FY23 Annual Report
1
NEW ZEALAND RURAL LAND COMPANY
www.nzrlc.co.nz
listed on:
ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
Rural Land Co
New Zealand
The Rural Land Investors
2
NEW ZEALAND RURAL LAND COMPANY
CONTENTS
1
4
2
3
SECTION
SECTION
SECTION
SECTION
2023
Review
Statutory
Information
Financial
Statements
5 Statutory Information
16 Financial Statements46 Company Directory
3 2023 Review
Company
Directory
This report is dated 27 March 2024 and is signed on behalf of the Board of New Zealand Rural Land Company Limited:
Rob Campbell
Independent Chair
Sarah Kennedy
Director
3
NEW ZEALAND RURAL LAND COMPANY
NZL recorded a net profit after tax of $10.9m and Adjusted Funds From Operations (AFFO) of $6.0m, including earnings from
properties with put/call arrangements in place.
FY23 Highlights
• NAV per share grew from $1.250 at listing in December 2020 to $1.602 at FY23 year end.
• AFFO grew from 4.13cps in FY22 to 4.35cps (+5.3%) in FY23.
• Forestry acquisitions in FY23 materially increased diversification, funded via an inaugural “Green Loan”.
• Total assets ended FY23 at $369.8m.
• Net asset value ended FY23 at $223.1m.
• Gearing closed FY23 at 36.2%.
• NZL repurchased 611,327 shares at an average price of $0.87 per share.
The FY23 result delivered an increased portfolio value, effective risk management, and sustainable growth for shareholders.
A detailed results presentation is available at: https://www.nzrlc.co.nz/reports-presentations.
Post Balance Date Highlights - FY24
• Roc Partners purchased 25% of NZL’s portfolio, validating strategy and partnering for growth.
• FY24 AFFO forecast to be 5.0 cps - 5.4 cps (+19.7% at the midpoint).
• Diversification materially increased by forestry and horticulture acquisitions in FY24.
• WALT increased from 11.7 years to 12.7 years.
• 16,063 hectares of rural land now owned an increase of +8.4% on FY23.
• Gearing lowered to 32.9% with 64% of debt hedged following Roc transaction.
• Dividend reinstated with an amended policy targeting a pay-out of 60% - 90% of AFFO.
• On-market share buyback programme continued.
Roc Transaction
On 19 January 2024, NZL announced it had entered into an agreement to sell a 25% equity interest in its land portfolio to Roc
Partners (Roc). This transaction settled on 9 February 2024.
Roc acquired the equity interest for $44.2m in cash. NZL used the proceeds to repay the $11.8m owing on a convertible note it
drew down in April 2023 to partially fund its forestry acquisition.
A further $20.7m of the proceeds were used or committed to fund orchard and forestry land acquisitions announced to the
market on 20 February 2024 and detailed below.
The balance of the funds have been retained as working capital while opportunities are investigated.
FY24 Dividend Reinstatement and Share Buyback Programme
The NZL Board has resolved to both reinstate NZL’s dividend and amend its dividend policy.
NZL’s intention has always been to pay regular semi-annual dividends with an interim dividend paid in October and final
dividend paid in March each year. NZL’s amended dividend policy targets a pay-out of 60% - 90% of AFFO. The pay-out
range grants the company greater flexibility to deploy NZL’s cash operating earnings in ways considered most beneficial to
increasing shareholder value.
The interim dividend will be based upon results for the period 1 January 2024 to 30 June 2024 and will be paid in early
October 2024.
Chair Report
1
SECTION
2023
Review
4
NEW ZEALAND RURAL LAND COMPANY
The company maintains a selective on-market share buyback programme. Pursuant to NZX Listing Rule 4.14.2, buybacks may
take place on and from 1 June 2023 for a period of 12 months. The company may refresh the programme for further 12 month
periods. The total number of shares that may be bought back shall not exceed 5,350,000 shares. Under the programme,
611,327 shares have been acquired as at the date of this announcement. Shares are only acquired if the acquisition price
represents 90% or less of the company’s prevailing net asset value per share.
Acquisitions
In April 2023, NZL announced the settlement of two forestry estates totaling 3,137 hectares (7,745 acres). The estates were
purchased for $70.2m and were leased to New Zealand Forest Leasing (NZFL) for an average weighted lease term of 19.5
years (by value). The leases include annual CPI lease adjustments.
The purchase was funded with NZL’s inaugural Green Loan via Rabobank of $25.2m, the proceeds of NZL’s pro-rata rights
issue and a $12m convertible note issued to an entity associated with NZFL.
On 20 February 2024, subsequent to FY23 year end, NZL announced it had entered agreements to acquire the land
supporting three apple orchards located in Hawkes Bay, and a forestry block located in close proximity to its existing estates
in Whanganui, for a total cost of approximately $27.6m. These two acquisitions will add meaningful sector, income and
tenant diversification to it’s portfolio, with forestry and horticulture now holding a 31% and 5% proportion of NZL’s portfolio,
respectively. The land will be acquired by the Limited Partnership formed as part of the Roc transaction.
Post completion of the two recently announced acquisitions, NZL will own 16,063 hectares (39,693 acres) of rural land (25% of
which is owned by Roc) with a 12.7 year WALT (by value), with 100% occupancy across nine tenants. This represents a +8.4%
increase in total land owned by NZL, a +9.5% increase in WALT and continued growth in the scale and diversity of NZL’s asset
and tenant base.
Outlook
NZL’s strategy is to own quality rural land in New Zealand; growing a diverse portfolio while delivering attractive risk-adjusted
returns as a ground lessor. As detailed in the investor presentation, recent transactions are delivering on this strategy.
NZL generates shareholder value through a combination of asset value appreciation and cash flow from long-term leases.
NZL’s increase in its asset value of +2.2%, as at 31 December 2023, in an uncertain macroeconomic environment for real
estate assets re-affirms the attractiveness of the company’s rural land asset base and long term investment strategy.
NZL’s leases incorporate regular CPI reviews. That means higher inflation results in higher than anticipated rental growth. And
NZL is insulated from inflation-impacted, and all other operational on-farm costs by owning only the land.
Post the most recent acquisitions and Roc transaction, NZL forecasts FY24 AFFO of between $7.0m and $7.5m, this excludes
earnings from properties with put/call arrangements in place (~$1.2m).
Currently, NZL has hedging arrangements in place for 64% of its total borrowings. Gearing amounts to 32.9% of total assets.
From April 2024, NZL will start to see the positive impact of rental growth with approximately half of its portfolio (by lease
income) due for CPI review. This includes 100% of its forestry leases (acquired in FY23) and 53% of its pastoral leases, which
between lease commencement and year end have accumulated +3.4% and +17.9% in CPI, respectively. NZL remains excited by
its future opportunities, which are augmented by the strategic partnership with Roc Partners, and the company is positioned
well to continue to grow shareholder value.
