Rural Funds Group (RFF) almond orchards are leased to three main counterparts.

Key details of the leases and lessees are outlined below:

Lessee Payment frequency Indexation mechanism Rent review Capital commitments
Select Harvests Ltd (ASX: SHV) Quarterly in advance 2.5% p.a. plus rent review Next reviewed to market 1 July 2019, and 3 yearly thereafter. Review is based on unencumbered market value of orchard with contracted rate applied.
  • R&M on account of lessee
  • Development and replacement capital items on account of lessor – subject to additional lease income and rent review
Olam Orchards Australia Pty Ltd Quarterly in advance CPI n/a
  • R&M on account of lessee
  • Development capex on account of lessor, which derives lease income, and limited to $56,000 per planted hectare for Tocabil and $65,000 per planted hectare for Kerarbury
  • Replacement capital items on account of lessor, which derives additional lease income
RFM Almond Fund Quarterly and half yearly in arrears 2.5% p.a. n/a
  • R&M on account of lessee
  • Development and replacement capital items on account of lessor – subject to additional lease income

Select Harvests Ltd

Select Harvests Ltd is an ASX listed company (SHV) and as of December 2017 had a market capitalisation of $0.5bn. As at 31 December 2017 SHV had 7,135 total hectares of planted and in-development almond orchards and processing centres in two locations.

Select Harvests is one of Australia’s largest almond producers and marketers with core capabilities across: Horticulture, Orchard Management, Processing, Sales and Marketing, enabling them to benefit throughout the value chain. They are also the country’s leading manufacturer, processor and marketer of nut products, health snacks and muesli to the Australian retail and industrial markets, in addition to exporting almonds globally.

Select Harvests supplies both branded and private label products including: Lucky, Nu-Vit, Sunsol and Soland in retail markets and Renshaw and Allinga Farms in wholesale and industrial markets.

Olam Orchards Australia Pty Ltd

Olam Orchards Australia Pty Ltd is a wholly owned subsidiary of Olam International Limited, an SGX-listed entity with market capitalisation of over A$5.5b as of December 2017. Olam International’s major shareholder as Temasek, a Singapore sovereign fund.

Olam International is a leading global agribusiness company operating from seed to shelf in 65 countries and has 23,000 employees. They cover 16 product platforms with leadership positions in a variety of commodities including cocoa, coffee, cashew, rice and cotton.

In almonds, Olam International is the second largest grower globally and the only supplier with operations in both Australia (30,000 acres) and California (7,000 acres).

RFM Almond Fund

On 28 August 2019, Growers of the RFM Almond Fund 2006 ARSN 117 859 391 (AF06)RFM Almond Fund 2007 ARSN 124 998 527 (AF07) and RFM Almond Fund 2008 ARSN 127 947 960 (AF08) (collectively referred to as Schemes), approved the merger of the three Schemes. The merged fund is named the RFM Almond Fund (RAF). An area which was directly operated by RFM was also merged into RAF.

RAF will operate a 592 ha almond orchard on a property called Mooral, which is located near Hillston, NSW. The orchard is leased from the Rural Funds Group (ASX:RFF). Rural Funds Management (RFM) manages RAF on behalf of over 400 individual investors. Planting occurred between 2006 and 2008.