Rural Funds Group closes in on $2 billion in Aussie farmland
The rural portfolio of one of Australia’s biggest landholders has outpaced farm value growth across the rest of the nation. See the details.
The rural portfolio of one of Australia’s biggest landholders is outpacing farm value growth across the rest of the nation.
The ASX-listed Rural Funds Group released its 2023-24 financial results on Friday morning, which showed their total assets reached $1.9 billion for the financial year, up 14 per cent from $1.67 billion in 2022-23.
In comparison, farm value prices nationally grew only 3 per cent in FY24, led by 9 per cent growth across NSW, Queensland and the Northern Territory, while the Victorian-Tasmanian rural property indicator fell by 8 per cent in the same period.
Revenue from Rural Funds’ 67-strong property portfolio, made up of almonds, cattle, macadamia, cropping and vineyards, increased 8 per cent to $6.5 million, primarily due to macadamia developments.
Rural Funds currently own 12 macadamia properties across Maryborough, Bundaberg and Rockhampton in northeast Queensland, with seven more currently being developed, with developments on orchards that commenced in 2021 expected to be completed by the end of the year.
According to the results, Rural Funds’ three-property almond portfolio was valued at $371 million, its 22 cattle properties at $741 million, its six vineyards at $52 million, its 16 cropping ventures at $170 million and its macadamia orchards at $389 million.
While no acquisitions of new property were made in FY24, the results come just a few weeks after Rural Funds listed a 1728ha NSW grazing property for sale, while also listing the 225,000ha Mutton Hole and Oakland Park aggregation near Normanton, Queensland.
In June it also announced the lease and 50 per cent sale of their Mayneland and Baamba Plains cropping properties for $75.7 million, which is expected to settle early in FY25, subject to Foreign Investment Review Board approval.
Major lessees of Rural Funds properties include Olam, JBS, Treasury Wine Estates, The Rohatyn Group and the Australian Agricultural Company.
Elsewhere, Cobram Estate announced its earnings grew to $66.7 million, up 63 per cent in FY2024, producing 13.3 million litres of olive oil across Australia and the United States.
In an expected “off-year”, due to the biennial cycle of olive oil yields, Cobram harvested 55,333 tonnes of olives in Australia, producing 10.1 litres of olive oil.
The business, which exports to 13 different countries, totalled $156 million in olive oil sales last year, an increase of 28.3 per cent from $121.6 million in FY23.
Chair Rob McGavin and joint CEOs Leandro Ravetti and Sam Beaton said it was a “pleasing year for the company”, in which they capitalised on growing “robust demand” for their product.
Cobram also opened a new $35 million processing mill at Boort – 100km northwest of Bendigo, with the new facility able to process up to 100,000 tonnes of olives each harvest when at full capacity.
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