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 arrears||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||
RFM Poultry (RFP) is an NSX-listed entity with management experience since 2003. 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 approximately 70% of Australia’s broiler chickens. It was established in the 1950s, and 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.