BrasilAgro backed ideas of a strong rise in Brazilian farmland values over the past year, but signalled strength in the traditional farming areas rather than the Mapitoba region flagged by rival SLC Agricola.
The farm operator, which controls more than 160,000 hectares in five Brazilian states, said that the value of its portfolio had risen by 23% to R$1.1bn ($424m) in the year to the end of June.
The increase was larger than the increase that SLC Agricola last week reported for its own portfolio, although BrasilAgro used different methodology.
Rather than relying on an independent consultant, as did its rival, BrasilAgro undertook the appraisal internally and included "agricultural aptitude and potential" among its valuation criteria.
Also unlike SLC Agrcola, BrasilAgro found greatest gains in value at its farms in Brazil's traditional southern agricultural areas, rather than the north eastern region of Mapitoba - an acronym formed from the first two letters of the north eastern states Maranhão, Piauí, Tocantins and Bahia.
The biggest rise in value, of 72%, was attributed to a cane farm in Mato Grosso, with a cane-growing property in Goias seen appreciating by 51% over the year.
Conversely, BrasilAgro's farms in Bahia rose by as little as 7.6% in value, although the 32,000-hectare Jatoba farm in the state was given a 27% uplift in value.
However, BrasilAgro stressed the impact of "severe drought" on its farms in Brazil's north east, "especially Bahia, which affected soybean and corn yields by around 30% and 40%".
Back in the black
Indeed, the group cited the setbacks in Bahia as supporting a group strategy for "diversifying its portfolio in different crops and regions".
The group reported a return to profit, of R$28.7m for the year to the end of June, compared with a loss of R$19.5m the year before, on revenues up 85% at R$312.3m.
While boosted by a profitable land sale, the rise in revenues also reflected a 52% jump in sales of sugar cane, with takings from grains up 15% at R$128.9m.
The earnings beat expectations of a R$20.7m result, helping BrasilAgro shares close up 1.8% at R$9.70 in Sao Paulo.