Investments

Adjusted TOtal Assets
$1.3 billion
FY22 Forecast Distributions
11.73 cents per unit
weighted average lease expiry
9.2 years
ASX Price
Most Recent ASX Announcements

OVERVIEW

Rural Funds Group (ASX: RFF) is Australia’s first ASX listed diversified agricultural Real Estate Investment Trust (REIT).  RFF is included in the S&P/ASX 300 index.

RFM is the manager and responsible entity of RFF. RFF owns a diversified portfolio of Australian agricultural assets in five core sectors which are predominantly leased to corporate agricultural operators. RFM seeks to generate earnings and income growth through productivity improvements and conversion of assets to higher and better use. Distribution growth of 4% per annum is targeted.

RFF is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805).  

Key statistics as at 31 December 2021

Adjusted total assets1
$1.3b
Adjusted net assets1
$855.0m
Adjusted NAV per unit1
$2.24
Number of properties2
69
Sectors
5
Weighted Average Lease Expiry (WALE)3
9.2 years
Gearing4
32.6%
FY22 forecast AFFO per unit
11.9 cents
FY22 forecast distributions per unit
11.73 cents
FY23 forecast distributions per unit (inclusive of franking credits)5
12.20 cents
FY22 forecast distribution yield6
4.0%

FY22f revenue by sector as at 31 December 2021:7

Revenue by sector graph
Assets adjusted for the independent valuation of water entitlements which are recognised at the lower of cost or fair value on balance sheet.
2 Includes cattle and cropping property aggregation Kaiuroo, which has a settlement period of up to November 2023.
3 Weighted average lease expiry (WALE) is calculated as the FY22 forecast rent and the year of lease expiry, excludes income from annual water allocation sales, revenue from owner occupied properties and agistment. Revenue from owner occupied properties include Beerwah & Bauple – Macadamias; unleased Maryborough properties and Baamba Plains – Cropping; Yarra – Cattle
4 Gearing calculated as external borrowings/adjusted total assets.
5 FY23 forecast distributions per unit to include franking credits. Cash distribution to be at least 11.73cpu.
6 Calculated forecast FY22 distribution of 11.73 cpu divided by the closing price of $2.96 (8 February 2022).
7 Figures shown are subject to rounding. Lessees shown byFY22f revenue. Income from J&F Australia Pty Ltd attributed to JBS Australia. Cotton JV income split 50% RFM and 50% listed and corporate (Queensland Cotton Corporation Pty Ltd). Excludes income from annual water allocation sales, revenue from owner occupied properties and agistment. Revenue from owner occupied properties include Beerwah & Bauple - Macadamias; unleased Maryborough properties and Baamba Plains - Cropping; Yarra - Cattle.

STRATEGY

RFF targets distribution growth of 4% per annum. Income growth is achieved through lease indexation, productivity improvements and conversion of assets to higher and better use.

RFF owns a diversified portfolio of agricultural assets predominantly leased to corporate operators. Historically RFF assets have been acquired in sectors where Australia has a comparative advantage and RFM has operational experience.

Information on three key elements of RFF’s strategy including lessee selection, diversification and acquisitions and developments is included below. 

Lessees

RFF lessees predominantly consist of corporate entities, representing 78% of FY22 forecast income. Many of these corporate entities are also listed on domestic or international securities exchanges, either directly or via their parent entity.

Private farming operations of varying sizes represent 11% of lease income. In addition, RFM entities (10%) and investment funds (1%) lease properties from RFF. Both of these arrangements provide RFM operating experience which can benefit RFF’s asset and sector due diligence, identifying and executing development opportunities and lessee selection and management.

FY22f revenue by lessee type (as at 31 December 2021)1,2

Chart: FY22f revenue by lessee type (as at 31 December 2021)
1  Figures shown are subject to rounding. Lessees shown by FY22f revenue. Income from J&F Australia Pty Ltd attributed to JBS Australia. Cotton JV income split 50% RFM and 50% listed and corporate (Queensland Cotton Corporation Pty Ltd). Excludes income from annual water allocation sales, revenue from owner occupied properties and agistment. Revenue from owner occupied properties include Beerwah & Bauple-Macadamias; unleased Maryborough properties and Baamba Plains -Cropping; Yarra-Cattle.
2. ‘Other’ in revenue by lease indexation mechanisms, includes: J&F guarantee fee, other short term leases, revenue from Kaiuroo deposit and cattle finance leases. Excludes revenue from owner occupied properties (see note 1).

