Macadamia investment starts to pay off for Rural Funds

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Rural Funds expects the rent it receives from its huge macadamia developments will double in fiscal 2024 while macadamia prices are also rebounding.

Diversified farmland trust Rural Funds Group forecasts its operating earnings to rise for the first time in three years as it starts to reap the benefits from higher rental income generated from its investment in the world’s largest macadamia orchards development.

This was the case in the 12 months to June as the trust delivered adjusted funds from operations of $41 million down 7 per cent on the $44.2 million reported in fiscal 2022.global investor The Rohatyn Group This surge in macadamia-linked rental income will be a big driver of a forecast 4.7 per cent rise in adjusted funds from operations to 11.2c per unit in fiscal 2024, Rural Funds forecast. The full-year distribution was left unchanged at 11.73¢ per unit.Speaking to analysts on an investor call, managing director David Bryant re-affirmed the group’s commitment to its macadamia expansion after farmgate prices plunged from a high of $6 a kg to below $2.

 

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