Rural Funds Group (ASX:RFF) is a real estate investment trust (REIT) which owns a diversified portfolio of high quality Australian agricultural assets that are leased to suitably qualified and experienced agricultural lessees. RFF is managed by Rural Funds Management (RFM) which is an experienced fund and farm manager with almost 20 years experience.
As at 30 June 2016, RFF’s property portfolio comprised 34 properties across New South Wales, Victoria, Queensland and South Australia with a weighted average lease expiry (WALE) of 15.1 years and adjusted total asset value of $469 million.^
RFF is Australia’s only diversified agricultural REIT and one of very few commercial entities actively seeking to provide property leasing solutions to the Australian agricultural sector.
The Fund’s strategy is to own productive agricultural assets that are leased to experienced counterparts. The leasing arrangement is designed to provide a stable revenue stream to RFF and thus support regular distributions to investors.
Capital growth is expected to occur over time as RFF's agricultural assets increase in value driven by productivity improvements, increasing competition for farmland as a result of food security requirements, and the growing global population including the emerging Asian middle class.
RFF is an avenue for investors to gain exposure to the growing demand for productive, agricultural land whilst receiving quarterly income payments.
RFF will pursue the acquisition of additional assets that grow the quantum and diversity of RFF’s earnings.
^Pro forma figures. See ASX disclosure dated 24 August 2016