Rob Campbell
Chair
5
NEW ZEALAND RURAL LAND COMPANY
2
SECTION
STATUTORY
INFORMATION
DIRECTORS
NZL’s shareholders elect Directors to look after their interests. Directors are expected to:
• Ensure the strategic goals of NZL are clearly established and strategies are in place to achieve them;
• Approve and monitor NZL’s financial statements, corporate governance and other reporting, including reporting to
Shareholders and other stakeholders in accordance with its statutory functions;
• Establish procedures and systems to promote a culture and remuneration practice within NZL which facilitates the
recruitment, professional development and retention of staff;
• Ensure that NZL has appropriate risk management and regulatory compliance policies in place and monitor the integrity of
these policies;
• Familiarise itself with issues of concern to Shareholders and significant Stakeholders, including customers, staff, lessee’s
and the community; and
• Monitor the performance of NZL’s Manager.
Rob Rob Campbell, appointed in September 2020, has more than 40 years’ experience in investment management and corporate
governance. He is the Chair of Ara Ake and Chancellor of Auckland University of Technology. Rob trained as an economist and
has worked in a variety of capital market advisory and governance roles over a long period.
Sarah Kennedy, appointed in September 2020, is the Founder & CEO of Calocurb Limited, a bioactive developed by Plant
and Food Research selling internationally. She is the former CEO of Lifestream International, a New Zealand-owned company
specialising in bioavailable, ethical, plant-based health foods. Sarah has also been chief executive of Designer Textiles
International. From 2011 to 2014, she held a number of senior roles with Fonterra, such as vice president of international farming
based in China, managing director of dairy nutrition, and managing director of RD1 — Fonterra’s chain of rural retail stores.
Before that, Sarah was managing director of Healtheries/Vitaco for a decade. Sarah is a veterinarian by training.
Christopher Swasbrook, Christopher Swasbrook, appointed in September 2020, is one of the founders of New Zealand Rural
Land Company and New Zealand Rural Land Management. He is also the founder and managing director of Elevation Capital
Management Limited. He was previously a Partner of Goldman Sachs JBWere Pty, co-head of institutional equities at Goldman
Sachs JBWere (NZ) and a foundation broker of the NZX. He has been a board member of the Financial Markets Authority since
2019. He is also a director of Bethunes Investments Limited, Elevation Capital Investments Limited, Elevation Capital Securities
Limited and McCashins Brewery Limited.
Tia Greenaway, Tia Greenaway, appointed in September 2021, is the CFO for Tupu Angitu Ltd, the commercial arm of Lake
Taupō Forest Trust. Tia has broad experience in the Māori sector and holds various roles on Iwi and Ahu Whenua Trusts
and Committees operating mainly in farming, forestry and property management. Tia is a member of Chartered Accountants
Australia and New Zealand, has a background in climate change mitigation and adaptation and is passionate about improving
wellbeing outcomes for our taiao and our communities.
for the period ended 31 December 2023
6
NEW ZEALAND RURAL LAND COMPANY
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE
NZL and its tenants share a vision of sustainable practices. These include practices that enhance the health and wellbeing of NZL and its tenants share a vision of sustainable practices. These include practices that enhance the health and wellbeing of
the natural environment, animals and communities connected to the land. NZL is prioritising working with tenants who share the natural environment, animals and communities connected to the land. NZL is prioritising working with tenants who share
these values. Additionally, NZL and its tenants agree to binding sustainability pledges in leases. Under the Financial Markets
Conduct Act 2013 NZL is a climate reporting entity. In order to comply with the Act NZL must prepare climate reporting within
four months of the Company's balance date. The year ended 31 December 2023 is the first year for which NZL is required to
undertake this reporting. The Company's climate statement is currently being prepared and when complete will be available
on NZL's website, https://nzrlc.co.nz.
CORPORATE GOVERNANCE
The Board is committed to the highest standard of corporate governance as established by recognised best practice. The
Board is responsible for establishing and implementing NZL’s corporate governance frameworks. NZL’s corporate governance
practices have been prepared in accordance with the Financial Markets Authority’s Corporate Governance Handbook, the
requirements of the NZX Listing Rules and the recommendations in the NZX Corporate Governance Code (NZX Code).
The Board has implemented governance principles and processes to establish, shape and maintain appropriate governance
standards and behaviours throughout NZL that align with the NZX Code. The adoption of governance principles ensures that
the Board act in accordance with agreed standards of ethical and moral behaviour, including observing NZL’s Code of Ethics.
Copies of NZL’s key corporate governance documents, including NZL’s Board Charter and Code of Ethics, are available at NZL
Policy Documents & Constitution section of NZL’s website: https://nzrlc.co.nz/company-policy-documents.
This statement was approved by the Board on 27 March 2024, and was accurate as at that date.
Corporate Governance Structure
The Board are elected by Shareholders of NZL. The Board has overall responsibility for the governance of NZL, while the day-
to-day management of NZL has been delegated to the Manager. The respective roles of the Board and the Manager within this
corporate governance structure are summarised below.
Role of the Board
The primary role of the Board is to approve and monitor the strategic direction of NZL that is recommended by the Manager and
to add long-term value to NZL’s shares, whilst having appropriate regard to the interests of all material Stakeholders. Further
information on the Board’s role and responsibilities is set out in the Board Charter.
Board Committees
The Board may establish a committee to consider certain issues and functions in more detail. The Board retains ultimate
responsibility for the functions of its committees and determines their responsibilities. The Board has established two standing
committees, and other committees may be established on a case-by-case basis where the Board considers it appropriate to do
so.
Audit and Risk Committee
The Board has established an Audit and Risk Committee (Sarah Kennedy (Chair), Rob Campbell and Tia Greenaway), with the
role of overseeing financial reporting, accounting policies, financial management, and internal control systems. The Audit and
Risk Committee responsibilities are outlined in the Audit and Risk Committee Charter available on NZL’s website.
Remuneration Committee
The Board has established a Remuneration Committee (Rob Campbell (Chair) and Sarah Kennedy), with the role of recommending
Director remuneration packages to Shareholders. The Remuneration Committee responsibilities are outlined in the Remuneration
Committee Charter available on NZL’s website.
SECTION 2. STATUTORY INFORMATION
7
NEW ZEALAND RURAL LAND COMPANY
Board Membership
The Board shall comprise of at least three Directors, with at least two independent Directors, and an intention that one
Director is nominated and appointed as a representative of the Manager. The composition of the Board reflects the duties and
responsibilities it is required to perform in setting NZL’s strategy and ensuring it is implemented.
At the date of this Annual Report, the Board comprises four Directors (three independent Directors and one non-independent
Director).
Independence
The Board Charter of NZL sets out the standards for determining whether a Director is independent for the purposes of service
on the Board and committees. These standards reflect the requirements of the NZX Listing Rules. A Director is independent
if the Board affirmatively determines that the Director has satisfied these standards. As at 31 December 2023, the Board has
determined that:
• Sarah Kennedy,
Tia GreenawayTia Greenaway and Rob Campbell are Independent Directors; and
• Christopher Swasbrook is a non-Independent Director because of his service provider role with the Manager.
