Rural Funds Group Limited (ASX:RFF) Investor Relations and Distribution Manager James Powell discusses the company's half year 2018 results, three cattle property acquisitions, increasing valuations and outlook for the second half.- Adjusted funds from operations (AFFO) of $15.4m, up 22%
- Distributions of 5.02 cpu, up 4%
- Adjusted total assets of $687.4m, up 17%
- FY18 distribution of 10.03 cpu reaffirmed
- Forecast FY19 distribution of 10.43 cpu advised
- RFF announced in October that it had contracted to acquire three adjoining cattle properties, referred to as the Natal aggregation as part of a $72.5 million transaction
- Saw RFF’s cattle assets increase to approximately $130 million, now the second largest sector in RFF portfolio
- The most promising was the 17% increase in the value of Rewan, a central Queensland backgrounding and finishing property, which was primarily attributable to the development program RFF has undertaken to improve carrying capacity on the property
- RFF’s aim is to repeat this strategy on the Natal properties
- Acquisitions will have the aim of increasing earnings/distribution growth, fund diversification, fund liquidity and lowering operating costs per unit
