Rural Funds Group (RFF) Investor update summary

Meeting overview and resolutions

• Four resolutions will be voted on, including two increases to the J&F Guarantee for the cattle finance facility (AUD 28 million immediately to AUD 160 million, and a further AUD 40 million to AUD 200 million contingent on AUD 80 million in asset sales), a term extension up to 10 years, and constitutional changes for income attribution.

• Guarantee increases require unitholder approval under ASX Listing Rule 10.1.

• The guarantee structure supports passive income and REIT status, with JBS as a high-quality counterpart.

Financial impact and risk management

• Guarantee increases are AFFO-accretive: AUD 28 million increase adds 0.5cpu (up to AUD 0.01 per unit annually), AUD 68 million adds 1.0cpu (pro forma), with a 10.7% annualized HY26 return.

• The second increase is contingent on AUD 80 million in asset sales to maintain pro forma LVR below 50% and avoid increasing gearing.

• Independent Expert assessed the return rate for the additional Guarantee at 9.8%–11.3%.

• Risk from livestock mortalities is limited, with JBS bearing initial responsibility and insurance in place for further mitigation.

Background and structure of the Guarantee

• The J&F Guarantee has supported the cattle finance facility for JBS since 2018, with prior increases approved in 2020 and 2022.

• The guarantee enables J&F to supply cattle, feed, and grain to JBS feedlots, including those not owned by RFF.

• Investment structure preserves REIT status, with RFM remuneration capped at 1.05% of the Guarantee.

• JBS has requested further increases due to operational growth and potential inclusion of lamb supply.