New Zealand Rural Land Co. Ltd. · NZX:NZL
New Zealand Rural Land — Investor Presentation (April 2025)
51 slides from New Zealand Rural Land's investor presentation, April 2025
Slide 1: Introductory Presentation
LISTED ON: New Zealand Rural Land Co Introductory Presentation www.nzrlc.co.nz New Zealand Rural Land Company 1
Slide 2: Disclaimer
NEW ZEALAND RURAL LAND CO OWNS AND LEASES SOME OF THE BEST AGRICULTURAL LAND IN THE WORLD. DISCLAIMER The information and opinions in this presentation were prepared by New Zealand Rural Land Company (NZL). NZL makes no representation or warranty as to the accuracy or completeness of the information
Slide 3: Why is NZL without parallel?
WHY IS NZL WITHOUT PARALLEL? A perfect combination of advantages • A rapidly growing global population, food demand and a decrease in available productive land means rural land is increasingly a more attractive investment. This scarce and critical asset has demonstrated consistent positive returns o
Slide 4: New Zealand is a world leading producer and exporter of primary products
NEW ZEALAND IS A WORLD LEADING PRODUCER AND EXPORTER OF PRIMARY PRODUCTS - FOR GOOD REASON The World’s Most Sustainably World Class Advantaged Exporter, Efficient and Lowest Advantaged Risk Mitigation Well Positioned for Cost Producer New Zealand has a lower The importance of agriculture Free Trade
Slide 5: NZL Today - as at December 2024
NZL TODAY - AS AT 31 DECEMBER 2024 New Zealand Rural Land Company is a landlord to New Zealand’s highly advantaged agricultural sector. We own rural land and lease it to high quality tenants. 17,503 9 High Quality Tenants hectares of rural land owned (43,251 acres) $442m Total Assets 100 % Occupancy
Slide 6: NZL Advantages
SECTION 1 NZL ADVANTAGES New Zealand Rural Land Company 6
Slide 7: NZL Advantages
NZL ADVANTAGES SECTORAL SUSTAINABILITY STRUCTURAL RISK MANAGEMENT RETURNS New Zealand Rural Land Company 7
Slide 8: Sectoral Advantages
SECTORAL ADVANTAGES • The global population is expected to reach 9.7 billion by 2050. A growing global population and surging demand for food alongside declining available productive land provide a strong long-term global tailwind for productive land ownership. • Globally, productive rural land is a
Slide 9: Sustainability Advantages
SUSTAINABILITY ADVANTAGES • Soil in New Zealand is predominantly fertile volcanic loams – ideal for productive farming. This, coupled with New Zealand’s temperate climate, consistent rainfall and adequate sunshine make it a highly efficient, low cost producer of primary products. • New Zealand’s pas
Slide 10: Sustainability Advantages (Continued)
SUSTAINABILITY ADVANTAGES (CONTINUED) • Joint sustainability commitments are written into NZL’s leases. These reinforce the shared vision between NZL and its tenants of what sustainability looks like and the commitment to proactively manage, mitigate and minimise greenhouse gas emissions, nutrient l
Slide 11: Structural Advantages
STRUCTURAL ADVANTAGES Access to Transactions Access to Capital • First mover • NZX listed • Profile • Relationship with Rabobank • Volume (and other rural lenders) • Network • Reputation ACCESS ACCESS • Listed Company TO TO TRANSACTIONS CAPITAL NZL’s Domestically Domiciled STRUCTURAL • Speed and cer
Slide 12: Risk Management Advantages
RISK MANAGEMENT ADVANTAGES • By only owning the land NZL has no direct exposure to the operational risks of farming: No direct No direct Limited exposure No exposure to No direct Listing provides on-farm risks exposure to environmental animal health exposure greater liquidity (via either sharemilker
Slide 13: Return Advantage
