Rural Funds Group · ASX:RFF
Rural Funds — H1 2025 Earnings Presentation
31 slides from Rural Funds's earnings presentation, Feb 21, 2025
Slide 1: Financial results presentation
Rural Funds Group pe; Meregenen ‘aging good Financial results presentation for the half-year ended 31 December 2024 21 February 2025
Slide 2: Disclaimer and glossary of terms
. . Rural Disclaimer and glossary of terms SHEE ron Disclaimer 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) and has been authorised for release by the Board of RFM. RFF is a stapled se
Slide 3: Contents and Presenters
Rural Funds T Management Contents Presenters 1. 1H25 results overview David Bryant Tim Sheridan 2. Financial results Managing Director Chief Operating Officer 3. Portfolio and strategy update James Powell General Manager - Investor Relations, Corporate Affairs and Sustainability Q Daniel Yai 4. Outl
Slide 4: 1H25 results overview
1H25 results” i overview ‘i Macadamia orchard, south-east Queensland, September 2024. Rural Funds Group 3% 4
Slide 5: Results summary
Results summary Results in line with forecasts. * Delivered on 1H25 distribution guidance of 5.87 cents per ui * on track to achieve full year forecast of 11.73 cents per unit. + Delivered 5.73 cents per unit AFFO: + reaffirming full year forecast of 11.4 cents per unit. + Leased eight properties wi
Slide 6: Financial results
Rural Funds Management Financial results Harvesting wheat at Lynora Downs, central Queensland, October 2024.
Slide 7: Earnings summary
Earnings summary SHEE en Net property income increased 17% primarily due to macadamia developments. AFFO, earnings and distributions ($m) + Net property income from leased assets increased 17.3% expenditure, primarily macadamia orchards, indexation “ Net property income 45.5 38.8 and rental review m
Slide 8: Balance sheet summary
Balance sheet summary a Gearing maintained with capital expenditure programs funded by proceeds of divestments. Balance sheet summary ($m) + Adjusted total assets decreased by $3.8m, or 0.2%, y primarily due to: Po 31 December 2024 30 June 2024 + divestments of $54.9m Cash 7.0 7.2 + offset by valuat
Slide 9: Valuations overview
Valuations overview ae Asset sales in line with book values. Independent valuations conducted on 30% of property assets. Total property assets valuation movements ($m)* * Divested of $54.9m of assets in line with book values, including: RSS * two cropping properties (50% sale) for $38.7m + other ass
Slide 10: Capital management
Capital management a Development expenditure fully funded from bank debt facilities headroom. + Refinanced syndicated debt facility during term with: jimit it a See eer 202e + limit increase of $80m + extension of debt tranche tenor (2-years). Key Gearing 38.6% (nisl Weighted average cost of debt 4.
Slide 11: Portfolio and strategy update
Y 4 A 3 _ . Portfolio an ( strategy u te Maryborough macadamia orchard, central Queensland, February 2025. Re
Slide 12: Fund overview
Rural Funds Management Percentage Fund overview Strategy to generate capital growth and income from developing and Largest lessees by FY25f revenue leasing agricultural assets. Lessees Description Sector (by FY25f revenue) Subsidiary of Olam Group, | Almonds | Y Olam Singapore-listed (SGX: 032) 21%
Slide 13: Sector overview
Sector overview $1.93b total property portfolio value! Revenue by sector (FY25f) 1% 5% 31% Active management Strategy to develop assets to improve productivity and convert to higher and better use, Income generated during development phase by operating assets (prior to leasing). ‘@) Investment crite
Slide 14: Leasing activity
Leasing activity 84% portfolio leased with a 13.0yr WALE. + Leasing activity during the period for eight properties with a total asset value of $119m for a weighted average term of 9.7 years, including: * cropping properties Mayneland and Baamba Plains leased to TRG JV for a 10-year term + lease ext
Slide 15: Case study: development and leasing transaction
Case study: development and leasing transaction PEE aren Cropping properties Mayneland and Baamba Plains lease and partial-sale following productivity developments. + Properties acquired with the strategy to develop for improved productivity to seek higher asset values and lease income. + RFM manage
Slide 16: Development and operated assets
Development and operated assets Developments seek higher asset values and lease income. Assets operated during development to generate income. + Majority of unleased assets are being operated (including whilst developments are occurring). * Operating conditions improving for macadamias, price increa
Slide 17: Outlook and conclusion
Outlook and conclusion Yarra, central Queensland, February 2024.
