New Zealand Rural Land Company Limited (NS) Analysis

Overview

NZRLC is a newly incorporated company that has been formed for the purpose of acquiring rural land across the New Zealand agricultural sector. NZRLC intends to be a landlord only and will lease the rural land that it acquires to experienced tenants under long term leases. Tenants will undertake the on-land agricultural operations and pay rental to NZRLC.

In the long term NZRLC may acquire land in the dairy, sheep and beef, horticulture, viticulture and forestry sectors. However, the initial focus for NZRLC is to acquire rural land in the dairy sector.

Performance

The following information was extracted from New Zealand Rural Land Company Limited's (NS) Full Year results, released 27 February 2026

New Zealand Rural Land Co (NZL.NZX) presents its financial result for the year ended 31 December 2025. NZL recorded a consolidated net profit after tax of $7.9m and Adjusted Funds From Operations (AFFO)1 of $7.9m, excluding earnings from properties with put/call arrangements in place.

FY25 Highlights

• AFFO grew from 4.94cps in FY24 to 5.43cps in FY25 (+9.9%). NZL forecasts FY26 AFFO of between 5.65 cps and 5.99cps (FY26 includes further CPI linked rental adjustments);

• CPI linked rental increases of +13.8% on 18.2% of NZL’s portfolio took effect in June 2025. A further 32.3% of NZL’s portfolio was subject to a ~+2.5% increase in early 2025;

• WALT was 11.6 years at FY25 year end a decrease of -7.2% from 12.5 years at FY24 end;

• 17,077 hectares of rural land now owned, a decrease of -2.4% from FY24;

• Settled the acquisition of a 305 hectare dairy property in Canterbury. The acquisition increased NZL’s annual lease income by ~$290k. As part of the consideration for the acquisition NZL sold two pastoral farms at above book value/most recent valuation.

• Net asset value per share has grown from $1.25 at IPO to $1.609 (at 31 December 2025);

• Gearing lowered to 29.4% with 96.0% of borrowing hedged;

• NZL has adopted a revised dividend policy targeting distributions of 90% - 100% of AFFO, paid quarterly. NZL will pay a final dividend of 2.75 cps (100% of AFFO earned in the second half of the year) for a full year dividend of 4.91 cps equivalent to 90.5% of FY25 AFFO. The final dividend will be paid in April 2026.

• NZL has elected to suspend its Dividend Reinvestment Programme (DRP) and will confirm whether the DRP will apply at each dividend announcement, having regard to the Group’s capital requirements and any potential dilution to earnings and NTA.

• NZL’s on-market share buyback programme remained in place during the year. No shares were repurchased during the period. 710,131 shares have been repurchased since the programme was initiated in June 2023.

• During the year NZL commissioned KPMG to perform an independent capital review with consideration given to market feedback, valuation drivers and capital management settings. This report was published and released to the NZX on 2 February 2026.

The FY25 result delivered sustainable growth in value and dividends for shareholders and effective risk management.