FY21 Full Year Result

Results announcement



13598316_1

Results for announcement to the market
Name of issuer New Zealand Rural Land Company Limited (NZL)
Reporting Period 292 day period to 30 June 2021
Previous Reporting Period N/A
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$620 N/A
Total Revenue $620 N/A
Net profit/(loss) from
continuing operations
$15,115 N/A
Total net profit/(loss) $15,115 N/A
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend.
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.3918 N/A
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
NZL was incorporated on 11 September 2020. Accordingly,
there is no prior comparable period and these results are in
respect of the 292 day period from incorporation of NZL to 30
June 2021.

Please refer to the commentary, presentation and audited
financial statements enclosed for further information.
Authority for this announcement
Name of person

authorised
to make this announcement
Christopher Swasbrook
Contact person for this
announcement
Christopher Swasbrook
Contact phone number 021 928 262
Contact email address chris@nzrlc.co.nz
Date of release through MAP

30 August 2021

Audited financial statements accompany this announcement.

---

New Zealand Rural Land Company Limited and its subsidiary
Directors' responsibility statement
For and on behalf of the Board
DirectorDirector
The Board of Directors of New Zealand Rural Land Company Limited authorised the financial statements for issue on ___ August
2021.
The directors are pleased to present the financial statements of New Zealand Rural Land Company Limited and its subsidiary for the
292 day period ended 30 June 2021.
2
29
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New Zealand Rural Land Company Limited and its subsidiary
For the period ended 30 June 2021
Notes
$'000
Gross rental income
Rental income498
Net rental income498
Less overhead costs
Directors fees(170)
Insurance(31)
Marketing expenses(125)
Management fees18(99)
Professional and consulting fees(200)
Performance fee18(1,625)
Other expenses(68)
Total overhead costs(2,318)
Loss before net finance expense, other income and income tax(1,820)
Finance income122
Finance expense(234)
Net finance expense6(112)
Loss before other income and income tax(1,932)
Other income
Change in fair value of investment property516,525
Profit before tax14,593
Income tax benefit7.1522
Profit and total comprehensive income for the period15,115
Cents
Basic and diluted earnings per share2337.49
Consolidated statement of comprehensive income
Period ended 30
June 2021
These financial statements are to be read in conjunction with the accompanying notes
3

New Zealand Rural Land Company Limited and its subsidiary
Consolidated statement of financial position
At 30 June 2021
2021
Notes
$'000
Current assets
Cash and cash equivalents820,496
Trade and other receivables9668
Current tax receivable23
Total current assets21,187
Non-current assets
Investment property5137,678
Loan receivable105,475
Deferred tax assets7.2522
Other non-current assets75
Total non-current assets143,750
Total assets164,937
Current liabilities
Trade and other payables12308
Total current liabilities308
Non-current liabilities
Borrowings1354,254
Derivative liabilities11121
Total non-current liabilities54,375
Total liabilities54,683
Net assets110,254
Share capital1493,514
Share based payment reserve151,625
Retained earnings15,115
Total equity110,254
$
Net Assets Value (NAV) per share20.21.3968
Net Tangible Assets (NTA) per share20.21.3918
These financial statements are to be read in conjunction with the accompanying notes
4

New Zealand Rural Land Company Limited and its subsidiary
Consolidated statement of changes in equity
For the period ended 30 June 2021
Notes
$'000 $'000 $'000 $'000
Comprehensive Income
Profit for the period- - 15,115 15,115
Total comprehensive income- - 15,115 15,115
Transactions with shareholders
Contributed capital1495,893 - - 95,893
Transaction costs14(2,379)- - (2,379)
Performance fee payable in ordinary shares15- 1,625 - 1,625
Balance at 30 June 2021 93,514 1,625 15,115 110,254
Share capital
Retained
earningsTotal
Share based
payment
reserve
These financial statements are to be read in conjunction with the accompanying notes
5

New Zealand Rural Land Company Limited and its subsidiary
Consolidated statement of cash flows
For the period ended 30 June 2021
Notes
$'000
Cash flows from operating activities
Lease income received
23
Payments to suppliers
(716)
Management fees paid
(70)
Income taxes paid
(23)
Interest paid
(117)
Interest received
77
Net cash used in operating activities(826)
Cash flows from investing activities
Payment for NZX listing bond
(75)
Payments for investment properties
(120,685)
Payment for loan receivable(5,430)
Net cash used in investing activities(126,190)
Cash flows from financing activities
Proceeds from convertible loan375
Proceeds from issue of ordinary shares95,249
Payment of transaction costs on issue of ordinary shares(2,366)
Proceeds from borrowings54,254
Net cash generated by financing activities147,512
Net increase in cash and cash equivalents20,496
Cash and cash equivalents at incorporation-
Cash and cash equivalents at the end of the period820,496
Period ended 30
June 2021
These financial statements are to be read in conjunction with the accompanying notes
6

Notes to the financial statements
For the period ended 30 June 2021
1 Reporting entity
These financial statements are for the 292 day period from incorporation to 30 June 2021.
2 Basis of preparation
2.1 Statement of compliance and reporting framework
2.2 Functional and presentation currency
2.3 Basis of measurement
Revenue, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST) except:
•
•
2.4 Basis of consolidation
•
•
•
for receivables and payables which are recognised inclusive of GST (the net amount of GST recoverable from or payable to the
taxation authority is included as part of receivables or payables).
New Zealand Rural Land Company Limited and its subsidiary
The consolidated financial statements for New Zealand Rural Land Company Limited and its subsidiary (the "Group") are for the
economic entity comprising New Zealand Rural Land Company Limited (the "Company" or "Parent") and its subsidiary. The Group's
principal activity is investment in New Zealand rural farmland.
The Group has adopted External Reporting Board Standard A1 Accounting Standards Framework (For-profit Entities Update) (XRB
A1). The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice ("NZ
GAAP"). They comply with New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable
Financial Reporting Standards, as appropriate. These financial statements comply with International Financial Reporting Standards
("IFRS") as published by the International Accounting Standards Board. For the purposes of complying with NZ GAAP, the Group is a
for-profit entity. These financial statements have been prepared in accordance with the requirements of the Companies Act 1993 and
on a going concern basis.
where the amount of GST incurred is not recovered from the taxation authority, it is recognised as part of the cost of
acquisition of an asset or as part of an item of expense; or
These financial statements are presented in New Zealand dollars, which is the Group's functional currency. All amounts have been
rounded to the nearest thousand, unless otherwise stated.
The financial statements have been prepared on the historical cost basis except for derivative financial instruments and investment
properties which are measured at fair value.
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or
more of the three elements of control listed above.
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company
and its subsidiary. Control is achieved when the Company:
has power over the investee;
The Company is incorporated in New Zealand and registered under the Companies Act 1993. The Company is an FMC reporting entity
for the purposes of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The Company was incorporated on
11 September 2020 and is domiciled in New Zealand. The Company is listed on the New Zealand Stock Exchange (NZX Limited) with
ordinary shares listed on the NZX Main Board.
7

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
2.4 Basis of consolidation (continued)
2.5 Financial instruments
Financial assets - Derecognition of financial assets
Financial assets - Impairment of financial assets
Financial liabilities - Amortised cost
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses
control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the
consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date
when the Company ceases to control the subsidiary.
When necessary, adjustments are made to the financial statements of a subsidiary to bring their accounting policies into line with the
Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group
are eliminated in full on consolidation.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in profit or loss.
Financial instruments are classified into the following specified categories: ‘fair value through profit or loss' (FVTPL), and 'at
amortised cost'. The classification depends on the business model and nature of the cash flows of the financial instrument and is
determined at the time of initial recognition.
The Group’s financial assets consist of cash, trade receivables and loan receivable.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers
nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises
its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.
Impairment of financial assets are recorded through a loss allowance account (bad debt provision). The amount of the loss allowance
is based on the simplified Expected Credit Loss (ECL) approach which involves the Group estimating the lifetime ECL at each balance
date. The lifetime ECL is calculated using a provision matrix based on historical credit loss experience and adjusted for forward
looking factors specific to the debtors and the economic environment.
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the
instruments.
Financial liabilities at amortised cost (including borrowings, related party payables and trade and other payables) are initially
recognised at fair value and subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all
fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on
initial recognition.
8

