New Zealand Rural Land Co. Ltd. · NZX:NZL
New Zealand Rural Land — FY2022 Earnings Presentation
26 slides from New Zealand Rural Land's earnings presentation, Mar 1, 2023
Slide 1: Result for the Period Ending 31 December 2022
v New Zealand Rural Land Co The Rural Land Investors RESULT FOR THE PERIOD ENDING 31 DECEMBER 2022 1 March 2023 www.nzrlc.co.nz listed on: NEW ZEALAND RURAL LAND COMPANY 1
Slide 2: Disclaimer
v 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 t
Slide 3: NZL owns and leases some of the best farmland in the world
New Zealand Rural Land Co owns and leases some of the best farmland in the world, offering an unparalleled investment opportunity. New Zealand Rural Land Co The Rural Land Investors
Slide 4: NZL: At a Glance - December 2022
NZL: At a Glance - 31 December 2022 INTRODUCTION $298.8m $190.9m $1.652 Total Assets Net Asset Value (NAV) NAV per Share +21.5% -35.8%* 2.03cps 12 Month NAV per Share Increase Share Price Discount to NAV Final Dividend (record date: Tuesday, 7 March 2023 / payment date: Friday, 10 March 2023) 3.4%**
Slide 5: NZL: Highlights
NZL: Highlights INTRODUCTION Balance date change and valuations once again demonstrate the quality of NZL’s portfolio. Balance Date Change Asset and Portfolio Growth NZL has changed its balance date to 31 NZL has total assets of $298.8m, composed December from 30 June each year. This is to primarily
Slide 6: Section 1: NZL Financials & Return Metrics for Period Ending 31 December 2022
SECTION 1 NZL FINANCIALS & RETURN METRICS FOR PERIOD ENDING 31 DECEMBER 2022 NEW ZEALAND RURAL LAND COMPANY 6
Slide 7: NZL: Adjusted Funds From Operations (AFFO)
1 NZL: Adjusted Funds From Operations (AFFO) FINANCIALS 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 dividend paying ability. 2.70cps NZ$000 Net Profit After Tax 31 December 2022* 5,265 30 June 2022** 36,457
Slide 8: NZL: Profit & Loss Statement
1 NZL: Profit & Loss Statement FINANCIALS NZ$000 31 December 2022* 30 June 2022** Variance Gross Rental Income Rental Income 5,681 5,307 +374 Net Rental Income 5,681 5,307 +374 Less Overhead Costs Directors Fees (114) (114) - $5.27m Insurance Marketing Expenses (40) (11) (40) (1) - +10 NPAT Manageme
Slide 9: NZL: Balance Sheet
1 NZL: Balance Sheet NZ$000 31 December 2022 30 June 2022 Variance Current Assets FINANCIALS Cash and Cash Equivalents 1,942 1,004 +938 Trade and Other Receivables 269 1,411 (1,142) Current Tax Recievable 13 10 +3 Total Current Assets 2,224 2,425 (201) Non-Current Assets Investment Property 267,360
Slide 10: NZL: Debt Summary
1 NZL: Debt Summary D E BT M E T R I C S NZL has hedging arrangements in place for 39% of its total borrowings at an average all in cost of 4.5%. NZL’s remaining debt is borrowed on a floating rate (BKBM plus bank margins) and the average all in cost of NZL’s floating debt as at 31 December 2022 was
Slide 11: NZL: Total Returns
1 NZL: Total Returns TOTA L R E T U R N S Since listing on the NZX, 21 December 2020, NZL has delivered total returns (NAV per share growth plus dividends) of +36.7%. NZL declared an inaugural dividend of 2.01cps on 31 December 2021. For the 12 months from 1 January 2022 to 31 December 2022 NZL decl
Slide 12: Section 2: NZL Portfolio Overview as at 31 December 2022
SECTION 2 NZL PORTFOLIO OVERVIEW AS AT 31 DECEMBER 2022 NEW ZEALAND RURAL LAND COMPANY 12
Slide 13: NZL: Portfolio Overview
2 NZL: Portfolio Overview P O RT F O L I O OV E R V I E W Region Otago Canterbury Southland Total Land Area (ha) 3,991 6,333 1,386 11,710 Rural Asset Class Pastoral Farms Pastoral Farms Pastoral Farms Pastoral Farms Current Use Dairy Dairy Dairy Dairy WALT (years)1 8.6 9.3 9.2 9.0 # Tenants 2 3 3 72
