This morning agricultural real estate investment trust Rural Funds Group Limited (ASX: RFF) posted total adjusted funds from operations of $25.6 million on revenues of $34.238 million.
As at the end of the period the company had total assets of $588 million and debt of $167 million to give a net asset value of $358 million. The group also boasts that it maintain a long weighted average lease expiry of 13.2 years.
Gearing in terms of debt to equity stood at 28.5% and was down 8% on the prior year.
The company posted total dividends per unit of 9.54 cents on funds from operations (FFO) of 12.51 cents. The FFO were up 35% thanks to acquisitions, market rent reviews, and capital expenditures related to the development of existing properties.
Over the year the group raised an additional $140 million in extra capital that appears to have been invested at a high return and this is one of the most attractive qualities as to the property manager's investment case.
The group is targeting the cattle and cotton sectors to invest additional capital in over the years ahead to generate higher returns. Over FY17 it invested $52.5 million in cattle properties and breeding herds, with an additional $26.6 million invested in cotton properties and $34.4 million in water entitlement in Murrumbidgee.
The group is forecasting dividends per share of 10.03 cents in FY18, which would represent growth of 4% on its targeted payout ratio of around 80% of total funds from operations. If it delivered 10 cents per unit in dividends over FY18 it would be on a forward yield of 4.86% at today's prices.
The stock is up to $2.12 in morning trade, just 1 cent off a record high of $2.13.
