New Zealand Rural Land Company (NZL) H1 2026 earnings summary

Executive summary

• Net profit after tax for HY26 was $4.74 million, up from $3.48 million year-over-year; basic and diluted EPS rose to 3.24 cents from 2.42 cents.

• AFFO per share was 2.45 cents, down from 2.70 cents in HY25, with total AFFO at $3.6 million.

• Dividends for the half year totaled 2.68 cents per share, with a revised policy targeting 90–100% of AFFO.

• Portfolio expanded with the acquisition of 79 hectares in Roxburgh, Otago, now totaling 17,077 hectares.

• Guidance for FY26 remains suspended due to the Kiwi Crunch Farms liquidation.

Financial highlights

• Total assets at $454 million and net asset value (NAV) at $234 million as of 30 June 2026; NAV per share at $1.597, up 27.8% since IPO.

• Gross rental income for HY26 was $11.4 million, up from $10.9 million in HY25.

• Gearing at 30.4%; interest coverage ratio improved to 3.59x; weighted average cost of debt at 5.4%; 91% of debt hedged.

• Total borrowings increased to $194.36 million; total debt facilities available $148.5 million, with $137.5 million drawn.

• Dividends paid during the period totaled $5.98 million.

Outlook and guidance

• FY26 earnings guidance remains suspended due to uncertainty from Kiwi Crunch Farms' liquidation.

• Management is engaging with alternative tenants and purchasers for affected properties.

• Rental growth supported by CPI-linked leases; 34.7% of leases by value had CPI reviews in HY26.

• Rent reviews on 7.3% of pastoral leases and 100% of forestry assets resulted in annualized rent increases of $181,130 and $207,260, respectively.

• Dividend policy revised to pay 90–100% of AFFO as quarterly dividends; no DRP for this dividend.