New Zealand Rural Land Co. Ltd. · NZX:NZL
New Zealand Rural Land — H1 2023 Earnings Presentation
28 slides from New Zealand Rural Land's earnings presentation, Aug 25, 2023
Slide 1: Result for the Period Ending 30 June 2023
New Zealand Rural Land Co The Rural Land Investors RESULT FOR THE PERIOD ENDING 30 JUNE 2023 25 AUGUST 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: New Zealand Rural Land Co owns and leases some of the best farmland
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: Highlights
1 Highlights INTRODUCTION NAV per share has grown from $1.25 at listing to $1.534. Share price is currently trading at a -44.6% discount to NAV/sh*. Diversification via forestry acquisition (forestry now 30% of lease income). Buy-back continues. The Board considers NZL to still be materially underva
Slide 5: FY2023 1HY - Financial Highlights
1 FY2023 1HY - Financial Highlights INTRODUCTION Total Returns Significant Discount to NAV Net asset value per share has grown from $1.25 at IPO* to A share price of $0.85 (24 August 2023), representing $1.534** (at 30 June 2023), a total return CAGR of +14.6% a -44.6% discount to NAV, offers a comp
Slide 6: FY2023 1HY - Operational Highlights
1 FY2023 1HY - Operational Highlights INTRODUCTION Green Loan Enduring Land For Life As part of its recent forestry acquisitions NZL established NZL has recently published its programme it utilises a green loan programme. The green loan follows to ensure our land and partnerships are enduring. the A
Slide 7: FY2023 1HY Key Financial Metrics
1 FY2023 1HY Key Financial Metrics INTRODUCTION $362.7m $214.5m $1.534 Total Assets Net Asset Value (NAV) NAV per Share +31.4% 37.1%** FY22-FY24 Forecast AFFO Gearing per share CAGR* *From FY22 to full year FY24 based on actuals and guidance. Represents a forecast and may differ from actual results.
Slide 8: Summary of FY2023 1HY
1 Summary of FY2023 1HY ON UCCTTIIO N Acquisitions Corporate Actions On 14 April 2023, NZL announced the settlement of a forestry On 26 May 2023 NZL announced an upgrade of FY24 earnings DU estate acquisition which comprises five individual properties with guidance, suspension of the FY23 interim di
Slide 9: Updates from the Timber, Carbon & Dairy Markets
1 Updates from the Timber, Carbon & Dairy Markets INTRODUCTION Timber & Carbon In April 2023, NZL acquired a 2,400ha forestry estate in Manawatu-Whanganui and, in the same month added a further 737 ha in the same region. Both estates are leased long term to New Zealand Forest Leasing (NZFL). The Car
Slide 10: NZL Financials & Return Metrics for Period Ending 30 June 2023
SECTION 1 NZL FINANCIALS & RETURN METRICS FOR PERIOD ENDING 30 JUNE 2023 NEW ZEALAND RURAL LAND COMPANY 10
Slide 11: Adjusted Funds From Operations (AFFO)
2 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 free cash flow. 2.12cps NZ$000 Net Profit After Tax 30 June 2023* 2,492 30 June 2022** 36,512 Variance (34,020)
Slide 12: Profit & Loss Statement
2 Profit & Loss Statement FINANCIALS NZ$000 30 June 2023* 30 June 2022** Variance % Gross Rental Income Rental Income 6,851 4,717 +2,134 +45.2% Net Rental Income 6,851 4,717 +2,134 +45.2% +45.2% Less Overhead Costs Directors Fees (114) (114) 0 - Increase in Rental Income Insurance (41) (40) +1 +2.5%
Slide 13: Balance Sheet
2 Balance Sheet NZ$000 30 June 2023 31 December 2022 Variance % FINANCIALS Current Assets Cash and Cash Equivalents 229 1,942 (1,713) (88.2%) Other Current Assets 499 282 +217 +77.0% Total Current Assets 728 2,224 (1,496) (67.3%) $362.7m Non-Current Assets Investment Property 275,597 267,360 +8,237
Slide 14: Debt Summary
2 Debt Summary FINANCIALS NZL has hedging arrangements in place for 53% of its total borrowings costing, on average, 5.33%. The remaining debt is floating and the cost of the floating debt component is 7.63%. Accordingly, NZL’s weighted average cost of debt is currently 6.42%. 37.1%* Key Metrics Deb
Slide 15: Total Returns
2 Total Returns FINANCIALS Since listing on the NZX, 21 December 2020, NZL has delivered total returns (NAV per share growth plus dividends) of +40.7%*. NZL delivered $2,559m in AFFO in the six months to June 2023, +15.9% from the six months to June 2022 ($2,208m). NZL remains on track to meet its f
Slide 16: NZL Portfolio Overview as at 30 June 2023
SECTION 2 NZL PORTFOLIO OVERVIEW AS AT 30 JUNE 2023 *6 month period to 30 June 2023. NEW ZEALAND RURAL LAND COMPANY 16
Slide 17: Portfolio Overview
3 Portfolio Overview P O RT F O L I O OV E R V I E W Rural Sub Sector Breakdown 21.0% 46.4% 32.5% Otago Canterbury Southland Manawatu - Whanganui Total Region Land Area (ha) 3,991 6,333 1,386 3,137 14,847 Pastoral Farms & Rural Asset Class Pastoral Farms Pastoral Farms Pastoral Farms Forestry Forest
Slide 18: Tenant Concentration, Lease Profile & Lease Overview
3 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 11.5 years* (100% occupancy). NZL’s pastoral farm leases all have three,
Slide 19: NZL Operational Update & Outlook
SECTION 3 NZL OPERATIONAL UPDATE & OUTLOOK NEW ZEALAND RURAL LAND COMPANY 19
Slide 20: Operational Update
4 Operational Update O P E R AT I O N A L U P DAT E 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 sequestra
Slide 21: Outlook
4 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. As announced to the market on 26 May 202
Slide 22: Summary
4 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 Long term demand for key Successfully acquire
Slide 23: 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 23
Slide 24: Key People
1 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 Chancellor - AUT CEO - Calocurb Limited Hailing from Ngāti Tūwharetoa and Manag
Slide 25: Foreign Ownership Rules & Levels
1 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 30 June 2023, NZL had New Zealand buyer Amendment Act 2021, NZL can have foreign dom
Slide 26: Index Inclusions and Broker Research Coverage
1 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 Vishhal Bhula nicholas.hill@craigsip.com vishal
Slide 27: Investor Relations Contacts
1 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 1 12 St Marks Road 85 Fort Street Remuera Auckland Central Auckland 1050 Auckland 1010 New Zealand New Zealand NEW ZEALAND RURAL L
Slide 28: Rural Land Co
v 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 — H1 2023 Earnings Presentation on 6ix