• Net property income increased 6.8% to $48.6m
• Earnings increased $31.0m to $44.1m
• Adjusted NAV increased 0.6% to $3.10 per unit

Rural Funds Group (ASX: RFF) has released its Financial Statements for the half-year ended 31 December 2025 (1H26). Net property income increased 6.8%, or $3.1m to $48.6m, primarily due to additional rental income earned on macadamia developments. Net farming income increased $0.3m, to $1.1m, and is forecast to increase in 2H26 as crops are harvested, consistent with skew in prior years. Earnings increased $31.0m, to $44.1m, mainly due to revaluation of interest rate swaps and gain on sale of assets. Adjusted funds from operations (AFFO) and distributions were in line with full-year forecasts, representing 5.53 cents and 5.87 cents respectively. Adjusted net asset value (NAV) increased 0.6%, or $0.02 to $3.10 per unit (from 30 June 2025), primarily due to mark-to-market of interest rate swaps. The company also provided a portfolio and strategy update, including divestments of $60.7m assets at or above book values, a slight decrease in pro forma gearing to 39.1%, and progress on development projects.

Full-year FY26 forecasts AFFO and distributions reaffirmed, 11.7 and 11.73 cpu respectively.

AFFO accretive proposals to increase the J&F Guarantee will be provided to Unitholders in March. Bank facilities remain well within key covenants and with sufficient headroom for committed development expenditure 2H26 and FY27.