Slide 18: Outlook and conclusion
. e-. “ju Rural Outlook and conclusion - oo Full-year forecasts on track. as . 4 X, \ > + Forecasts: e a) | AFFO forecast for FY25 of 11.4 cpu reaffirmed Rural Funds Group FY25 forecasts an representing 4% growth y r Distribution forecast for FY25 of 11.73 cpu EEO Distributions a reaffirmed Distribu
Slide 19: Appendices
Appendi-es Summarised comprehensive income AFFO composition Reconciliation of net profit to AFFO Summarised balance sheet Total assets reconciliation Property compendium Capital management Debt facilities IOnM™mMoOO D> Sustainability = Investment and development strategy Shiraz grapes at the Geier v
Slide 20: Appendix A - Summarised comprehensive income
Rural Funds Management 6 months ended 31 December 2023) Appendix A - Summarised comprehensive income . Summarised statement of comprehensive income * Revenue from farming operations and cost of goods sold relates to sale of farming proceeds (primarily cattle, cropping, sugar and macadamias). 6 month
Slide 21: Appendix B - AFFO composition
Appendix B - AFFO composition * Adjusted funds from operations (AFFO) is pre-tax and excludes fair value adjustments, depreciation and impairment to represent RFF's operating result. Composition of AFFO (pre-tax) 6 months ended 31 December 2024) $ Rural Funds Management 6 months ended 31 December 20
Slide 22: Appendix C - Reconciliation of net profit to AFFO
Appendix C - Reconciliation of net profit to AFFO a + Non-cash items added back to reconcile net profit after tax to AFFO. Reconciliation of net profit after tax to AFFO . 6 months ended 6 months ended * Key adjustments include: . . 31 December 2024] 31 December 2023 * Property revaluations (excludi
Slide 23: Appendix D - Summarised balance sheet
Appendix D - Summarised balance sheet + Water entitlements are recorded as intangible assets and held at the lower of cost less accumulated impairment or fair value in accordance with accounting standards and ASIC guidance. The adjustment for water entitlements shows the difference between book valu
Slide 24: Appendix E - Total assets
Appendix E - Total assets Total assets reconcili Investment Property $ Balance as at30 June 2024 1,020,377,000 248,842,000 Additions - Cattle 1,750,000 - Additions - Cropping 3,135,000 - Additions - Almond orchards 3,040,000 67,000 Additions - Macadamias 18,903,000 8,380,000 Additions - Vineyards 77
Slide 25: Appendix F - Property compendium
Appendix F - Property compendium! Policy to conduct independent valuations at least every two years. Property Description Ownership % Value $m Occupancy No. of properties Last extenal valuation date Valuer Rural Funds Management Capex} Forecast capex 1H26a} 2H25f FY26f ‘Almonds Yilgah NSW 935 ha orc
Slide 26: Appendix F - Property compendium (continued)
Appendix F - Property compendium! (continued) Policy to conduct independent valuations at least every two years. Rural Funds Management 1 Property Description Ownership % ValueSm Occupancy oo Last extent Valuer tiesa| roa evzet (pecs Swan Ridge QuD 180 ha orchard 100% $22.2 0% =a 1 Sep-24 CBRE Moore
Slide 27: Appendix G - Capital management
. . Rural Appendix G - Capital management SHEE ron Debt facility refinanced and additional forward dated interest rate hedges entered. Equity Debt Increase of syndicated debt facility limits, and extension of tenor completed Distribution FY24 DPU 11.73 cents, Forecast FY25 DPU 11.73 cents. Baciiay)
Slide 28: Appendix H - Debt facilities
Appendix H - Debt facilities Headroom of $155.9m sufficient for committed capex requirements. Debt facility metrics Facilities limit '* $939.2 $867.4m pebt Debt drawn $7833 $782.0m facilities . " Headroom $155.9 $85.4m Loan to Value Ratio (LVR) '° 46.0% 48.5% Covenants _ Interest Cover Ratio (ICR) *
Slide 29: Appendix I - Sustainability update
Appendix | - Sustainability update Rural Funds Management Sustainability elements are incorporated into macadamia orchard developments, seeking to achieve more efficient operations and improved yields. Sustainability updates Sustainable macadamia production’ GHG emissions disclosure Scope 1 and Scop
Slide 30: Appendix J - Investment and development strategy
Appendix J - Investment and development strategy a To generate income and capital growth from improving and leasing agricultural assets. Spectrum of investment opportunities! Development strategies Infrastructure predominant Natural resource predominant developments pasture High density (HDPE) infra
Slide 31: Managed by:
Managed by: Rural Funds Group | #25 tits... Managing good assets with good people Rural Funds Management Limited For further information: ACN 077 492 838 James Powell: AFSL 226701 E jpowell@ruralfunds.com.au Level 2, 2 King Street Deakin ACT 2600 T +61 2 6203 9742 T 02 6203 9700 Tim Sheridan: E inve