Tenure
Directors are not appointed for fixed terms. However, the Constitution and the NZX Listing Rules require all Directors to stand
for re-election at the third annual meeting after appointment or after three years (whichever is longer). A Director appointed by
the Board to fill a casual vacancy must also stand for election at the following annual meeting. Rob Campbell, Sarah Kennedy
and Christopher Swasbrook stood for re-election during the year and were all reappointed by shareholder vote at NZL's AGM
on 23 June 2023.
Board and Committee Meetings
The Board and committee meetings and attendance in the year to 31 December 2023 are
set out below:
AttendeeBoard MeetingsAudit and Risk Committee*Remuneration Committee**
Rob Campbell
7/77/72/22/2-
Sarah Kennedy
7/77/72/22/2-
Christopher Swasbrook
7/77/7--
Tia Greenaway
7/77/72/2-
*Including circularised resolutions
**No remuneration committee meetings were required during the period because there were no proposals to alter Directors’ fee.
Independent Professional Advice
Directors are entitled to seek independent professional advice on any aspect of the Directors’ duties at NZL’s expense, with the
approval of the Chair.
During the period no instances have arisen whereby a Board committee or individual director has needed to seek independent
legal or financial advice. However, the Board has access to appropriate internal and external expertise to support board
assurance activities:
• All executives of the Manager have direct access to the Board and each of the Directors;
• The external Audit Firm Lead Partner has direct access to the Chair of the Audit and Risk Committee, and has “Board only”
time without management present at Audit and Risk Committee meetings; and
• The Board has directly sought expert external valuation, corporate finance, tax, and legal advice as required.
SECTION 2. STATUTORY INFORMATION
8
NEW ZEALAND RURAL LAND COMPANY
Board Assessment
The Board undertook a Board performance survey in March 2024. As a result of this survey, the Board agreed a number of
actions to address key areas identified for improvement.
Directors’ and Officers’ Insurance
While acting in their capacities as Directors, NZL provides indemnity and insurance cover for Directors to the fullest extent
permitted by law. As permitted by its Constitution, NZL has entered into a deed of indemnity, insurance and access indemnifying
each Director for potential liabilities, losses, costs and expenses they may incur for acts or omissions in their capacity as Director,
and agreeing to effect directors’ and officers’ liability insurance for those persons, in each case subject to the limitations set out
in the Companies Act 1993.
Role of New Zealand Rural Land Management Limited Partnership
The day-to-day management responsibilities for NZL have been delegated to the Manager under a long-term Management
Agreement. The Management Agreement details a comprehensive list of the Manager’s duties and responsibilities, and the fees
payable to the Manager (which are summarised in the Financial Statements at page 36 of this report). Under the Management
Agreement, the Manager is responsible for the:
• Management and administration of NZL including secretariat services;
• Management of properties owned by NZL;
• Sourcing of sale and purchase opportunities, including overseeing the due diligence and execution processes;
• Operation of lease arrangements;
• Communication with investors; and
• Administration of dividends and distributions.
Manager Performance
A key role of the Board is to monitor the performance of the Manager. NZL benefits from having a management team with a
great breadth and depth of skills, however the Board recognises that the interests of the Manager and the interests of NZL’s
Shareholders have the potential to conflict.
The Board is responsible for identifying, assessing and resolving any potential conflicts in relation to NZL’s structure, NZL’s
adopted strategies and the resulting potential fees payable to the Manager. Any matters to be considered under the Management
Agreement by NZL are considered and determined by the independent Directors on the Board. Where the Board must vote on
any matter relating to the Manager, Chris Swasbrook is interested and must not vote on that matter.
Diversity
NZL has a Diversity Policy, which describes NZL’s approach to diversity and inclusion. NZL believes that building and celebrating
diversity in the workplace creates an inclusive workplace culture and delivers enhanced business performance. The Diversity
Policy applies to the Board and the Manager and should be read in conjunction with NZL’s Code of Ethics and all other policies
that cover areas such as values, culture and employee expectations. A copy of the Diversity Policy is available on NZL’s website.
In accordance with the Company’s Diversity Policy, NZL has evaluated its performance against the measurable objectives
established under the governance section of the Company’s Sustainability Programme. These relate to the Board of Directors
because NZL does not employ any staff. NZL has successfully met its diversity targets in relation to both director independence
and gender diversity and, while not having specific targets, has noted that there is also diversity of both age and ethnicity among
the directors.
SECTION 2. STATUTORY INFORMATION
9
NEW ZEALAND RURAL LAND COMPANY
The following table provides a quantitative breakdown as at 31 December 2023 as to the gender composition of the Board:o the gender composition of the Board:
31 December 202331 December 2022
FemaleMale% FemaleFemaleMale% Female
Board2250%2250%
Officers010%010%
NZX Corporate Governance Code
NZL considers that during the year ended 31 December 2023, NZL materially complied with the Code. NZL does deviate from
the Code, by not having a formally established Nominations Committee. Given the current nature and structure of NZL, the
Board considers the matters related to nominations are best undertaken by the entire Board.
Risk Management Risk Management
The Audit and Risk Committee ensures that NZL fulfils its responsibilities in all matters related to risk management. The
Committee is responsible for overseeing financial reporting, accounting policies, financial management and internal control
systems. Formal control and reporting processes have been introduced to ensure the Board is properly and regularly informed
on corporate financial matters.
NZl’s key risks as a land owner are identified, scored and reported to the Board as part of NZL’s Enduring Land Programme. These
are broadly categorised under environmental, economic, social, and animal welfare categories. More detail on this programme
can be found at nzrlc.co.nz/sustainability. Health and Safety risks are managed and reported to the Board in accordance with
NZL’s Health and Safety Management Plan. Other risks that may impact NZL’s value (including land value, tenant financial
capacity, access to capital, unbudgeted capex, and forestry regulation) are assessed by the Manager and reported to the Board
with appropriate recommendations. A number of these risk are reflected in NZL’s Corporate Policies such as the Acquisitions,
Tenant and Leasing Policy, Capital Management Policy, and Dividend Policy.
Health & Safety
NZL owns farming property and leases it to tenants, and the Manager manages the lease arrangement on behalf of NZL. This
scenario creates overlapping health and safety duties for the properties. NZL, the Manager, and the tenant have carefully
considered each parties’ ability to influence and control health and safety matters, and put in place a Health and Safety
programme via a Overlapping Duties Agreement on each farm. This takes into account who has control over work activity,
control of the workplace and control over workers, and allocates in a detailed register responsibilities based on who is in the
best position to control, influence and manage each health and safety obligation to ensure successful implementation and avoid
duplication of efforts.
In addition, both NZL and the Manager are developing a Health & Safety Management Plan, and the Manager has developed
a Quarterly Health and Safety Governance Report for the NZL Board which will provide an update and performance rating for
each risk. NZL considers Health and Safety a key feature of the Social Sustainability pillar of NZL's overarching Sustainability
Programme.
