Key details of the leases and lessees are outlined below:
|Lessee||Lease type||Payment frequency||Indexation Mechanism||Rent review||Capital commitments|
|Cattle JV Pty Ltd||Property||Quarterly in advance||Annual CPI & cattle price adjustment (Eastern Young Cattle Index), with 150bps ceiling||Five year market review||
|Cattle JV Pty Ltd||Herd lease||Quarterly in advance||Annual cattle price adjustment mechanism||n/a||
|DA and JF Camm Pty Ltd||Property||Quarterly in advance||2.5% per annum||Five year market review||
|JBS Australia Pty Ltd||Property||Monthly in advance||CPI||No||
|Stone Axe Pastoral Company||Property||Quarterly in advance||2.5% per annum||Five year market review||
|Australian Agricultural Company Limited (ASX: AAC)||Property||Quarterly in advance||CPI||Five year market review||
Cattle JV Pty Ltd (CJV)
CJV is a wholly owned subsidiary of Rural Funds Management Limited and is structured to accept investment with suitable joint venture partners (e.g. processors seeking to secure supply).
CJV has employed property managers for each of the three properties with 80 years’ combined experience in livestock operations and management. The personnel have worked on the properties being purchased or within the immediate region.
CJV aims to increase the carrying capacity, weight gain and calving rates on the three properties. The herd lease rental indexation includes an Eastern Young Cattle Index (EYCI) adjustment mechanism (up to an additional 150 basis points above a base rate) providing RFF with some exposure to the benefits of higher cattle prices.
DA and JF Camm Pty Ltd (Camm)
Camm operate an integrated cattle business, the Camm Agricultural Group (CAG). Operating since 1978, CAG is a cattle breeding, backgrounding and finishing business. The business runs approximately 35,000 breeding, backgrounding and feedlot cattle and operates nine properties, including a 9,100 Standard Cattle Unit1 capacity feedlot. For more information on CAG, visit their Facebook page HERE.
JBS Australia Pty Ltd
JBS Australia is the largest meat processing company in Australia and a division of JBS, the largest animal protein processing company in the world, working in the areas of food, leather, products for pets, biodiesel, collagen, cans and cleaning products.
JBS Australia have a network of ten strategically located processing facilities and five feedlots stretched from Townsville in north Queensland to Devonport in Tasmania, JBS has a daily processing capacity of more than 8,000 cattle and 21,000 small stock. For more information on JBS Australia, visit their website HERE.
Stone Axe Pastoral Company
Stone Axe Pastoral is an award-winning Wagyu cattle breeding enterprise which is a world-leader in luxury beef production, building the world’s largest vertically integrated Purebred and Full Blood Wagyu enterprise. For more information on Stone Axe Pastoral Company, visit their website HERE.
Katena Pty Ltd
Katena Pty Ltd operates a Queensland-based cattle business and leases the RFF property ‘Cerberus’, located north west of Rockhampton, central Queensland.
Elrose Enterprises Pty Ltd
Elrose Enterprises Pty Ltd is Australia’s largest Brahman cattle stud breeder and leases the RFF property ‘Comanche’, located west of Rockhampton, central Queensland. For more information on Elrose, visit their website HERE.
Australian Agricultural Company Ltd
Established in 1824, Australian Agricultural Company (ASX: AAC) is Australia’s largest integrated cattle and beef producer, and the oldest continuously operating company in Australia. AAC operates a balance of properties, feedlots and farms comprising approximately 6.4 million hectares of land in Queensland and the Northern Territory, or 1% of Australia’s landmass. AAC specialises in grain fed beef and Wagyu beef production. For more information on AAC, visit their website HERE.
1A Standard Cattle Unit is equivalent to an animal with a live weight of 600kg. Source: National Beef Cattle Feedlot Environmental Code of Practice, Meat and Livestock Australia, 2012.