Rural Funds Group (ASX:RFF) Executive Manager-Funds Management Andrea Lemmon discusses the company's FY16 results and outlook.
For the year ended 30 June 2016, Rural Funds Group reported a 168 per cent increase in earnings per unit to 22.46 cents. Net asset value per unit of $1.43 was up 17 per cent on the previous corresponding period. Both of these metrics were predominantly driven by positive valuations received on our mature almond orchards.
?FY16 was a busy period for the Rural Funds Group. In October last year the company raised $35 million to fund the acquisition and establishment of a 1,500 hectare almond orchard called , located on the south side of the Murrumbidgee River in NSW.
In February, RFF announced the investment in Perth Markets and in March the acquisition of 259 hectares of Macadamia orchards at Bundaberg in Queensland. These key events, provide the foundation to many of the gains made by RFF in the past financial year and improved forecasts for FY17.
Rural Funds Group is an Australia-based real estate investment trust (REIT). The Company owns a diversified portfolio of agricultural assets that are leased predominantly to corporate agricultural operators. It is primarily engaged in the development and leasing of agricultural properties and equipment. The Company leases almond orchards, macadamia orchards, vineyards, cattle properties, cropping properties, agricultural plants and equipment, cattle, and water rights. The Company holds three almond orchards approximately 4,068 planted hectares; six vineyards approximately 636 planted hectares; 13 macadamia orchards approximately 1,906 planted hectares; seven properties with areas to be developed into macadamia orchards with 2,520 hectares; 23 cattle properties made up of 18 breeding, backgrounding, and finishing properties and five cattle feedlots with a combined capacity of 150,000 head, and 15 cropping properties approximately 14,573 hectares.