Rural Funds Group (RFF) poultry assets are leased to RFM Poultry

Key details of the leases and the lessee are outlined below:

Lessee Payment frequency Indexation mechanism Rent review Capital commitments
RFM Poultry (NSX: RFP) Quarterly in advance 65% of Consumer Price Index (CPI) capped at 2% The lessee and the lessor have the right of rent review where there is a significant permanent change in the profitability of chicken growing activities
  • R&M and ongoing capital expenditure on account of lessee
  • Structural capital expenditure on account of lessor

RFM Poultry

RFM Poultry (RFP) is an NSX listed entity with management experience of over ten years. RFP was established to undertake chicken growing activities for Baiada Poultry Pty Ltd (Baiada) under grower contracts.

Baiada is one of two large integrated national companies that supply more than 70% of Australia’s broiler chickens established in the 1950’s, which acquired Bartter Enterprises and the Steggles brand in 2009. Baiada’s key brands include Steggles and Lilydale.

RFM Poultry also undertakes chicken growing activities for Turi Foods Pty Ltd at the Lethbridge farm in Victoria. Turi Foods is Victoria’s largest processor, distributing chicken products through major and independent supermarkets, craveable brands restaurants and other chicken outlets. Turi’s key brands include ‘La Ionica’, ‘Golden Farms’ and ‘Bannockburn Free Range’.