• Delivered 5.53 cents per unit AFFO, on track to achieve full-year guidance of 11.7 cents
• Delivered 5.87 cents per unit distributions, in line with full-year guidance of 11.73 cents
• Divestments of $60.7m at or above book values, consistent with strategy to fund capital expenditure

Rural Funds Group has reported its 1H26 financial results, delivering AFFO of 5.53 cents per unit and distributions of 5.87 cents per unit, both in line with full-year forecasts. Net property income increased 6.8% driven by additional rental income on capital expenditure, primarily in the macadamia sector. Net farming income is forecast to improve in 2H26 as crops are harvested, consistent with the historical skew. Adjusted total assets increased by $51.6m, or 2.5%, primarily due to property valuation movements of $59.4m, partially offset by $26.7m in divestments. Adjusted NAV per unit increased $0.02 to $3.10 primarily due to mark-to-market of interest rate swaps. Gearing decreased on a pro forma basis to 39.1% after adjusting for $34.0m in water sales. The company also completed $70.7m in capital expenditure, primarily in the macadamia and cropping sectors, and divested $26.7m in assets at or above book values. The company's debt facilities remain well within key covenants, with sufficient undrawn headroom to fund committed development expenditure in 2H26 and FY27.

The company reaffirmed its full-year forecast of 11.7 cents per unit AFFO and 11.73 cents per unit distributions.