New Zealand Rural Land Co. Ltd. · NZX:NZL
New Zealand Rural Land — FY2021 Earnings Presentation
26 slides from New Zealand Rural Land's earnings presentation, Aug 30, 2021
Slide 1: Investor Update
NEW ZEALAND Rural Land Co SUS TAIN ABLE AOTEAROA INVESTOR UPDATE 30 August 2021 www.nzrlc.co.nz listed on:
Slide 2: Disclaimer
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 in this report. Opinions including estimates and projections in this report constitute the
Slide 3: Key Announcement Points
NEW ZEALAND RURAL LAND COMPANY KEY ANNOUNCEMENT POINTS 01 NZL reported an inaugural net profit after tax of 02 NZL is forecast to deliver investors a FY22 cash 03 NZL confirms a large and attractive acquisition $15.115M as at 30 June 2021 after successfully dividend yield of 4.35%* from its current
Slide 4: Timeline
NEW ZEALAND RURAL LAND COMPANY TIMELINE 21 December 2020 23 March 2021 01 June 2021 04 June 2021 Completed $75M IPO Announced first $ 10.24M Settled $ 124.25M of Announced 2:3 Rights and listed on the NZX. unconditional acquisition in acquisitions in North Issue at $ 1.10 / share Southland, New Zeal
Slide 5: Background
NEW ZEALAND RURAL LAND COMPANY BACKGROUND New Zealand Rural Land Company (NZL) was incorporated for the purpose of acquiring rural land across New Zealand’s agricultural sector and is the only agricultural land based listed property company on the NZX. NZL separates land ownership and operations. NZ
Slide 6: A Rural Land Owner in a World Leading Agricultural Economy
NEW ZEALAND RURAL LAND COMPANY A RURAL LAND OWNER IN A WORLD LEADING AGRICULTURAL ECONOMY 1 ST COUNTRY PARTNER OF THE GLOBAL FARM 2050 INITIATIVE 90 M PEOPLE COULD GET ALL THEIR DAIRY FROM NEW ZEALAND The Farm 2050 Initiative is a global programme focused New Zealand farmers and dairy companies prod
Slide 7: Portfolio Update and Forecasts
PORTFOLIO UPDATE AND FORECASTS
Slide 8: Portfolio as at June 2021
NEW ZEALAND RURAL LAND COMPANY PORTFOLIO AS AT 30 JUNE 2021 As at 30 June 2021 (Financial Year End) NZL had acquired a rural land portfolio of 6,797 Ha with a total value of $ 143.153M*. NZL reiterates to investors it continues to have a solid pipeline of opportunities with approximately $ 80M of as
Slide 9: FY22 Acquisition - Makikihi
NEW ZEALAND RURAL LAND COMPANY FY22 ACQUISITION - MAKIKIHI On 1 August 2021, NZL completed the acquisition of a 493 Ha Hybrid Dairy Farm. NZL has already entered into a lease of this property with Performance Dairy Limited that will be for 11 years with two 12 year rights of renewal. MAKIKIHI ROAD p
Slide 10: Portfolio as at August 2021
NEW ZEALAND RURAL LAND COMPANY PORTFOLIO AS AT 30 AUGUST 2021 The charts below detail by Financial Year NZL’s rural land portfolio - including revaluations. NZL YoY RURAL LAND VALUE/HECTARES NZL TOTAL RURAL LAND VALUE/HECTARES $180 9,000 $180 9,000 NZ$ Millions Hectares NZ$ Millions Hectares $160 8,
Slide 11: Portfolio Overview as at August 2021
NEW ZEALAND RURAL LAND COMPANY PORTFOLIO OVERVIEW AS AT 30 AUGUST 2021 location otago/southland canterbury total land area (ha) 960 6,337 7,297 rural asset class Dairy Dairy Dairy purchase price1 $22.57M $113.68M $136.25M weighted average 5.17% 5.41% 5.37% cap rate2 walt (years) 10.33 10.78 10.71 #
Slide 12: Growth in Net Asset Value (NAV) per Share
NEW ZEALAND RURAL LAND COMPANY GROWTH IN NET ASSET VALUE (NAV) PER SHARE Growth in Net Asset Value (NAV) highlights a combination of attractive large scale acquisitions and industry tailwinds for high-quality rural properties. Net Asset Value Growth per Share - Assuming Full Net Asset Value Growth P
Slide 13: Lease Profiles as at August 2021
NEW ZEALAND RURAL LAND COMPANY LEASE PROFILES AS AT 30 AUGUST 2021 NZL’s WALT (Weighted Average Lease Term) is currently 10.71 years. NZL’s leases all have 3, 6, and 9 year CPI increases with rights of renewal in years 10 and 11 (tenancy dependent). NZL LEASE EXPIRY BY TENANT 100% 90% 80% 70% 60% 50
