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.