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
2.5 Financial instruments (continued)
Financial liabilities - Derecognition of financial liabilities
3 Critical accounting estimates and judgements
• Fair valuation of investment property (note 5)
• Deferred tax on investment property (note 7.2)
• Recognition of loan receivable (note 10)
3.1 Fair value estimation
•
•
•
4 Segment information
Included in the Group's total revenue, more than 10% was received from one significant customer. The total revenue derived in the
period ended 30 June 2021 from this single customer was $0.468 million. No other single customers contributed 10% or more of the
Group's total revenue.
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.
The Group operates in one business segment being New Zealand rural land.
The preparation of these financial statements requires management to make estimates and assumptions. These affect the amounts
of reported revenue and expense and the measurement of assets and liabilities. Actual results could differ from these estimates. The
principal areas of judgement and estimation in these financial statements are:
The Group’s assets and liabilities that are measured at fair value are investment property and derivative financial instruments.
Investment property is measured using level 3 valuation techniques as further detailed in Note 5.
Derivative financial instruments are measured using level 2 valuation techniques, which is based on inputs other than quoted prices
in an active market that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from
prices). This valuation technique maximises the use of observable market data where it is available and relies as little as possible on
entity specific estimates. The derivatives are valued based on the mark to market valuations of the interest rate swaps on 30 June
2021.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability
if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair
value for measurement and/or disclosure purposes in these financial statements is determined on such a basis.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of
the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are
determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For financial
reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair
value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are
described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
The carrying value of all other financial assets and liabilities held at amortised cost reasonably approximates the fair value due to the
short term nature of the financial instruments.
9

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
5 Investment properties
Fair value of rural land investment properties:
30 June 2021
Land area Additions ¹
Capitalised
lease
incentive
Revaluation
gainCarrying value
Farm groupLocationHectares$'000$'000$'000$'000
Tenant 1
Canterbury
873 21,285 97 4,187 25,569
Tenant 2Canterbury / Otago1,967 58,953 258 8,728 67,939
Tenant 3
Canterbury
2,926 30,035 113 2,925 33,073
Tenant 4
Southland
456 10,412 - 685 11,097
Fair value of investment properties120,685 468 16,525 137,678
¹
5.1 Fair value measurement, valuation techniques and inputs
Includes directly attributable acquisition costs.
Investment property is property held either to earn rental income, for capital appreciation or for both.
Initial direct costs incurred in negotiating and arranging operating leases and lease incentives granted are added to the carrying
amount of the leased asset.
During the year there were no transfers of investment properties between levels of the fair value hierarchy. The valuation techniques
used in measuring the fair value of investment property, as well as the significant unobservable inputs used are as follows:
Investment properties are classified as level 3 (inputs are unobservable for the asset or liability) under the fair value hierarchy on the
basis that adjustments must be made to observable data of similar properties to determine the fair value of an individual property.
Investment property is initially measured at cost and subsequently measured at fair value with any change therein recognised in
profit or loss. Any gain or loss arising from a change in fair value is recognised in profit or loss.
Property valuations will be carried out at least annually by independent registered valuers.
External, independent valuers, having appropriate recognised professional qualifications and recent experience in the location and
category of the property being valued, value the Group’s investment property portfolio at least every 12 months. The fair values are
based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between
a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion.
The Group's investment properties were valued by Colliers International, with values applicable as at 30 June 2021.
The investment property have been assessed on a fair value basis utilising the income approach for the Group's interest as lessor and
a market approach to assess the reversionary value of the assets at the expiry of the current lease terms.
The net present value of the income provided under the lease agreements have been assessed to be above prevailing market leases
for similar assets. This results in the Group's interest assessment in the leases being greater than the current fair value for the asset
on the basis of the fee simple valuation.
Investment properties are derecognised when they have been disposed of and any gains or losses incurred on disposal are recognised
in profit or loss in the year of derecognition.
10

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
5.1 Fair value measurement, valuation techniques and inputs (continued)
Key inputs used to measure fair value:
• Land growth rate
3%
• CPI
2%
• Discount rate
7.5%
• Terminal rate
6.5%
• Market rental assessment
5.2 Valuation methodology
Key valuation input Description
Land growth rateIncrease Decrease
CPIIncrease Decrease
Discount rateDecrease Increase
Terminal rateDecrease Increase
Increase Decrease
6 Finance income and expense
2021
$'000
Finance income
Interest income122
Finance expense
Interest expense(113)
Loss on fair value of derivative instruments(121)
Net finance expense(112)
Finance income includes interest income derived from financial assets. Interest income from a financial asset is recognised when it is
probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is
accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount
on initial recognition.
The rate applied to the expected land value growth. Used in the income
approach.
The expected inflation increase applied to the lease income every two
years. Used in the income approach.
The rate applied to discount future cashflows, it reflects transactional
evidence from similar types of property assets. Used in the income
approach.
The rate used to assess the terminal value of the property. Used in the
income approach.
Finance expense includes interest expense incurred on borrowings and the loss on fair value of derivative instruments. Interest
expense is recognised using the effective interest method. Loss on fair value of derivative instruments details are included in note 11.
The valuer's assessment of the annual net market income per hectare
attributable to the property. Used in the income approach.
Market rental
assessment
Measurement sensitivity
Increase in
input
Decrease in
input
11

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
7 Income taxes
7.1 Income tax recognised in statement of comprehensive income
2021
$'000
Current tax expense-
Deferred tax (benefit)(522)
Income tax (benefit)(522)
Reconciliation of income tax expense to prima facie tax payable:
Profit before tax14,593
Income tax expense calculated at 28%4,086
Effect of expenses that are not deductible in determining taxable profit19
Effect of income that is not assessable in determining taxable profit(4,627)
Income tax (benefit)(522)
7.2 Deferred tax assets
2021 Group
$'000 $'000
Lease fees(42) (42)
Lease incentives(131) (131)
Tax losses807 807
Depreciation on investment property(112) (112)
Total deferred tax asset/(liability)522522
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In
addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled
or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Recognised in
profit or loss
Closing
balance
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity respectively.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the
consolidated Statement of Comprehensive Income because of items of income or expense that are taxable or deductible in other
years and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
12

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
7.2Deferred tax assets (continued)
Key Judgement
8 Cash and cash equivalents
2021
$'000
Cash at bank20,496
Total cash and cash equivalents20,496
9 Trade and other receivables
Trade receivables are non-derivative financial assets and measured at amortised cost less impairment.
2021
$'000
Trade receivables65
Prepayments269
GST receivable334
Other receivables-
Total trade and other receivables668
10 Loan receivable
2021
$'000
Non-current:
McNaughtons home block5,475
Total loan receivable5,475
The loan is secured by a General Security Deed and cross guarantee from certain Van Leeuwen Group entities.
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other shortterm, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts.
Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related
items in the statement of financial position as follows:
The loan receivable balance has been considered and determined no impairment is required at reporting date.
On 1 June 2021, the Group acquired land at 30 Cooneys Road, Morven for $5.4 million and simultaneously entered into a lease and a
put and call agreement with Performance Dairy Limited (PDL), a related entity to the vendor. Under the call agreement, PDL can
acquire the land on 31 May in any year (providing a minimum 90 days notice has been provided) from the Group for $5.4 million plus
10% interest compounding annually. Under the put agreement, from 1 June 2023 the Group can require PDL to acquire the land on
31 May any year under the same pricing mechanism and notice requirements. The put and call option have a 99 year life.
Key Judgement
The Group has determined that this arrangement has the substance of a loan with a 10% market interest rate per annum.
The Group has chosen not to rebut the presumption in NZ IAS 12 Income taxes that the carrying value of investment properties will
be recovered through sale.
13

