RFF Fund Overview

Rural Funds Group (ASX: RFF) is Australia’s first listed diversified agricultural property trust. RFM is the responsible entity of RFF.

Rural Funds Group (ASX: RFF) is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805). The fund listed on the Australian Securities Exchange (ASX) in February 2014, becoming Australia’s first listed diversified agricultural property trust. Rural Funds Management Ltd (RFM) is the responsible entity of RFF. RFF owns a diversified portfolio of high quality Australian agricultural assets. Investors are expected to benefit from capital growth through appreciation in the value of RFF’s assets, and a stable income stream derived from leasing those assets to suitably qualified and experienced counterparts.

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Key statistics

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Key statistics

As at 31 December 2016
Adjusted Total Assets1 $552.4m
Adjusted Net Asset Value (NAV)1 $311.2m
Adjusted NAV per unit1 $1.50
Market capitalisation ($1.745 per unit) $362.5m
Number of properties 35
Sectors 6
Weighted Average Lease Expiry (WALE)2 13.1
Gearing3 40.1%
AFFO per unit (FY17 forecast) 12.42 cents
Distributions per unit (FY17 forecast) 9.64 cents
Forecast distribution yield (paid quarterly)4 5.5%
FY18 forecast distribution growth 4%

 

Key forecasts FY17 at disclosure date 21 February 2017
Distribution per unit FY17 9.64 cents
FY18 distribution growth rate 4%
Distribution payment frequency Quarterly

1 Adjusted assets incorporates most recent independent property valuations, inclusive of water entitlements
2 Lease expiries weighted by forecast FY17 rental income, expressed in years from 31 December 2016
3 Gearing calculated as external borrowings/adjusted total assets
4 Calculated forecast FY17 distribution of 9.64 cpu divided by 17 February 2017 closing price of $1.765

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Diversified assets and counterparts

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Revenue FY17 forecast

Weighted average lease expiry profile2

1 Other refers predominately to Plant and Equipment lease income

2 Lease expiries weighted by forecast FY17 rental income, expressed in years from 31 December 2016

RFM-Aug09_302 (Large)

Structure

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Rural Funds Trust is a passive entity for tax purposes and incorporates the majority of RFF assets including almonds, macadamias, poultry infrastructure, vineyard, cotton and cattle sectors. The income received from these assets is passive in nature and thus attracts flow through taxation treatment, meaning that earnings on these assets are taxed in the hands of the investor at their marginal rate.   RF Active houses assets which are considered operational in nature from a taxation perspective. As these assets are held within RF Active they do not impact on the flow through taxation treatment on the assets held within Rural Funds Trust.   RF Active will be taxed as a public trading trust. As a public trading trust, RF Active:

  • will pay tax at the corporate tax rate (currently 30%) on the profit it generates from its operational activities; and
  • may, from time to time, make distributions to Unitholders of the profit generated from its trading activities. Distributions from RF Active may attract franking credits.
Macadamia Farm, Bundaberg, Jan, 2016. 017

Commodities

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Almonds

LESSEES

Select Harvest (ASX:SHV): Australia’s largest vertically integrated nut and health food company, A$0.5b

Olam Orchards Australia Pty Ltd: a wholly owned subsidiary of SGX-listed Olam International Ltd, A$5.1b, second largest global almond grower

RFM & RFM Almond Funds

Poultry Infrastructure

LESSEE

RFM Poultry (NSX: RFP): One of the largest contract chicken growing operations in Australia. RFP has grower contracts with Baiada Poultry Pty Ltd and Turi Foods Pty Ltd.

Vineyards

LESSEES

Treasury Wine Estates (ASX:TWE): World’s largest listed pure-play wine company, A$6.8b.Key brands: Penfolds, Wolf Blass, Seppelt.

Cattle assets

LESSEES

Cattle JV Pty Ltd: Wholly owned subsidiary of RFM, structured to accept investment with suitable joint venture partner.

Cotton

LESSEE

Cotton JV Pty Ltd (CotJV): 50:50 joint venture between Queensland Cotton Corporation Pty Ltd and RFM, both with significant cotton experience

Macadamias

LESSEES

2007 Macgrove Project: A managed investment scheme providing investors (Growers) the opportunity to participate in the macadamia market, & RFM

Other

Plant and Equipment

StockBank Units