Rural Funds Group (ASX:RFF) FY19 Results Presentation

Company Presentations

Rural Funds Group Limited (ASX:RFF) Managing Director David Bryant presents the company's FY19 results.

Highlights:

  • Property revenue increased by 30% due to JBS transactions, acquisitions, development capital expenditure, and lease indexation.
  • TCI and EPU lower mainly due to $18m non-cash revaluation decrements on interest rate swaps.
  • FY19 AFFO per unit growth of 4.7% in line with forecast.
  • FY20 forecast AFFO per unit of 14.0 cents represents 5.3% increase to FY19.
  • FY20 DPU forecast of 10.85 cents (disclosed 21 February 2019), consistent with 4% annual growth target. Represents a forecast payout ratio of 77%.
  • Increase in adjusted total assets of $222.2m primarily due to acquisitions, capex and revaluations of almond orchards, vineyards and water entitlement.
  • Gearing of 31% remains within target range of 30-35%, with sufficient capacity to settle remaining acquisitions3and committed capital expenditure.
  • Adjusted NAV per unit growth of 7%, primarily attributable to independent revaluations of almond orchards, vineyards and water entitlement
  • WALE of 11.3 years provides stability of income and long term rental growth via a mix of rent reviews and indexation.
  • Poultry revaluation of ($7.0m) offset by capex of $0.9m.
  • Cattle acquisitions, revaluations and capex includes acquisitions of $114.9m during the period.
  • Almond revaluation and capex includes independent valuation increases of $15.9m, primarily attributable to the Kerarbury almond orchard.
  • Cotton acquisition, revaluation and capex includes Mayneland acquisition of $17.9m.
  • Vineyards revaluations and capex includes revaluation of $15.8m, representing a 33% increase.
  • Murrumbidgee High Security water entitlement of 8,754 ML revalued to $5,500/ML.