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

30 June 2020
Adjusted total assets1 $1.0b
Adjusted net asset value (NAV)1 $655.7m
Adjusted NAV per unit1 $1.94
Market capitalisation ($2.19 per unit) $739.6m
Number of properties2 61
Sectors 5
Weighted Average Lease Expiry (WALE)3 10.9 years
Gearing4 29.7%
AFFO per unit (FY21 forecast) 11.7 cents
Distributions per unit (FY21 forecast) 11.28 cents
FY21 forecast distribution yield (paid quarterly)5 5.2%

1 Adjusted assets incorporates most recent independent property valuations, inclusive of water entitlements.

2 Includes pro forma assets, including: Maryborough acquistions (expected to settle October 2020), cattle property extension (expected to settle December 2020) and sale of Mooral (expected to settle December 2020).

3 Calculated as the FY21 forecast rent and the year of lease expiry. Excludes properties not leased.

4 Gearing calculated as external borrowings/adjusted total assets.

5 Calculated forecast FY21 distribution of 11.28 cpu divided by 21 August 2020 closing price of $2.19

 

 

 

 

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Diversified assets and counterparts

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Note:
1. Figures shown are subject to rounding. Forecast includes the disposal of Mooral (expected to settle Dec 2020). The Mooral almond orchard sale (as disclosed 24 August 2020) is conditional on completion of due diligence (within 45 days but subject to possible extensions) and Foreign Investment Review Board approval.

2. Lessees shown by FY21f revenue. Olam refers to Olam Orchards Australia Pty Ltd, a wholly owned subsidiary of SGX listed Olam International Ltd (SGX: O32). Income from J&F Australia Pty Ltd attributed to JBS Australia. Cotton JV income split 50% RFM and 50% listed and corporate (Queensland Cotton Corporation Pty Ltd). Excludes non lessee income e.g. annual water allocation sales, and properties where a lessee is currently being sought.

 

 

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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, 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 is taxed as a public trading trust. As a public trading trust, RF Active:

  • pays 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.