NZ Rural Land Management Earnings Guidance

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352
Phone: 06 765 6199
Web: http://www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz
3 June 2021

announce@nzx.com

NZ Rural Land Management Earnings Guidance

(“Allied Farmers” NZX: ALF) has previously indicated that after settlement of New
Zealand Rural Land Company Limited’s (NZX: NZL) acquisition of dairy assets,
Allied Farmers will update the market on the likely earnings impact given its 50%
ownership of New Zealand Rural Land Management Limited Partnership (NZRLM),
which is the external manager of NZL.
Allied Farmers has today received a financial update from NZRLM, and is pleased to
advise that NZRLM considers that Allied Farmers’s attributable earnings from
NZRLM will be approximately $500,000 - $600,000 pre-tax as at 30 June 2021.
NZRLM has advised that this is subject to final transactional costs and end of year
adjustments relating to the large series of transactions that settled on 1 June 2021.
A significant proportion of these earnings relate to Transaction Fees paid/payable to
NZRLM by NZL in relation to the recent acquisition of dairy assets, with the balance
being monthly Management Fees paid/payable to NZRLM by NZL. FY21
Performance Fees (if any) are not included, because these cannot be calculated by
NZRLM until NZL completes financial reporting valuations of its assets to be
commissioned later this month.
Given that the month of May is a significant trading period for Allied Farmers’s
livestock trading subsidiary New Zealand Farmers Livestock Limited, Allied Farmers
is not yet able to provide an earnings guidance update for the wider Allied Farmers’s
Group. This will be provided as the forecast Allied Farmers’s Group earnings
become more certain.
Allied Farmers’s would also like to update the market and shareholders that it has
not yet completed its ongoing review of its capital requirements, including whether or
not it will raise additional capital by way of the placement approved by shareholders
at the 2020 Annual Meeting, or in some other form.

Richard Perry
Chair