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
11 Derivatives
2021
$'000
Derivative liabilities121
12 Trade and other payables
2021
$'000
Trade payables and accruals308
Total trade and other payables308
13 Borrowings
2021
$'000
Non-current:
Rabobank facility
54,254
Total borrowings
54,254
Total
Undrawn
facility
Drawn
amountFair value
2021
$'000$'000$'000$'000
Bank facility A1 June 2023 2.05% 25,000 10,746 14,254 14,254
Bank facility B1 June 2024 2.19% 16,000 - 16,000 16,000
Bank facility C1 June 2026 2.49% 24,000 - 24,000 24,000
65,000 10,746 54,254 54,254
The terms of the borrowings includes the following covenants that the Group must ensure at all times:
•
Interest coverage ratio is greater than 2.0;
•
Loan to valuation ratio does not exceed 40%; and
•
Capital expenditure in each financial year shall not exceed 120% of the budgeted forecast capital expenditure.
13.1 Subsequent events
Bank facility A was repaid in full on 1 July 2021.
The Group has entered into a revolving credit facility agreement with Rabobank on 21 May 2021. The facility agreement has a limit of
$65,000,000 with floating interest rates ranging over the three tranches of the debt. Interest is payable quarterly in arrears.
Derivative financial instruments, comprising interest rate swaps are classified as fair value through profit or loss ("FVTPL").
Subsequent to initial recognition, changes in fair value of such derivatives and gains or losses on their settlement are recognised in
the Statement of Comprehensive Income in finance expense.
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are
unpaid. The amounts are unsecured and are usually paid within 30 days from recognition. Trade payables are recognised initially at
fair value and subsequently measured at amortised cost.
There is a general security deed over all of the assets of the Group as security of the borrowings.
The Group has complied with the financial covenants of its borrowing facilities during the 2021 reporting period.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the consolidated
statement of comprehensive income over the period of the borrowings using the effective interest method. Borrowings are classified
as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.
Effective
interest rateExpiry date
14

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
14 Issued capital
Notes
Authorised and issued
Share capital issued for assignment of intellectual property18.1125 100,000
Share capital issued for director services rendered in relation to IPO75 60,000
Shares issued on initial public offering75,000 60,000,000
Loan converted to ordinary shares375 300,000
Rights issue (2:3) to existing shareholders20,318 18,470,970
Transaction costs arising on issue of shares(2,379) -
Balance at end of period93,514 78,930,970
15 Share based payment reserve
2021
$'000
Arising on share-based payments (performance fee)1,625
Balance at end of the period1,625
16 Remuneration of auditors
2021
Assurance and other services
$'000
Statutory audit services
68
68
The share based payment reserve relates to the Manager's performance fee that is settled through the issue of shares. More details
on performance fees are provided in note 18.1.
$'000
No. of
ordinary
shares
All shares have equal voting rights, participate equally in any dividend distribution or any surplus on the winding up of the Company.
The shares have no par value.
Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or
services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the
equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Group's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments.
During the year the following fees were paid or payable for services provided by PricewaterhouseCoopers New Zealand as the
auditor of the Group:
In December 2020, 60 million shares were issued in the Company through an initial public offering (IPO) on the New Zealand Stock
Exchange (NZX) at a price of $1.25 per share. In addition, on IPO a convertible loan for $0.375 million from Allied Farmers Limited
converted to 0.3 million ordinary shares at the same price per share. In June 2021, a rights issue to existing shareholders of 2 new
shares per 3 existing shares closed with 18.5 million shares being issued at $1.10 per share.
2021
15

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
17 Rental income
2021
Future minimum rental receivables under non-cancellable operating leases are as follows:
$'000
Within 1 year6,137
After 1 year but not more than 5 years24,550
More than 5 years36,307
Total property operating lease income
66,994
18 Related parties
18.1 Remuneration of the Manager
• Providing administrative and general services;
• Sourcing and securing potential investors and communicating with investors;
• Sourcing opportunities for the sale and purchase of Land, and operators for lease agreements in respect of Land;
• Overseeing due diligence for and executing transactions for the sale and purchase, and leasing, of Land;
• Managing the Group’s Property, including Land owned by the Group;
• Arranging regular valuations and audits of the Group; and
• Administering the payment of dividends and distributions in respect of the Group.
The Manager is remunerated via management fees, transaction fees and performance fees.
Fees paid and owing to the Manager:
Fees chargedOwing at 30
June
$'000$'000
Basic management services fee99 30
Land transaction fees1,725 -
Leasing fees150 -
Performance fee1,625 1,625
Total
3,599 1,655
Management fee
Rental income from investment property leased to clients under operating leases is recognised in the consolidated statement of
comprehensive income on a straight-line basis over the term of the lease, taking into account rent free periods. Where lease
incentives are provided to customers, the cost of incentives are recognised over the lease term on a straight-line basis as a reduction
to rental income.
2021
The Group has entered into investment property leases (as lessor) which have remaining non-cancellable lease terms of between 10
and 11 years.
The commitments above are calculated based on the contract rates using the term certain expiry dates of lease contracts. Actual
rental amounts in future may differ due to CPI adjustments within the lease agreements.
A monthly management fee is payable equal to 0.5% per annum of the Group's Net Asset Value, calculated on a monthly basis. The
total management fees for the period ended 30 June 2021 were $0.1 million.
The Group has appointed an external manager, New Zealand Rural Land Management Limited Partnership through a signed
management agreement. The Manager is responsible for all management functions of the Group, including:
16

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
18.1 Remuneration of the Manager (continued)
Transaction fee
•
•
Performance fee
Other transactions with parties related to the Manager
18.2 Key management personnel compensation
19 Subsidiary
2021
Name of entityCountry incorporatedEquity holding
NZRLC Dairy Holdings LimitedNew Zealand100%
In addition to remuneration of the Manager outlined above, the Group paid directors fees during the period of $0.170 million, of
which $0.075 million was settled in shares and the remainder in cash. There was no other compensation of key management
personnel during the period.
The consolidated Financial Statements incorporate the assets, liabilities and results of the subsidiary in accordance with the
accounting policy described in note 2.4.
For each purchase or sale of land, a fee equal to 1.25% of the acquisition or divestment cost of the land and improvements;
and
A performance fee is payable to the Manager when the Group's net asset value ('NAV') per share exceeds the Group's NAV per share
in the immediately preceding financial year. This annual performance fee is calculated as 10% of the increase in NAV per share and is
settled through the issue of ordinary shares based on the NAV per share at that date. NAV per share is adjusted for the impact of
capital reconstructions (such as a rights issue at a premium or discount), with the intention of the calculation being neither prejudicial
nor advantageous to the Company or the Manager. Half of the ordinary shares issued are held in escrow and cannot be sold for 5
years. The value of the performance fee in the 2021 financial year was $1.625 million. The shares will be issued to the Manager
subsequent to balance date.
In addition, Elevation Capital Management Limited indirectly received $0.747 million in brokerage fees representing a portion of
brokerage fees charged by Jarden to the Group for capital raising services and recognised as transaction costs in equity.
The following subsidiary has been consolidated in the Financial Statements of the Group:
Transactions fee incurred for the period ended 30 June 2021 were $1.725 million and $0.150 million in relation to the purchase and
lease fee components respectively. The purchase fee was included in the initial carrying amount of the acquired investment property.
The leasing fee has been added to the carrying value of the leased asset (being investment properties) as part of the initial direct
costs of arranging the lease.
For each lease agreement entered into, a fee of $30,000.
A fee is payable for the following transactions:
On IPO, the Group settled an assignment of intellectual property for $0.125 million (recognised in marketing expenses in profit or
loss) by issuing 73,409, 14,831 and 11,760 shares at $1.25 per share to Elevation Capital Management Limited, RPMilsom
Investments Limited and Hopeton Trustee Company Limited respectively. These entities are related to members of key management
personnel of the Manager.
17

