New Zealand Rural Land Company (NZL) H1 2025 earnings summary

Executive summary

• Acquired a high-yield, highly productive dairy farm, increasing annual rental income by nearly $300,000 and boosting portfolio growth; sold two pastoral properties above valuation.

• AFFO per share grew 39.2% year-over-year to 2.70cps for HY25; FO per share grew nearly 40% year-over-year.

• Declared an interim dividend of $0.0216 per share (2.16cps), representing 80% of half-year FO/AFFO.

• Gearing reduced to 29.8% from 30.5% in HY24; interest rate hedging increased to 81%.

• Rental income rose to $10.9 million for the six months ended 30 June 2025, up from $9.1 million year-over-year.

Financial highlights

• Net profit after tax was $3.48–$3.5 million; earnings per share reached 2.42c for the half-year.

• Total assets reached $445.2 million; net asset value is $230.5 million, or $1.5891 per share.

• Gearing ratio reduced to 29.8%; weighted average interest cost is 5.6%, with 81% of debt hedged.

• AFFO for HY25 was $3.9 million (2.70cps), up 39% year-over-year; FFO per share rose to 2.74c from 2.19c.

• Dividend payout ratio set at 60–90% of FO/AFFO; interim dividend of 2.16cps for HY25.

Outlook and guidance

• FY25 FO/AFFO forecasted between $7.5 million and $8.0 million, a 9.8% increase from FY24; AFFO per share guidance of 5.17–5.52c.

• Dividend policy targets 60–90% of FO/AFFO; full-year dividend forecast at 4.28cps.

• Minimum target AFFO of $9.4 million by FY29, implying 5% annual growth from FY26.

• Management expects continued stable rental income from long-term leases and ongoing capital projects to support future lease uplifts.