Diversification

RFM seeks to achieve multiple layers of diversification within RFF, including by:

  • Asset type: this incorporates diversification across both infrastructure predominant and natural resource predominant assets. More information included under ‘Acquisitions and developments’.
  • Climatic zone: climatic diversification moderates the likelihood of multiple lessees being exposed to adverse weather events at any one point in time (see ASX: RFF Climatic Diversification discussion paper 20 June 2016).
  • Lessees: diversification of counterpart risk. More information under 'Lessees'.

Climatic diversification map (as at 31 December 2021)1

Australia Climatic Map

1  Shaded areas denote climatic zones differentiated by rainfall seasonality (source: Bureau of Meteorology); see Climatic Diversification discussion paper dated 20 June 2016. Numbers in the circles/boxes on map show number of assets. Natal cattle property aggregation previously shown as three properties now shown as one. Cattle property Kaiuroo, which has a settlement period of up to November 2023,included in number of properties. Blue square boxes denote cattle feedlots.

Acquisitions & developments

RFF will pursue the acquisition of additional assets that grow the quantum and diversity of RFF’s earnings. The investment strategy is to invest across the full range of the asset continuum shown to right1, with the objective of ensuring the asset mix can continue to fund distributions.

Within various agricultural sectors, RFF is pursuing investment opportunities which may provide productivity gains or conversion to higher and better use.

Both strategies aim to lift the value and income earning potential of an asset. The productivity strategy achieves this objective by enhancing a property’s ability to produce a given commodity. Whereas the higher and better use strategy aims to transform the use of an asset to a different, more profitable commodity. Put simply, increased productivity or production of a more valuable commodity enhances the ability of the operator to generate higher profits, leading to a higher valuation and enabling the landlord to charge more rent thus supporting RFF’s distribution growth target of 4% per annum.

Spectrum of investment opportunities1

Rural Fund Management Acquisitions

1 The income and growth figures presented have been provided to differentiate the profile of income and growth that can be derived from different assets. They are based on RFM’s experience and observations of agricultural lease transactions and historical rates of growth. They are neither forecasts nor projections of future returns. Past performance is not a guide to future performance.

Manager

RFM has a depth of experience accumulated over 25 years acquiring, developing and operating Australian farmland, agricultural infrastructure and other assets. Sector experience includes almonds, poultry, macadamias, cattle, cropping, viticulture and water.

RFM employs over 150 staff and seeks to maximise returns through its experienced management team including specialist fund managers, finance professionals, horticulturists, agronomists and other agricultural managers. RFM’s key responsibilities in the management of RFF include:

  • Compliance to financial, farming and reporting requirements of leases.
  • Water asset management including obtaining approvals and engagement with government.
  • Management of infrastructure e.g. ongoing and development capital expenditure.
  • Coordination of regular independent valuations.
  • Facilitating acquisitions.
  • Managing lessee/customer relationships.

Under the  RFF constitution RFM is entitled to the following remuneration:

  • Management fee of 0.6% pa of adjusted total assets; and
  • Asset management fee of 0.45% pa of adjusted total assets.

Portfolio

The RFF portfolio comprises 69 properties in five states as at 31 December 2021.

The below map presents information on the RFF property portfolio, including asset locations and sector information. Assets are  invested in five core agricultural sectors; almonds, cattle, vineyards, cropping and macadamias. Further information on individual properties is presented in the tables below.

Below you will find more information on the individual sectors.

