New Zealand Rural Land Company (NZL) H1 2025 earnings summary

Executive summary

• Acquired a high-yield dairy farm, increasing annual rental income by ~$290,000 and expanding the portfolio to 17,077 hectares, while selling two pastoral properties above valuation.

• AFFO per share grew 39.2% year-over-year to 2.70 cps for HY25; interim dividend of 2.16 cps declared, representing 80% of HY25 AFFO.

• Net profit after tax for HY25 was $3.5 million, with AFFO of $3.9 million, and 100% occupancy across nine tenants.

• Gearing reduced to 29.8% from 30.5% year-over-year; interest rate hedging increased to 81%.

• Ongoing capital review process announced post-HY25.

Financial highlights

• Total assets reached $445.2 million; net asset value (NAV) at $230.5 million, or $1.5891 per share.

• AFFO per share rose from 1.94 cps in HY24 to 2.70 cps in HY25 (+39.2%); FFO per share rose to 2.74 cps.

• Net profit after tax for HY25 was $3.5 million; EPS at 2.42 cps.

• Gearing at 29.8%; interest coverage ratio 2.57x; weighted average interest cost 5.6%, with 81% of debt hedged.

• Dividend payout ratio set at 60–90% of AFFO; interim dividend of 2.16 cps for HY25.

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 5.17–5.52 cps.

• Dividend policy targets 60–90% of AFFO; full-year dividend forecast at 4.28 cps.

• Minimum target AFFO of $9.4 million by FY29, implying 5% annual growth from FY26.

• Management expects continued stable rental income from long-term leases and ongoing capital projects to support future lease uplifts.

• Positive agricultural outlook with rising property and commodity prices supporting tenant strength.