• Net property income increased 9.2% to $95.1m
• Net farming income increased $3.3m to $2.3m
• AFFO increased 4.5% to 11.5 cents per unit
• Distributions per unit of 11.73 cents in line with forecasts

Rural Funds Management Limited (RFM), as responsible entity, has released the Rural Funds Group (ASX: RFF, the Group) Financial Statements for the year ended 30 June 2025 (FY25). Key highlights include a 9.2% increase in net property income to $95.1m, primarily due to additional rental income earned on macadamia developments, and a $3.3m increase in net farming income to $2.3m, benefitting from improved commodity prices. Adjusted funds from operations (AFFO) increased 4.5% to 11.5 cents per unit (cpu), compared to full-year forecasts of 11.4 cpu, while distributions per unit (DPU) of 11.73 cents were in line with forecasts. Adjusted net asset value (NAV) decreased 1.9%, or $0.06 to $3.08 per unit, primarily due to revaluations of interest rate swaps. The Group also provided a portfolio and strategy update, including independent valuations that resulted in a $15.2m, or 1.2% uplift in property values, and divestments totalling $69.7m. Additionally, the Group leased eight properties with a total asset value of $119m for a weighted average term of 9.7 years, and the TRG JV macadamia development phase was materially complete, representing 3,000 ha macadamia orchards leased for 40-years.

FY26 forecasts: AFFO of 11.7 cpu, Distributions of 11.73 cpu (100% payout ratio). TRG JV macadamia lease forecast to contribute $20m revenue in FY26, up from $9m in FY23, representing a 122% increase over three years.

The Group plans to commence staged development of two other properties in FY26 to provide future AFFO generation, with funding for FY26 forecast capital expenditure of $96.9m to be provided through bank debt facility headroom of $126.4m.