Rivco Australia (RIV) investor relations material

Executive summary

• Achieved record lease coverage, with 80% of the water entitlement portfolio leased by value from 1 July 2026, up from 54% at the end of 2025, enhancing earnings stability and recurring cash flow.

• Net profit before tax was $3.0m for 1H2026, significantly lower than $35.3m in 1H2025, reflecting the absence of large entitlement sale gains seen in the prior period.

• Net profit after tax dropped by 91% to $2.1 million year-over-year.

• Transitioned to a fully internalised operating model, reducing operating costs and management expense ratio to 0.4% of gross assets.

• Paid a fully franked final 2025 dividend of 3.72 cents per share and declared a 1.8 cent interim dividend for 2H2026.

Financial highlights

• Lease revenue for 1H2026 was $3.0m, up slightly from $2.9m in 1H2025; water allocation sales were $2.8m, down from $6.0m.

• Net profit after tax was $2.1m, compared to $24.5m in 1H2025, which included $34.3m in realised gains from entitlement sales.

• Non-statutory NAV per share (pre-tax) increased to $1.76 from $1.75 at 31 December 2025; statutory NAV per share was $1.30, down from $1.32.

• NAV per share at fair market value was $1.60 at 30 June 2026, up from $1.59 at 31 December 2025.

• Unrealised gains on water entitlements and allocations totaled $67.6 million ($0.43 per share), excluded from statutory accounts.

Outlook and guidance

• Entering 2H2026 with record lease coverage, conservative gearing, and a simplified cost structure.

• Evolved dividend framework to take effect from 1 January 2027, focusing on core operational earnings and discretionary distributions from realised gains.

• Increased lease percentage to 80% of the portfolio provides improved revenue visibility for future periods.

• The company is well-positioned to deliver sustainable risk-adjusted returns, supported by contracted recurring revenue.