Almonds

Location
New South Wales
Number of Properties
3
Size
ha
established almond orchards
31 Dec 2021 Value
$
380.3
m
FY22 Forecast Revenue
$
28.2
m
2H22 Forecast Capex
$
1.0
m
FY23 Forecast Capex
$
0.0
m
Water Entitlements (ML)
Lessees
Olam Orchards Australia Pty Ltd
Select Harvests Ltd
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Cattle

Location
Queensland, New South Wales, Victoria & Western Australia
Number of Properties
21
Size
ha
breeding and backgrounding land
150,000 head feedlot capacity
31 Dec 2021 Value
$
455.2
m
FY22 Forecast Revenue
$
29.3
m
2H22 Forecast Capex
$
4.6
m
FY23 Forecast Capex
$
0.0
m
Water Entitlements (ML)
Lessees
DA and JF Camm Pty Ltd
Cattle JV Pty Ltd
JBS Australia Pty Ltd
Stone Axe Pastoral Company
Australian Agricultural Company (ASX: AAC)
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Cropping

Location
Queensland
Number of Properties
23
Size
ha
irrigated and dryland cropping
31 Dec 2021 Value
$
188.3
m
FY22 Forecast Revenue
$
6.7
m
2H22 Forecast Capex
$
2.1
m
FY23 Forecast Capex
$
0.0
m
Water Entitlements (ML)
Lessees
Cotton JV Pty Ltd (Cotton JV)
Rural Funds Management (RFM)
Private farming leases
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Vineyards

Location
South Australia & Victoria
Number of Properties
7
Size
ha
of vineyard plantings
31 Dec 2021 Value
$
64.8
m
FY22 Forecast Revenue
$
4.2
m
2H22 Forecast Capex
$
0.3
m
FY23 Forecast Capex
$
0.0
m
Water Entitlements (ML)
Lessees
Treasury Wine Estates (ASX: TWE)
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Macadamias

Location
Queensland
Number of Properties
15
Size
ha
planted area
31 Dec 2021 Value
$
148.4
m
FY22 Forecast Revenue
$
1.3
m
2H22 Forecast Capex
$
27.3
m
FY23 Forecast Capex
$
16.8
m
Water Entitlements (ML)
Lessees
2007 Macgrove Project
Rural Funds Management (RFM)
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FINANCIAL RESULTS

Most recent financial results

Period ended
31 December 2021

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Financial statements

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Historical financial results

Period ended
30 June 2021
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31 December 2020
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30 June 2020
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31 December 2019
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30 June 2019
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31 December 2018
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30 June 2018
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31 December 2017
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30 June 2017
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31 December 2016
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30 June 2016
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31 December 2015
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30 June 2015
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31 December 2014
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30 June 2014
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31 December 2013
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Distribution Reinvestment Plan

The RFF Distribution Reinvestment Plan (DRP) provides investors a convenient and cost-effective way to increase their holding by reinvesting all or part of their distributions in the form of additional units.

Participation in the DRP is optional. Investors electing to participate will automatically have their distribution applied to acquire additional units in accordance with the DRP rules, and without incurring brokerage or other transaction costs.

The number of units received is calculated based on a 1.5% discount to the weighted average market price of RFF units traded on the ASX during the 20 consecutive trading days before the Record Date.

Download a summary or the full copy of the DRP.If you would like to register or change your participation nomination in the RFF DRP, please update your preferences on  Boardroom InvestorServe.

Analyst Coverage

The following analysts monitor RFF and periodically publish reports about the fund.

RFM is able to circulate reports with issuer approval. To enquire about the latest reports, please contact RFM Investor Services via: investorservices@ruralfunds.com.au

Broker
Analyst Name
UBS Australia
Grant McCasker
Wilsons
James Ferrier
Bell Potter Securities Ltd
Jonathan Snape
CLSA
James Druce
Note: The Research Reports are distributed with the consent of the issuer of the relevant Report. Rural Funds Management Limited (ACN 077 492 838, AFSL 226 701) (“RFM”) is the responsible entity of Rural Funds Group (“RFF”). RFF is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805). The information contained in Research Reports is not produced by RFM or RFF and is not intended to be investment or financial product advice given by RFM or RFF. RFM recommends recipients of the Reports make their own assessment of RFM and RFF before making any investment decision. Any inquiries with respect to the Reports should be directed to the relevant issuer of the Report.

Financial Information

RFF units are listed on the Australian Securities Exchange (ASX).

View the latest RFF ASX announcements  at the top or visit the RFF ASX page.

The data and information contained on this webpage relating to the performance and price of RFF is supplied by a third party.

