New Zealand Rural Land Company (NZL) H2 2025 earnings summary

Executive summary

• Year featured consolidation, disciplined capital management, and strategic asset recycling, including selling two pastoral properties above valuation and acquiring a high-yielding dairy farm, increasing annual rental income by ~$290k.

• Capital review led to a refined strategy and revised dividend policy targeting 90–100% of AFFO, paid quarterly.

• Interest rate hedging increased from 65% to 96%, reducing exposure to rate volatility.

• Gearing reduced to 29.4%, and interest coverage ratio improved to 2.96x.

• Final dividend of 2.75 cps declared, totaling 4.91 cps for FY25, equivalent to 90.5% of AFFO.

Financial highlights

• AFFO per share grew 9.9% to NZD 0.0543 (5.43 cps); consolidated AFFO reached NZD 11 million, with NZL's share at NZD 7.9 million.

• Gross rental income rose to NZD 22.3 million from NZD 19.9 million year-over-year.

• Net finance costs decreased from NZD 8.3 million to NZD 5.4 million, aided by hedging and lower gearing.

• Net asset value (NAV) is NZD 235 million, or NZD 1.609 per share, up 28.8% since IPO; total returns since IPO are +40.4%.

• FY25 NPAT was NZD 7.86 million; EPS at 5.43 cps.

Outlook and guidance

• FY26 AFFO guidance is NZD 8.25–8.75 million (NZD 0.0565–0.0599 per share), implying 7.1% growth at midpoint.

• Dividend guidance for FY26 is NZD 0.0536–0.0569 per share, based on 95% of forecast AFFO.

• 61% of leases by value face CPI-linked, uncapped reviews in FY26, supporting rental growth.

• Pipeline for further accretive acquisitions remains active, with focus on yield and WACC thresholds.