New Zealand Rural Land Company (NZL) H2 2025 earnings summary

Executive summary

• Year marked by consolidation, disciplined capital management, and strategic asset recycling, including the sale of two pastoral properties above valuation and acquisition of a high-yielding dairy farm, increasing annual rental income by ~$290k.

• Adopted a revised dividend policy targeting 90–100% of AFFO, paid quarterly.

• Interest rate hedging increased from 65% to 96%, reducing exposure to rate volatility.

• Gearing reduced to 29.4%, with improved capital management and a final FY25 dividend of 4.91 cps, equivalent to 90.5% of AFFO.

• Portfolio expanded to 17,077 hectares of rural land, with 100% occupancy and diversified sector exposure.

Financial highlights

• AFFO per share grew 9.9% to NZD 0.0543 (5.43 cps); consolidated AFFO reached NZD 11 million, with NZL's share at NZD 7.9 million.

• Gross rental income rose to NZD 22.3 million from NZD 19.9 million year-over-year.

• Net asset value (NAV) per share increased to NZD 1.609, up 28.8% since IPO, with total returns of 40.4% including dividends.

• Gearing reduced to 29.4%, and interest coverage ratio improved to 2.96x.

• Lease income increased by ~$290k following the acquisition of a 305-hectare dairy property.

Outlook and guidance

• FY26 AFFO guidance is NZD 8.25–8.75 million (NZD 0.0565–0.0599 per share), implying 7.1% growth at midpoint.

• Dividend guidance for FY26 is NZD 0.0536–0.0569 per share, based on 95% of forecast AFFO.

• 61% of leases by value face CPI-linked, uncapped reviews in FY26, supporting rental growth.

• Positive agricultural outlook with rising property and commodity prices expected to benefit tenants.

• Pipeline for further accretive acquisitions remains active, with focus on yield and WACC thresholds.