Annual Meeting Chair Address and Presentation

23 June 2023
New Zealand Rural Land Company (NZL.NZX) - Chair Address to ASM
NZL reported a net profit after tax of $5.3 million for the financial year ended 31 December 2022. The results cover
the period 1 July – 31 December 2022, following a change in NZL’s balance date from 30 June to 31 December. Net
Asset Value (NAV) per share increased by +18.6% to $1.656 per share for the period.
On 10 March 2023 NZL paid a half year dividend of 2.03 cps for the period 1 July – 31 December 2022, an increase
of +27% on the previous 1 January - 30 June 2022 period. There was no Dividend Reinvestment Plan offered for
this dividend.
On 14 April 2023 NZL completed the acquisition of a 2,400 hectare forestry estate located in Manawatū-Whanganui
for a total cost of $63.0m. The estate is leased to New Zealand Forest Leasing (NZFL) for a 20-year term with a first
year lease of approximately $5.0m. On 28 April 2023 NZL announced the acquisition of a supplementary forestry
estate for approximately $8.0m also located in the Manawatū-Whanganui region. This estate is also leased to NZFL
for a 16 year period with a first year lease of $640k. Both leases incorporate annual CPI-linked rental adjustments.
The purchases were debt and equity funded. Debt was provided through a $28.5m Rabobank Green Loan. Equity
was sourced from the recent entitlement offer, while a $12m unsecured convertible note was issued to a NZ Forest
Leasing associated entity. The note pays a coupon of 8% p.a. NZL is able to repay the note at any time and will make
note redemptions by using available cash flow, from the net proceeds of any capital raisings during the term of the
note, and from the net proceeds (post any required debt repayment) of any asset disposals.
Post the forest estate acquisitions, NZL owns 14,847 hectares of rural land with a 11.5 year weighted average lease
term (by value), with 100% occupancy across eight tenants. NZL generates shareholder value through a combination
of asset value appreciation and cash flows from its long-term leases. NZL’s portfolio increased in value by +0.94%
in the six months to 31 December 2022 reflecting the resilience and quality of NZL’s portfolio in an uncertain
macroeconomic environment which is putting downward pressure on the value of many other assets. Since NZX
listing in December 2020, NZL’s audited NAV per share has increased at a compound annual growth rate (CAGR) of
approximately +15% per annum. The next revaluation of NZL’s assets will take place as at 31 December 2023.
These figures reinforce the excellent job our Manager - New Zealand Rural Land Management - has consistently
done for NZL since listing in December 2020 in identifying and executing on attractive acquisition opportunities.
On 26 May 2023 the Board announced that it would be suspending NZL’s interim dividend for the period ending 30
June 2023, 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. NZL will use available cash flow to acquire NZL
shares through an on-market share buyback programme, and to repayment of the convertible note recently issued
to acquire the forestry assets.
E: info@nzrlc.co.nz | T: +64 9 217 2905
www.nzrlc.co.nz

The outlook for NZL remains extremely positive, as NZL’s leases incorporate regular and uncapped CPI rent reviews
that benefit from the higher inflation environment. From 1 July 2024, NZL will start to see the positive impact of
rental growth with approximately 55% of the portfolio (excluding the forestry estates) due for CPI indexed review.
CPI accumulated since the leases began (1 June 2021) totals +12.6% to 31 December 2022 and is forecast by the
market to be more than +18% for the three years to 30 June 2024.
NZL reaffirms its 26 May 2023 guidance of FY24 AFFO forecast in the range of 5.25 - 5.75cps.
I wish to thank all our investors for being supportive of the journey thus far. A little patience goes a long way in
this world and we all believe this will be rewarded in the years ahead as NZL continues to increase its scale and
earnings. History shows, it is also reasonable to expect, as this occurs the discount to NAV closes.
Rob Campbell
Independent Chair
E: info@nzrlc.co.nz | T: +64 9 217 2905
www.nzrlc.co.nz

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NEW ZEALAND RURAL LAND COMPANY
v
www.nzrlc.co.nz
listed on:
ASM PRESENTATION
Rural Land Co
New Zealand
The Rural Land Investors
23 JUNE 2023

v
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
1. Chair’s Introduction
2. Presentation to Shareholders
3. Questions
4. Resolutions
ASM Agenda

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NEW ZEALAND RURAL LAND COMPANY
NZL: At a Glance - 31 December 2022
INTRODUCTION
$1.652
NAV per Share
$298.8m
Total Assets
$190.9m
Net Asset Value (NAV)
*Total tangible assets divided by total bank debt.
36.2%
*
Gearing

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NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company is a landlord to New Zealand’s attractive agricultural sector.
We own rural land and lease it to high quality tenants.
NZL: Today
NZL currently owns
hectares of rural land.
(36,688 acres)
14,847
Canterbury
6,333 ha owned
Otago
3,991 ha owned
Southland
1,386 ha owned
11.5 Years
Weighted Average Lease Term (WALT)
8
High Quality Tenants
100
%
Occupancy Rate
INTRODUCTION
Manawatu - Whanganui
3,137 ha owned

