For investors seeking more comprehensive insights, InvestingPro offers 7 additional tips that could provide valuable context for Cresud's financial outlook and market position. These tips, along with real-time metrics, can help investors make more informed decisions about their investments in Cresud.
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