Slide 14: Tenant Concentration as at August 2021
NEW ZEALAND RURAL LAND COMPANY TENANT CONCENTRATION AS AT 30 AUGUST 2021 NZL’s current tenant concentration is detailed in the pie chart (right). NZL Tenant Concentration as a % of Lease Value NZL expects its tenant concentration to reduce as it continues to grow its asset and tenant base. 17% 7% 58
Slide 15: Capital Structure Overview
NEW ZEALAND RURAL LAND COMPANY CAPITAL STRUCTURE OVERVIEW As at 30 June 2021, NZL had drawn $54.2M of its $65.0M lending facility with Rabobank. Post Rights Issue NZL reduced debt to $40.0M and subsequently re-drew $7.0M to acquire Makikihi. NZL’s current debt is currently $47.0M as at 30 August 202
Slide 16: FFO/AFFO Forecasts Based on Current Portfolio
NEW ZEALAND RURAL LAND COMPANY FFO/AFFO FORECASTS* BASED ON CURRENT PORTFOLIO Forecast Funds from Operations (FFO): FY2022 to FY2024 FFO is the organisation’s underlying and recurring earnings from its operations. This is determined by adjusting statutory net profit for certain non-cash and other it
Slide 17: Cash Dividend Yield Forecasts Based on Current Portfolio
NEW ZEALAND RURAL LAND COMPANY CASH DIVIDEND YIELD FORECASTS BASED ON CURRENT PORTFOLIO NZL’s dividend policy is to payout 95% of AFFO; NZL is currently forecasting a FY22 cash dividend of 4.88 cps this equates to a cash dividend yield of 4.35%*; Forecast cash dividends, based on NZL’s current portf
Slide 18: Acquisition Pipeline, Rights Issue Shortfall Placement and Foreign Ownership
ACQUISITION PIPELINE, RIGHTS ISSUE SHORTFALL PLACEMENT AND FOREIGN OWNERSHIP
Slide 19: Acquisition Pipeline
NEW ZEALAND RURAL LAND COMPANY ACQUISITION PIPELINE Acquisitions of further dairy land continue to represent a compelling opportunity for NZL shareholders. NZL has due diligence underway of approximately $80 mln+ of rural land assets that is broken down as follows as at 30 August 2021, NZL has a lar
Slide 20: Rights Issue Shortfall Placement
NEW ZEALAND RURAL LAND COMPANY RIGHTS ISSUE SHORTFALL PLACEMENT NZL had a rights issue shortfall of 21,835,697 shares @ $1.10 per share. NZL has received expressions of interest for approximately $5.0M shares to date. NZL is now in a position to place up to $19.0M of these shares by 28 September 202
Slide 21: Foreign Ownership
NEW ZEALAND RURAL LAND COMPANY FOREIGN OWNERSHIP NEW ZEALAND BUYER CURRENT LISTED CURRENT NZL FOREIGN COMPANY FOREIGN OWNERSHIP NZL is highly advantaged OWNERSHIP RULES because it is a New Zealand Currently, NZL has foreign Under the Overseas Investment domiciled shareholders buyer of rural land Ame
Slide 22: Tenant Spotlight
TENANT SPOTLIGHT
Slide 23: Tenant Spotlight
NEW ZEALAND RURAL LAND COMPANY TENANT SPOTLIGHT Fortuna Group is one of our tenants in Southland and provides a fine example of industry leadership with regard to a consistent focus on sustainability and environmental impact minimisation. The initiative detailed in this recent press article to pelle
Slide 24: Investor Contacts
INVESTOR CONTACTS
Slide 25: Investor Contacts
NEW ZEALAND RURAL LAND COMPANY INVESTOR CONTACTS Christopher Swasbrook Richard Milsom chris@nzrlc.co.nz richard@nzrlm.co.nz +64 21 928 262 +64 21 274 2476 Level 4, The Blade Level 4, The Blade 12 St Marks Road 12 St Marks Road Remuera Remuera Auckland 1050 Auckland 1050 New Zealand New Zealand
Slide 26: New Zealand Rural Land Co
NEW ZEALAND Rural Land Co SUS TAIN ABLE AOTEAROA New Zealand Rural Land Company +64 9 379 6493 Level 4, 12 St Marks Road info@nzrlc.co.nz Remuera www.nzrlc.co.nz Auckland 1050 nzrlc New Zealand nzrlc listed on: NEW ZEALAND RURAL LAND COMPANY 26
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