Rural Funds Group (ASX:RFF) talks 1H18 results

Interviews

by Rachael Jones

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

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.