Rural Funds Group (RFF) H1 2025 earnings summary

Executive summary

• Net property income rose 17–17.3% year-over-year to $45.5m, driven by new leases, higher rents from macadamia developments, and rental indexation.

• AFFO increased to $22.3m (5.73 cpu), up from $15.5m, with distributions per unit of 5.87–8.8 cents in line with forecasts.

• 1H25 results met forecasts, with full-year AFFO and distribution guidance reaffirmed.

• Asset divestments totaling $54.9m–AUD 55m were completed to manage gearing, with further sales planned.

• Leasing activity accelerated, with eight properties leased and WALE maintained at 13 years.

Financial highlights

• Net property income from leased assets increased by $7m to $45.5m, mainly from macadamia orchard leases.

• AFFO per unit rose to 5.73 cents from 4.02–4.0 cents year-over-year.

• Distributions paid during the half totaled 4.87–8.8 cents per unit, matching guidance.

• Adjusted NAV per unit at 31 December was $3.10, down from $3.14 at June 2024, mainly due to interest rate swap revaluations.

• Net profit after tax was $12.1m, down from $43.8m in 1H24, mainly due to lower property revaluations and derivative movements.

Outlook and guidance

• Full-year AFFO forecast reaffirmed at 11.4 cpu (AUD 0.114 per unit), a 4% increase on FY 2024.

• Distributions for FY25 and FY26 forecast to remain steady at 11.73 cpu.

• Asset sales to continue, targeting a gearing range of 30–35%.

• Second half farming income expected to be stronger due to upcoming harvests.

• Priorities include progressing funded macadamia, cattle, and cropping developments.