Rural Funds Group · ASX:RFF
Rural Funds — Investor Presentation (February 2014)
25 slides from Rural Funds's investor presentation, Feb 13, 2014
Slide 1: ASX Release: Financial Adviser Presentation – teleconference delivery
Rural Funds Group (RFF) For personal use only ASX Release 12 February 2014 Subject: Financial Adviser Presentation – teleconference delivery Attached is a presentation to Financial Advisers to be delivered by teleconference by RFM Managing Director, Mr David Bryant, on 13 February 2014. The presenta
Slide 2: Rural Funds Group (ASX: RFF) Adviser Presentation – lead in to Listing
For personal use only Rural Funds Group (ASX: RFF) Adviser Presentation – lead in to Listing 13 February 2014
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Rural Funds Management Limited (ACN 077 492 838) (“RFM”) as the responsible entity of Rural Funds Group (ARSN 112 951 578) (“RFF”). The information contained in this presentation is not investment or financial product advice and
Slide 4: Contents
Contents For personal use only 1 Introduction 2 RFF Listing 3 Case Study 4 Investment Highlights 5 Conclusion 3
Slide 5: 1. Introduction
For personal use only 1. Introduction
Slide 6: The evolution of Rural Funds Group
Introduction The evolution of Rural Funds Group Rural Funds Group was created through the merger of 3 existing unlisted funds For personal use only The RFM Chicken Income Fund (CIF) and RFM Australian Wine Fund (AWF) were merged with RFM RiverBank (RiverBank). RFM RiverBank has been subsequently
Slide 7: Overview of Rural Funds Group (RFF)
Introduction Overview of Rural Funds Group (RFF) RFF generates lease revenue and potential capital growth through owning agricultural assets For personal use only Key Statistics Rural Funds Group (RFF or the Fund) will be a new listed real estate property trust with a diversified portfolio of agri
Slide 8: Investment Highlights
Introduction Investment Highlights For personal use only Quality, pure play Australian agricultural property trust 1 • Exposure to quality agricultural properties located in major chicken, wine and almond producing regions of Australia • Assets include commercial scale poultry growing infrastructure
Slide 9: 2. RFF Listing
For personal use only 2. RFF Listing
Slide 10: Summary of listing events
RFF Listing Summary of listing events For personal use only Unitholders will receive Holding Statements stating SRN via Boardroom from Monday 10th February 2014 Unitholders can transfer their holding to their broker sponsor by requesting a form from their broker RFF will commence quotation on
Slide 11: Activities to date
RFF Listing Activities to date RFM has undertaken a number of activities prior to the listing of RFF For personal use only CBA Equities has been appointed the corporate broker for RFF Taylor Collison will provide additional research coverage Meetings with a number of potential institutional in
Slide 12: 3. Case Study
For personal use only 3. Case Study
Slide 13: Case Study: Capital Industrial Fund (TIX)
Case Study 360 Capital Industrial Fund (TIX) For personal use only Who 360 Capital Industrial Fund Establishment August 2002 (unlisted fund) What - 20 industrial properties (warehouses, workshops, etc) - Located in all states (except NT) - Underlying assets $340.7m - WALE 5.1 years - Forecast distri
Slide 14: Capital Industrial Fund (TIX): Premium to NTA and Implied Yield
Case Study 360 Capital Industrial Fund (TIX) For personal use only 360 Capital Industrial Fund (TIX) Premium to NTA and Implied Yield Premium to NTA % (LHS) Implied Yield (RHS) Float to 10 Feb 2014 20% 14.00% 15% 12.00% 10% 5% 10.00% 0% 8.00% -5% -10% 6.00% -15% -20% 4.00% -25% 2.00% -30% -35% 0.00%
Slide 15: RFF Implied Yield (FY15)
RFF Implied Yield (FY15) For personal use only Premium/Discount to NAV 5% 0% -10% -20% Implied price $1.05 $1.00 $0.90 $0.80 Corresponding yield^ 8.15% 8.55% 9.50% 10.69% ^ Yield at a payout ratio of 90% 14
Slide 16: RFF Distribution Profile
RFF Distribution Profile For personal use only Next RFF distribution record date is 28 February 2014 (forecast $0.02105 including franking) Distributions will be declared on a quarterly basis thereafter (forecast $0.02147 per unit FY15 including franking) Expected distribution record dates: –
Slide 17: 4. Investment Features
For personal use only 4. Investment Features
Slide 18: Quality Australian agricultural portfolio
Investment Features Quality Australian agricultural portfolio Exposure to quality agricultural properties located in the major chicken, wine and almond For personal use only producing regions of Australia Portfolio Overview Key Portfolio Statistic The properties are centred around the south east c
Slide 19: Attractive forecast distribution yield
Investment Features Attractive forecast distribution yield The Fund is expected to provide Unitholders with an attractive distribution yield For personal use only Forecast Annualised Distribution Yield of 8.3% for the 6 months ending 30 June 2014 Forecast Annualised Distribution Yield excludes 2
Slide 20: Diversified, stable income stream
Investment Features Diversified, stable income stream Income is underpinned by fixed rental payments with rental increases and potential capital For personal use only growth over time Tenant Portfolio Diversification by FY14 Revenue Diversified, stable revenue stream underpinned by: – Fixed lease
Slide 21: Long term, quality lease profile
Investment Features Long term, quality lease profile RFF has long term lease arrangements in place with suitably qualified and experienced tenants. For personal use only Lessee Lessee % of total Weighted Indexation Payment and rent review Description FY14 Average Mechanism revenue Expiry RFM Poultry
Slide 22: Relationship with Rural Funds Management
Investment Features Relationship with Rural Funds Management The Responsible Entity, on behalf of the Fund, has entered into agreements with RFM in relation For personal use only to management activities RFM will charge a fee and expense recovery for managing and administering the Fund • Managemen
Slide 23: 5. Conclusion
For personal use only 5. Conclusion
Slide 24: Conclusion
Conclusion For personal use only Based on case study, RFF price is likely to initially trade below NAV Existing investors will continue to benefit from RFF distributions regardless of trading price volatility RFF audience remains retail focused for the short term Trading price may presenting
Slide 25: Corporate Information
Corporate Information For personal use only Rural Funds Management Pty Ltd ACN 077 492 838 AFSL 226701 Canberra Office Level 2 2 King Street Canberra ACT 2600 Telephone: +61 2 6203 9700 Facsimile: +61 2 6281 5077 Website: www.ruralfunds.com.au 24
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