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
20 Non-GAAP measures
20.1 Reconciliation of net profit after tax to adjusted funds from operations (AFFO)
2021
Notes
$'000
Net profit after tax15,115
Adjustments
Unrealised net (gain) in value of investment properties5(16,525)
Performance fee payable in shares151,625
Unrealised net loss on derivatives121
Deferred tax (benefit)7.2(522)
Amortisation of rent free incentives-
Amortisation of lease fee1
Funds from operations ('FFO')(185)
FFO per share (cents)(0.23)
Adjustments
Incentives and leasing costs(618)
Maintenance capital expenditure-
Adjusted funds from operations ('AFFO')(803)
AFFO per share (cents)(1.02)
20.2 Net assets per share and net tangible assets per share
2021
Notes
$'000
Total assets164,937
(Less): Total liabilities(54,683)
Net assets110,254
(Less): Deferred tax asset7.2(522)
Add: Derivative liability11121
Net tangible assets109,853
Number of shares issued ('000)78,931
Net assets per share ($)1.3968
Net tangible assets per share ($)1.3918
Funds from operations ('FFO') is a non-GAAP financial measure that shows the Group's underlying and recurring earnings from its
operations and is considered industry best practice for a property fund to enable investors to see the cash generating ability of the
business. This is determined by adjusting statutory net profit (under NZ IFRS) for certain non-cash and other items. FFO has been
determined based on guidelines established by the Property Council of Australia and is intended as a supplementary measure of
operating performance. The Manager uses and considers Adjusted Funds From Operations ('AFFO') as a measure of operating cash
flow generated from the business, after providing for all operating capital requirements including maintenance capital expenditure,
tenant improvement works, incentives and leasing costs.
Non-GAAP measures do not have a standard meaning prescribed by GAAP and therefore may not be comparable to information
presented by other entities. These measures should not be viewed in isolation, nor considered as a substitute for measures reported
in accordance with NZ IFRS.
The Group presents net assets per share and net tangible assets per share in these financial statements. The Group believes that
these non-GAAP measures provide useful additional information to readers. Net tangibles assets per share is a required disclosure
under the NZX Listing Rules and net assets per share is a measure monitored by management and required for calculating the
Manager's performance fee. The calculation of the Group's net assets per share, net tangible assets per share, and its reconciliation
to the consolidated statement of financial position is presented below:
18

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
21 Financial instruments
Categories of financial instruments:
As at 30 June 2021
Assets
$'000 $'000 $'000 $'000
Cash and cash equivalents- 20,496 - 20,496
Trade and other receivables- 65 - 65
Loan receivable- 5,475 - 5,475
- 26,036 - 26,036
Liabilities
Trade and other payables- - 308 308
Borrowings- - 54,254 54,254
Derivative liabilities121 - - 121
121 - 54,562 54,683
22 Financial risk management
22.1 Interest rate risk
2021
$'000
Financial assets
Cash at bank20,496
Financial liabilities
Bank borrowings (net of economic impact of interest rate swaps)30,254
Interest rate applicable at balance date
Cash at bank<1%
Bank borrowings (net of economic impact of interest rate swaps)2.24%
Interest rate
decrease of
0.25%
Interest rate
increase of
0.25%
$'000$'000
Increase/(decrease) in interest expense(6)6
The use of financial instruments exposes the Group to interest rate, credit and liquidity risks.
Interest rate risk is the risk that fluctuations in interest rates impact the Group's financial performance, future cash flows or the fair
value of its financial instruments.
The Group's policy is to manage its interest rates using a mix of fixed and variable rate debt. To manage this mix, the Group enters
into interest rate swaps, in which the Group agrees to exchange, at specified intervals, the difference between fixed and variable
rates for interest calculated by reference to an agreed-upon notional principal amount. These swaps are designed to economically
hedge underlying debt obligations.
The Group's exposure to variable interest rate risk and the weighted average interest rate for interest bearing financial assets and
liabilities as at 30 June 2021 was as follows:
The following sensitivity analysis represents the change in interest expense if the floating interest rates on bank borrowings (net of
economic impact from interest rate swaps) had been 0.25% higher or lower, with other variables remaining constant:
2021
Financial
assets/
liabilities at
FVTPL
Financial
assets at
amortised
cost
Financial
liabilities at
amortised
cost Total
19

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
22.2 Credit risk
22.3 Liquidity risk
The following table outlines the Groups' liquidity profile, as at 30 June, based on contractual non-discounted cash flows:
Total 0-1 year 1-2 years 2-5 years >5 years
As at 30 June 2021
$'000$'000$'000$'000$'000
Trade and other payables308308---
Derivative liabilities994188253553-
Borrowings ¹58,7791,240 15,471 42,068-
Total60,0811,736 15,724 42,621-
¹
22.4 Capital risk management
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause the
Group to incur a financial loss. Financial instruments which are subject to credit risk principally consist of cash, debtors and loans
receivable. The Group’s exposure to credit risk is equal to the carrying value of the financial instruments.
The Group conducts credit assessments of tenants to determine credit worthiness prior to entering into lease agreements. This
includes requiring tenants to have equity at least six times their annual lease obligations or provide other suitable security
arrangements. Where appropriate, the Group will include guarantees and/or security from tenants within lease agreements to
support rental payments. In addition, debtor balances are monitored on an ongoing basis with the result that exposure to bad debts
is not significant.
The risk from financial institutions is managed by placing cash and cash equivalents with high credit quality financial institutions only.
The Group has placed its cash and cash equivalents with ASB Bank Limited and Westpac New Zealand Limited, both who are AA-
rated (Standard & Poor's).
The Group intends to further mitigate this risk in the future by expanding into other primary sectors in New Zealand, such as
horticulture, viticulture, sheep and beef.
When managing capital risk, the Manager's objective is to ensure the Group continues as a going concern as well as to maintain
optimal returns to shareholders and benefits for other creditors.
The Group meets its objectives for managing capital through its investment decisions on the acquisition and disposal of assets,
dividend policy, and issuance of new shares. This includes restricting debt to 30% of total assets and debt will generally be sought on
interest-only repayment terms, subject to maintaining the 30% debt limit. The Group will also seek debt with mortgage security over
the rural land acquired to secure the borrowings.
Includes contractual interest payments based on drawn down amounts at 30 June 2021 and assuming no repayments of
principal prior to expiry date
Liquidity risk is the risk that the Group may encounter difficulty in meeting its obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. Liquidity risk mainly arises from the Group’s obligations in respect of long
term borrowings, derivatives and trade and other payables.
The Group monitors and evaluates liquidity requirements on an ongoing basis and generates sufficient cash flows from its operating
activities to meet its obligations arising from its financial liabilities and has bank facilities available to cover potential shortfalls. The
Group’s approach to managing liquidity risk is to ensure it will always have sufficient liquidity to meet its obligations when they fall
due under both normal and stress conditions.
20