RETURN ADVANTAGE • Land offers investors a low risk profile with consistent returns (non-cyclical). • NZL since listing has a demonstrated history of outperforming the farm price index1. • For the last 28 years the value of rural land in New Zealand has grown consistently, with REINZ’s Rural Land Pr
Slide 14: Portfolio Overview
SECTION 2 PORTFOLIO OVERVIEW As at 31 December 2024 New Zealand Rural Land Company 14
Slide 15: Portfolio Overview
PORTFOLIO OVERVIEW Rural Sub-Sector Breakdown 33% 51% 6% 10% Dairy Support Apples Forestry Rural Asset Class Horticulture Forestry Pastoral Total Land Area (ha) 144 5,649 11,710 17,5031 Hawke’s Bay, Otago, CNI, Regions Hawke’s Bay and Otago Central North Island (CNI) Canterbury, Otago & Southland Ca
Slide 16: Tenant Concentration, Lease Profile & Lease Overview
TENANT CONCENTRATION, LEASE PROFILE & LEASE OVERVIEW • NZL expects tenant diversification to increase as it continues to grow its asset base. • NZL’s Weighted Average Lease Term (WALT) is currently 12.5 years (100% occupancy). • NZL’s pastoral farm leases all have three, six and nine year CPI increa
Slide 17: Financials - FY24
SECTION 3 FINANCIALS - FY24 As at 31 December 2024 New Zealand Rural Land Company 17
Slide 18: Financial Highlights & Metrics
FINANCIAL HIGHLIGHTS & METRICS $441.9m $229.1m $1.603 29.6% Total Assets Net Asset Value (NAV) NAV per Share Gearing CPI Linked Increasing AFFO CPI linked rental increases of +18.6% on 37.3% of NZL’s FY24 AFFO was $7.1m (4.94 cps)3 due to the impact of portfolio took effect in mid-2024. A further 26
Slide 19: Year on Year AFFO Growth
YEAR ON YEAR AFFO GROWTH • NZL has increased AFFO on both an absolute and per share basis every year since listing1. • In HY24 NZL updated its AFFO calculation to remove the impact of earnings from put/call arrangements as these are comprised of capitalised income rather than cash, which AFFO is a p
Slide 20: Adjusted Funds from Operations (AFFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO) AFFO is a proxy for free cash flow commonly used by REITs. AFFO is intended to provide investors with a clearer picture of the company’s free cash flow. NZ$000 31 December 2024 31 December 2023 Net Profit After Tax 23,079 10,854 Adjusted for: 5.10cps Unrealised
Slide 21: Profit & Loss Statement
PROFIT & LOSS STATEMENT NZ$000 31 December 2024 31 December 2023 Gross Rental Income Rental Income 19,869 15,350 Net Rental Income 19,869 15,350 $23.08m Less Overhead Costs Directors Fees (227) (227) Insurance (87) (85) (+113%) Shareholder Registry & Communication (74) (95) Management Fees (1,407) (
Slide 22: Balance Sheet
BALANCE SHEET NZ$000 31 December 2024 31 December 2023 Current Assets Cash and Cash Equivalents 5,520 1,258 Derivative Assets 151 - Trade and Other Receivables 1,769 378 Assets Held for Sale 11,355 - $441.93m Current Tax Receivable Total Current Assets - 18,795 7 1,643 Non-Current Assets (+19%) Inve
Slide 23: Debt Summary
DEBT SUMMARY In December 2024 NZL restructured its borrowing arrangements, entering into a syndicated facility agreement with Rabobank and Bank of China. The new syndicated facility reduces NZL’s weighted average cost of debt and increases total available debt capital from $133.5m to $140m. NZL has
Slide 24: Total Returns / Forecasts
TOTAL RETURNS / FORECASTS NAV Performance AFFO & AFFO/sh Dividends per Share • NZL’s NAV per share has increased from • NZL delivered FY24 AFFO of $7.1m in • NZL reinstated its dividend in FY24 $1.250 to $1.603 (+28.2%) since listing. AFFO (4.94 cps2) and paid an interim dividend of 1.46 • This grow
Slide 25: Operations & Outlook
SECTION 4 OPERATIONS & OUTLOOK As at 31 December 2024 New Zealand Rural Land Company 25
Slide 26: New Acquisitions in FY24
NEW ACQUISITIONS IN FY24 Diversity Increased 33% Four AFFO and WALT accretive acquisitions settled during FY24. Further diversifying NZL by tenant, geography and sub-sector while also increasing rental adjustment frequency1. 33% 34% 51% • Twyford Orchards: Horticultural land supporting three apple o
