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New Zealand Rural Land Company (NZL) investor relations material
New Zealand Rural Land Company H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Acquired a high-yield, highly productive dairy farm, increasing annual rental by nearly $300,000; sold two pastoral properties above valuation, redeploying capital for growth.
AFFO per share grew 39% year-over-year to 2.70cps for HY25; interim dividend of 2.16cps declared, representing 80% of HY25 AFFO.
Gearing reduced to 29.8% from just over 30% year-over-year; interest rate hedging increased to 81%.
Rental income rose to $10.9 million for the six months ended 30 June 2025, up from $9.1 million year-over-year.
Net profit after tax was $3.5 million, a significant decrease from $12.4 million in the prior year period, mainly due to lower revaluation gains.
Financial highlights
Total assets reached $445.2 million; net asset value at $230.5 million; NAV per share was $1.5891.
FFO per share up 25% and AFFO per share up 39% year-over-year; FFO per share rose to 2.74c from 2.19c.
Net profit after tax: $3.48 million; earnings per share: $2.42 million.
Dividend payout ratio set at 60–90% of AFFO; interim dividend of 2.16cps for HY25.
Loan-to-valuation ratio remained below the 40% covenant threshold.
Outlook and guidance
FY25 AFFO forecasted between $7.5 million and $8.0 million, a 9.8% increase from FY24; AFFO per share guidance of 5.17–5.52c.
Minimum target AFFO of $9.4 million by FY29, implying 5% annual growth from FY26.
Dividend payout policy remains at 60–90% of FFO; full-year dividend forecast at 4.28cps.
Regular uncapped CPI growth in leases expected to drive further rental growth.
Management expects continued stable rental income from long-term leases and ongoing capital projects to support future lease uplifts.
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