SLC Agrícola completes purchase of properties from Grupo Radar in Mato Grosso for R$669 million

SLC Agrícola (B3: SLCE3) completed the acquisition of a portfolio of rural properties from Grupo Radar, called Bloco Mato Grosso, for R$669 million. The conclusion took place on Friday (30), according to InfoMoney. For those who follow the company on the stock exchange, the announcement shows the expansion of land stock in a productive state, a movement that affects the company's balance sheet and growth plan.

According to the report, the value is divided into two parts. Around R$24.9 million corresponds to the existing infrastructure, based on an assessment report. The remainder, approximately R$644.1 million, refers to usable and arable bare land, which accounts for almost the entire price. According to the same survey, bare land was priced at around R$72,300 per arable hectare.

The property totals 11.1 thousand hectares. Of this total, around 8,900 hectares are arable and must be used for agricultural production. The remaining 2.2 thousand hectares, also according to InfoMoney, include Legal Reserve, Permanent Preservation Areas, internal roads, headquarters and non-productive areas. This division matters because the portion that actually goes to planting is the one that generates revenue, while the rest meets environmental and logistical requirements.

In the case of an operation of this scale, the central point is what is purchased. Most of the value is in the land, not in equipment or improvements. This gives the company control over the area to expand cultivation, but also concentrates a large amount of capital in a single asset. Therefore, the reading of those who defend fiscal responsibility is objective: the company will need to prove that the area delivers a return compatible with the amount paid.

The facts found do not detail the planting schedule in the new area, the accounting effect of the operation or the way in which it was financed. These points are not included in the published material and depend on subsequent disclosures by the company. Until then, the deal should be read as a private capital allocation decision, made by a public company that answers to its shareholders.

The transaction also shows how the agricultural sector continues to use the land market to grow. Instead of relying on short-term leases, the company chose to acquire the property, which changes the risk and capital profile of the operation. This type of choice is usually evaluated by the investor over several quarters, as the numbers appear.

What changes for the investor

For the SLCE3 shareholder, the point to monitor is how the purchase will appear in the next results: the size of the rural real estate asset, the area effectively incorporated into production and the return obtained on the capital employed. The acquisition expands the land available for planting, which can sustain volume growth in the future, but this gain depends on the area actually going into production. This article does not evaluate the share price and does not suggest buying or selling. Anyone investing should look at the company's upcoming balance sheets and statements about the schedule for using the new area.

Automatically translated from Portuguese.