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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.
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H1 2025 earnings summary21 Aug, 2025

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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Frequently asked questions

New Zealand Rural Land Company Limited is a New Zealand-based investment company focused on acquiring and leasing agricultural land. The company primarily invests in high-quality rural land used for farming and agricultural purposes, including dairy, livestock, and crop production. New Zealand Rural Land Company leases its properties to experienced operators, providing them with long-term, secure access to productive farmland while generating rental income. The company’s approach aims to support sustainable land management and contribute to New Zealand’s agricultural sector. The company is headquartered in Auckland, New Zealand, and its shares are listed on the NZX.

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