Slide 14: NZL: Tenant Concentration, Lease Profile & Lease Overview
2 NZL: Tenant Concentration, Lease Profile & Lease Overview P O RT F O L I O OV E R V I E W NZL expects tenant diversification to increase as it continues to grow its asset base. NZL’s Weighted Average Lease Term (WALT) is currently 9.0 years* (100% occupancy). NZL’s leases all have three, six and n
Slide 15: Section 3: NZL Operational Update & Outlook
SECTION 3 NZL OPERATIONAL UPDATE & OUTLOOK NEW ZEALAND RURAL LAND COMPANY 15
Slide 16: NZL: Operational Update
3 NZL: Operational Update O P E R AT I O N A L U P DAT E NZL has mandated Perella Weinberg Partners LP (PWP) to assist us in identifying a potential capital partner to support our long- term strategic growth objective of establishing the leading diversified agroforestry landlord platform of scale in
Slide 17: NZL: Outlook
3 NZL: Outlook O U T LO O K NZL’s leases incorporate regular, uncapped, CPI reviews. Accordingly, high 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’s previous FY23 AFFO forecast wa
Slide 18: NZL: Outlook - Creating a Diversified Rural Land Portfolio Over Time
3 NZL: Outlook - Creating a Diversified Rural Land Portfolio Over Time Portfolio Construction: Target Rural Land Asset Classes: O U T LO O K Sector: Description: Timeframe: NZL’s initial focus has been on acquiring New Zealand NZ’s environment provides for a wide variety of forestry and tree based p
Slide 19: NZL: Summary
3 NZL: Summary S U M M A RY NZL provides investors with exposure to: NEW ZEALAND Rural Land Co Favourable Industry A Proven Value Add Attractive Total Returns High Quality Tenants A Significant Growth Dynamics Acquirer of Land with attractive WALT Opportunity Rising global demand for Successfully ac
Slide 20: Appendix 1: Company Structure & Ownership, Index Inclusions, Research Coverage
APPENDIX 1 NZL COMPANY STRUCTURE & OWNERSHIP, INDEX INCLUSIONS, RESEARCH COVERAGE AND INVESTOR RELATIONS CONTACTS NEW ZEALAND RURAL LAND COMPANY 20
Slide 21: NZL: Key People
1 NZL: Key People New Zealand Rural Land Co APPENDIX The Rural Land Investors ROB CAMPBELL SARAH KENNEDY TIA GREENAWAY CHRISTOPHER SWASBROOK Independent Chair Independent Director Independent Director Non-Independent Director Chair – EPA NZ Director - Comvita NZ Hailing from Ngāti Tūwharetoa and Man
Slide 22: NZL: Director & Manager Ownership Interests
1 NZL: Director & Manager Ownership Interests APPENDIX All Directors of NZL and all Directors and Shareholders of the Manager are investors in NZL. As at 31 December 2022 these holdings total: # Shares Clyde & Rena Holland 10,089,278 Elevation Capital Management Limited 7,285,998* Allied Farmers Lim
Slide 23: NZL: Foreign Ownership Rules & Levels
1 NZL: Foreign Ownership Rules & Levels APPENDIX New Zealand buyer Current Listed Company Current NZL Foreign NZL is highly advantaged foreign ownership rules ownership because it is a Under the Overseas Investment As at 31 December 2022, New Zealand buyer Amendment Act 2021, NZL NZL had foreign dom
Slide 24: NZL Index Inclusions and Broker Research Coverage
1 NZL Index Inclusions and Broker Research Coverage APPENDIX Index Inclusions Broker Research Coverage FTSE Global Micro Cap Index S&P / NZX All Real Estate Index Kieran Carling Arie Dekker kieran.carling@craigsip.com arie.dekker@jarden.co.nz Nicholas Hill nicholas.hill@craigsip.com NEW ZEALAND RURA
Slide 25: NZL: Investor Relations Contacts
1 NZL: Investor Relations Contacts APPENDIX 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 NEW ZEALAN
Slide 26: New Zealand Rural Land Co
v New Zealand Rural Land Co The Rural Land Investors 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 — FY2022 Earnings Presentation on 6ix