Post Settlement of Acquisitions & Rights Issue Presentation

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
NZX Announcement

9 June 2021

Post Settlement of Acquisitions & Rights Issue Presentation

New Zealand Rural Land Company Limited (NZL.NZX) has today released an updated presentation for investors post settlement
of the previously announced acquisitions. NZL currently has a 2:3 Rights Issue at $1.10 per share open for applications and this
presentation serves to update investors.

NZL will hold a conference call on Friday, 11 June 2021 at 2:00pm to discuss this presentation and answer investor questions.

To register for the conference call and receive a video link please email - Christopher Swasbrook at chris@nzrlc.co.nz.

ENDS

Contact:
Christopher Swasbrook
Executive Director
Mobile: 021 928 262
Email:  chris@nzrlc.co.nz

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Post Settlement of Acquisitions &
Rights Issue Presentation
9 June 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.
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New Zealand Rural Land Company (NZL):
Recap From IPO Documents
• New Zealand Rural Land Company (NZL) was incorporated for the purpose of acquiring rural land across
New Zealand’s agricultural sector;
• NZL will partner with and lease land to experienced farmers and food producers.
• NZL would present a differentiated investment proposition to what is currently available on the NZX:
• Exposure to agriculture / rural land as an asset class without the direct operational exposure and volatility;
• Core focus on securing experienced, well capitalised, long-term tenants to provide security around income;
• Market forces are creating an opportunity to acquire high quality dairy farms at attractive prices;
• Although the initial target is dairy land given favorable pricing backdrop, NZL will target other rural land asset classes
across cycles;
• NZL will separate land ownership and operations. NZL will improve capital efficiency for its tenants while offering its
investors a clear separation from traditional on-farm risks:
No direct
on-farm
risks
(via either sharemilker or
operational partner)
No direct
exposure
to volatile
commodity
prices
Limited
exposure to
environmental
risks
No direct
exposure
to animal
health risks
No direct
exposure
to farmer
co-ops
• NZL is targeting minimum gross lease rate of 4.50% per annum + potential NAV growth;
• NZL aims to pay dividends in Q1 2022;
• NZL will be the only agricultural land based listed property company on the NZX and
is raising a minimum of $75 mln.
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• NZL was the largest IPO on the NZX in 2020 raising $75.0 mln. It was also the largest company to list with no assets in many years on the NZX;
• NZL is now a long-term custodian of $122.75
**
mln of dairy land and a revenue stream of approximately $6.1 mln per annum from these properties
over the terms of the lease/s - all achieved within 6 months of listing;
• NZL has achieved a higher gross lease rate on the properties acquired of ~5.00% vs IPO documentation which guided investors to ~4.50%;
• NZL believes NAV growth can be expected by investors and reminds investors that NZL’s balance date is 30 June 2021. Independent valuations of
the acquired properties will be sought at this date;
• NZL highlights to existing and potential investors the statement in the Notice of Special Meeting - page 15:
The final purchase price to be paid for the Properties ($112.5 million to $114 million) is below the aggregate value attributed to the
Properties under the independent valuations. However, the Board still needs to obtain advice and determine what will be appropriate
carrying values for the Properties in the NZL financial statements for the period ending 30 June 2021.
• NZL secured a $65M revolving credit facility with Rabobank providing capacity for further acquisitions;
• NZL shareholders can expect to receive their first interim dividend in Q1 2022.
New Zealand Rural Land Company (NZL):
Since Listing on NZX
*

* NZL listing date was 21 December 2020.
** Subject to final adjustments.
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NZL: Key Metrics
Portfolio Value: $122.75 mln (at purchase price)
Debt: ~$54,200,000
*
Weighted Average Interest Cost: ~2.50%
**
Occupancy: 100%
Weighted Average Lease Term: 10.91 Years
Market Capitalisation: $67,715,200
*
# Shares on Issue (NZL): 60,460,000
NTA as at 31 December 2020: $1.2080
Rural Land Exposure
*
:
* As at 8 June 2021.
** As at 8 June 2021, NZL has not put in place any interest rate hedges at this time. This also includes a line fee of 0.88% per annum on undrawn capital.
D ai r y
Horticulture
Viticulture
Gre en E ner gy
D ai r y
Horticulture
Viticulture
Gre en E ner gy
Dairy - 100%
Horticulture - 0%
Viticulture - 0%
Green Energy - 0%
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NZL: Key Metrics (cont.)
NZL Share Price / NAV Since Listing on NZX
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
$1.00
$1.10
$1.20
$1.30
21/12/2021/01/2121/02/21
21/03/21
21/04/2121/05/21
Premium Discount
NZL Last
Sale Price
NAV (per share)*
ReturnsNZL.NZX
S&P/NZX All Real Estate Gross
Index [NZREITG]
Since Listing-9.6%+0.18%
CYTD-11.72%-2.16%
Shareholder Returns**
* As at 31 December 2020.
** As at 8 June 2021.
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NZL: Current Rural Land Portfolio - Summary
Southland
1 Dairy Farm
Total: 456 Ha
Total Purchase Price:
NZ$ 10.245M
North Otago
1 Dairy Farm
Total: 504 Ha
Total Purchase Price:
NZ$ 12.32M
South Canterbury
8 Dairy Farms
5 Support Farms
Total: 5,837 Ha
Total Purchase Price:
NZ$ 100.18M
$122,750,000
$6,135,575.85
5.00%
purchase price (NZ$) [subject to fi Nal adjustmeNts]
lease value (NZ$ pa)
lease rate oN purchase price [subject to fi Nal adjustmeNts]
PROPERTY VALUES AND LEASE TERMS
10 - 11 Years - CPI Adjustment Years 3, 6, 9
lease term
teNaNts
77

