Terra Santa Propriedades Agrícolas S.A.

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What it is

Terra Santa Propriedades Agrícolas was created when the old Terra Santa group split in two: the crop-farming operations were sold to SLC Agrícola, and the land-owning, land-leasing side was separately listed on B3 as LAND3. Its portfolio covers approximately 39,189 hectares across seven farms in Mato Grosso, five of which are leased on 25-year contracts to SLC Agrícola.

Formerly known as TS Agro S.A., the company acquires, manages, and leases rural properties, letting its land to tenant farmers on long-term arrangements of at least three years. It bills itself as the first company listed on B3 with an exclusively rural real-estate purpose.

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Who owns it

Insiders hold 55.3% of the shares and institutions hold a further 39.1%, leaving a free float of roughly 5.6% — a very tightly held register. The named large shareholders include Bonsucex Holding S.A., investment manager Laplace Investimentos e Gestão de Recursos, and Gávea Macro Master fund.

Laplace, together with shares held via derivatives and connected funds, has been reported to account for approximately 13% of the company. A minority fund, Esh Capital, holds around 4.5% and has formally contested the terms of the original SLC transaction.

There is no single family or state controlling shareholder; control rests with an institutional shareholder bloc whose cohesion has itself become a legal flashpoint.

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Who runs it

A director with extensive agribusiness credentials — previously CEO of Agrifirma Brasil Agropecuária S.A. and a legal and capital-markets specialist at investment manager Kijani Investimentos — has been part of the Terra Santa group since August 2018. Named executive-level management beyond this role is not disclosed in available sources from company filings accessed.

With only 27 employees, the management layer is deliberately thin; the company’s value lives in the land, not in an operating workforce.

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The money, in plain words

Revenue jumped 41% in the most recent full year — from R$68.3 million (~US$13.3 million) in 2024 to R$96.6 million (~US$18.8 million) in 2025 (our calculation) — largely because rental contracts reset at higher soybean-linked rates. Yet the bottom line moved the other way: net profit fell from R$7.3 million (US$1 mn) to R$4.7 million (~US$0.9 million), because operating costs and adjustments absorbed most of the rental gain, leaving a net profit margin of only 3.4%.

For every real that owners have put into the business, the company earns less than half a cent back each year — a return on equity of just 0.5%, thin by any standard. The market still values it at 274 times earnings (a price-to-earnings ratio of 274×), a figure that only makes sense if investors are paying not for today’s income but for the long-run appreciation of R$3 (US$0.58)-plus billion in farmland that sits on the balance sheet.

The balance sheet is clean: the roughly 39,000-hectare portfolio underpins total assets of R$913.9 million (~US$177.5 million) against liabilities of R$255.2 million (~US$49.6 million), with no disclosed financial debt (our calculation). Cash on hand is negligible at R$142,000 (~US$28,000), so the company depends entirely on rental income to meet its obligations.

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What it is doing now

The farms were independently appraised at around R$2.5 billion (US$485 mn) at the time of the 2021 SLC transaction; a more recent Deloitte valuation placed them at R$3.35 billion (US$650 mn) — more than four times the company’s current stock-market value, a gap that animates both the bull case and the shareholder disputes. A minority fund, Esh Theta, launched arbitration proceedings against a group of majority shareholders, arguing that the lease terms agreed with SLC Agrícola — set at 17 sacks of soy per hectare per year — do not reflect market rates.

The company’s investor-relations calendar shows results for Q1 2026 already filed, with the Q2 2026 release scheduled for 10 August 2026 — the next concrete date for investors watching the rent-income trend.

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What to watch

• Lease-rate resets. Rents tied to soybean prices mean that a falling soy price directly cuts revenue; in 2023 the company earned R$91.7 million (US$18 mn) but fell to R$68.3 million (US$13 mn) in 2024 before recovering in 2025 — three very different numbers in three years.
• The arbitration. The Esh Theta fund alleges the SLC lease terms caused losses to the company and seeks to hold the approving shareholders liable. A ruling against the dominant bloc could force a renegotiation of the core revenue contract.
• Land valuation vs. share price. Esh Capital argues the properties are worth R$4 billion (US$777 mn) by its own appraisal, while the stock market currently prices the whole company at under R$800 million (US$155 mn) — the eventual resolution of that gap, by asset sale, re-rating, or sustained earnings, is the central investment question.
• Free float liquidity. With barely 5–6% of shares freely traded, even modest buying or selling can move the price sharply; this is not a stock for investors who need to exit quickly.

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This is news, not investment advice.