New Zealand Rural Land Co. Ltd. · NZX:NZL
New Zealand Rural Land — FY2024 Earnings Presentation
33 slides from New Zealand Rural Land's earnings presentation, Feb 28, 2025
Slide 1: Result for the year ending 31 December 2024
LISTED ON: 28 FEBRUARY 2025 2024 Result for the year ending 31 December 2024 New Zealand Rural Land Company 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: Key Messages
KEY MESSAGES Roc Partners purchased 25% of NZL portfolio, validating strategy and partnering for growth Portfolio diversification and rental yield materially increased by forestry and horticultural acquisitions in FY24 Partnered with New Zealand Forest Leasing to execute native regeneration on NZL’s
Slide 4: FY24 Financial Highlights & Metrics
FY24 - 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 fur
Slide 5: Year on Year AFFO Growth
YEAR ON YEAR AFFO GROWTH • NZL has increased AFFO both in absolute terms and per share 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 prox
Slide 6: FY24 Operating Overview
SECTION 1 FY24 OPERATING OVERVIEW New Zealand Rural Land Company 6
Slide 7: New Acquisitions in FY24
0.05 NEW ACQUISITIONS IN FY24 Portfolio as at 31 December 2024 Diversity Increased 0.33 Four AFFO and WALT accretive acquisitions settled during FY24. Further diversifying NZL by tenant, geography and sub-sector while also increasing rental adjustment frequency1. • Twyford Orchards: Horticultural la
Slide 8: NZL Financials & Return Metrics
SECTION 2 NZL FINANCIALS & RETURN METRICS for the period ending 31 December 2024 New Zealand Rural Land Company 8
Slide 9: 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 10: Profit & Loss Statement
PROFIT & LOSS STATEMENT NZ$000 30 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 11: Balance Sheet
BALANCE SHEET NZ$000 30 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 12: 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 $140.0m. NZL ha
Slide 13: Total Returns
TOTAL RETURNS 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 growth in NAV pe
Slide 14: Sustainability Programme
SECTION 3 SUSTAINABILITY PROGRAMME as at 31 December 2024 New Zealand Rural Land Company 14
Slide 15: Sustainability Programme: Enduring Land for Life Framework
SUSTAINABILITY PROGRAMME 1 NZL continues to work on mapping its current portfolio for marginal land which can be enhanced with planting and a programme to increase biodiversity. The mitigation of erosion is a key outcome of this planting with potential for carbon sequestration and sediment control.
Slide 16: FY24 Sustainability Highlights
FY24 SUSTAINABILITY HIGHLIGHTS Native Forest Regeneration In the first half of FY24, NZL completed two forestry land acquisitions, deploying a further $16.8m into 2,606 hectares of high quality forestry land in the Manawatū-Whanganui region. These transactions serve to further diversify NZL’s rural
Slide 17: FY24 Sustainability Highlights (Cont)
FY24 SUSTAINABILITY HIGHLIGHTS (CONT) Enduring Land For Life NZL has published the programme it uses to ensure land and partnerships are enduring. Commitments between NZL and tenants are developed and refined jointly, incorporating industry best practice, latest scientific research and learnings fro
Slide 18: Dividend and Outlook
SECTION 4 DIVIDEND AND OUTLOOK New Zealand Rural Land Company 18
Slide 19: 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 20: 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 21: 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 4.0 cps equivalent to ~80% of NZL’s FY24 AFFO*. • NZL’s dividend policy targets a pay-out ratio of 60% - 90% of AFFO. The pay-out range grants the company gr
Slide 22: 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 23: Market Updates
MARKET UPDATES 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 an
Slide 24: Listed Property Vehicle Comparison
LISTED PROPERTY VEHICLE COMPARISON Yield & Forecast Growth Across NZX Listed Property Vehicles (LPV) 20% 15% 14.20% 10% 0.30% 6.80% Yield + Growth 3.70% 4.90% 6.20% 6.30% 3.00% 4.60% 5% 0% LPV 1 LPV 2 LPV 3 LPV 4 LPV 5 LPV 6 LPV 7 LPV 8 NZL -5% -10% Cash Yield AFFOps growth p.a to FY27 Yield + Growt
Slide 25: Appendices
APPENDICES New Zealand Rural Land Company 25
Slide 26: Investment Summary
INVESTMENT SUMMARY NZL PROVIDES INVESTORS WITH EXPOSURE TO: Favourable Industry A Proven Value Add Attractive Total Returns High Quality Tenants A Significant Growth Dynamics Acquirer of Land with Attractive WALT Opportunity Long term demand for key Successfully acquired NAV per share has grown All
Slide 27: Portfolio Overview - as at 31 December 2024
PORTFOLIO OVERVIEW - AS AT 31 DECEMBER 2024 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 (align with website) Regions Hawke’s Bay and Otago Central North Island Canterbury, Otago
Slide 28: Tenant Concentration, Lease Profile & Lease Overview
TENANT CONCENTRATION, LEASE PROFILE & LEASE OVERVIEW - AS AT 31 DECEMBER 2024 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 n
Slide 29: 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 30: 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 Chancellor - AUT CEO - Calocurb Limited Hailing from Ngāti Tūwharetoa and Managi
Slide 31: 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 32: 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 32
Slide 33: New Zealand 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 33
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