Directors’ Relevant Interests
As at 31 December 2023, the Directors of NZL who have relevant interests (as defined in the Financial Market Conduct Act 2013)
in quoted financial products of NZL are as follows:
NZL Ordinary SharesBeneficial InterestsNon-beneficial Interests
Rob Campbell942,000-
Sarah Kennedy45,000-
Christopher Swasbrook1,610,0002,706,500
Tia Greenaway8,136-
SECTION 2. STATUTORY INFORMATION
10
NEW ZEALAND RURAL LAND COMPANY
As at 31 December 2023, the Directors of NZL held, in aggregate, 3.81% of NZL’s ordinary shares.
Directors disclosed the following acquisitions and disposals of relevant interests in NZL shares during the year ended 31
December 2023 pursuant to section 148 of the Companies Act 1993:
NZL Ordinary Shares
Beneficial interests
as at 31 December
2023
Change
from 31 December
2022
Non-beneficial
Interests
as at 31 December
2023
Change
from 31 December
2022
Rob Campbell942,000+464,016--
Sarah Kennedy45,000+4,322--
Christopher Swasbrook1,610,0001,610,000+857,542+857,5422,706,5002,706,500+605,000+605,000
Tia Greenaway
8,1368,136+2,034+2,034----
Interests Register
The following are the relevant interests of the Directors of NZL and its subsidiaries:
Rob CampbellRob Campbell
Director of Ara Ake Limited
Chancellor of Auckland University of Technology
Director of RC Custodian Limited
Director of Tutanekai Investments
Sarah Kennedy
Founder and CEO of Calocurb Limited
Director Lanaco Limited
Director of Lifestream International Limited
Christopher Swasbrook
Director of Bethunes Investments Limited
Director of Swimtastic Limited
Director of Elevation Capital Management Limited
Director of Elevation Capital Investments Limited
Director of Elevation Capital Securities Limited
Director McCashins Brewery Limited
Board Member of Financial Markets Authority
Tia Greenaway
Member of New Zealand Maori Tourism Audit and Risk Committee
Trustee of Ngati Tutemohuta Charitable Trust
Associate Trustee of Opepe Farm Trust
Committee Member of Opepe Investment Committee
Director of Piata Horizons Limited
Member of Rongowhakaata Iwi Trust Audit Risk and Finance Committee
Responsible Trustee of Tauhara Middle 14 Trust
Responsible Trustee of Tauhara Middle Lands Trust
Chief Financial Officer Tupu Angitu
SECTION 2. STATUTORY INFORMATION
11
NEW ZEALAND RURAL LAND COMPANY
Directors’ RemunerationDirectors’ Remuneration
TThe remuneration paid to NZL and its subsidiaries’ Directors in respect of the year ended 31 December 2023 was as follows
(these amounts exclude GST, where appropriate):
DirectorYear to 31 December 2023 (NZD)
Rob Campbell
97,50097,500
Sarah Kennedy
65,00065,000
Christopher Swasbrook
NilNil
Tia Greenaway65,000
Total
227,500227,500
Directors also receive reimbursement for reasonable travelling, accommodation and other expenses incurred in the course of Directors also receive reimbursement for reasonable travelling, accommodation and other expenses incurred in the course of
performing their duties. The Company did not pay any additional fees to any Director for the provision of additional services.performing their duties. The Company did not pay any additional fees to any Director for the provision of additional services.
Directors do not receive any retirement benefits, and do not receive share options. Whist NZL strongly encourages NZL share Directors do not receive any retirement benefits, and do not receive share options. Whist NZL strongly encourages NZL share
ownership to support shareholder alignment, it is not compulsory given that personal circumstances may mean share ownership ownership to support shareholder alignment, it is not compulsory given that personal circumstances may mean share ownership
is not appropriate or achievable.is not appropriate or achievable.
Any proposed increases in non-executive Director fees will be put to shareholders for approval. If independent advice is sought Any proposed increases in non-executive Director fees will be put to shareholders for approval. If independent advice is sought
by the Board, it will be disclosed to shareholders as part of the approval process.by the Board, it will be disclosed to shareholders as part of the approval process.
The following Board skills matrix outlines the qualifications, capabilities, geographical location, tenure and gender of each
member of the Board:
The following Board skills matrix outlines the qualifications,
capabilities, geographical location, tenure and gender of
each member of the Board
Rob CampbellChris Swasbrook Sarah KennedyTia Greenaway
Director Qualification
CNZM,
BA (Hons),
MPhil (Economics)
BCom (Economics)
BVSc (Dist), MIT
Sloan Fellowship
MPA (Accounting),
CA
Strategic knowledge of rural investmentsYes Ye sYe s Ye s
Strategic knowledge of funds management businesses
Ye sYes NoNo
Financial
Ye sYes Ye sYe s
Risk management/regulatory
Ye sYes NoYe s
Sustainability
NoNoYe sYe s
Legal No No Yes Yes
People leadership and culture
Ye sYe sYe sYe s
Listed company governance Yes Yes Ye sNo
Capital markets Ye sYe sYe sNo
Geographic location Auckland Auckland Auckland Taupo
Tenure (years) 39 Months39 Months39 Months27 Months
Gender Male Male Female Female
Employee Remuneration
NZL, including its subsidiaries, have no employees. NZL is managed by the Manager under the Management Agreement. Details
of the fees paid to the Manager are included in the Financial Statements on page 36.
Subsidiaries
NZL has one subsidiary, NZRLC Dairy Holdings Limited, a company incorporated in New Zealand in March 2021. As at 31
December 2023, the Directors of NZRLC Dairy Holdings Limited are Rob Campbell, Sarah Kennedy, Christopher Swasbrook
and Tia Greenaway.
SECTION 2. STATUTORY INFORMATION
12
NEW ZEALAND RURAL LAND COMPANY
Donations
NZL, including its subsidiaries, did not make any donations during the six months endedNZL, including its subsidiaries, did not make any donations during the six months ended 31 December 2023. NZL has a policy
of not making political donations.
Annual Meeting of ShareholdersAnnual Meeting of Shareholders
The Notice of 2023 Annual Meeting was provided to shareholders within the 10 working days’ notice requirement under the
Companies Act 1993. The NZX Corporate Governance Code recommends not less than 20 working days’ notice. The period
was shorter because NZL was, within the 20 working day period, in a process of determining whether or not potential initiatives
may require shareholder approval.
Dividends Paid
No dividends were declared for the year ended 31 December 2023.
Company Secretariat ServicesCompany Secretariat Services
Company Secretariat Services are provided by the Manager. The Manager manages the independence of Company Secretariat Company Secretariat Services are provided by the Manager. The Manager manages the independence of Company Secretariat
Services via oversight from the Manager’s Board of Directors. The Board of the Manager does not consist of any NZL Directors.
Auditors
The Audit and Risk Committee reviews the quality and cost of the audit undertaken by the NZL’s external auditors and provides The Audit and Risk Committee reviews the quality and cost of the audit undertaken by the NZL’s external auditors and provides
a formal channel of communication between the Board, senior management and external auditors.a formal channel of communication between the Board, senior management and external auditors.
