Rural Funds Group (ASX:RFF) HY22 financial results


by Matthew Wilson

James Powell, the General Manager - Investor Relations and Marketing of the Rural Funds Group (ASX:RFF), presents on the company's HY22 results.

Rural Funds Management was pleased to report the Rural Funds Group's HY22 results on 18 February. Key indicators included an increase in property revenue compared to the prior corresponding period. This was driven by acquisitions, lease indexation, as well as additional income earned on development capital expenditure. AFFO per unit and distributions per unit are on track for full-year forecasts.

At the start of the period, Rural Funds Group raised $100 million via an entitlement offer at $2 47 per unit. The funds which were raised were used to acquire a number of assets, including those in the cattle and cropping sectors as well as the macadamia sector. These assets were detailed in the financial results presentation and were forecast to contribute to the second half of FY22's earnings.

As part of the results, an update was also provided on the macadamia developments that are occurring within the portfolio. These are forecast to be on track to be materially complete by FY22, relating to the stage one development area of 1,000 hectares in three locations: Maryborough, Bundaberg, and Rockhampton. Lessee discussions are ongoing.

During the period, unitholder approval was also sought to increase the J&F guarantee, which is associated with the JBS-operated feedlots, which at least from the Rural Funds Group. Unitholder approval for this arrangement was overwhelmingly provided, and as a consequence, FY22 AFFO forecast per unit was increased to 11.9 cents. This is supporting distributions forecast for the full year of 11.73 cents per unit, which is a 4 per cent increase on the prior period.


Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.