PLP – Quarterly Client Update

PLP – Quarterly Client Update – 31 December 2021

20 January 2022

Booster Investment Management Limited as Manager of the Fund (the Manager), has provided a copy of
the Quarterly Client Update for the quarter ended 31 December 2021.

For further information regarding the Private Land and Property Fund visit
www.booster.co.nz/booster-
investments/private-land-and-property-fund




For more information, please contact:
Gary Scott
Company Secretary
Booster Investment Management Limited
04 8944300


About Booster
Booster Investment Management Limited (Booster) is the manager and issuer of the Fund, and part of
the Booster Group which has been helping New Zealanders save since 1998. The group currently
administers superannuation and investment funds of over $4.5 billion on behalf of more than 130,000
New Zealanders.
PLP is a managed investment fund that invests in land and property-based investments by investing in
units in Booster’s Private Land and Property Portfolio. PLP only holds these units.
For more information, including a copy of the Product Disclosure Statement, please visit
www.booster.co.nz

Booster Investment Scheme 2
Private Land and Property Fund

Quarterly Update as at 31 December 2021


1
v
Overview & Performance
The Private Land and Property Fund’s investments have
broadened over the past three years, to include investment in
Hops, Kiwifruit and over 250 canopy hectares of vineyard land
across the country. The growing breadth of the fund across
horticulture and viticulture gradually adds to the diversity of its
income sources and property exposure around New Zealand.
1

The Portfolio continues to earn income from a mix of lease
income on 60% of its land holdings, and proceeds from the sale
of crops from the remainder. The crop supply arrangements
provide the opportunity to enhance the return over and above
the solid base that the portfolio’s fixed leases provide, albeit with
some more variability expected from year to year.
Over the past year, the Fund distributed income to investors
amounting to a cash yield of 2.5% before tax. While this
compares favourably to other traditional sources of investment
income, it was in an environment of lower than usual grape
harvest volumes across the viticulture industry (seen as a one in
10 year type event for Marlborough, New Zealand’s largest grape
producing region). Although it is early days yet, looking ahead the
first signs are emerging of an average or above average grape
harvest for 2022, based on the initial bud burst and vineyard
assessments, subject to any adverse conditions or events
between now and harvest in March/April.
A gradual recognition is also made in the Fund’s unit price of
capital gains from parcels of the land increasing in value as new
plantings mature towards full productive capacity.
The Fund’s return objective is to generate a 6.5% annualised
return from these sources on average over rolling 7-year periods.
Recent returns have generally tracked in line with this objective.
On top of this ongoing portfolio management activity, the final
result to investors has been strongly supported by higher general
property prices amidst solid investor demand for viticultural
properties and buoyant conditions for gold kiwifruit. This has
been reflected in upward independent revaluations on both
vineyard and kiwifruit investments within the Fund, contributing
to an overall return of 15.5% in 2021, after tax and fees. Although
returns at this level should not be relied on, this pleasing result
shows that investors have been well-rewarded.
The Fund has continued to grow in popularity with investors. This
has placed it in a strong position to broaden its investments
further, and selectively progressing this will be a key focus for us
in 2022.

1 The Private Land & Property Fund obtains its property exposure by investing into the into the wholesale Private Land and Property Portfolio (PLPP).
Expansion on track at Waimea West Hops
A new addition to the Portfolio last year was a 50% stake in
Waimea West Hops, which owns and operates an established hop
garden near Nelson. The garden includes 28 canopy hectares of
mature aroma hops, with the key varieties being the sought-after
Nelson Sauvin and Motueka. Our investment helps Waimea West
Hops expand, including the planting of an additional 34-hectare
site at nearby Teapot Valley. This commenced late last year and
is progressing to plan, with 3 hectares planted, and a further 7
hectares currently underway. Plants have been secured for the
full 34 hectares and will be in the ground before the 2023 harvest.