The Audit and Risk Committee approves the auditor’s terms of engagement, audit partner rotation (at least every five years) The Audit and Risk Committee approves the auditor’s terms of engagement, audit partner rotation (at least every five years)
and audit fee, and reviews and provides feedback in respect of the annual audit plan. The Board is aware that a lengthy audit and audit fee, and reviews and provides feedback in respect of the annual audit plan. The Board is aware that a lengthy audit
firm tenure has the potential to compromise auditor independence, and therefore will rotate the audit firm after 10 years unless firm tenure has the potential to compromise auditor independence, and therefore will rotate the audit firm after 10 years unless
on balance it is not in the interests of NZL to do so. The Committee periodically has time with the external auditor without on balance it is not in the interests of NZL to do so. The Committee periodically has time with the external auditor without
management present. The Audit and Risk Committee also assesses the auditor’s independence on an annual basis.management present. The Audit and Risk Committee also assesses the auditor’s independence on an annual basis.
An External Auditor Independence Policy has been adopted and sets out the services that may or may not be performed by the An External Auditor Independence Policy has been adopted and sets out the services that may or may not be performed by the
external auditor.
On 15 November 2023 NZL accepted the resignation of PwC as the Company's statutory auditor and appointed William Buck in
its place and Darren Wright was appointed as Lead Audit Partner on the same date.
All audit work is fully separated from non-audit services, to ensure that appropriate independence is maintained. The amount
of fees paid to PwC and William Buck for audit work in FY23 are identified in note 19 of the consolidated financial statements.
At the 2023 Annual Meeting shareholders authorised the Directors to fix the auditor’s fees and expenses for the ensuing year.
William Buck has provided the Audit and Risk Management Committee with written confirmation that, in its view, it was able to
operate independently during the year.
PwC, at the time of the 2023 Annual Shareholders' meeting had not yet resigned as auditor and therefore attended the meeting
and were available to answer any questions.
No non-audit services were provided by William Buck.No non-audit services were provided by William Buck.
NZX Waivers
No waivers from the NZX Listing Rules were granted to the Company or relied upon by the Company during the year No waivers from the NZX Listing Rules were granted to the Company or relied upon by the Company during the year ended 31
December 2023.
SECTION 2. STATUTORY INFORMATION
13
NEW ZEALAND RURAL LAND COMPANY
Substantial Product Holders
The following information is pursuant to section 293 of the Financial Markets Conduct Act 2013. The total number of voting
securities of NZL on issue as at 7 March 2024 was 139,295,000. According to notices received by NZL, the following persons
were substantial product holders in NZL as at 31 December 2023:
Ordinary sharesNumber held
ANZ New Zealand Investments Limited, ANZ Bank
New Zealand Limited and ANZ Custodial Services
New Zealand Limited
16,935,38516,935,385
Clyde and Rena Holland
10,809,36910,809,369
Accident Compensation Corporation
9,210,7889,210,788
Jarden Securities Limited and Harbour Asset
Management Limited
8,529,4108,529,410
Spread of Shareholders
The spread of the Shareholders of NZL as at 7 March 2024 is as follows:
Number of SharesNumber of HoldersTotal Shares HeldPercentage (%)
1 - 1,00012893,2070.07
1,001 – 5,0004001,170,4180.84
5,001 – 10,0002541,949,8391.40
10,001 – 50,0003658,114,0495.83
50,001 – 100,000694,909,3633.52
100,001 and over82123,058,12488.34
Total1,298139,295,000100.00
Spread of Warrant Holders
The spread of the Warrant Holders of NZL as at 7 March 2024 is as follows:
Number of WarrantsNumber of HoldersTotal Warrants HeldPercentage (%)
1 - 1,000245107,7271.35
1,001 – 5,000152350,6744.39
5,001 – 10,00028185,7902.32
10,001 – 50,00019492,2216.16
50,001 – 100,0007519,9356.50
100,001 and over96,339,88079.29
Total4607,996,227100.00
SECTION 2. STATUTORY INFORMATION
Credit Rating
NZL does not have a credit rating.
14
NEW ZEALAND RURAL LAND COMPANY
Twenty Largest Shareholders
The twenty largest Shareholders of NZL as at 7 March 2024 are as follows:
ShareholdersNumber held
New Zealand Permanent Trustees Limited 20,160,747
Premier Nominees Limited10,884,857
Accident Compensation Corporation9,525,482
Forsyth Barr Custodians Limited6,863,333
TEA Custodians Limited6,494,133
MFL Mutual Fund Limited6,111,032
FNZ Custodians Limited5,234,869
Janice Catherine Walker & Sonya Jane Walker & Duncan Varhan Fea4,000,000
New Zealand Depository Nominee3,699,413
Custodial Services Limited2,966,351
HSBC Nominees (New Zealand) Limited2,809,833
Allied Farmers Limited2,803,617
Custodial Services Limited2,604,979
Wairahi Investments Limited2,500,000
New Zealand Permanent Trustees Limited2,300,000
FNZ Custodians Limited2,034,533
DFS Investment Partners LLC1,950,790
Investment Custodial Services Limited1,751,026
BNP Paribas Nominees NZ Limited1,450,259
Clyde Parker and Rena Holland1,336,356
SECTION 2. STATUTORY INFORMATION
15
NEW ZEALAND RURAL LAND COMPANY
Twenty Largest Warrant Holders
The twenty largest Warrant Holders of NZL as at 7 March 2024 are as follows:
Warrant HoldersNumber held
Accident Compensation Corporation1,636,731
Forsyth Barr Custodians Limited1,077,777
Premier Nominees Limited854,965
MFL Mutual Fund Limited515,502
New Zealand Permanent Trustees Limited299,999
HSBC Nominees (New Zealand) Limited243,013
FNZ Custodians Limited218,081
TEA Custodians Limited204,985
New Zealand Permanent Trustees Limited196,334
Custodial Services Limited192,182
FNZ Custodians Limited138,436
Custodial Services Limited135,283
Public Trust RIF Nominees Limited122,991
Christina Dietzsch Kley116,667
Michael John Lamb & Harriet Madeline Lamb110,000
John Albert Galt105,233
Elizabeth Beatty Benjamin & Michael Murray Benjamin100,000
Philip Bowman91,667
New Zealand Depository Nominee86,997
Elevation Capital Management83,606
SECTION 2. STATUTORY INFORMATION
16
NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company Limited and its subsidiaries
For the year ended 31 December 2023
Consolidated Financial Statements
3
SECTION
Financial
Statements
New Zealand Rural Land Company Limited and its subsidiaries
Directors' responsibility statement
For and on behalf of the Board
DirectorDirector
The Board of Directors of New Zealand Rural Land Company Limited authorised the financial statements for issue on 29 February 2024.
The directors are pleased to present the financial statements of New Zealand Rural Land Company Limited and its subsidiaries for the
financial year ended 31 December 2023.
