Rural Funds Group (ASX:RFF) 1H20 Results Presentation

Company Presentations

Rural Funds Group Limited (ASX:RFF) Managing Director David Bryant presents the company's 1H20 results.

Highlights:

Acquisitions and disposals:

  • Contracts to acquire six cattle properties (inc. two feedlots) and two properties to be converted to macadamia orchards (see slide 6).
  • Sale of 17 poultry farms and associated plant and equipment (see slide 6).

Leasing activity:
  • Merger of four almond lessees to form the RFM Almond Fund (disclosed 30 Aug 2019).
  • Leased existing cattle property Rewan to AACo (ASX: AAC) (disclosed 31 Jul 2019).

Response to short sellers:
  • Release of Ernst & Young’s Independent Investigation Report – Analysis of Bonitas Research LLC Document (disclosed 27 Aug 2019).
  • Judgment via NSW Supreme Court against Bonitas Research LLC (disclosed 12 Feb 2020).

Financial performance:
  • 11% AFFO increase, up from 6.4 cents per unit
  • 76% AFFO payout ratio, down from 82%

Portfolio performance:
  • 11.5 yr WALE, up from 11.3 yrs
  • 38 properties, across 5 agricultural sectors

Capital management:
  • 26% gearing, below target range of 30-35%
  • Cost of debt 3.70%, down from 4.18%

Forecasts:
  • FY20 AFFO increase to 13.5 cpu, up from 13.4 cpu
  • FY21 distribution of 11.28 cpu, in-line with 4% growth target

For more information, view the presentation with Managing Director David Bryant.