Highlights

  • Rural Funds Group delivered FY26 Earnings of $124.1 million, supported by agricultural asset sales completed above their book values overall.
  • Adjusted funds from operations (AFFO) of 11.7 cents per unit were achieved, fully supporting distributions of 11.73 cents per unit.
  • Adjusted NAV rose 4.5% to $3.22 per unit, underpinned by portfolio divestments and macadamia orchard growth across its asset portfolio.
  • Net property income from leased Assets grew 5.7%, with the WALE of 14.8 years providing long-term income stability during FY26.

Rural Funds Group (ASX:RFF), an agricultural real estate Investment trust listed on the ASX, delivered its FY26 annual results on 21 August 2026. The fund — a stapled security comprising Rural Funds Trust and RF Active — reported earnings of $124.1 million for the year ended 30 June 2026, a substantial increase of $103.8 million on the prior year. The uplift was primarily driven by asset sales above Book Value and Interest Rate swap gains. Adjusted funds from operations (AFFO) of $45.4 million, or 11.7 cents per unit (cpu), were delivered for FY26, fully supporting distributions of 11.73 cents per unit — in line with the fund's forecast and consistent with its targeted 4% per annum distribution growth trajectory.

Portfolio and Rental Income Performance

Net property income from leased assets grew 5.7% during FY26, reaching $49.0 million, driven by additional rent from developed macadamia orchards and the benefit of annual Lease indexation across the diversified agricultural portfolio. RFF's assets span almond orchards, macadamia orchards, vineyards, cattle properties, cropping properties, and agricultural plant and equipment across multiple Australian states. At 30 June 2026, RFF's weighted average lease expiry (WALE) was 14.8 years — one of the longest in the Australian listed REIT sector — with approximately 90% of forecast income derived from corporate or institutional lessees, providing a high-quality, stable income base.

Asset Sales and Strategic Portfolio Management

A key feature of FY26 was the completion of $314.9 million in strategic asset sales, achieving an average premium of 17.9% above book value. These divestments included assets where the fund had generated significant Capital growth since acquisition, allowing RFF to recycle capital into higher-returning development opportunities. Adjusted NAV rose 4.5% to $3.22 per unit as a result of these gains. The fund also received approval from unitholders to increase the J&F Australia Guarantee (supporting JBS's cattle finance facility) to $200 million — a transaction the fund characterised as AFFO-accretive. The long-term track record of NAV growth has been strong: the CAGR in NAV from FY14 to FY26 was 10.1%, while total distributions paid since FY14 total $1.37 per unit.

FY27 Guidance and Outlook

Rural Funds Group provided FY27 guidance of AFFO of 11.7 cents per unit and distributions of 11.73 cents per unit, in line with FY26's outcome. Capital Expenditure for FY27 is forecast at $46.7 million, fully funded by $301 million in undrawn Debt headroom. The fund manager, Rural Funds Management Limited (RFM), continues to pursue growth opportunities in agricultural and related industries, with macadamia orchard development and cattle property investment remaining core pillars of the growth strategy. The fund targets 4% per annum distribution growth as the long-term objective, underpinned by annual lease indexation and development-led rent increases.

Stock Price Information

Rural Funds Group (ASX:RFF) shares were trading at $1.455 on 6 November 2026, representing a decline of 1.02% for the day. The stock has risen approximately 11% over the past 12 months.