Rural Funds Group · ASX:RFF
Rural Funds — Corporate Update (March 2020)
12 slides from Rural Funds's corporate update, Mar 20, 2020
Slide 1: ASX Release: Webinar presentation and reaffirmation of guidance
Managed by: For personal use only ASX Release 20 March 2020 Subject: Webinar presentation and reaffirmation of guidance Rural Funds Management Limited (RFM), as responsible entity of Rural Funds Group (ASX:RFF), will deliver the following presentation by webinar today at 11:00AM AEDT. The presentati
Slide 2: Investor webinar: proposed increase of the Guarantee to J&F Australia Pty Ltd
For personal use only Managed by: Investor webinar: proposed increase of the Guarantee to J&F Australia Pty Ltd 20 March 2020
Slide 3: Disclaimer
Managed by: 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 Acti
Slide 4: JBS investments
Managed by: JBS investments The JBS feedlots and Guarantee have been a good investment for RFF. For personal use only Feedlots acquired by RFF1 • In August 2018, the Rural Funds Group (RFF) raised equity to fund: − JBS Australia (JBS) cattle feedlots ($52.7m) − a $75.0m limited Guarantee which provi
Slide 5: Investment structure
Managed by: Investment structure Operating risks and responsibilities quarantined to maintain RFF’s REIT status. For personal use only Investment structure • On 10 August 2018, RFF Unitholders approved the provision of the $75.0 million Guarantee, with 99.8% of votes in favour. Rural Funds Managemen
Slide 6: Increased cattle demand
Managed by: Increased cattle demand JBS’s business is growing. For personal use only JBS feedlot • JBS have requested a larger facility due to their business expanding. • ANZ and Rabobank have approved an increase in the debt facility, on the basis that RFF increases its Guarantee proportionally. •
Slide 7: High quality counterpart
Managed by: High quality counterpart The Guarantee is supported by a high quality counterpart. For personal use only JBS S.A. overview 2 • Counterpart performance: Item Description − Baybrick Pty Ltd (net assets $3.5 billion as at 31 Dec Revenues • US$50.3 billion (second largest food company global
Slide 8: Investment return
Managed by: Investment return The Guarantee generated an FY19 annualised return of 10.23%. For personal use only Guarantee return reconciliation – FY19 Item Amount Notes • The return for the Guarantee consists of: J&F revenue recognised as finance − J&F revenue, paid by JBS on a cost plus basis Fina
Slide 9: Performance history and reaffirming guidance
Managed by: Performance history and reaffirming guidance Increasing number of assets, net asset value, AFFO and distributions. For personal use only Historical performance and metrics1 • RFM reaffirms forecasts: − FY20 adjusted funds from operations (AFFO) per unit of 13.5 cents2 − FY20 distribution
Slide 10: Quality lessees and counterparties
Managed by: Quality lessees and counterparties Most lessees are corporate entities and listed on domestic or international securities exchanges. For personal use only Lessee type by FY20f revenue1 Note: 1. Lessees and details shown by annualised FY20f revenue and reflecting the sale of the poultry a
Slide 11: Conclusion
Managed by: Conclusion A good investment complementing a fund with attractive attributes. For personal use only RFF attributes Based on FY21f DPU Attractive forecast ✓ Good investment with a high-quality counterpart. 5.9% and 19 March 2020 DPU yield: close price of $1.92. Low AFFO payout ✓ Unitholde
Slide 12: Rural Funds Management Limited contact details
Rural Funds Management Limited ACN 077 492 838 AFSL 226701 Canberra Office Level 2, 2 King Street Deakin ACT 2600 Telephone: +61 2 6203 9700 Facsimile: 1800 625 518 For personal use only Website: ruralfunds.com.au Managing good assets with good people For further information: Investor relations enqu