Rural Funds Group (RFF) H1 2026 earnings summary

Executive summary

• Net profit after tax for the half year ended 31 December 2025 was $47.4 million, up from $12.1 million in the prior period, driven by property revaluations and asset sales.

• Adjusted funds from operations (AFFO) were $21.5 million, with distributions totaling 5.87 cents per unit, reaffirming full-year guidance.

• Asset divestments of $60.7 million to $65 million were completed at or above book value, supporting capital management and reducing gearing.

• Portfolio value reached $1.99 billion across 61 properties, with 83% leased and a WALE of 13.2 years.

• The Group’s principal activity remains the development and leasing of agricultural properties, with income from orchards, vineyards, cattle, cropping, and water rights.

Financial highlights

• Revenue for the half year was $70.2 million, up from $62.2 million year-over-year.

• Net property income rose 6.8% year-over-year to $48.6 million, mainly from new developments and indexation.

• AFFO per unit was 5.5 cents, and earnings per unit were 12.15 cents, up from 3.11 cents in the prior period.

• Distributions of 8.80 cents per unit were declared and paid during the half year, totaling $34.3 million.

• Adjusted net asset value per unit increased to $3.10.

Outlook and guidance

• Full-year AFFO and distribution guidance reaffirmed at 11.7 and 11.73 cents per unit, respectively.

• Second half farming income expected to be significantly higher due to crop harvests and macadamia development.

• Additional asset sales planned to further reduce gearing toward the 30%-35% target range.

• Ongoing focus on leasing and developing agricultural assets, with management seeking growth in related industries.