Slide 27: Roc Partners Transaction
ROC PARTNERS TRANSACTION Overview On 19 January 2024 NZL announced it had entered into an agreement to sell a 25% equity interest in its land portfolio to Roc Partners (Roc). This transaction settled on 9 February 2024. Roc acquired the equity interest for approximately $44.2m in cash. NZL used the
Slide 28: Dividend & Share Buyback Programme
DIVIDEND & SHARE BUYBACK PROGRAMME Dividend • NZL has resolved to pay a final dividend of 2.54 cps bringing the total dividend for the year to 4.00 cps equivalent to ~80% of NZL’s FY24 AFFO1. • NZL’s dividend policy targets a pay-out ratio of 60% - 90% of AFFO. The pay-out range grants the company g
Slide 29: Outlook & FY25 Forecast
OUTLOOK & FY25 FORECAST NZL’s leases incorporate regular, uncapped, CPI reviews. Accordingly, inflation will result in rental growth. Furthermore, NZL is insulated from inflation-impacted (and all other operational) on-farm costs by owning only the land. NZL has seen the positive impact of inflation
Slide 30: Spotlight On: The Financial Landscape for New Zealand Dairy Farmers
SPOTLIGHT ON: THE FINANCIAL LANDSCAPE FOR NEW ZEALAND DAIRY FARMERS Insights Positive Bottom Line New Zealand’s dairy sector is the backbone of the rural economy, and it’s financial 12.0 2.00 health directly impacts land leasing models like NZL’s. Insights from DairyNZ’s 1.80 10.0 economic tracker s
Slide 31: Market Update
MARKET UPDATE Dairy Carbon In December 2024, Fonterra increased its forecast 2024/25 season New Zealand’s carbon market is tightening, with emission unit availability set Farmgate Milk Price by $0.50, to a midpoint of $10.00 per kilogram of milk to drop from 45 million to 21 million between 2025 and
Slide 32: Performance
SECTION 5 PERFORMANCE New Zealand Rural Land Company 32
Slide 33: New Zealand Rural Land Offers Continued Prospect of Attractive Long Term Land Value Growth
NEW ZEALAND RURAL LAND OFFERS THE CONTINUED PROSPECT OF ATTRACTIVE LONG TERM LAND VALUE GROWTH • Since 1996 the value of rural land in New Zealand has grown considerably, with REINZ’s Rural Land Price Index increasing at a CAGR of +5.9% per annum this is before operating or lease returns. • NZL’s le
Slide 34: NZL vs Global Peer Metrics
NZL VS GLOBAL PEER METRICS Ownership Net Asset Value NAV per Share Share Price Premium/ Model (Discount) to NAV Owns land only $229m $1.60 $0.92 -43% Owns land and $1,329m $3.41 $1.91 -44% operations Owns land only $965m $26.68 $19.42 -27% Owns land and has exposure to $885m $19.27 $21.05 +9% operat
Slide 35: Appendices
SECTION 6 APPENDICES New Zealand Rural Land Company 35
Slide 36: Appendix 1: NZL Company Structure & Ownership
APPENDIX 1 NZL Company Structure & Ownership New Zealand Rural Land Company 36
Slide 37: Company Structure & Board
COMPANY STRUCTURE & BOARD New Zealand Rural Land Co Accountant NEW ZEALAND Auditor The Rural Land Investors RURAL LAND MANAGEMENT Registry Listed ROB SARAH TIA CHRISTOPHER CAMPBELL KENNEDY GREENAWAY SWASBROOK Independent Independent Independent Non-Independent Chair Director Director Director Direct
Slide 38: Key People
KEY PEOPLE New Zealand Rural Land Co The Rural Land Investors ROB CAMPBELL SARAH KENNEDY TIA GREENAWAY CHRISTOPHER SWASBROOK Independent Chair Independent Director Independent Director Non-Independent Director & Founder New Zealand Rural Land Management SHELLEY RUHA XAVIER LYNCH Director General Man
Slide 39: Foreign Ownership Rules & Levels
FOREIGN OWNERSHIP RULES & LEVELS New Zealand Current Listed Current NZL Buyer Company Foreign Foreign NZL is highly advantaged Ownership Rules Ownership because it is a Under the Overseas Investment As at 31 December 2024, New Zealand buyer Amendment Act 2021, NZL can have NZL had foreign domiciled