Notes to the financial statements
For the period ended 30 June 2021
New Zealand Rural Land Company Limited and its subsidiary
23 Earnings per share
2021
Profit after income tax ($'000)15,115
Weighted average number of shares for the purpose of basic and diluted EPS ('000)40,315
Basic and diluted earnings per share (cents)37.49
24 Reconciliation of profit after income tax to net cash flows from operating activities
2021
$'000
Profit for the period
15,115
Add/(less) non-cash items:
Change in fair value of derivatives
121
Change in fair value of investment property(16,525)
Performance fee payable in shares1,625
Interest income accrual(45)
Deferred tax
(522)
Lease incentives - rent free period(468)
Directors fees paid in shares75
Marketing costs paid in shares125
Movements in working capital items:
(Increase) in other current assets
(612)
(Increase) in income tax receivable
(23)
Increase in trade and other payables
308
Net cash outflow from operating activities
(826)
25 Contingent liabilities and contingent assets
26 Capital commitments
27 Subsequent events
Ms Tia Greenaway was appointed as a new independent director, starting 1 September 2021.
Bank facility A was repaid in full ($14.3m) on 1 July 2021 and then subsequently redrawn for $7 million for the purchase of Makikihi
Farm.
On 17 August 2021, the New Zealand Government announced a move to COVID-19 Alert Level 4 for the whole of New Zealand. This
has not resulted in changes to assumptions relating to the Group's key estimates and judgements referred to in these financial
statements.
Basic and diluted earnings per share amounts are calculated by dividing profit after income tax attributable to shareholders by the
weighted average number of shares on issue.
The Group has no capital commitments as at 30 June 2021.
On 2 August 2021, the purchase of Makikihi Farm (see note 25) became unconditional and was completed for $12 million
At reporting date, the Group had a conditional agreement to acquire a North Canterbury Dairy Farm (Makikihi Farm) for $12 million.
The agreement was conditional on the vendor not refinancing its debt over the farm. The conditional agreement also included a put
and call agreement. Under the call, the vendor may repurchase Makikihi Farm at any time. Under the put, from approximately two
years’ time the Group can require the vendor to purchase the farm back. The purchase price under both the put and call agreement is
$12 million plus 4.66% accruing on a daily basis per annum.
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after
income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average
number of ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.
21

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
Independent auditor’s report
To the shareholders of New Zealand Rural Land Company Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of New Zealand Rural Land
Company Limited (the Company), including its subsidiary (the Group), present fairly, in all material
respects, the financial position of the Group as at 30 June 2021, its financial performance and its cash
flows for the period then ended in accordance with New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
What we have audited
The Group's consolidated financial statements comprise:
the consolidated statement of financial position as at 30 June 2021;
the consolidated statement of comprehensive income for the period then ended;
the consolidated statement of changes in equity for the period then ended;
the consolidated statement of cash flows for the period then ended; and
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards)issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. This matter was addressed in
the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on this matter.

PwC
Description of the key audit matterHow our audit addressed the key audit matter
Valuation and existence of investment
property
As disclosed in note 5, the portfolio of
investment properties comprising rural
land in the Canterbury, Southland and
Otago regions was valued at $137.7
million as at 30 June 2021.
The entire portfolio of investment
properties was purchased during the
period to 30 June 2021.
The valuation of investment properties is
inherently subjective. A small difference in
any one of the key market inputs, when
aggregated, could result in a material
misstatement of the valuation of
investment properties.
The valuations were carried out by an
independent registered valuer selected by
the Group. The valuer performed their
work in accordance with the International
Valuation Standards and the Australia and
New Zealand Valuation and Property
Standards. The valuer used is a well-
known firm, with experience in the market
in which the Group operates.
In determining a property’s valuation, the
valuer considers available market
evidence, including recent property sales,
and property specific information, such as
current tenancy agreements and rental
income earned by the asset.
They then apply assumptions in relation to
comparable sales data, land growth rates
and discount rates, based on available
market data and transactions to determine
the overall property valuation.
Due to the unique nature of each property,
the assumptions applied take into
consideration the qualities of the tenant,
individual property characteristics, as well
as the qualities of the property as a whole.
The valuer has performed property
inspections of all assets classified as
investment property.
The valuation of investment properties is inherently
subjective given that there are alternative assumptions
and valuation methods that may result in a range of
values.
We read the valuation reports and discussed and
challenged the valuations with the independent valuer.
We gained an understanding of the assumptions used
and the valuation methodology applied and confirmed
that the valuation approach for each property was in
accordance with accounting standards and suitable for
use in determining the carrying value of investment
property as at 30 June 2021.
We assessed the valuer’s qualifications, expertise and
their objectivity and found no evidence to suggest that
their objectivity was compromised in the performance
of their valuation.
On a sample basis, with emphasis on properties with
significant or unusual key inputs compared to other
investment properties held by the Group and in
conjunction with our own valuation experts, we
performed the following procedures:
obtained an understanding of the key assumptions
to the valuation and assessed their
appropriateness;
agreed key inputs to the underlying sale and
purchase agreements and lease agreements for
the investment properties;
inspected the valuation models used by the
valuers and assessed them for reasonableness;
and
critiqued and independently assessed, based on
our experts’market and valuation knowledge, the
work performed, including the valuation approach,
assumptions and estimates made by the Group’s
valuer.
We found no evidence of bias in determining the
values.
We considered the adequacy of the disclosures made
in note 5 to the financial statements.
We obtained all sale and purchase agreements,
inspected the details of settlement instructions and
tested the purchase payments for the investment
properties acquired in the period.

PwC
Our audit approach
Overview
Overall group materiality: $466,900 which represents approximately
0.5% of net assets excluding movements in the fair value of
investment property and financial instruments.
We chose net assets excluding movements in the fair value of
investment property and financial instruments as the benchmark
because, in our view, the objective of the Group in the first year of
establishment is on net asset growth.
Following our assessment of the risk of material misstatement, a full
scope audit was performed over the consolidated Group balances.
As reported above, we have one key audit matter, being:
Valuation and existence of investment property
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all
of our audits, we also addressed the risk of management override of internal controls, including among
other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the annual report, but does not include the consolidated financial statements
and our auditor's report thereon. The annual report is expected to be made available to us after the
date of this auditor's report.

PwC
Our opinion on the consolidated financial statements does not cover the other information and we will
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Richard Day.
For and on behalf of:
Chartered AccountantsAuckland
29 August 2021

---

The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz
NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA
FY21 Results Commentary
for the period ended 30 June 2021
www.nzrlc.co.nz
Listed on:

The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz
NEW ZEALAND Rural Land Co
WWW.NZRLC.CO.NZ
New Zealand Rural Land Company (NZL) FY21 Commentary
The 2021 financial year was NZL’s inaugural year as an NZX listed company. Since concluding NZL’s initial public offering
at the end of 2020 NZL’s focus has been on establishing a rural land portfolio in the New Zealand dairy sector to lease to
experienced farmer tenants.
Traditional investments in the rural sector involve direct exposure to traditional agricultural risks, such as commodity price
volatility. NZL’s strategy is investing in rural land as an asset class of its own. This strategy reduces exposure to those direct
risks, builds predictable revenues from the rental income and gives an opportunity for capital growth where the value of NZL’s
rural land portfolio increases over time.
NZL is managed under a management agreement with New Zealand Rural Land Management Limited Partnership (the
Manager) and governed by a Board comprised of a majority of independent directors.
Financial Performance/Summary for Period Ending 30 June 2021
Net Profit After Tax $ 15.115M
Total Assets $ 164.937M
Total Liabilities $ 54.683M
Net Assets $ 110.254M
Net Asset Value (NAV) Per Share $ 1.3968
Acquisitions
NZL issued a product disclosure statement in November 2020 for an initial public offering (IPO). In December the IPO
closed having secured the minimum target of $75 million to be raised. The IPO was novel as NZL had no assets or business
but a strategy to offer rural land as an investment class with an initial focus on the New Zealand dairy sector. Complementing
the support of investors in the IPO was strong support from Jarden, Elevation Capital and NZX who helped ensure the IPO’s
success.
The first quarter of 2021 was a preparatory phase for NZL to secure opportunities to deploy its capital. Extensive work
was undertaken by the Manager conducting due diligence on targeted assets and working with potential tenants. These
investigations led to contracting our first acquisition in mid-March, a 456 hectare dairy farm in Southland.
The acquisition of NZL’s Southland farm settled on 1 June 2021 for a purchase price of $10.3 million. The farm contains a
64 Bail Rotary Dairy Shed, a 13 Bay Purpose Built Calf Shed, 4 houses, and other ancillary buildings. The farm has close
proximity to two dairy factories, high quality soil and water sourced for the property from a bore. At settlement a 10 year