2
Rob Campbell
Sarah Kennedy
17
NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company Limited and its subsidiaries
For the year ended 31 December 2023
Notes
$'000$'000
Rental income615,350 5,681
Total rental income15,350 5,681
Less overhead costs
Directors fees(227)(114)
Insurance(85)(40)
Shareholder registry and communications(95)(35)
Management fees20(1,039)(467)
Repairs and maintenance(117)(295)
Professional, consulting and listing fees(394)(29)
Performance fee20(901)(495)
Total overhead costs(2,858)(1,475)
Profit before net finance expense, other income and income tax12,492 4,206
Finance income1,879 1,590
Finance expense(11,388)(2,615)
Net finance expense7(9,509)(1,025)
Profit before other income and income tax2,983 3,181
Other income
Change in fair value of investment property57,388 2,258
Profit before tax10,371 5,439
Income tax benefit / (expense)8.1483 (174)
Net profit10,854 5,265
Other comprehensive income- -
Total comprehensive income for the period10,854 5,265
CentsCents
Basic and diluted earnings per share258.06 4.59
Consolidated statement of comprehensive income
6 month period
ended 31
December 2022
31 December
2023
These financial statements are to be read in conjunction with the accompanying notes
3
18
NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company Limited and its subsidiaries
Consolidated statement of financial position
At 31 December 2023
31 December
2023
31 December
2022
Notes
$'000$'000
Current assets
Cash and cash equivalents91,258 1,942
Trade and other receivables10378 269
Current tax receivable7 13
Total current assets1,643 2,224
Non-current assets
Investment property5346,281 267,360
Deposit for forestry estate acquisition- 6,294
Loan receivable1120,363 19,144
Deferred tax assets8.21,398 915
Derivative assets1271 2,506
Other non-current assets75 377
Total non-current assets368,188 296,596
Total assets369,831 298,820
Current liabilities
Trade and other payables131,090 594
Borrowings1429,500 1,968
Convertible loan1511,980 -
Other current liabilities169 319
Total current liabilities42,739 2,881
Non-current liabilities
Borrowings14104,000 105,000
Total non-current liabilities104,000 105,000
Total liabilities146,739 107,881
Net assets223,092 190,939
Share capital16157,419 134,180
Share based payment reserve18901 495
Retained earnings64,772 56,264
Total equity223,092 190,939
$$
Net Assets Value (NAV) per share22.21.6016 1.6517
Net Tangible Assets (NTA) per share22.21.5910 1.6221
These financial statements are to be read in conjunction with the accompanying notes
4
19
NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company Limited and its subsidiaries
Consolidated statement of changes in equity
For the year ended 31 December 2023
Notes
$'000$'000$'000$'000
Balance at 1 July 2022
129,632 4,115 52,848 186,595
Comprehensive Income
Total comprehensive income for the period
- - 5,265 5,265
Total comprehensive income
- - 5,265 5,265
Transactions with shareholders
Capital raised16
433 - - 433
Performance fee issued in ordinary shares16
4,115 (4,115)- -
Performance fee payable in ordinary shares18
- 495 - 495
Dividends paid17
- - (1,849)(1,849)
Balance at 31 December 2022134,180 495 56,264 190,939
Comprehensive Income
Total comprehensive income for the period
- - 10,854 10,854
Total comprehensive income- - 10,854 10,854
Transactions with shareholders
Capital raised16
22,744 - - 22,744
Performance fee issued in ordinary shares16495 (495)- -
Performance fee payable in ordinary shares18- 901 - 901
Dividends paid17
- - (2,346)(2,346)
Balance at 31 December 2023157,419 901 64,772 223,092
Share capital
Retained
earnings
Total
Share based
payment
reserve
These financial statements are to be read in conjunction with the accompanying notes
5
20
NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company Limited and its subsidiaries
Consolidated statement of cash flows
For the year ended 31 December 2023
Notes
$'000$'000
Cash flows from operating activities
Lease income received
15,939 5,887
Payments to suppliers
(885) (271)
Management fees paid
(1,026) (377)
Income taxes received / (paid)
6 (3)
Interest paid
(8,698) (3,041)
Interest received
653 329
Net cash generated by operating activities
5,989 2,524
Cash flows from investing activities
Payments for investment properties
(65,441) -
Payments for investment in forestry estate
- (6,294)
Payments for leasehold improvements
- (121)
Proceeds from disposals of assets
29 -
Net cash used in investing activities
(65,412)(6,415)
Cash flows from financing activities
Proceeds from issue of ordinary shares23,346 521
Payment of transaction costs on issue of ordinary shares(593) (43)
Dividends paid(2,346) (1,849)
Proceeds from borrowings30,500 6,200
Repayment of borrowings
(3,968) -
Proceeds from convertible loan12,000 -
Repayment of convertible loan
(200) -
Net cash generated by financing activities
58,739 4,829
Net (decrease) / increase in cash and cash equivalents(684)938
Cash and cash equivalents beginning of the period
1,942 1,004
Cash and cash equivalents at the end of the period91,258 1,942
Year ended 31
December 2023
6 month period
ended 31
December 2022
These financial statements are to be read in conjunction with the accompanying notes
6
21
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
1Reporting entity
2Basis of preparation
2.1Statement of compliance and reporting framework
Material accounting policies:
2.2
Functional and presentation currency
2.3Basis of measurement
Revenue, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST) except:
•
•
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice ("NZ GAAP") and
the Financial Markets Conduct Act 2013. They comply with New Zealand equivalents to International Financial Reporting Standards ("NZ
IFRS") and other applicable Financial Reporting Standards, as appropriate. These financial statements comply with International Financial
Reporting Standards ("IFRS") as published by the International Accounting Standards Board. For the purposes of complying with NZ GAAP,
the Group is a for-profit entity. These financial statements have been prepared in accordance with the requirements of the Companies
Act 1993 and on a going concern basis.
for receivables and payables which are recognised inclusive of GST (the net amount of GST recoverable from or payable to the
taxation authority is included as part of receivables or payables).
These financial statements are presented in New Zealand dollars, which is the Group's functional currency. All amounts have been
rounded to the nearest thousand, unless otherwise stated.
The financial statements have been prepared on the historical cost basis except for derivative financial instruments and investment
properties which are measured at fair value.
New Zealand Rural Land Company Limited and its subsidiaries
The Company is incorporated in New Zealand and registered under the Companies Act 1993. The Company is an FMC reporting entity for
the purposes of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The Company was incorporated on 11
September 2020 and is domiciled in New Zealand. The Company is listed on the New Zealand Stock Exchange (NZX Limited) with ordinary
shares listed on the NZX Main Board. The address of the Company's registered office is 50 Customhouse Quay, Wellington Central,
Wellington, New Zealand.
