PLP – Quarterly Client Update

PLP – Quarterly Client Update – 30 September 2023

11 October 2023

Booster Investment Management Limited as Manager of the Fund (the Manager), has provided a copy of
the Quarterly Client Update for the quarter ended 30 September 2023.

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 190,000 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 and the latest net asset value
per unit, please visit
www.booster.co.nz

Private Land & Property Fund
Quarterly Client Update
Update as at and for the quarter ending 30 September 2023
Booster Investment Scheme 2
Looking to the future – what’s next?
The Fund derives returns from three key sources – cash
income from rent and sale of crops, gains in the value of
properties where new crops have been planted as they
reach full maturity, and general changes in market value.
The first two sources of returns are the key goals of the
Fund (with cash income received typically distributed
to investors), while market movements are incidental to
the core aims.
Where have our returns come from historically? This
graph breaks down the 12.6% 3-year pre tax return of
the Fund (as at 30 September 2023) to illustrate what
drove returns:
Returns from cash income
The majority of this revenue is from lease incomes (rather than crop receipts), which absent any unexpected
issues can be a more stable or predictable form of ongoing income. Going forward, we are looking to
take advantage of the higher interest rate environment we are currently in - we are actively searching
for new properties to add to the portfolio that have the characteristics we look for – a yield above or
at our target return, strong, long term tenants and land uses that have good long-term prospects. We
believe in some sectors current market lease terms offer good value for lessors in the long run.
Investment performance
The Fund returns were as expected for the
quarter ended 30 September 2023, aside from a
manager initiated write down in the value of our
Northland and Bay of Plenty avocado orchards in
August.
Over the past 2 seasons, the overall size of the
NZ avocado crop has grown but severe weather
events have meant that the proportion of fruit
that is export quality has dropped significantly.
The resulting significant increase in fruit that is
sold domestically has negatively affected tray
price returns to growers. We believe some of
these dynamics are behind the recent downward
movements in market valuations.
As signaled in August, we are currently
commissioning updated independent valuations
to verify our carrying value of our orchards.
3 year return summary
Cash income
Gains as properties
reach maturity
General market
movements

Kerikeri Kiwifruit: Our 20 Ha
orchard in Kerikeri is nearing
full maturity, after a setback
due to the extreme weather
over the past season.
Marlborough vineyards:
We purchased a series of
vineyards in 2017, some of
which we planted in new
vines. Those vines are now
reaching full maturity.
Waimea West Hops:
The development included
a new processing facility
commissioned in March
2023, and a doubling of the
garden size to around 62 Ha.
All plants are in the ground
and the processing facility
ran above expectations last
harvest.
Gains in value as properties reach maturity
In the past, just over one quarter of the 12.6% 3-year pre-tax return (the green section of the pie chart) have
been from gains in the value of properties as new plantings of crops grow towards full productive capability.
This approach has helped enhance the overall return of the fund.
These 3 key areas of improved productive capacity are either at or near full maturity. We have enjoyed the
contribution these assets have made to the Fund over the past 3-5 years. However, looking forward, we will
be exploring new properties where the productive capacity of the land can be enhanced, to help maintain
overall returns for the fund. We have several exciting projects under consideration that may
convert into new assets for the Fund.
General market movements
Unlike the other two types of returns, we have
comparatively less (or no) control over market
movements that affect the value of the Fund. We
have in the past enjoyed several substantial market
value increases across multiple assets, as land prices
in general experienced rapid growth. This was
particularly prevalent where we held land in areas
that generally became more attractive e.g. vineyards
in the Awatere Valley, and where the success of
those crops has provided support for returns which
have been quite different to other types of property
(like residential or commercial property investments).
More recently, these market movements have
slowed and in some cases reversed as central banks
have increased interest rates to dampen inflation.
Historically productive land has delivered upward
market movements. However, the primary objective
of the fund remains focused on delivering cash
income and enhancements to value from properties
reaching full productive capability, rather than
general gains from property price movements.
Overall, the Fund has achieved its long term objective
of 6.5%p.a. from these sources, setting aside the
additional general increase in market values.
So where to from here?
Our medium term plan is to:
• Increase the scale of the Fund, by
finding accretive market opportunities
that boost Fund returns and or increase
the resilience and its diversity.
• Add new properties where the potential exists
to enhance the productive capability of the
land, after the maturing of the Marlborough
vineyards, Kerikeri Kiwifruit orchard and
investment in Waimea West Hops.
• Look to capitalise on the high interest rate
environment: We are now starting to see a cross
over between our target fund returns and market
lease rates for certain productive land assets.
There are several sectors of interest to us. We
are currently exploring solar, apple and cherry
opportunities for the Fund (as well as other land
uses) however, as always, selecting the right
operator and partner for our expected long-term
relationship is a key part of our due diligence.