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Distribution history

Record date

Reinvestment date

Payment date

Distribution paid (per unit)

Franking Credits

Total

31/3/2022
29/4/2022
n/a
29/4/2022
$
0.0293
$
0.000
$
0.0293
31/12/2021
31/1/2022
n/a
31/1/2022
$
0.0293
$
0.000
$
0.0293
30/9/2021
29/10/2021
n/a
29/10/2021
$
0.0293
$
0.000
$
0.0293
30/6/2021
30/7/2021
n/a
30/7/2021
$
0.0282
$
0.000
$
0.0282
31/3/2021
30/4/2021
n/a
30/4/2021
$
0.0282
$
0.000
$
0.0282
31/12/2020
29/1/2021
n/a
29/1/2021
$
0.0282
$
0.000
$
0.0282
30/9/2020
30/10/2020
n/a
30/10/2020
$
0.0282
$
0.000
$
0.0282
30/6/2020
31/7/2020
n/a
31/7/2020
$
0.0271
$
0.000
$
0.0271
31/3/2020
30/4/2020
n/a
30/4/2020
$
0.0271
$
0.000
$
0.0271
31/12/2019
31/1/2020
n/a
31/1/2020
$
0.0271
$
0.000
$
0.0271
30/9/2019
31/10/2019
n/a
31/10/2019
$
0.0271
$
0.000
$
0.0271
28/6/2019
31/7/2019
n/a
31/7/2019
$
0.0261
$
0.000
$
0.0261
29/3/2019
30/4/2019
n/a
30/4/2019
$
0.0261
$
0.000
$
0.0261
31/12/2018
31/1/2019
n/a
31/1/2019
$
0.0261
$
0.000
$
0.0261
28/9/2018
31/10/2018
n/a
31/10/2018
$
0.0261
$
0.000
$
0.0261
29/6/2018
31/7/2018
n/a
31/7/2018
$
0.0251
$
0.000
$
0.0251
29/3/2018
30/4/2018
n/a
30/4/2018
$
0.0251
$
0.000
$
0.0251
29/12/2017
31/1/2018
n/a
31/1/2018
$
0.0251
$
0.000
$
0.0251
29/9/2017
31/10/2017
n/a
31/10/2017
$
0.0251
$
0.000
$
0.0251
30/6/2017
31/7/2017
n/a
31/7/2017
$
0.0241
$
0.000
$
0.0241
31/3/2017
28/4/2017
n/a
28/4/2017
$
0.0241
$
0.000
$
0.0241
29/12/2016
31/1/2017
n/a
31/1/2017
$
0.0241
$
0.000
$
0.0241
30/9/2016
28/10/2016
n/a
28/10/2016
$
0.0241
$
0.000
$
0.0241
30/6/2016
29/7/2016
n/a
29/7/2016
$
0.0223
$
0.000
$
0.0223
31/3/2016
29/4/2016
n/a
29/4/2016
$
0.0223
$
0.000
$
0.0223
31/12/2015
29/1/2016
n/a
29/1/2016
$
0.0223
$
0.000
$
0.0223
30/9/2015
30/10/2015
n/a
30/10/2015
$
0.0223
$
0.000
$
0.0223
30/6/2015
30/7/2015
n/a
30/7/2015
$
0.0215
$
0.000
$
0.0215
17/4/2015
24/4/2015
n/a
24/4/2015
$
0.0215
$
0.000
$
0.0215
30/12/2014
15/1/2015
n/a
15/1/2015
$
0.0215
$
0.000
$
0.0215
30/9/2014
13/10/2014
n/a
13/10/2014
$
0.0215
$
0.000
$
0.0215
30/6/2014
16/7/2014
n/a
16/7/2014
$
0.0213
$
0.000
$
0.0213
11/3/2014
14/4/2014
n/a
14/4/2014
$
0.0213
$
0.001
$
0.0213
31/12/2013
n/a
24/1/2014
$
0.0213
$
0.000
$
0.0213
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Net Asset Values (NAV)

Date

Adjusted NAV (per unit)1

NAV (per unit)

