Rural Funds Group · ASX:RFF
Rural Funds — RFM Almond Fund (RAF) — FY2020 Earnings Presentation
12 slides from Rural Funds's earnings presentation, Sep 24, 2020
Slide 1: RFM Almond Fund (RAF) Financial results presentation FY20
Managed by: RFM Almond Fund (RAF) ARSN 117 859 391 Financial results presentation for the year ended 30 June 2020 24 September 2020
Slide 2: Disclaimer
Disclaimer Rural Funds Management Limited ACN 077 492 838 holder of AFSL 226701 (RFM) as Responsible Entity (RE) for RFM Almond Fund (RAF) (ARSN 117 859 391), has prepared this presentation based on information available to it. Although all reasonable care has been taken to ensure that the facts sta
Slide 3: Contents and Presenters
Contents 1. Harvest overview 2. FY20 Financial results 3. RAF merger and Unitholder liquidity Presenters 4. Conclusion 5. Appendix – FY20 tax information James Powell Daryl Winter Sandra Walton General Manager – National Manager – Senior Funds Administrator Investor Relations Horticulture & Marketin
Slide 4: Harvest overview
Harvest overview • Bloom began in August and beehive placement to promote pollination shortly thereafter. Pollination was good throughout the orchard. • Minor frost events arose during winter and spring. No areas significantly affected. • Hot and dry conditions during December and January. Additiona
Slide 5: FY20 Financial Results
FY20 Financial Results FY20 unaudited financial results1 Year ended 30 June 2020 • The orchard yields contributing to the FY20 financial results have been good: $ (unaudited) Income ─ 2019 - 3.3t/ha; and Harvest proceeds - 2019 crop (3.3t/ha $8.43/kg) 14,013,394 Harvest proceeds - 2020 crop (3.5t/ha
Slide 6: RAF merger and Unitholder liquidity
RAF merger and Unitholder liquidity Asset ownership and lease structure • August 2019: Growers approved the merger of AF06, AF07 and AF08 to form the RFM Asset/owner Leases Lessees/operators Almond Fund (RAF). RAF provided numerous benefits including funding the FY19 shortfall and intended liquidity
Slide 7: RAF Independent Expert forecasts
RAF Independent Expert forecasts1 Forecast distributions (FY21 to FY29)1 • The Independent Expert Report detailed forecast distributions totalling $1.82/unit (pre-tax) for investors that hold RAF units until the current leases expire.1 RAF Per unit September 2021 $431,333 $0.04559 • Key assumptions:
Slide 8: Benefits of early lease termination
Benefits of early lease termination • The Independent Expert calculated a discount rate of 19.36% for RAF.1 The net present value (NPV) at September 2021 of the forecast distributions discounted at: Valuation scenarios ─ 19.36% equates to $0.59/unit. Per unit ─ 15.0% equates to $0.73/unit. NPV of fo
Slide 9: Conclusion
Conclusion • The 2019 and 2020 orchard yields have been good, however the FY20 result has been impacted by a lower almond price. • The RAF leases of Mooral are currently due to terminate between FY26 and FY28. • In April 2020, RFM advised Unitholders that Mooral real property had been offered for sa
Slide 10: Appendix
Appendix Appendices Almond trees in bloom, Mooral, Hillston NSW, August 2020. 10
Slide 11: FY20 tax information
FY20 tax information Figure 1: FY20 tax details Pre-merger (1 July 2019 to 30 August 2019): AF06 / AF07 / AF08 / • As part of the merger process, Growers sold their inventory to RAF which has resulted in Grove Grove Grove taxable income. The amounts estimated are shown in Figure 1 (FY20 taxable inco
Slide 12: RFM Almond Fund (RAF) contact details
Managed by: RFM Almond Fund (RAF) ARSN 117 859 391 Rural Funds Management Limited For further information: See how RFM is managing good assets with good people: ACN 077 492 838 David Bryant Rural Funds Management Limited For AFSLfurther 226701 information: Managing Director Level 2, 2 King Street, D