Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Your Guide To The Rural Funds Group (ASX:RFF) Half Year Report

Rural Funds Group (ASX:RFF) released their half year results for the period ended 31st December 2018 this morning.

Rural Funds Group (ASX: RFF) released their half-year results for the period ended 31st December 2018 this morning.

Rural Funds Group is a real estate investment trust (REIT) that owns farms and leases them to tenants. Started in 1997, Rural Funds Group now manages $1.2 billion in agricultural assets across New South Wales, Queensland, South Australia and Victoria.

Here Are The 4 Key Points

  • Property revenue increased 27% to $30.7 million
  • Total comprehensive income increased by 47% to $24.62 million
  • Earnings per unit increased 17.4% to 7.73 cents per unit
  • Distributions/dividends per unit increased by 4% to 5.22 cents per unit

Acquisitions

During the half, Rural Funds Group made multiple acquisitions. These included five cattle properties ranging from a 1,062 ha property in New England to an 8,280 ha property in central Queensland. They also acquired a cotton property in central Queensland for $17.8 million. The acquisitions for the period totalled $87.1 million.

Management Commentary

Included in the results release was this statement: “Between August 2018 and February 2019 RFM announced the acquisition of four additional cattle properties and one cotton property, to be funded from balance sheet capacity. All cattle properties have productivity development potential and accompanying leases with ten-year terms with a market rent review in the fifth year.”

On the increase in earnings: “An independent revaluation for the Kerarbury almond orchard resulted in an increase of $15.6 million, or 10% to the prior value. Earnings were higher for the period mainly due to the independent valuation for Kerarbury, higher income resulting from acquisitions and the sale of unleased annual water allocations.”

Outlook

Rural Funds Group has confirmed the FY19 forecast for adjusted funds from operations (AFFO) of 13.2 cents per unit and distributions of 10.43 cents per unit. This would represent an increase of 4% from FY18. Looking further ahead, guidance was also given for distributions in FY20, which was 10.85 cents per unit. This would continue the growth trend of 4%.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content