Rural Funds Group · ASX:RFF
Rural Funds — Shareholder Meeting (August 2018)
18 slides from Rural Funds's shareholder meeting presentation, Aug 10, 2018
Slide 1: Rural Funds Group | Unitholder Meetings
For personal use only Rural Funds Group | Unitholder Meetings 10 August 2018
Slide 2: Disclaimer
Managed by: Disclaimer This presentation has been prepared by Rural Funds Management Limited (ACN 077 492 838, AFSL 226 701) (“RFM”) as the responsible For personal use only entity of Rural Funds Group (“RFF”). RFF is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Acti
Slide 3: Contents
Managed by: Contents For personal use only RFM presenter Section 1: Results of proxy voting David Bryant Section 2: JBS Transactions & Guarantee Managing Director Section 3: Independent Expert’s Report Appendices: A. Additional details of the JBS Transaction and Guarantee 3
Slide 4: Results of proxy voting
For personal use only 1 Results of proxy voting Mungindi Feedlot feed mill, Mungindi, Queensland, January 2013
Slide 5: Proxy voting prior to meeting
Managed by: Proxy voting prior to meeting Summary of proxy votes by value1 received before the meeting. For personal use only FOR AGAINST UNDIRECTED TOTAL ABSTAIN $ $ $ $ $ Approval of the 180,464,677 366,708 2,562,243 183,393,628 429,379 Guarantee 98.40% 0.20% 1.40% Note: 1. Using RFF market close
Slide 6: JBS Transactions & Guarantee
For personal use only 2 JBS Transactions & Guarantee ‘Long-fed’ Angus cattle in a JBS feedlot, November 2013
Slide 7: Unitholder approval of Guarantee
Managed by: Unitholder approval of Guarantee The Guarantee is considered a transaction with a related party under the ASX Listing Rules and requires RFF Unitholder approval. For personal use only Resolution “That for the purposes of ASX Listing Rule 10.1 and for all other purposes, the Unitholders o
Slide 8: Feedlots
Managed by: Feedlots JBS is Australia’s largest lot feeder and cattle processor. The Feedlots are integral to the supply of cattle to JBS processing facilities. For personal use only JBS Feedlots and processing facilities1 RFF will enter into a finance lease for JBS five Feedlots2: 1. Purchase price
Slide 9: Guarantee to J&F Australia Pty Ltd ("J&F")
Managed by: Guarantee to J&F Australia Pty Ltd (“J&F”) JBS is seeking to replace an existing supply arrangement of cattle for its Feedlots and processing facilities. 1 RFF will provide a limited Guarantee to an existing entity called J&F which For personal use only acquires cattle for JBS’ Feedlots:
Slide 10: Portfolio impact
Managed by: Portfolio impact The Transactions result in increased scale and improved sector diversification. For personal use only Pre and post-transaction portfolio metrics1 WALE expiry profile by lessee3 $14.0m 2% 3% 2% 2% 4% 4% 6% 7% $12.0m 51% 12% 13% 46% Pre Post $10.0m 1% Sector revenue 10% $8
Slide 11: Independent Expert's Report
For personal use only 3 Independent Expert’s Report Receival site, Mungindi feedlot, Mungindi Queensland, January 2013
Slide 12: Independent Expert's Report
Managed by: Independent Expert’s Report The Independent Expert has concluded that the Guarantee is fair and reasonable to the Non-Associated Unitholders of RFF under the requirements of Listing Rule 10 and Chapter 2E of the Corporations Act. For personal use only The Independent Expert’s Report iden
Slide 13: Independent Expert's Report
Managed by: Independent Expert’s Report The Independent Expert has concluded that the Guarantee is fair and reasonable to the Non-Associated Unitholders of RFF under the requirements of Listing Rule 10 and Chapter 2E of the Corporations Act. For personal use only The Independent Expert’s Report iden
Slide 14: Appendix A. Additional details of the JBS Transaction and Guarantee
Managed by: For personal use only Appendix A. Additional details of the JBS Transaction and Guarantee Beef City feedlot, Toowomba Queensland, March 2017
Slide 15: Details of the Feedlots
Managed by: Details of the Feedlots The Feedlots are leased on a triple net basis and are indexed at CPI. Key property and lease terms For personal use only Description • Five feedlots with water entitlements, and adjacent cropping land for a purchase price of $52.7m including stamp duty. Return • L
Slide 16: Details of the Guarantee and J&F
Managed by: Details of the Guarantee and J&F The Guarantee is for a 10 year term and will earn a return without any direct operating risk. Key terms of the Guarantee and J&F For personal use only • A $75m limited guarantee (“Guarantee”) is provided by RFF to a special purpose vehicle called J&F Aust
Slide 17: Rural Funds Management
Managed by: For personal use only Rural Funds Management Key information Board and management team contacts and tenure Established 1997 Total $743m Assets under Rural Funds Group: $687m management RFM Poultry: $9m Guy Paynter David Bryant Michael Carroll Julian Widdup Non-Executive Managing Non-Exec
Slide 18: Rural Funds Management Ltd
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: ruralfunds.com.au For personal use only Managing good assets with good people For further information: For media enquiries: Inv
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