This article is from the Australian Property Journal archive
RURAL Funds Management (RFM) has lowered its forecasts for FY16 and FY17.
Adjusted funds from operations (AFFO) per unit guidance is down 3.97% for FY16 to 9.20 cents per unit, which group said was mainly due to the timing of capital deployment relating to the Kerarbury and Tocabil almond developments, and costs incurred in increasing its banking facility for future expansion.
However, the FY17 AFFO forecast is at 12.36 cents per unit, partially as a result of rent review of almond orchards leased to Select Harvests Limited, deployment of further capital for almond developments, including bringing forward 200 ha.
The FY16 DPU forecast is unchanged at 8.93 cents, whilst the increase of 8% for a FY17 DPU of 9.64 cents is a result of the revised FY17 AFFO. The amount is expected to payable quarterly from the end of the September 2016 quarter.
RFM said the revised DPU reflects a 78% payout ratio, with future distribution growth expected to revert to the previously forecast 4% annual growth rate after FY17.
Australian Property Journal
