Rural Funds Group (ASX:RFF), managed by Rural Funds Management, reported adjusted funds from operations (AFFO) of 11.5 cents per unit and distributions of 11.73 cents per unit, both in line with guidance. James Powell, General Manager – Investor Relations, Corporate Affairs & Sustainability, says the result reflects consistent growth in net property income, which rose 9% to A$95.1m, underpinned by capital expenditure on macadamia developments and long-term lease structures.
The portfolio spans 63 properties across cattle, almonds, macadamias, vineyards and cropping, with a weighted average lease expiry of 13.9 years and most tenants being corporate or institutional lessees. In FY25, RFF completed A$69.7m of divestments in line with book value, refinanced its syndicated debt facility with an $80m increase in headroom, and leased eight properties worth A$119m at an average term of 9.7 years.
Looking ahead, the Group forecasts FY26 AFFO of 11.7 cents per unit, with the payout ratio returning to 100%. Growth is expected to come from staged developments at Rookwood Farms and Kaiuroo, alongside further macadamia orchard projects. With diversification, inflation-linked rental mechanisms and structural demand for food production assets, RFF positions itself as a defensive income vehicle for investors.
To hear more from James Powell on income growth, macadamia developments and the Group’s long-term leasing strategy, watch the full presentation.
