Rural Funds Group (ASX:RFF) update, May 2023

James Powell, General Manager – Investor Relations, Corporate Affairs and Sustainability of Rural Funds Management, provides on update for the Rural Funds Group (ASX:RFF).

What is the status of leasing the macadamia developments?

One of the more significant achievements for the group during the previous half was entering into a 40-year lease for 3,000 hectares of macadamia, which are currently under development.

What are the impacts to the orchard values as they are developed?

One of the things that we've seen as those macadamia developments have occurred is that there's actually been a higher valuation attributed to the planted macadamia orchards than the farm's prior use. And, in fact, in the previous half, the macadamia assets, which were revalued following their development, received an average uplift of approximately 20 per cent.

What other assets have development activities occurring on them?

The group also owns a development pipeline of a number of other agricultural assets. These include two cattle properties as well as a cropping property. Productivity improvements will be developed on those assets prior to seeking long-term lessees.

Have other assets in the RFF portfolio received a higher independent valuation?

Some other cattle assets which the group owns were revalued also during the previous half. Two of these properties achieved approximately 15 per cent revaluation uplift.

Ends
Copyright 2023 – Finance News Network

Source: Finance News Network