The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz
lease of the dairy farm commenced with Fortuna Group. Fortuna is a Southland based company that operates more than 18
(wholly-owned and majority-owned) dairy farms in the Southland region, running more than 10,000 dairy cows over 3,626
hectares and operating 920 hectares of support land over three farms. A gross lease rate of 4.97% per annum was secured.
The Manager then recommended a large scale transaction to the Board – a transaction with Van Leeuwen Group and
associated entities (VLG) and their primary financier to acquire fourteen large scale dairy assets in South Canterbury and
North Otago totalling approximately 6,350 hectares for approximately $114 million. At the time certain entities comprising
VLG had been placed in receivership due to capital structure issues. The NZL structure of owning land and not operations
was a way to resolve those issues.
The VLG farms are a mixture of seasonal supply pastoral dairy farms, hybrid grass based grazing and cut and carry winter
barn farms, and dairy support blocks. Due diligence investigations suggested these farms were of a very high quality with
access to irrigation schemes, supply options available to three major dairy companies, soils well suited to dairy farming and
a good quantity of support land for grazing animals when they are not in milk.
After NZL shareholders approved these transactions NZL acquired these assets on 1 June 2021. From settlement leases to
three new tenants that derived from VLG came into effect. Each tenant entity has independent directors and satisfies NZL’s
security criteria for tenants. The leases deliver a gross lease rate of over 5% per annum to NZL.
At balance date NZL owned 15 dairy assets in the South Island comprising approximately 6,800 hectares. Aggregate
annual rental for these assets is approximately $6.1 million. The aggregate purchase price paid for these assets was just
under $125 million. These assets have been revalued for financial reporting purposes and now have a carrying value of
approximately $143 million.
Subsequent Acquisition
To secure agreement to acquire the VLG farms, NZL also entered conditional agreements to acquire a further three farms if
they were not otherwise sold or refinanced under pre-existing arrangements. Two of these farms did sell to third parties. The
third farm, located at Makikihi in South Canterbury was not refinanced by VLG as intended and NZL acquired this farm on 1
August, subsequent to balance date.
Makikihi farm is a 500 hectare dairy farm possessing the same positive attributes of the other VLG farms that were acquired.
Makikihi farm has been leased to one of NZL’s existing tenants from the main transaction for a gross lease rate of 5.34%. This
property is subject to put and call options where VLG may acquire it back for the purchase price plus a 4.66% per annum
premium.
Financing
NZL’s acquisitions were funded by IPO proceeds and new bank debt. In May 2021, NZL secured a $65 million revolving
credit facility with Rabobank which still offers NZL some capacity to debt fund further acquisitions. The key banking covenant
agreed with Rabobank was that NZL must maintain a loan to value ratio (LVR) of no greater than 40%. NZL is comfortably in
compliance with this covenant with an LVR below 30.0% as at 30 August 2021.

The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz
NZL does have an internal debt policy of having a gearing ratio (debt to total assets) of 30.0%. The Board considers this to
be a ‘steady state’ target for NZL which it may exceed to implement a transaction that it considers likely to deliver value to
shareholders providing there is a strategy to restore gearing to 30% or less in the medium term. As advised to shareholders
NZL did exceed this internal policy target to facilitate the VLG transaction.
To restore debt levels and give capacity for additional acquisitions, NZL launched a rights issue in June. This raised
approximately $20 million which the Board considered was a positive result given the proximity of the rights issue to the IPO
and the need for NZL to continue to broaden its shareholding base. NZL is looking to place shortfall from the rights issue in
September following the release of these full year results.
Management and Board
The Board is very pleased with the work of the Manager. It has taken a lot of analysis, time and negotiations to secure NZL’s
acquisitions in addition to establishing processes and reporting for a newly listed company.
We recently announced that Tia Greenaway is joining the Board on 1 September as an additional independent director. Tia
brings a new skillset and perspective to the Board which we believe will strengthen NZL’s governance.
Outlook
Our ambition for NZL remains for it to be a large scale owner of New Zealand rural land. The Manager continues to
investigate new, potential acquisitions. NZL continues to have a core focus on dairy assets for its acquisition programme but
is also investigating rural land assets in other industry sectors with a view to diversifying its rural land portfolio over time.
To fund further acquisitions NZL will look to place the current rights issue shortfall at $1.10 per share. Given NZL’s subsequent
rise in net asset value per share, the Board does not anticipate raising capital at this level of discount again once this shortfall
offer is closed. The shortfall presents an attractive opportunity for wholesale investors to increase their investment exposure or
gain an investment exposure at an attractive discount to income producing, high quality productive rural land in some of New
Zealand’s most pre-eminent farming regions.
As NZL is now firmly established and delivering on its strategy, the management and the Board is focused on its sustainability
initiatives and advantages. Investors should expect NZL to articulate further on this over the balance of 2021.
With a solid base of lease revenue being earned, NZL is on course to start paying dividends in the 2022 financial year as
was targeted in the IPO documentation. The Board will look to declare a dividend when it releases its half year results to 31
December 2021.
Rob Campbell
Independent Chair
30 August 2021

---

INVESTOR UPDATE
30 August 2021
www.nzrlc.co.nz
listed on:
NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA

DISCLAIMER
The information and opinions in this presentation were prepared by New Zealand Rural Land Company
(NZL). NZL makes no representation or warranty as to the accuracy or completeness of the information in
this report. Opinions including estimates and projections in this report constitute the current judgment of NZL
as at the date of this report and are subject to change without notice. Such opinions are not guarantees or
predictions of future performance. This report is provided for information purposes only and does not constitute
investment advice. Neither NZL, nor any of its Board members, officers, employees, advisers (including New
Zealand Rural Land Management Limited) or any other representatives will be liable for any damage, loss or
cost incurred by any recipient of this report or other person in connection with this report.
All images were taken on site of various farms held within NZL’s portfolio.
02
NEW ZEALAND RURAL LAND COMPANY

NZL reiterates its belief that it can continue to
deliver NAV growth as the short-to long-term
macro story for New Zealand’s agricultural
industry and in particular dairy remains positive.
Fonterra is currently forecasting a 2021/2022
milk price between $7.25 and $8.75 per kgMS,
which is ~30% above the 10 year average.
NZL is forecast to deliver investors a FY22 cash
dividend yield of 4.35%
*
from its current portfolio
of land. In FY24, which can be thought of as
NZL’s steady state, cash dividend yield on the
current portfolio is forecast to rise to 5.74%
*
as
our leases will have worked through all rent-free
periods.
NZL’s audited Net Asset Value was $1.3968/
share as at 30 June 2021. NZL highlights that it
has one of the longest WALTs and highest forecast
dividend yields in the NZ listed property sector.
NZL confirms a large and attractive acquisition
opportunity set in front of it with assets of
approximately NZ$ 80M in late-stage due
diligence.
NZL confirms it is now formally looking to place
its rights issue shortfall of approximately $24M
**

and has received firm expressions of interest
totalling ~NZ$ 5M to date. NZL confirms the
placement underway closes on 28 September
2021 and it is working with third parties to place
the shares. Should wholesale investors
***
have
interest, please contact Christopher Swasbrook -
chris@nzrlc.co.nz)
NEW ZEALAND RURAL LAND COMPANY
KEY ANNOUNCEMENT POINTS
01
04
02
05
03
06
* Based on a $1.12 Share Price as at 27 August 2021.
** NZL has a total of 21,835,697 shares to place at $1.10 per share.
*** Wholesale investors are, in general terms, investment businesses, investors with financial product portfolios of at least $1 million, investors with net assets of more than $5 million or certain other eligible persons.
Certifications as to satisfying these criteria will be required before any application for shares is accepted.
NZL reported an inaugural net profit after tax of
$15.115M as at 30 June 2021 after successfully
completing an IPO in December 2020 and
acquiring $124.25M of rural land within 6 months.
03
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
TIMELINE
21 December 2020
Completed $75M IPO
and listed on the NZX.
23 March 2021
Announced first $ 10.24M
unconditional acquisition in
Southland, New Zealand.
01 June 2021
Settled $ 124.25M of
acquisitions in North
Otago, South Canterbury
and Southland New
Zealand.
04 June 2021
Announced 2:3 Rights
Issue at $ 1.10 / share
to raise $ 44.3M.
01 August 2021
Completed $12M
acquisition in
South Canterbury,
New Zealand.
30 August 2021
NZL releases
Annual Result for
the period ending
30 June 2021.
28 June 2021
Closed 2:3 Rights Issue
raising $20.32M (shortfall
to be placed within 3 months
from this date).
28 September 2021
Closing date of NZL rights
issue shortfall placement.
04
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
BACKGROUND
NO DIRECT
EXPOSURE
to volatile
commodity prices
NO DIRECT
EXPOSURE
to on-farm risks
(via either sharemilker
or operational partner)
NO DIRECT
EXPOSURE
to animal health
risks
LIMITED
EXPOSURE
to environmental
risks
NO DIRECT
EXPOSURE
to farmer co-ops
NZL as at 30 June 2021 owned 6,797 Hectares (Ha) of premium dairy land in the South Island of New Zealand with some of the most experienced farmers in the
country as long-term tenants.
NZL in less than 7 months has achieved a Net Asset Value (NAV) growth per share of +11.74%
*
. NZL’s audited Net Asset Value