Slide 40: Appendix 2: NZL's Sustainability Programme
APPENDIX 2 NZL’s Sustainability Programme New Zealand Rural Land Company 40
Slide 41: NZL's Sustainability Programme: Enduring Land for Life
NZL’S SUSTAINABILITY PROGRAMME: ENDURING LAND FOR LIFE At the heart of our organisation is the commitment we follow in all our business dealings. It is enshrined in the contract between ourselves and our tenant partners. Its purpose is to be the engine of NZL’s organisational purpose: “to create and
Slide 42: Environmental Sustainability
How we measure success: Environmental sustainability Focus Area Audited/Measured Initiatives Ultimate Outcome Best-practice irrigation efficiency • All new irrigation systems will meet Irrigation New Zealand (INZ) design and installation COPs and standards; Ensure irrigation systems use water as eff
Slide 43: Environmental Sustainability (continued)
Precise water use • Actual water use is efficient for the end use. Use water efficiently, ensuring that actual use of water is monitored and efficient. Improved water quality Industry-leading greenhouse gas • Calculate net farm greenhouse gas emissions using a recognised method; reduction • Identify
Slide 44: Economic Resilience
How we measure success: Economic resilience Focus Area Audited / Measured Initiatives Ultimate Outcome Ensure tenants are well capitalised Meaning they can endure volatile operating environments and continue to succeed and thrive. Number of tenants on 10 year + leases We believe long-term leases enc
Slide 45: Social Integrity
How we measure success: Social integrity Outcome Audited / Measured Initiatives Ultimate Outcome Health and Safety excellence • Tenants must advise NZL immediately of any accidents, incidents or near misses and take all necessary steps to prevent these from recurring; Safer working environments Comp
Slide 46: Animal Welfare Responsibility
How we measure success: Animal Welfare responsibility Outcome Audited / Measured Initiatives Ultimate Outcome Prioritise best practice animal welfare • Tenants must comply with the Animal Welfare Act 1999 and ensure animals have: Develop and maintain industry-leading animal • Proper and sufficient f
Slide 47: Governance Strength and Diversity
How we measure success: Governance Strength and Diversity Outcome Audited / Measured Initiatives Ultimate Outcome Best-practice governance • NZL has and will maintain governance that is independent and diverse by experience, age, gender, race and sector with directors and Diverse and independent gov
Slide 48: Appendix 3: NZL Investment Services
APPENDIX 3 NZL Investment Services New Zealand Rural Land Company 48
Slide 49: Index Inclusions and Broker Research Coverage
INDEX INCLUSIONS AND BROKER RESEARCH COVERAGE Index Inclusions Broker Research Coverage FTSE Global Micro Cap Index S&P / NZX All Real Estate Index Nicholas Hill Arie Dekker nicholas.hill@craigsip.com arie.dekker@jarden.co.nz Kieran Carling Vishhal Bhula kieran.carling@craigsip.com vishal.bhula@jard
Slide 50: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Richard Milsom Xavier Lynch richard@nzrlm.co.nz xavier@nzrlm.co.nz +64 21 274 2476 +64 27 282 8046 Level 1 Level 1 85 Fort Street 85 Fort Street Auckland Central Auckland Central Auckland 1010 Auckland 1010 New Zealand New Zealand New Zealand Rural Land Company 50
Slide 51: Rural Land Co
New Zealand Rural Land Co The Rural Land Investors New Zealand Rural Land Company +64 9 217 2905 Level 1, 85 Fort Street info@nzrlc.co.nz Auckland Central www.nzrlc.co.nz Auckland 1010 nzrlc New Zealand nzrlc LISTED ON: New Zealand Rural Land Company 51
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