This article is from the Australian Property Journal archive
PROPERTY revenue for Rural Funds Group has slowed in the first half however the rest of their results have remained stable in line with the previous corresponding periods.
Property revenue saw a 7% increase (to $37.4 million), down from the 12% increase in the pcp.
Gearing remained in the target range, albeit in the lower end at 31%. They’ve managed this in the past two reports, staying in the 30-35% range in both H1 and H2 of 2022.
Rural Funds Group have recorded an increase of 50% to 15.5 cents per unit in their total comprehensive income. These earnings have been heavily affected by revaluations in the cattle sector, macadamia sector and development capex. The H1 22 results had it at just 10.36 cpu.
Adjusted net asset value jumped another 3%, from $2.69 to $2.78 per unit.
Higher interest rates had an effect on adjusted funds from operations (AFFO) however they still remained in line with the pcp – adjusting for the TRG macadamia lease payment attributable to 1H23.
The group has made an 0.6 reduction to its prior forecast in the AFFO. The revised forecast for FY23 is 10.7 cpu.
Management plans to continue its focus on macadamia developments, productivity improvements and leading assets under development.
The group has a number of plans in the pipeline for its growing portfolio. They are set to benefit over the next few years as a result. A 3000 ha macadamia development is forecast to be completed by FY25 while development of an additional 2000 ha is expected to commence then. 475 ha of mature orchards and five cattle and cropping properties are undergoing improvements ahead of seeking lessee(s).