was NZ$ 1.3968 per share as at 30
June 2021.
NZL is currently forecasting to deliver investors a FY22 cash dividend yield of 4.35%
**
from its current portfolio of rural land. NZL expects this yield to increase in FY23
and FY24 as our tenants will have worked through their four month rent free period. FY24, which can be thought of as NZL’s steady state, the cash dividend yield is
forecast to be 5.74%
**
from its current portfolio

as our leases will have worked through all rent-free periods.
* Opening NAV per Share is the IPO issue price of $1.25
** Based on a $1.12 Share Price as at 27 August 2021.
New Zealand Rural Land Company (NZL) was incorporated for the purpose
of acquiring rural land across New Zealand’s agricultural sector and is the
only agricultural land based listed property company on the NZX.
NZL separates land ownership and operations. NZL is a change agent within the agricultural sector seeking to improve capital efficiency for its tenants while offering
its investors a clear separation from traditional on-farm risks:
05
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
A RURAL LAND OWNER IN A WORLD LEADING AGRICULTURAL ECONOMY
COUNTRY PARTNER
OF THE GLOBAL FARM 2050 INITIATIVE
The Farm 2050 Initiative is a global programme focused
on feeding the world’s population in a sustainable way.
Source: farm2050.com
1
ST
YEARS OF RESEARCH HAS LED TO
WORLD-LEADING DAIRY PRODUCTS
Through innovation New Zealand turns milk into more
than 1,500 products and product specifications. Almost a
hundred years of research has led to a number of ‘firsts’
for breakthrough products.
Source: New Zealand Dairy Research Institute: A History of the First Fifty Years,
19 27 - 19 7 7
10 0
90
M
PEOPLE COULD GET ALL THEIR DAIRY
FROM NEW ZEALAND
New Zealand farmers and dairy companies produce
the equivalent to two and a half serves of milk per day
for around 90 million people each year.
Source: Dairy Companies Association of New Zealand
2
ND
OUT OF 181 COUNTRIES FOR
CLIMATE CHANGE READINESS
New Zealand is ranked 2
nd
on the Notre Dame Global
Adaptation Country Index. The index summarises a
country’s economic, governance and social readiness
and its exposure, sensitivity and capacity to adapt to the
negative effects of climate change.
Source: University of Notre-Dame, ND-GAIN Index 2017
NEW ZEALAND DAIRY FARMERS HAVE THE
WORLD’S LOWEST CARBON FOOTPRINT
AgResearch found that New Zealand is the most efficient
producer at 0.77 kg CO2e per kg FPCM - this is 48% less
than the average of countries studied.
Source: DairyNZ
1
ST
C0
2
06
NEW ZEALAND RURAL LAND COMPANY