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NZL: Portfolio by Region - Southland
Southland
PROPERTY DETAILS
456
total ha
Easy Undulating -
Rolling
coNtour
Bore
water source
Traditional dairy
farm type
houses
4
Predominantly Kaiwera
Soils with a small strip of
Waimahaka Hill Soils.
soils
1
# of farms
888

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NZL: Portfolio by Region - North Otago
PROPERTY DETAILS
504
total ha
Easy Undulating -
Rolling
coNtour
Local River
water source
Traditional dairy
farm type
houses
5
Claremont and Timaru
silt loam soils.
soils
1
# of farms
North Otago
99

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NZL: Portfolio by Region - South Canterbury
South Canterbury
PROPERTY DETAILS
5,837
total ha
Most farms are flat
with some rolling to
steep.
coNtour
Majority local water
schemes with some
drawing from dams
water source
Traditional dairy,
Hybrid Farms,
Support Farms
farm type
Pukeuri, Waipara, Kauri,
Timaru, Claremont,
Ruahine, Wakanui,
Darnley.
soils
13
# of farms
1010

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NZL: Debt Facility with
• To finance the aforementioned acquisitions NZL has drawn $54.2 mln of its new $65 million revolving
credit facility with Rabobank (this facility has a mixture of terms being 2, 3, and 5 years, and the
ability to utilise interest rate swaps).
• The current weighted average interest cost of these borrowings is approximately 2.50% per annumroximately 2.50% per annum
**
..
• As was detailed in the recent Notice of Special Meeting, the Rabobank facility has a loan to value
ratio covenant of 40%, this will first be measured at 30 September 2021. While the bank covenant is
at a 40% level, the intention of the Board is to restore debt to a 30% level under its internal debt policy.
The Board’s intention is that a 30% debt level should be the ‘steady state’ debt level for NZL which is
only exceeded on a temporary basis to facilitate transactions that are in the best interests of NZL.
* As at 8 June 2021. Note: NZL has not put in place any interest rate hedges at this time.
This also includes a line fee of 0.88% per annum on undrawn capital.
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NZL: Rights Issue - 2:3 @ $1.10
• NZL is undertaking a 2:3 rights issue @ $1.10 to raise $44.33M to reduce debt back to an internal
policy target of a loan to value ratio of approximately 30% and also enable NZL to capitalise on a
strong pipeline of potential acquisitions.
• NZL Rights Issue Key Dates:
Shares OwnedCost Basis / Share
IPO - 21 December 202010,0001.2500
2:3 Rights Issue6,6671.1000
Total holding post rights offer16,6671.1900
Announcement of key terms of the Offer24 May 2021
Rights trading commences on the NZX Market2 June 2021
Record Date for determining entitlements5.00pm, Wednesday 3 June 2021
Opening Date for the Offer4 June 2021
Rights trading ends on the NZX Market 17 June 2021
Closing Date for the Offer (last day for receipt of
a renunciation or the completed Entitlement and
Acceptance Form with payment)
23 June 2021
Allotment Date for New Shares
*
under the Offer 28 June 2021
Expected date for quotation of New Shares
*
28 June 2021