Year 1 Nectaron ® Hop plants at Teapot Valley

Despite significant supply and cost pressures faced in sourcing
raw materials and labour for the garden infrastructure, we are
pleased to report costs are near or on budget which is a
testament to the management and team we have partnered with.
The processing infrastructure and associated buildings are
contracted with work on the shed expected to start in February.
The new development will be weighted towards the in-demand
Nectaron ® Hop, which should become more commonplace in NZ
craft brewer recipes post the 2022 harvest in March when more
volume of the hop becomes available.

Booster Investment Scheme 2
Private Land and Property Fund

Quarterly Update as at 31 December 2021



Disclaimer This document is for information purposes only. The information is derived from sources believed to be accurate as at the dat e of issue and may change. The content is of a general
nature and does not take into account your financial situation or goals and is not financial advice.
Neither Booster Financial Services Ltd nor any of its related companies (Booster) accepts any liability for any loss or damage arising directly or indirectly out of the use of, or reliance on, the
information provided in this document. Booster Investment Management Ltd is the manager and issuer, and Public Trust is the supervisor, of the Booster Investment Scheme 2, Private Land
and Property Fund (Fund). None of Booster, Public Trust, or any director, board member or nominee of any of those entities, or any other person, guarantees the Fund’s performance, returns or
repayment of capital. The Fund’s Product Disclosure Statement is available at www.booster.co.nz or by contacting your financial adviser or by calling Booster on 0800 336 338.
2
v
Private Land and Property Portfolio (PLPP)
*ANZ Bank has provided a loan facility to the PLPP which results in ANZ holding a
security interest over a portion of its assets. The Gross Asset Value includes the
Portfolio’s net asset value and the amount borrowed from ANZ.

Private Land and Property Fund (PLPF)
The Private Land and Property Fund obtains its property exposure by investing
into the into the wholesale Private Land and Property Portfolio (PLPP).

*All figures are after fees. Please see the Product Disclosure Statement for further details. Returns prior to the inception of PLPF in January 2019 are based on the
underlying wholesale PLPP return. Past performance is not an indicator of future performance.
The Equivalent Return is the rate of return you would need to have achieved from a similar non-PIE investment in order to obtain the same after tax return as PLPF,
based on a PIR of 28% and an income tax rate of either 30%, 33% or 39%, and assuming the return received was fully taxable.
Fund Size
(net asset value)
$90.1 million
Gross Asset Value* $102.1 million
Inception Date 13/06/2017
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)
Gearing ratio* 11.7%
PLPP Investment Holdings
$ %
NZ Cash (BNZ Bank Trust Account) $23.1m 22.6%
Vineyard property in Awatere Valley,
Marlborough
$22.4m 22.0%
Kiwifruit orchard property in Kerikeri,
Northland
$20.6m 20.2%
Vineyard property in Hope, Nelson $16.0m 15.6%
Vineyard property in Hawke's Bay $8.2m 8.0%
Waimea West Hops, Brightwater, Nelson $7.9m 7.7%
Vineyard property in Mahana, Nelson $4.1m 3.9%
Total $102.1m 100%
Fund Size
(net asset value)
$92.3 million
Inception Date 7/01/2019
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)
PLPF Performance as at 31 December 2021
Before Tax
After Tax at
28% PIR
Equivalent
Return at 30%*
Equivalent
Return at 33%*
Equivalent
Return at 39%*
Last month 0.4% 0.4% 0.6% 0.6% 0.7%
Last 3 months 1.4% 1.3% 1.9% 1.9% 2.1%
Last 6 months 6.6% 6.2% 8.9% 9.3% 10.2%
Last 12 months 16.3% 15.5% 22.1% 23.1% 25.4%
Last 2 years (p.a.)*

10.9% 10.0% 14.3% 14.9% 16.4%
Last 3 years (p.a.)* 10.2% 9.3% 13.3% 13.9% 15.2%
Since Inception 13/06/2017 (p.a.)* 10.4% 9.4% 13.4% 14.0% 15.4%
Pictured above: The Portfolio’s Gravity winery in Mahana, Nelson. The winery’s
unique gravity-fed design reduces energy usage while producing high quality
wines, with its ‘living roof’ blending into the surrounding landscape. The
Portfolio’s purchase of the property in 2019 brought this unique winery back into
kiwi ownership.