PORTFOLIO UPDATE AND FORECASTS

NEW ZEALAND RURAL LAND COMPANY
PORTFOLIO AS AT 30 JUNE 2021
As at 30 June 2021 (Financial Year End) NZL had acquired a rural land portfolio of 6,797 Ha with a total value of $ 143.153M
*
.
NZL reiterates to investors it continues to have a solid pipeline of opportunities with approximately $ 80M of assets under late-
stage due diligence by its manager - New Zealand Rural Land Management (NZRLM).
*Includes FY21 Revaluations which totalled $ 16.525M
** FY21 Revluations totalled $ 16.525M
NZL TOTAL RURAL ASSETS VALUE/HECTARES
$160
$140
$120
$100
$80
$60
$40
$20
$ -
FY21
Revaluations**
Purchase Price
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9,000$180
NZ$ Millions
Hectares
Hectares
08
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
FY22 ACQUISITION - MAKIKIHI
On 1 August 2021, NZL completed the acquisition of a 493 Ha Hybrid Dairy Farm. NZL has already entered
into a lease of this property with Performance Dairy Limited that will be for 11 years with two 12 year rights
of renewal.
The property has low levels of nutrient leaching, an A Grade Farm Environmental Plan Audit and the ability to
easily scale production to take advantage of high milk payout years.
NZL has also entered a put and call options deed where interests associated with the vendor may call for the
repurchase of Makikihi Farm from NZL at any time. In addition, in approximately 2 years’ time, NZL will have
the option to put the Makikihi Farm to the vendor and require it to purchase it back. In either case the purchase
price will be $12 million plus 4.66% per annum calculated as accruing on a daily basis from 2 August 2021.
MAKIKIHI ROAD
purchase pricelocationtotal hafarm typelease ratetenant
$12,000,000
Waimate, South
Canterbury
493
Hybrid Dairy
Farm
5.34%
Performance
Dairy Limited
09
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
PORTFOLIO AS AT 30 AUGUST 2021
NZL YoY RURAL LAND VALUE/HECTARES
NZL TOTAL RURAL LAND VALUE/HECTARES
$160
$140
$120
$100
$80
$60
$40
$20
$ -
FY21FY22FY23
Revaluations*
FY22 Purchases
to date
Purchase Price
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9,000$180
NZ$ Millions
Hectares
Hectares
$160
$140
$120
$100
$80
$60
$40
$20
$ -
FY21FY22FY23
Revaluations*
FY22 Purchases
to date
Purchase Price
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9,000$180
NZ$ Millions
Hectares
Hectares
The charts below detail by Financial Year NZL’s rural land portfolio - including revaluations.
*FY21 Revaluations totalled $ 16.525M
10
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
PORTFOLIO OVERVIEW AS AT 30 AUGUST 2021
1 Excluding transaction costs
2 Weighted Average Portfolio Cap Rate Based on Purchase Price excluding Transaction Costs
3 One of our tenants lease farms in both Canterbury and North Otago
locationotago/southlandcanterburytotal
land
area (ha)9606,3377,297
rural asset classDairyDairyDairy
purchase price
1
$22.57M$113.68M$136.25M
weighted average
cap rate
2
5 .17 %5.41%5.37%
walt (years)10.3310.7810.71
# tenants234
3
occupancy100%100%100%
11
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
GROWTH IN NET ASSET VALUE (NAV) PER SHARE
Growth in Net Asset Value (NAV) highlights a combination of attractive large scale acquisitions and industry tailwinds for high-quality rural properties.
Net Asset Value Growth per Share - Assuming Full
Rights Issue Participation
Net Asset Value Growth Per Share - Assuming No
Rights Issue Participation
+17.38%
* Based on 78,930,970 shares on issue
$ 1.40
$ 1.35
$ 1.30
$ 1.25
$ 1.20
$ 1 .15
$ 1.10
$ 1.05
$ 1.00
Cost Base Assuming Full Par-
ticipation in 2:3 Rights Issue
Audited NAV/Share as at 30
June 2021*
$ 1.3968
$ 1.1900
$ 1.40
$ 1.35
$ 1.30
$ 1.25
$ 1.20
$ 1 .15
$ 1.10
$ 1.05
$ 1.00
IPO PriceAudited NAV/Share as at 30
June 2021*
$ 1.3968
$ 1.2500
$ 1.45
+11.74%
12
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
LEASE PROFILES AS AT 30 AUGUST 2021
NZL’s WALT (Weighted Average Lease Term) is currently 10.71 years.
NZL’s leases all have 3, 6, and 9 year CPI increases with rights of renewal in years 10 and 11
(tenancy dependent).
NZL LEASE EXPIRY BY TENANT
90%
100%
80%
70 %
60%
50%
40%
30%
20%
10 %
0%
FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32FY33
Tenancy 4
Tenancy 2Tenancy 1 Tenancy 3
13
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
TENANT CONCENTRATION AS AT 30 AUGUST 2021
NZL Tenant Concentration as a % of Lease Value
NZL’s current tenant concentration is detailed in the pie chart (right).
NZL expects its tenant concentration to reduce as it continues to grow its
asset and tenant base.
14
58%
7%
19 %
17 %
Tenancy 4
Tenancy 2Tenancy 1 Tenancy 3
14
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
CAPITAL STRUCTURE OVERVIEW
As at 30 June 2021, NZL had drawn $54.2M of its $65.0M lending facility with Rabobank.
Post Rights Issue NZL reduced debt to $40.0M and subsequently re-drew $7.0M to acquire Makikihi. NZL’s current debt is currently $47.0M as at 30
August 2021 which equates to a 28.50% debt/total assets.
NZL has floating to fixed interest swaps to economically hedge interest rate risk on $12M of Facility B and $12M of Facility C with NZL paying 1.18%
and 1.58% respectively and receiving NZD-BBR-BID.
NZL DebtNZL Debt Facility Tranches as at 30 June 2021
$ 60
$ 50
$ 40
$ 30
$ 20
$ 10
$ -
As at 30 June 2021As at 30 August 2021
$54.25M
$47.00M
26.27%
29.49%
44.24%
2 Year (Fac ility A)3 Year (Fac ility B)5 Year (Fac ility C)
15
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
FFO/AFFO FORECASTS
*
BASED ON CURRENT PORTFOLIO
Forecast Adjusted Funds from Operations (AFFO): FY2022 to FY2024
AFFO is determined by adjusting FFO for other items which have not been adjusted in determining FFO.
The primary difference between NZL’s Forecast FFO and AFFO is a rent-free period representing 2.8% of the initial term for
some tenants, this incentive has been used in its entirety by the end of FY2023.
* FFO and AFFO forecasts are sensitive to assumptions for operating expenses, repairs and maintenance and maintenance CAPEX. Any variances to budget would have a direct impact on both forecast
and reported FFO/AFFO.
** Based on Share Price as at 27 August 2021 of $1.12 and shares on issue of 78,930,970.
Note: Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are non-GAAP financial information and are common property investor metrics, which have been calculated in
accordance with the guidelines issued by the Property Council of Australia.
Forecast FFO / Share
**
from Current Portfolio
7.00
6.50
6.00
5.50
5.00
4.50
30 June 202230 June 2023
6.13 cps
30 June 2024
6.40 cps
6.54 cps
Cents per share (cps)
5.84%
5.73%
5.48%
Forecast AFFO / Share
**
from Current Portfolio
7.00
6.50
6.00
5.50
5.00
4.50
30 June 202230 June 2023
5.13 cps
30 June 2024
6.03 cps
6.77 cps
Cents per share (cps)
6.04%
5.38%
4.58%
Forecast Funds from Operations (FFO): FY2022 to FY2024
FFO is the organisation’s underlying and recurring earnings from its operations. This is determined by adjusting statutory net
profit for certain non-cash and other items.
The primary difference between NZL’s Net Profit and FFO is a deferred tax benefit that has been removed for FFO reporting.
16
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
CASH DIVIDEND YIELD FORECASTS BASED ON CURRENT PORTFOLIO
Forecast Cash Dividend / Share
*
7.00
6.50
6.00
5.50
5.00
4.50
30 June 202230 June 2023
4.88 cps
30 June 2024
5.73 cps
6.43 cps
Cents per share (cps)
5.74%
5.11%
4.35%
NZL’s dividend policy is to payout 95% of AFFO;
NZL is currently forecasting a FY22 cash dividend of 4.88 cps this equates to a cash dividend yield of 4.35%
*
;
Forecast cash dividends, based on NZL’s current portfolio and shares on issue as at 27 August 2021
*
are detailed below:
* Based on Share Price as at 27 August 2021 of $1.12 and shares on issue of 78,930,970.
Note: NZL is a listed Portfolio Investment Entity (PIE) meaning that there is no further tax to pay on dividends
(for individual tax payers they can choose to include it as taxable income to claim imputation credits if there
are any).
17
NEW ZEALAND RURAL LAND COMPANY

ACQUISITION PIPELINE, RIGHTS ISSUE SHORTFALL
PLACEMENT AND FOREIGN OWNERSHIP

NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA
Dairy - ~ $75 mln under late-stage due diligence
Viticulture - ~ $7 mln under late-stage due diligence
Horticulture - $0
Green Energy - $0
Forestry - $0
NEW ZEALAND RURAL LAND COMPANY
ACQUISITION PIPELINE
Acquisitions of further dairy land continue to represent a compelling opportunity for
NZL shareholders. NZL has due diligence underway of approximately $80 mln+
of rural land assets that is broken down as follows as at 30 August 2021, NZL has a
large and attractive opportunity set in front of it.
19
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
RIGHTS ISSUE SHORTFALL PLACEMENT
NZL had a rights issue shortfall of 21,835,697 shares @ $1.10 per share.
NZL has received expressions of interest for approximately $5.0M shares to date.
NZL is now in a position to place up to $19.0M of these shares by 28 September 2021.
Please contact: Christopher Swasbrook
+64 21 928 262
chris@nzrlc.co.nz
20
NEW ZEALAND RURAL LAND COMPANY

NEW ZEALAND RURAL LAND COMPANY
FOREIGN OWNERSHIP
NEW ZEALAND BUYER
NZL is highly advantaged
because it is a New Zealand
buyer of rural land
CURRENT LISTED
COMPANY FOREIGN
OWNERSHIP RULES
Under the Overseas Investment
Amendment Act 2021, NZL
can have foreign domiciled
shareholders of up to 49.9%
of its share register (subject to
certain share parcel restrictions).
Private companies in NZ are
limited to less than 25%.
CURRENT NZL FOREIGN
OWNERSHIP
Currently, NZL has foreign
domiciled shareholders
amounting to ~20% of its
share register.
21
NEW ZEALAND RURAL LAND COMPANY

TENANT SPOTLIGHT

NEW ZEALAND RURAL LAND COMPANY
TENANT SPOTLIGHT
The initiative detailed in this recent press article to pelletise bale wrap
and enable recycling of the product is just one example of our tenants
looking to implement equipment and processes which continue to
reduce environmental impacts and improve sustainability.
NZL also supported this initiative with a donation.
Stuff - https://bit.ly/3xF8cto
Fortuna Group is one of our tenants in
Southland and provides a fine example
of industry leadership with regard to a
consistent focus on sustainability and
environmental impact minimisation.
23
NEW ZEALAND RURAL LAND COMPANY

INVESTOR CONTACTS

NEW ZEALAND RURAL LAND COMPANY
INVESTOR CONTACTS
Christopher Swasbrook
chris@nzrlc.co.nz
+64 21 928 262
Level 4, The Blade
12 St Marks Road
Remuera
Auckland 1050
New Zealand
Richard Milsom
richard@nzrlm.co.nz
+64 21 274 2476
Level 4, The Blade
12 St Marks Road
Remuera
Auckland 1050
New Zealand

New Zealand Rural Land Company
Level 4, 12 St Marks Road
Remuera
Auckland 1050
New Zealand
+64 9 379 6493
info@nzrlc.co.nz
www.nzrlc.co.nz

nzrlc
nzrlc
listed on:
NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA
26
NEW ZEALAND RURAL LAND COMPANY