- All key metrics up except revenue due to disposal of some assets
- Profits strong at $59.3M before tax
- Macadamias make management beam, one major strategy going foreward
The agricultural property sector isn’t the most crowded, The Property Tribune previously reported the Vitalharvest sale “hole” would likely be filled by Primewest.
Vitalharvest’s sale is still not complete yet, with a response by Macquarie to Roc Private Equity’s takeover bid announced to the ASX this morning.
Rural Funds Group (ASX: RFF), a REIT with over a billion dollars in agricultural assets, announced a 94% increase in earnings per unit to 17.26 cents, last corresponding period it was 8.87 cents.
It’s positive across most key metrics, profits before tax up to $59.304M from $29.633M in the previous corresponding period, after-tax profits $58.425M up from $29.116M.
Net asset value saw a small increase, up 4% to $2.01 per unit, FFO per unit was 6.6 cents.
Revenues were down, however, $33.916M from $37.592. The company cites “poultry asset disposal” as the prime reason for the decrease, “offset by the income from new acquisitions, development capital expenditure, lease indexation and increase in J&F guarantee income.”
Non-financial movements
A number of major portfolio changes also occurred, Vitalharvest saw the disposal of a poultry asset, almond orchard, and the conversion of some assets to macadamia orchards.
Rural Fund Group announced their intention to invest heavily into the macadamia market, in a statement saying they were to grow some 5,000 hectares of the plant over five years.
It underlies the companies growth strategy, sitting quietly in the second half of the company’s announcement to the market.
The move does seem like it could well be the headline act given the announcement was the feature of some half of the announcement after quick mentions about key metrics.