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NEW ZEALAND RURAL LAND COMPANY
NZL: Summary of FY23 - Acquisitions
On 14 April 2023, NZL announced the settlement of a forestry estate acquisition which comprises five individual properties with
a total area of approximately 2,400 hectares. The total acquisition cost was ~$63m. The estate is leased to New Zealand Forest
Leasing (NZFL) for a 20 year period with the first year’s lease payment being ~$5m.
NZL funded the purchase with $25.2m of borrowings from Rabobank. These borrowings were in the form of a green loan
established within a green financing framework managed and reported on in line with Asia Pacific Loan Market Association’s Green
Loan Principles.
The equity component of the purchase was funded from the proceeds of NZL’s pro-rata rights issue and a $12m convertible note
issued to an entity associated with NZFL. The note is unsecured and pays an 8% p.a. coupon. NZL can redeem any part of the note
at any time without penalty.
On 28 April 2023, NZL announced the settlement of a supplementary forestry acquisition for a purchase cost of approximately
$8m.
NZL acquired 100% of the forest which has a total area of 737ha. The forest is leased to NZFL for a period of 16 years.
The purchase was funded through a combination debt from capacity in the previously estatblished green loan facility and equity
remaining from the pro-rata rights issue.
FY23 ACQUISITIONS

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NEW ZEALAND RURAL LAND COMPANY
NZL: Summary of FY23 - Corporate Actions
On 26 May 2023 NZL announced an upgrade of FY24 earnings guidance, suspension of the FY23 interim dividend and an on-
market share buyback.
Due to the accretive nature of NZL’s forestry acquisitions, NZL upgraded its FY24 AFFO guidance. FY24 being 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).
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.
In the Directors’ opinion, buying back shares was more attractive for shareholders than paying dividends and the Board resolved to
suspend NZL’s dividend policy for the current six-month period.
NZL will use available cash flow to:
• acquire NZL shares through an on-market share buyback programme; and
• repayment of the convertible note recently issued to acquire the forestry assets.
CORPORATE ACTIONS

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NEW ZEALAND RURAL LAND COMPANY
NZL: Operational Update and Outlook
OPERATIONAL UPDATE
NZL continues to work on mapping its current portfolio for marginal land (approx 171 ha) which can be enhanced with replanting
and a programme to increase biodiversity. This is in the final stages of completion and NZL then plans to begin an implementation
programme during the current financial year and into FY24.
All NZL tenants remain compliant with NZL’s key tenant covenants. There have been no major health and safety events with our
tenants.
Allied Farmers Limited (ALF.NZX) exercised its option to purchase the remaining 50% of NZL’s manager NZRLM on 27 March 2023.
As a result NZRLM is now 100% owned by ALF. This transaction does not impact the services provided by NZRLM to NZL under
the management contract.

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NEW ZEALAND RURAL LAND COMPANY
NZL: Lease Income Outlook
NZL’s leases incorporate regular, uncapped, CPI reviews. Accordingly, high inflation will result in rental growth. Furthermore, NZL is
insulated from inflation-impacted (and all other operational) on-farm costs by owning only the land.
From 15 April 2024, NZL will start to see the positive impact of inflation with approximately 67% of the portfolio (by lease income)
due for CPI rental review (this includes the forestry leases which have annual CPI rental reviews). CPI accumulated since the
pastoral farm leases began (1 June 2021) totals +14.0% to 31 March 2023 and is forecast by the market to be more than +18.0% for
the three years to 30 June 2024.
Post the forestry estate acquisition NZL has interest rate hedging arrangements in place for 54% of its total borrowings at an
average all in cost of 5.3%
*
. NZL’s remaining debt is borrowed on a floating rate (BKBM plus bank margins) and the average all in
cost of NZL’s floating debt as at 31 May 2023 is 7.3%. NZL’s weighted average interest cost (fixed and floating) is 6.3%.
OUTLOOK
*as at 31 May 2023
**AFFO forecasts assume that NZL acquires 100% of the forest estate.

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NEW ZEALAND RURAL LAND COMPANY
RESOLUTIONS

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NEW ZEALAND RURAL LAND COMPANY
Resolutions
To consider and, if thought fit, to pass the following ordinary resolutions:
1. Re-Election of Rob Campbell: that Rob Campbell, who retires as a Director in accordance with NZX Listing Rule 2.7.1 and NZL’s constitution,
and being eligible, be re-elected as a Director of NZL.
2. Re-Election of Christopher Swasbrook: that Christopher Swasbrook, who retires as a Director in accordance with NZX Listing Rule 2.7.1 and
NZL’s constitution, and being eligible, be re-elected as a Director of NZL.
3. Re-Election of Sarah Kennedy: that Sarah Kennedy, who retires as a Director in accordance with NZX Listing Rule 2.7.1 and NZL’s
constitution, and being eligible, be re-elected as a Director of NZL.
4. Auditor’s Remuneration: that the Board be authorised to fix the fees and expenses of the Company’s Auditors.
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OUTLOOK
*as at 31 May 2023
**AFFO forecasts assume that NZL acquires 100% of the forest estate.

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New Zealand Rural Land Company
Level 1, 85 Fort Street
Auckland CBD
Auckland 1010
New Zealand
+64 9 218 2177
info@nzrlc.co.nz
www.nzrlc.co.nz

nzrlc
nzrlc
listed on:
Rural Land Co
New Zealand
The Rural Land Investors