Fund Size
(net asset value)
$129.4 million
Inception Date
13/06/2017
ManagerBooster Investment Management Ltd
SupervisorPublic Trust
Fund TypePortfolio Investment Entity (PIE)
Key Facts
Private Land and Property Portfolio
(Wholesale Portfolio)
Fund Size
(net asset value)
$130.8 million
Inception Date
07/01/2019
ManagerBooster Investment Management Ltd
SupervisorPublic Trust
Fund TypePortfolio Investment Entity (PIE)
Private Land and Property Fund (Fund)
The Fund obtains its property exposure by investing into the Wholesale Portfolio
alongside some cash held within the Fund.
Investment Holdings
Last 3 months0.3%0.2%
Last 6 months0.4%0.2%
Last 12 months10.4%10.5%
Last 2 years (p.a)11.0%10.8%
Last 3 years (p.a)12.6%12.2%
Last 5 years (p.a)
*
10.7%10.0%
Since inception 13/06/2017 (p.a)
*
10.7%9.9%
Fund Performance as at 30 September 2023
Before Tax
After Tax
at 28% PIR
Disclaimer: The Private Land and Property Fund (Fund) is part of the Booster
Investment Scheme 2 which is issued and managed by Booster Investment
Management Limited. The Fund’s Product Disclosure Statement is available at
www.booster.co.nz, by contacting your financial adviser or by calling Booster
on 0800 336 338.
This document is for informational purposes only. The information is derived
from sources believed to be accurate as at the date 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. Booster Investment
Management Limited and its related companies do not accept 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. The fund’s performance,
returns, or repayment of capital, are not guaranteed.
All figures are after fees. Please see the Product Disclosure Statement for
further details on fees.
*Returns prior to the inception of PLPF in January 2019 are based on the
underlying wholesale PLPP return.
The Fund has a minimum suggested investment timeframe of four years,
and its performance aims are measured over a 7-year horizon. The return
information below includes returns due to property market movements which
vary over time, so the range of returns may be different over a longer period.
However the fund aims to achieve a long-run return of 6.5% pa (before tax,
after fees) from a combination of rental and crop income, and capital gain
from improvements in property productive capacity. Past performance is not
an indicator of future performance.
Wholesale Portfolio
Total Assets (millions)
Property Assets (location / region)
Awatere Valley, Marlborough
Vineyard properties
$28.919.8
Hope, Nelson Region
Vineyard properties
$18.912.9
Hawke’s Bay
Winery building
$3.22.2
Hawke’s Bay
Vineyard property
$5.94.0
Mahana, Nelson region
Winery building & Vineyard property
$3.72.5
Kerikeri, Northland
Kiwifruit orchard property
$23.115.8
Waimea, Nelson region
Waimea West Hops Ltd
$10.47. 1
Southland
Dairy farmland
$32.822.4
Bay of Plenty & the Far North
Avocado orchards
$18.012.3
Total property assets$144.9
Other Assets
Cash / Income$0.2
Accrued income$1.1
Total Assets$146.2
Total Liabilities (millions)
Borrowings with BNZ$16.8
Other liabilities
(incl Property Operating Costs)
$0.0
Total liabilities$16.8
Net asset value $129.4
Gearing Ratio11.5
The investment objective and strategy of the Wholesale Portfolio allows it to borrow
to invest in more land and properties or to develop land and properties it already
holds. Bank of New Zealand (BNZ) has provided a loan facility of up to 50% of
the value of the secured properties for use by the Wholesale Portfolio to effect its
gearing strategy which results in BNZ holding a security interest over most of the
assets held by the Wholesale Portfolio. For further information on the Wholesale
Portfolio, please refer to the Fund’s PDS and Other Material Information document.
The gearing ratio shows the level of borrowing the Wholesale Portfolio has
undertaken as a percentage of total assets.
$%