Rural Funds Group (RFF) H1 2026 earnings summary

Executive summary

• Net property income rose 7% year-over-year to AUD 49 million, driven by new macadamia orchard developments and annual lease indexation.

• AFFO for the half-year was AUD 21.5 million (5.53 cents per unit), with distributions totaling AUD 0.0587 per unit, both on track to meet full-year guidance.

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

• Asset sales and independent valuations confirmed asset values, with sales occurring at or above book value and $60.7m in divestments completed.

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

Financial highlights

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

• Net property income increased by AUD 3 million to AUD 49 million, up 7% year-over-year.

• AFFO was AUD 21.5 million (AUD 0.055 per unit); earnings including non-cash items were AUD 44 million (AUD 0.113 per unit), up from AUD 13 million prior year.

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

• Adjusted NAV per unit increased to AUD 3.10, mainly due to mark-to-market gains on interest rate swaps.

Outlook and guidance

• AFFO and distribution guidance reaffirmed for the full year at 11.7 cpu and 11.73 cpu, respectively.

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

• CapEx requirements are forecast to decline significantly in FY 2027, with asset sales funding future development.

• FFO growth expected to enable future distribution increases, likely in 12–24 months.

• Management continues to seek growth in agricultural and related industries.