Rural Funds Group · ASX:RFF
Rural Funds — Investor Presentation (November 2016)
21 slides from Rural Funds's investor presentation, Nov 4, 2016
Slide 1: Rural Funds Group (ASX:RFF) Corporate presentation
For personal use only Rural Funds Group (ASX:RFF) Corporate presentation November 2016
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Rural Funds Management Limited (ACN 077 492 838, AFSL 226 701) (“RFM”) as the responsible entity of Rural Funds Group (“RFF”). RFF is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168
Slide 3: Portfolio and outlook
For personal use only Portfolio and outlook Almond orchard blossoms, Hillston - NSW
Slide 4: Rural Funds Group (RFF) is an agricultural REIT
Rural Funds Group (RFF) RFF is an agricultural REIT For personal use only Key information as 30 September 2016 Asset locations & climatic zones Adjusted total assets1 $510.1m Adjusted net assets1 $295.7m Adjusted NAV per unit1 $1.43 Market capitalisation ($1.60 per unit) $331.1m Number of properties
Slide 5: Key assets and counterparts
Key assets and counterparts RFF leases agricultural assets to suitable lessees and counterparts For personal use only Cattle assets Almond orchards Poultry farms Vineyards Description: 1,814 ha mature almond orchards 154 sheds on 17 farms 666 ha mature vineyards on Three cattle properties and breedi
Slide 6: Diversified assets and revenue
Diversified assets and revenue RFF is diversified by agricultural sectors, lessees and indexation mechanisms For personal use only Adjusted asset values 30 September 2016 (pro forma)1 FY17 forecast revenue Other Poultry infrastructure Other 4% 13% Cattle JV 8% 17% RFMP 25% Cattle TWE 8% 10% RFM Maca
Slide 7: Growth
Growth Retained earnings can be invested in acquisitions, developments and/or productivity capex1 to For personal use only support FFO growth New investments: developments and productivity capex2 FY17 forecast $60 AFFO per unit 12.42 cents $50 Totals (FY17 – FY20): Distributions per unit 9.64 cents
Slide 8: Comparison
Comparison RFF compares favourably to comparable REITs1 For personal use only FY17 forecast AFFO yield Weighted average lease expiry (WALE) 7.6% Average 6.0% 14.8 15.3 7.1% Average 11.2 12.2 12.3 12.5 6.1% 6.2% 6.3% 11.5 5.6% 5.8% 9.7 5.3% 7.0 5.9 3.5% LEP GHC VVR BWP ARF SCP CLW HPI RFF BWP HPI ARF
Slide 9: Strategy
For personal use only Strategy Geier vineyard, Barossa Valley - SA
Slide 10: Strategy
Strategy RFF has a clear strategy, directed by guiding principles For personal use only Net asset, market cap and liquidity growth RFM has communicated the following strategy for RFF: $350m Adjusted Net Assets, Market Cap – expand the scale of the fund through $300m accretive acquisitions $250m $2
Slide 11: 1. Pure REIT
1. Pure REIT RFF’s pure REIT model benefits from trends supporting agriculture and has significant For personal use only expansion potential in Australia Australian property sectors (as at 2013)1 Macro economic trends supporting agriculture: $150b, est. 15% leased3 $280 b, average 70% leased2 ‒ Po
Slide 12: 2. Managing good assets with good people
2. Managing good assets with good people RFM seeks lessees that are processors with a market presence and believes there is benefit in For personal use only possessing operational experience in the sectors that RFF leases assets RFM seeks lessees that are processors with a market Almonds Poultry C
Slide 13: 3. Sector diversification
3. Sector diversification Acquiring natural resource predominant assets complements existing infrastructure predominant For personal use only assets and aims to grow FFO and DPU over medium to long term Spectrum of investment opportunities1 Note: 1 The income and growth figures presented in the figu
Slide 14: 4. Climate diversification
4. Climate diversification Strategic geographic diversification reduces lessee concentration in any one climatic zone and For personal use only introduces new commodities and counterparts Climatic zones and RFF assets2 The benefits of climatically diversifying RFF’s portfolio include:1 ‒ Moderatin
Slide 15: 5. Productivity capex
5. Productivity capex Productivity capex1 aims to increase lease income, farm values and counterpart profitability For personal use only 125 yrs of agricultural returns (10yr moving avg of % price change)2 Gains in farming productivity (e.g. via technology or science) have historically 16% 14% sup
Slide 16: 6. Fund and farm manager
6. Fund and farm manager RFM is a fund and farm manager with almost 20 years experience in Australian agriculture For personal use only Key information Established 1997 Assets under management $570m Ownership D Bryant, directors & staff Rural Funds Group RFM Poultry Funds managed Almond Funds 06-08
Slide 17: Appendices
For personal use only Appendices Swan Ridge macadamia orchard, Bundaberg - Qld
Slide 18: FY16 results – summary
FY16 results – summary For personal use only Metrics as at 30 June 2016 Income Net profit before income tax 35,963,000 AFFO $14.3m (pre-tax) and AFFO per Total comprehensive income 34,774,000 unit 9.26 cents. Adjusted funds from operations (AFFO) 14,342,000 AFFO per unit up from previous forecas
Slide 19: Key assets further details
Key assets further details Almond orchards Poultry farms Vineyards Cattle assets For personal use only Three cattle properties forming an Description: 1,814 ha across two mature almond 154 sheds on 17 farms consisting Seven vineyards with 666 ha integrated breeding to finishing orchards located near
Slide 20: RFM board and management team
RFM board and management team External management governed by a highly experienced management team and board For personal use only Board of directors Contacts • Joined RFM in 2003 • RFM Company Secretary • Former director of broking firm JBWere with more than • Responsible for reviewing and optimisi
Slide 21: Corporate information
Corporate information For personal use only Rural Funds Management Ltd ACN 077 492 838 AFSL 226701 Canberra Office Level 2, 2 King Street Deakin ACT 2600 Telephone: +61 2 6203 9700 Facsimile: +61 2 6281 5077 Website: www.ruralfunds.com.au For further information: For media enquiries: Investor relati
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