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