The consolidated financial statements for New Zealand Rural Land Company Limited (the "Company" or "Parent") and its subsidiaries (the
"Group") are for the economic entity comprising the Company and its subsidiaries. The Group's principal activity is investment in New
Zealand rural farmland and forestry land.
where the amount of GST incurred is not recovered from the taxation authority, it is recognised as part of the cost of
acquisition of an asset or as part of an item of expense; or
These financial statements are for the financial year ended 31 December 2023. The comparative period is the 6 month period ended 31
December 2022.
7
22
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
2.4Basis of consolidation
•
•
•
2.5Financial instruments
Financial assets - Derecognition of financial assets
Financial assets - Impairment of financial assets
Financial instruments are classified into the following specified categories: ‘fair value through profit or loss' (FVTPL), and 'at amortised
cost'. The classification depends on the business model and nature of the cash flows of the financial instrument and is determined at the
time of initial recognition.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control
of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the
consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when
the Company ceases to control the subsidiary.
When necessary, adjustments are made to the financial statements of a subsidiary to bring their accounting policies into line with the
Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are
eliminated in full on consolidation.
has power over the investee;
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and
its subsidiaries. Control is achieved when the Company:
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments.
The Group’s financial assets consist of cash, trade receivables, derivatives and loan receivable.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.
Impairment of financial assets are recorded through a loss allowance account (bad debt provision). The amount of the loss allowance is
based on the simplified Expected Credit Loss (ECL) approach which involves the Group estimating the lifetime ECL at each balance date.
The lifetime ECL is calculated using a provision matrix based on historical credit loss experience and adjusted for forward looking factors
specific to the debtors and the economic environment.
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more
of the three elements of control listed above.
8
23
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
2.5Financial instruments (continued)
Financial liabilities - Amortised cost
Financial liabilities - Derecognition of financial liabilities
3
Critical accounting estimates and judgements
• Fair valuation of investment property (note 5)
• Determination that land and forest should be classified and measured as investment property (note 5)
• Deferred tax on investment property (note 8.2)
• Recognition of loan receivable (note 11)
3.1
Fair value estimation
•
•
•
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if
market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value
for measurement and/or disclosure purposes in these financial statements is determined on such a basis.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire. The
difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in
profit or loss.
The carrying value of all other financial assets and liabilities held at amortised cost reasonably approximates the fair value due to the
short term nature of the financial instruments.
Level 3 inputs are unobservable inputs for the asset or liability.
Financial liabilities at amortised cost (including borrowings, related party payables and trade and other payables) are initially recognised
at fair value and subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.
The Group’s assets and liabilities that are measured at fair value are investment property and derivative financial instruments. Investment
property is measured using level 3 valuation techniques as further detailed in Note 5.
Derivative financial instruments are measured using level 2 valuation techniques, which is based on inputs other than quoted prices in an
active market that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). This
valuation technique maximises the use of observable market data where it is available and relies as little as possible on entity specific
estimates. The derivatives are valued based on the mark to market valuations of the interest rate swaps on 31 December 2023.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are
determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For financial reporting
purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as
follows:
The preparation of these financial statements requires management to make estimates and assumptions. These affect the amounts of
reported revenue and expense and the measurement of assets and liabilities. Actual results could differ from these estimates. The
principal areas of judgement and estimation in these financial statements are:
9
24
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
4
Segment information
5
Investment properties
Fair value of rural and forestry land investment properties:
31 December 2023
Land area
Opening
balanceAdditions ¹
Lease fee
amortisation
Capitalised
lease
incentive ²
Revaluation
(loss) / gainCarrying value
Hectares$'000$'000$'000$'000$'000$'000
Canterbury
5,765
140,887 277(6) (176) (7,866)133,116
Otago3,50080,786-(3) -(1,485)79,298
Southland
1,386
45,687 9(19) (120) (1,391)44,166
Manawatū-Whanganui
3,137
-71,573(2) -18,13089,701
Fair value of investment properties267,360 71,859 (30) (296) 7,388 346,281
¹
²
Investment property is property held either to earn rental income, for capital appreciation or for both.
Investment property is initially measured at cost and subsequently measured at fair value with any change therein recognised in
comprehensive income. Any gain or loss arising from a change in fair value is recognised in comprehensive income.
The Group operates in one business segment being New Zealand rural land.
Included in the Group's total rental income, more than 10% was received from three significant customers, Performance Dairy Limited,
WHL Capital Limited, and New Zealand Forest Leasing (No.2) Limited. The total rental income derived in the year ended 31 December
2023 from these customers was $3.113 million, $3.648 million, and $3.558 million respectively (6 month period ended 31 December
2022: $1.547 million, $1.824 million, and $nil respectively). No other single customer contributed 10% or more of the Group's total rental
income (6 month period ended 31 December 2022: Performance Livestock Limited: $0.679 million, Sustainable Grass Dairy Limited:
$0.584 million).
Investment properties are derecognised when they have been disposed of and any gains or losses incurred on disposal are recognised in
comprehensive income in the year of derecognition.
Location
Included in the Group's total gross finance income, excluding gains on the fair value of derivative instruments, more than 10% was
received as interest income from two significant customers. The total gross interest income derived in the year ended 31 December 2023
from these customers was $0.629 million and $1.238 million respectively (6 month period ended 31 December 2022: $0.297 million and
$0.610 million respectively). No other single customer contributed 10% or more of the Group's total finance income (6 month period
ended 31 December 2022: nil).
Includes directly attributable acquisition costs.
Initial direct costs incurred in negotiating and arranging operating leases and lease incentives granted are added to the carrying amount
of the leased asset.
Net of amortisation.
Property valuations for the farms are carried out at least annually by independent registered valuers.
Valuations performed on the forestry estates are made and evaluated through discounted cash flows, with independent market inputs
reviewed by independent valuers.
This includes the forestry estate deposit that was separately disclosed on the balance sheet in the financial statements for the
6 months ended 31 December 2022. This deposit has been moved to investment properties upon the completion of the
acquisitions in the year ended 31 December 2023.
10
25
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
5
Investment properties (continued)
31 December 2022
Land area
Opening
balanceAdditions ¹
Lease fee
amortisation
Capitalised
lease
incentive ²
Revaluation
gainCarrying value
LocationHectares$'000$'000$'000$'000$'000$'000
Canterbury5,765 139,808 -(4) (89) 1,172 140,887
Otago3,500 80,138 -(2) -650 80,786
Southland1,386 44,953 -(18) 316436 45,687
Fair value of investment properties264,899 -(24) 227 2,258 267,360
¹
²
5.1Fair value measurement, valuation techniques and inputs
The Group's investment properties were valued by Colliers International, with values applicable as at 31 December 2023.
The forestry estate is currently being used to capture carbon from the atmosphere with the associated carbon credits sold on the New
Zealand Emissions Trading Scheme (NZ ETS). The forestry estate can, at the tenants election, be harvested for timber. Both the forest and
the associated land are interconnected and inseparable, accordingly they have been classified as investment property and are held to
earn rental income and for capital appreciation.
