PLP – Client Quarterly Update

PLP – Quarterly Client Update – 31 March 2022

14 April 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 March 2022.

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 $5 billion on behalf of more than 170,000 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 March 2022

1
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Overview & Performance
The Private Land and Property Fund has delivered a solid return
for investors in the March year, with revaluation gains adding to
its underlying cash income.
1

The portfolio earns cash income from a mix of rental received on
around 60% of its land holdings, and sale proceeds from selling
crops produced on the remainder. The fixed lease income
provides a solid base to the portfolio’s cash inflows, while the
crop supply arrangements provide the opportunity to enhance
the return over and above this level - albeit with some more
variability expected from year to year.
For the March 2022 financial year the Fund distributed income to
investors amounting to a cash yield of 2.5% before tax. While this
compared favourably to other traditional sources of investment
income, it was in an environment of lower than usual grape
harvest volumes during the previous season. The current year’s
crop harvest is stronger which bodes well for the cash that will be
received over the coming year.
Kiwifruit orchard at Kerikeri, under long-term lease to Seeka.

On top of the portfolio’s cash income, the unit price for the fund
also includes a gradual recognition of capital gains from parcels
of the land increasing in value as new plantings mature towards
full productive capacity. This includes investments such as some
of the vineyard property held in the Awatere valley in
Marlborough, where new vines were planted beginning in 2017
and are still in the process of maturing.
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.


1 The Private Land & Property Fund obtains its property exposure by investing into the into the wholesale Private Land and Property Portfolio (PLPP).
Additional return from property market movement
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.
During the year this was reflected in upward independent
revaluations on both vineyard and kiwifruit investments within
the Fund, contributing to an overall return of 14% for the March
2022 financial year (after tax and fees). Although returns at this
level should not be relied on, they show that investors have been
well-rewarded, and extend the fund’s solid returns seen since
inception in 2017.
Building additional income sources
Waimea West Hop Farm, near Nelson

In recent years the Fund’s investments have broadened and now
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.
We are currently exploring further opportunities to add new,
complementary land investments to the fund in scale. Our key
criteria remain delivering a sustainable income yield with good
operating partners.
Helping to facilitate this, we are currently in the process of
migrating the Fund’s borrowing arrangements to a new bank
lender. The existing borrowings were repaid over the quarter to
be replaced by a flexible replacement borrowing facility, for
which terms have been agreed and the legal documentation is
currently being finalised. In conjunction with the Fund remaining
a popular option for investors, this puts it in a strong position to
grow and diversify over the years ahead.

Booster Investment Scheme 2
Private Land and Property Fund

Quarterly Update as at 31 March 2022


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 Boos ter 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
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Private Land and Property Portfolio (PLPP)


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)
$97.5 million
Inception Date 13/06/2017
Manager Booster Investment Management Limited
Supervisor Public Trust
Fund Type Portfolio Investment Entity (PIE)
PLPP Investment Holdings
$ %
Vineyard property in Awatere Valley,
Marlborough
$22.6m 23.2%
Kiwifruit orchard property in Kerikeri,
Northland
$20.9m 21.4%
NZ Cash (BNZ Bank Trust Account) $17.5m 18.0%
Vineyard property in Hope, Nelson $16.0m 16.4%
Vineyard property in Hawke's Bay $8.2m 8.4%
Waimea West Hops, Brightwater, Nelson $8.1m 8.4%
Vineyard property in Mahana, Nelson $4.1m 4.2%
Total $97.5m 100%
Fund Size
(net asset value)
$98.6 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 March 2022
Before Tax
After Tax at
28% PIR
Equivalent
Return at 30%*
Equivalent
Return at 33%*
Equivalent
Return at 39%*
Last month 0.5% 0.4% 0.6% 0.6% 0.7%
Last 3 months 1.4% 1.3% 1.8% 1.9% 2.1%
Last 6 months 2.8% 2.6% 3.8% 3.9% 4.3%
Last 12 months 14.6% 14.0% 20.0% 20.9% 23.0%
Last 2 years (p.a.)*

10.9% 10.1% 14.4% 15.0% 16.5%
Last 3 years (p.a.)* 10.2% 9.3% 13.2% 13.8% 15.2%
Since Inception 13/06/2017 (p.a.)* 10.1% 9.2% 13.1% 13.7% 15.0%
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.