RFT portion2

RFA portion2

31/12/2021
$
2.24
$
2.00
97.67
%
2.33
%
2
30/6/2021
$
2.17
$
1.91
98.00
%
2.00
%
2
31/12/2020
$
2.01
$
1.77
97.95
%
2.05
%
2
30/6/2020
$
1.94
$
1.65
98.03
%
1.97
%
2
31/12/2019
$
1.84
$
1.61
98.67
%
1.33
%
2
30/6/2019
$
1.80
$
1.57
98.75
%
1.25
%
2
31/12/2018
$
1.75
$
1.60
98.78
%
1.22
%
2
30/6/2018
$
1.68
$
1.48
98.91
%
1.09
%
2
31/12/2017
$
1.60
$
1.42
99.06
%
0.94
%
2
30/6/2017
$
1.58
$
1.41
99.06
%
0.94
%
2
31/12/2016
$
1.50
$
1.34
99.03
%
0.97
%
2
30/6/2016
$
1.43
$
1.26
99.09
%
0.91
%
2
31/12/2015
$
1.18
$
1.12
99.02
%
0.98
%
2
30/6/2015
$
1.22
$
1.15
99.08
%
0.92
%
2
31/12/2014
$
1.16
$
1.16
99.13
%
0.87
%
2
30/6/2014
$
1.17
$
1.17
100.00
%
%
2
31/12/2013
$
1.01
$
1.01
100.00
%
%
2
1Adjusted NAV is compiled on the basis of adjusted total assets to recognise water entitlements at fair value. Financial Statements recognise water entitlements at cost as per ASIC guidance and accounting standards.
2 RFF is a stapled security, incorporating Rural Funds Trust (RFT) (ARSN 112 951 578) and RF Active (RFA) (ARSN 168 740 805).

Frequently Asked Questions

RFF units can be traded via the ASX. The following information is provided as a guide to investing in RFF. As with all investments, unit holders should seek personal advice from their professional advisers before investing.

How do I buy and sell units?

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You can buy or sell RFF units through a suitably licensed financial adviser, stockbroker or online broking facility. These transactions may incur a brokerage fee.The ASX also provides a ‘Find a broker’ listing which may assist you. Rural Funds Management Limited does not trade units directly with unitholders.

How do I find out what my unit is worth?

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You will find the latest unit price, trading volume, announcements and other information about RFF units (ASX: RFF) in the financial section of major newspapers or from the ASX website.

When do I receive a distribution?

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RFF pays distributions on a quarterly basis. Distribution announcements can be found on the ASX. Indicative dates for distributions are also included in the Key Dates section of this website.

Where can I find further information?

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Research for RFF can be found in the analyst coverage section of this website, or by contacting your stockbroker or financial adviser. Please note that the information and estimates contained in these reports are the views of those of organisations and not of Rural Funds Management Limited (RFM). RFM accepts no responsibility for the content or accuracy of these reports.

Are distributions franked?

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Rural Funds Trust is a passive entity for tax purposes and incorporates the majority of RFF assets including almonds, macadamias, vineyards, cropping and cattle sectors. The income received from these assets is passive in nature and thus attracts flow through taxation treatment, meaning that earnings on these assets are taxed in the hands of the investor at their marginal rate. RF Active houses assets which are considered operational in nature from a taxation perspective. As these assets are held within RF Active they do not impact on the flow through taxation treatment on the assets held within Rural Funds Trust. RF Active is taxed as a public trading trust. As a public trading trust, RF Active pays tax at the corporate tax rate (currently 30%) on the profit it generates from its operational activities; and may, from time to time, make distributions to Unit holders of the profit generated from its trading activities. Distributions from RF Active may attract franking credits.

Forms

The unit registry for RFF is managed by Boardroom Pty Ltd.

The unit registry for RFF is managed by Boardroom Pty Ltd. Registry Forms can be accessed and downloaded Boardroom's Investor Forms page. Investors and advisers can update their details by contacting Boardroom via InvestorServe or by telephone on 1300 737 760. Alternatively, you can contact RFM Investor Services on 1800 026 665 or via email at investorservices@ruralfunds.com.au.

Publications

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8
Jul
2021
|
Publication

Acquisition and equity raising presentation

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20
Mar
2020
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Investor webinar 2020: Proposed increase of the Guarantee to J&F Australia Pty Ltd

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RFM's environmental, social and governance (ESG) activities

Learn about RFM’s incorporation of ESG considerations in the management of agricultural assets.