• Net property income increased 17.3% to $45.5m
• Adjusted funds from operations (AFFO) of 5.73 cents per unit in line with forecasts
• Distributions per unit (DPU) of 5.87 cents in line with forecasts

Rural Funds Management Limited (RFM) has released the Rural Funds Group (ASX: RFF, the Group) Financial Statements for the half-year ended 31 December 2024 (1H25). Net property income increased 17.3%, or $6.7m to $45.5m, primarily due to additional rental income earned on macadamia developments. Adjusted funds from operations (AFFO) were 5.73 cents per unit (cpu), in line with full-year forecasts, and distributions per unit (DPU) were 5.87 cents, also in line with forecasts. Adjusted net asset value (NAV) decreased 1.2%, or $0.04 to $3.10 per unit, primarily due to revaluations of interest rate swaps. The Group has increased its syndicated debt facility limit, providing funding for committed capital expenditure, primarily for the completion of the 3,000ha macadamia developments leased to TRG JV. Full-year FY25 forecasts have been reaffirmed, with AFFO of 11.4 cpu and distributions of 11.73 cpu. The Group also provided a FY26 forecast of distributions of 11.73 cpu. During the period, the Group secured leasing activity for eight properties with a total asset value of $119m for a weighted average term of 9.7 years, including cropping properties leased to TRG JV, lease extensions over five vineyards leased to Treasury Wine Estates, and the cattle property Cerberus leased to a private farming enterprise. The Group continues to develop its unleased assets, the majority of which are providing an operating return during this phase. Operating conditions have improved for various commodities across this segment, contributing to a positive net farming income result for the period.

Full year FY25 forecasts: AFFO of 11.4 cpu, Distributions of 11.73 cpu. FY26 forecast distributions of 11.73 cpu.

The Group continues to develop its unleased assets, the majority of which are providing an operating return during this phase. Operating conditions have improved for various commodities across this segment, contributing to a positive net farming income result for the period.