Highlights

  • Rural Funds Group reported FY26 AFFO of AUD 45.4 million and distributions of 11.73 cents per unit, meeting forecasts overall.
  • Adjusted net asset value increased 4.5% to AUD 3.22 per unit following AUD 314.9 million in agricultural asset sales overall.
  • Total Earnings rose to AUD 124.1 million, supported by property sales and higher Net Income from the leased portfolio overall.
  • Weighted average Lease expiry stood at 14.8 years, while management maintained FY27 AFFO and distribution guidance at established levels overall.

Rural Funds Group released its FY26 annual results on 21 August 2026, reporting adjusted funds from operations (AFFO) of $45.4 million — 11.7 cents per unit — and full-year distributions of 11.73 cents per unit, both in line with forecasts. Total earnings for the year surged to $124.1 million from $20.3 million in FY25, primarily driven by contracted sales of agricultural properties above Book Value and Interest Rate swap gains. Adjusted NAV per unit rose 4.5% to $3.22, reflecting the premium prices achieved on divested assets.

Asset Sales and Portfolio Quality

RFF completed $314.9 million in asset sales during FY26 at an average 17.9% premium to book value — a compelling validation of the Group's internal asset valuations and the strength of agricultural land markets. Major disposals included three properties sold on unconditional contracts: Natal (cattle), Rewan ($106.6 million) and Wyseby ($43.2 million). These sales reduced gearing and increased the adjusted NAV, while the proceeds were reinvested to fund growth capital expenditure. The portfolio's weighted average lease expiry (WALE) remains an exceptionally long 14.8 years, with approximately 90% of forecast income derived from corporate or institutional lessees — underpinning one of the most secure income profiles in the Australian REIT sector.

Net Property Income and Development

Net property income grew 5.7% in FY26, reflecting contracted annual rent escalators across the portfolio's diverse agricultural Assets — cattle, macadamia, cotton, almonds, and other commodities. The distribution Payout Ratio improved for the third consecutive year, falling to 100.6% — approaching full coverage from AFFO. FY27 Capital Expenditure is forecast at $46.7 million, fully funded by $301 million in undrawn Debt headroom, as development activity in macadamia and cattle properties generates future AFFO growth.

FY27 Outlook

Management provided FY27 guidance of AFFO of 11.7 cents per unit and distributions of 11.73 cents per unit — unchanged from FY26 — reflecting a steady base of contracted rental income as the portfolio transitions from capital recycling to development-led growth. With two properties under staged development to generate future AFFO, unitholders approved an increase in the J&F Australia Guarantee (supporting JBS's cattle finance facility) to $200 million — expected to be AFFO-accretive. At a prevailing price of approximately $2.18, RFF offered a forward distribution Yield of 5.4%.

Stock Price Information

On 6 November 2026, Rural Funds Group (ASX:RFF) shares recorded a change in price. For current pricing, refer to the ASX website or your broker platform.