SLC Agricola SA (SLCE3.SA): SLC is acquiring more land in MT State

Research evidence excerpt

SLC Agricola SA (SLCE3.SA): SLC is acquiring more land in MT State

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26 Jun 2026 11:00:37 ET │ 10 pages

SLC Agricola SA (SLCE3.SA)

SLC is acquiring more land in MT State

CITI’S TAKE

SLC announced that it exercised its right of first refusal for the acquisition

Neutral of leased land that has been put up for sale in Mato Grosso State. The

Price (25 Jun 26 18:00) R$13.30 properties have 41.2k physical hectares of registered area, which

correspond to 28.8k arable hectares and this land historically enable Target price R$15.00

100% of second crop planting, while the total amount of the deal will be Expected share price return 12.8%

R$1,850mn, implying a price of R$64.2k per arable hectare, below market Expected dividend yield 5.3%

price. As we commented earlier, we see this deal as aligned with the Expected total return 18.0%

company’s long-term strategy, but we expect a higher pressure in its cash Market Cap R$6,633M

flow, given the higher leverage ahead (which should reach ~2.7x 2026

US$1,281M EoP), high interest rates in the country, while we see the return rate of

owned land as small, implying in a payback of ~10 years.

On the negative side, we may see lower figures during the next year, given the likely Gabriel BarraAC

negative impacts from the strong El Niño, while interest rates in the country may still +55-11-4009-2223

at high levels. Thus, we reiterate our Neutral Rating on the name. Additionally, the gabriel.barra@citi.com

acquisition should generate a slight increase in EBITDA, since SLC already leases only

17.6k hectares (AgriBiz, 6/26), out of 28.8k, while we expect the company to increase

3k ha of physical hectares during the next crop season and the remaining 8k ha in the

2028/29 crop season, noting the possibility of second crop in this land.