Rivco Australia (RIV) Q3 2024 TU earnings summary

Executive summary

• Net asset value (post-tax) rose 4.35% to $1.57 per share in the September 2024 quarter, driven by higher entitlement values and new water allocations.

• Water portfolio value increased to $369 million, with 155.9 million shares on issue.

• 40% of the permanent entitlement portfolio is leased, with growing interest in future leases due to dry conditions and weather uncertainty.

• Fully franked dividend of 3.7 cents per share declared and paid, marking the 15th consecutive dividend since 2017.

Financial highlights

• Pre-tax NAV increased 5% to $1.68 per share; post-tax NAV up 4.35% to $1.57 per share compared to June 2024.

• Portfolio value grew by $15 million since June 2024, mainly from asset appreciation and new allocations.

• Receipts from customers totaled $2.5 million for the quarter, up 25% sequentially from the previous quarter.

• Net cash used in operating activities was $1.2 million for the quarter.

• Cash and cash equivalents at quarter end were $817,000, with $24.5 million undrawn in debt facilities.

Outlook and guidance

• Increased interest in leases for the 2025 season as irrigators prepare for potential dry conditions.

• Federal Government water buyback programs and EOIs may impact entitlement values and market activity in coming quarters.