Guidance Upgrade, Dividend Suspension and Buyback Programme

26 May 2023
NZL Upgrades FY24 Earnings Guidance, Suspends Dividend and Announces On-Market Share
Buy-Back.
Highlights
• FY24 Earnings Upgrade: FY24 AFFO is now forecast to be in the range of 5.25 - 5.75cps, an increase from the
5.00 - 5.50cps guidance previously advised to the market.
• Hedging Update: FY24 hedging has increased to 54%, as NZL 100% hedged the debt relating to the recent
forestry acquisition.
• Dividend Suspended: The Board considers that the current NZL share price materially undervalues NZL’s assets
and free cashflow. Accordingly, the Board is suspending NZL’s dividend for the current six-month period. As a
result, no dividend will be paid in respect of the six month period to 30 June 2023. Cash previously earmarked
for dividends will be used to purchase shares on market and to repay the convertible note which was issued to
support the recent forestry acquisition.
• On-market Buyback Programme: NZL is giving notice to commence an on-market share buyback programme.
Part of the cash previously earmarked for dividends will be used to acquire NZL shares on market from time-to-
time under this programme.
FY24 Earnings Upgrade
NZL recently completed the acquisition of two forestry properties for a combined cost of approximately $70.2m. The
forest acquisitions successfully diversified NZL’s rural land holdings and, as set out in the investment presentation
released to market on 1 March 2023, are expected to be earnings accretive to NZL.
In light of the accretive nature of the acquisitions, NZL is upgrading its FY24 AFFO guidance. FY24 is the first full
financial year in which the forests will be owned by NZL. NZL’s FY24 AFFO is now forecast to be in the range of
$8.0m - $8.5m equating to 5.25 - 5.75 cents per share (a +4.8% increase on the 5.0 - 5.5 cps previously forecast).
FY23 AFFO is expected to be between $6.0m - $6.5m in line with forecasts provided in the 1 March 2023 investor
presentation.
Historical AFFO
Guidance ($m)*
New AFFO
Guidance ($m)
Change (%)Historical AFFO
Guidance (cps)**
New AFFO
Guidance (CPS)
Change (%)
FY23$6.0m - $6.5m$6.0m - $6.5m-N/A4.5cps - 5.0cps-
FY24$8.0m - $8.5m$8.0m - $8.5m-5.0cps - 5.5cps5.25cps - 5.75cps+4.8%
* 1 March 2023 Results Announcement
** 1 March 2023 Equity Raise Presentation
Note: hedging has increased for the FY24 year from 40% to 53%.
E: info@nzrlc.co.nz | T: +64 9 218 2177
www.nzrlc.co.nz

The current outlook beyond FY24 is that NZL will compound its free cash flow at an average rate
per share of approximately +7.0% per annum from FY23 levels.
Hedging Update
Following the recent forestry acquisition NZL has increased its hedging for FY23 and FY24 from 40% of its borrowings
to 54%.
This is in line with recent guidance to the market that the Board of NZL would look to hedge 100% of the forestry
acquisition to increase certainty of cashflows.
NZL’s hedging profile for the next three years is detailed in the chart below.
Average Annual Free Cash Flow Compounding
+7.0%
FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32
54%54%
45%
46%46%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY23FY24FY25
HedgedUnhedged
E: info@nzrlc.co.nz | T: +64 9 218 2177
www.nzrlc.co.nz

Dividend Suspension & On-Market Share Buy-Back Programme
The NZL Board considers that the current market price of NZL shares materially undervalues both the assets and
the free cashflow profile of the business making shares purchased at this level attractive and accretive on an asset
and free cashflow basis for shareholders.
Accordingly, in the Directors’ opinion, buying back shares is currently more attractive for shareholders than paying
dividends and the Board has resolved to suspend NZL’s dividend policy for the current six-month period. As a
result, no dividend will be paid in respect of the six month period to 30 June 2023. The Board anticipates resuming
dividends for the second half of 2023, subject to prevailing market conditions.
NZL will apply the cash previously earmarked for dividends to:
• acquire NZL shares through an on-market share buyback programme; and
• repayment of the convertible note recently issued to acquire the forestry assets.
The NZL Board will regularly determine the exact capital allocation between repayment of the convertible note and
the buyback programme having regard to prevailing market conditions.
NZL’s long-term goal is to pay regular, predictable dividends. However, in this establishment period and in prevailing
market conditions the Board’s responsibility is to protect and advance shareholder value.
Further details of the buyback programme can be found in the Appendix to this announcement.
For further information please contact:
Richard Milsom - Director, NZRLM
Mobile: 021 274 2476
Email: richard@nzrlm.co.nz

Christopher Swasbrook - Director, NZRLC
Mobile: 021 928 262
Email: chris@nzrlc.co.nz
E: info@nzrlc.co.nz | T: +64 9 218 2177
www.nzrlc.co.nz

Appendix – Buyback Programme
New Zealand Rural Land Company Limited (NZX:NZL) advises of its intention to make selective on-market
purchases of ordinary NZL shares pursuant to NZX Listing Rule 4.14.1(a) on the terms outlined in NZL’s capital
management policy.
Pursuant to NZX Listing Rule 4.14.2, buybacks may take place on and from 1 June 2023. The total number of
shares that may be bought back shall not exceed 5,350,000 shares. Shares will only be acquired if the acquisition
price represents 90% or less of NZL’s prevailing net asset value per share.
The number of shares purchased under the programme from time to time will be notified to the NZX market on
the business day following the date on which those shares are acquired. Shares will be cancelled upon acquisition
and the number of shares on issue in NZL will reduce accordingly.
The buyback programme will not run during any “Blackout Periods” (as described in NZL’s Securities Trading
Policy).
Further details regarding the buyback programme are set out in NZL’s capital management policy available on its
website.
E: info@nzrlc.co.nz | T: +64 9 218 2177
www.nzrlc.co.nz