The ~$1bn real-estate property trust that owns Australian agricultural assets has been on our hit list for some time, and yesterday they announced a much-anticipated agreement to lease up to 3,000 hectares of central Queensland properties that will be used for macadamia orchards under a 40-year lease agreement with US asset management company The Rohatyn Group. The agreement is for...
Looking outside the ASX200 at $1bn “agricultural landlord” RFF which is well positioned to benefit from increasing food demand. The fund gives investors exposure to the likes of cattle, almonds, vineyards, sugar, cotton, water etc and as a business, they simply collect rent from producers that utilise their land. The stock is well positioned to maintain its 4.5% yield due to the long-term nature of its agreements.
Rural Funds Group is an Australia-based real estate investment trust (REIT). The Company owns a diversified portfolio of agricultural assets that are leased predominantly to corporate agricultural operators. It is primarily engaged in the development and leasing of agricultural properties and equipment. The Company leases almond orchards, macadamia orchards, vineyards, cattle properties, cropping properties, agricultural plants and equipment, cattle and water rights. The Company holds three almond orchards approximately 4,139 planted hectares; seven vineyards approximately 666 planted hectares; seven macadamia orchards approximately 814 planted hectares; eight properties with areas to be developed into macadamia orchards with 5,103 hectares; 20 cattle properties made up of 15 breeding, backgrounding and finishing properties and five cattle feedlots with a combined capacity of 150,000 head, and 23 cropping properties approximately 15,780 hectares.
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