• Detailed below is the impact the rights issue will have on an investor with 10,000 shares acquired
at the time of the IPO and who takes up their full entitlement:
* New Shares will rank pari pasu in all respects with existing shares.
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NZL: Acquisition Pipeline
MAKIKIHI ROAD
$ 12,000,000Waimate, South
Canterbury
500Hybrid Dairy Farm> 5%Performance
Dairy Limited
locatioN
total ha
purchase price
farm type
lease rateteNaNt
• NZL has the potential to acquire an additional 500 Ha Hybrid Dairy Farm by 1 August 2021 should the vendor
be unsuccessful in refinancing that property by this date. NZL has already entered into a conditional lease
(subject only to NZL’s acquisition of this property that will be for 11 years with two 12 year rights of renewal).
• NZL has a potential pipeline of approximately $130 mln+ of rural land assets that is broken down
as follows as at 8 June 2021:
NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA
Dairy - +$100 mln of targeted assets
Viticulture - ~ $6 mln of targeted assets
Horticulture - ~ $15 - $40 mln of targeted assets
Green Energy - ~ $10 mln of targeted assets
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NZL: Foreign Ownership
• NZL is highly advantaged because it is a New Zealand buyer of rural land;
• 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);
• Currently, NZL has foreign domiciled shareholders amounting to ~23% of its share register.
• The current rights issue potentially presents an attractive opportunity for offshore institutions to acquire a meaningful
interest in NZL by registering their interest for any rights issue shortfall alongside existing NZL Shareholders.
• To register interest - please contact:
Christopher Swasbrook
Executive Director
chris@nzrlc.co.nz
+64 21 928 262
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NZL: Structure, Directors, Service Providers & Manager
NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA
Listed
ROB
CAMPBELL
Independent
Chair
SARAH
KENNEDY
Independent
Director
CHRISTOPHER
SWASBROOK
Executive
Director
NEW ZEALAND Rural
Land Management
50.0%
16.5%
Hayden Dillon
6.0%
Richard Milsom
7.5%
Accountant
Auditor
Registry
Listed
Clyde & Rena
Holland
20.0%
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NZL: Key People
NEW ZEALAND Rural Land Co
SUSTAINABLE AOTEAROA
ROB CAMPBELL
Independent Chair
Chair – SKYCITY Entertainment Group
Chair – WEL Group Limited
Chair - Tourism Holdings
Chair - Summerset Group
Director - Precinct Properties
Vice Chancellor - AUT
CHRISTOPHER SWASBROOK
Executive Director
Managing Director – Elevation Capital Management Limited
Board Member – Financial Markets Authority
Director – Allied Farmers, Bethunes Investment Limited, RAL Limited and
Swimtastic Limited
Previously a Partner of Goldman Sachs JBWere Pty Limited & Co-Head of
Institutional Equities at Goldman Sachs JBWere (NZ) Limited
SARAH KENNEDY
Independent Director
Director - Comvita NZ
CEO - Calocurb Limited
Previously CEO - Designer Textiles International
Previously Vice President International Farming - Fontera
Previously CEO / Member of the Board of Directors - Vitaco Health Limited
Previously CEO - Healtheries of New Zealand Ltd
RURAL VALUER
Independent Consultant

FARM CONSULTANT
Independent Consultant

AGRICULTURAL ENVIRONMENTAL SPECIALIST
Independent Consultant

RURAL PROPERTY MANAGER
Rural Property Manager
HAYDEN DILLON
Consultant
Managing Partner Findex (Waikato) & Head of Agribusiness New Zealand for Findex.
Independent Director - Williams Holdings Limited
Independent Director - Aquila Sustainable Farms Limited and associated Limited Partner Farms.
Independent Director Rowing New Zealand.
Trustee - South Waikato Investment Fund
Chairman - Bioceta Limited
Previously - Senior Partner Bank Of New Zealand – Waikato
Previously - Corporate Relationship Manager Food Fibre & Beverage National Australia Bank - Melbourne
Fellow FINSIA
SHELLEY RUHA
Independent Chair
Director - Heartland Bank
Director - Icehouse
Director - 9 Spokes
Previously - Senior Management Team and leader of
BNZ Partners - BNZ
RICHARD MILSOM
Executive Director
Consultant - Elevation Capital Management Limited
CEO – Bellevue Enterprises Limited – Bovine & Porcine
Genetic Improvement & Sustainable Pork Production Company
INFINZ Board Member
INFINZ Emerging Leader 2017
NEW ZEALAND Rural Land Management
MARISE JAMES
Director
Director - Allied Farmers
Partner - Baker Tilly Staples Rodway Taranaki,
Chair - Firstlight Wagyu NZ Limited,
Previously:
Founding director - Fonterra Co-operative Group
Director - FMG Insurance Limited
Director - Landcorp Farming Limited
Director - TSB Bank + TSB Trust
Chaired the Audit Committees of FMG and Landcorp.
CHRISTOPHER SWASBROOK
Consultant
Managing Director – Elevation Capital Management Limited Board Member – Financial Markets Authority (FMA)
Director – Bethunes Investments Limited, New Zealand Rural Land Company Limited and Swimtastic Limited
Previously a Partner of Goldman Sachs JBWere Pty Limited & Co-Head of Institutional Equities at Goldman Sachs JBWere (NZ)
Limited
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NZL: Outlook
The outlook for NZL remains bright in terms of further expanding its land holdings;
• NZL believes that overseas ownership restrictions and commercial bank lending policies continue to impact the
availability of buyers of large scale opportunities that NZL is typically targeting. A lack of buyers able to transact at
scale positions NZL extremely well to continue to build its portfolio;
• This remains somewhat in contrast to recent headlines which are clearly positive for long-term land price appreciation.
These headlines are not currently having a dramatic impact on large scale rural land prices that one would intuitively
expect;
• NZL Directors continue to believe this represents a truly compelling opportunity to continue to
acquire land at scale and hence have sought a larger amount of capital in the rights issue to
enable NZL to be able to maximise the opportunity set at present.
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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