External, independent valuers, having appropriate recognised professional qualifications and recent experience in the location and
category of the property being valued, value the Group’s Canterbury, Otago and Southland properties at least every 12 months. The fair
values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation
between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion. Valuations performed on the forestry estates are made and evaluated by the
company using discounted cash flows, with independent market inputs reviewed by independent valuers.
Includes directly attributable acquisition costs.
The net present value of the income provided under the lease agreements have been assessed to be above prevailing market leases for
similar assets. This results in the Group's interest assessment in the leases being greater than the current fair value for the asset on the
basis of the Comparable Sales Approach.
During the year there were no transfers of investment properties between levels of the fair value hierarchy. The valuation techniques
used in measuring the fair value of investment property, as well as the significant unobservable inputs used are as follows:
Investment properties are classified as level 3 (inputs are unobservable for the asset or liability) under the fair value hierarchy on the
basis that adjustments must be made to observable data of similar properties to determine the fair value of an individual property.
The investment properties (except for forestry assets) have been assessed on a fair value basis utilising the income approach for the
Group's interest as lessor and a market approach to assess the reversionary value of the assets at the expiry of the current lease terms.
The valuation includes the consideration made by the valuer for the applicable climate risks.
Net of amortisation.
In April 2023, the acquisition of the forestry estates in Whanganui/Manawatu settled for $71.6 million. That acquisition and its associated
costs were funded from the proceeds of a pro-rata rights offer in March 2023 for $23.4 million, bank funding of $28.5 million, a
convertible loan issuance for $12 million (refer to note 15), and surplus cash.
Upon settlement, the two estates were simultaneously leased for 20 years and 16 years respectively, with CPI adjusted payments.
11
26
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
5.1Fair value measurement, valuation techniques and inputs (continued)
Key inputs used to measure fair value:
31 December
2023
31 December
2022
Land growth rate2.75%3.00%
CPI forecast (2026 onwards)
2.00%2.00%
Discount rate
7.35%7.15%
Terminal rate6.85%6.65%
For the forestry assets, a market approach has been used to assess the reversionary value.
The values adopted in these financial statements for the Forestry assets are summarised as ($000):
LeasePost-leaseTotal
$'000 $'000 $'000
Block One57,13013,370 70,500
Block Two5,00114,200 19,201
62,131 27,570 89,701
The post lease valuation of the forestry assets has the following key inputs used to measure fair value:
31 December
2023
Discount rate9.60%
NZU market price January 2039*$234
NZU market price April 2043*$255
NZU's per-hectare at lease end
51,500
Long term NZU price growth rate from 20312.10%
The valuation of the Forest assets has been assessed utilising the income approach for the Group's interest as a lessor and discounted
post-lease cashflows. The value of the post lease period is based on estimated carbon production and carbon unit pricing.
Two forestry assets were acquired in 2023. Block one is an established forestry asset with areas still to be planted, which was leased to a
3rd party with expiry in 2043. Block two was acquired in 2023 as bare land with planting to occur in 2023, which was leased to a 3rd
party until 2039. There is one right of renewal for 10 years. It is assumed that no right-of-renewal will be exercised by the lessees. The
tenant planted most of the land in 2023.
The tenants of both sites have leased the land to derive income from either carbon or timber. It is assumed based on the current pricing
and outlook that carbon will be the most likely income source, it is therefore assumed that the forests will not be harvested and will
slowly revert to native forest.
The current value is also driven by the volumes of estimated carbon sequestration over the life of the forest which has been modelled by
external experts based on comparable properties and the I300 method which is used to express the productivity of a site in terms of
volume growth for Pinus radiata. It is the mean annual volume increment in cubic metres per hectare of a 300 stem per hectare Radiata
pine stand at age 30 years. As a measure of productivity used in modelling and forecasting tree growth and stand yield, it is relevant even
where crops are not intended to be thinned to a stocking as low as 300 stems per hectare or grown to age 30.
*NZU pricing has been forecast and the mid-point is adopted for these purposes. 2039 and 2043 relate to the dates of the end of the two
leases.
12
27
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
5.2Valuation methodology
Key valuation inputDescription
Land growth rateIncreaseDecrease
CPIIncreaseDecrease
Discount rateDecreaseIncrease
Terminal rateDecreaseIncrease
IncreaseDecrease
IncreaseDecrease
The key two subjective inputs into the post-lease valuation are:
1.Discount rate of 9.60%
2.The prices of NZU’s at lease termination
Low Medium High
Estimates for 2039$134$234$335
Estimates for 2043$146$255$364
During 2023, NZU experienced volatility in their prices, and the range of potential future outcomes is significant.
Revised
ValuationImpact
$'000 $'000
Low price path64,500 (25,201)
High price path115,700 25,999
Value adopted by management based on advice from third parties.
The discount rate of 9.6% has been determined by utilising the Capital Asset Pricing Model (CAPM) to determine WACC for this type of
asset by external experts.
The Group engaged an independent 3rd party expert to provide guidance on the expected future price path of NZU’s over the next 40
years. They provided three scenarios and estimated values as follows:
Management adopted the Medium scenario in the valuations as a mid-point between two price paths deemed to be optimistic and
pessimistic.
The valuation of the forestry assets is highly sensitive to changes in the estimated future prices. The valuation of $89.7 million at 31
December 2023 would be impacted as follows if different price path assumptions had been applied:
Forecast NZU prices
Decrease in
input
Market rental assessment
Increase in
input
The expected inflation increase applied to the lease income every three
years. Used in the income approach.
The rate applied to discount future cashflows, it reflects transactional
evidence from similar types of property assets. Used in the income
approach.
The rate used to assess the terminal value of the property. Used in the
income approach.
The rate applied to the expected land value growth. Used in the income
approach.
Measurement sensitivity
The valuer's assessment of the annual net market income per hectare
attributable to the property. Used in the income approach.
13
28
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
6Rental income
Gross lease receipts15,9385,452
Straight line rental adjustments(120)317
Revenue received in advance adjustments(292)-
Amortisation of capitalised lease incentives(176)(88)
Rental income15,3505,681
6.1Lessor contractual operating lease income
Future minimum rental receivables under non-cancellable operating leases are as follows:
Within 1 year16,954 11,338
After 1 year but not more than 5 years67,817 45,353
More than 5 years116,633 50,588
Total property operating lease income
201,404 107,279
7Finance income and expense
$'000$'000
Finance income
Interest income
1,879919
Gain on fair value of derivative instruments-671
Finance expense
Interest expense(8,876)(2,615)
Loss on fair value of derivative instruments(2,512)-
Net finance expense(9,509)(1,025)
Finance expense includes interest expense incurred on borrowings and any loss on fair value of derivative instruments. Interest expense
is recognised using the effective interest method. Gain on fair value of derivative instruments details are included in note 12.
6 month
period ended
31 December
2022
The commitments above are calculated based on the contract rates using the term certain expiry dates of lease contracts. Actual rental
amounts in future may differ due to CPI adjustments within the lease agreements.
31 December
2023
6 month
period ended
31 December
2022
31 December
2023
Rental income from investment property leased to clients under operating leases is recognised in the consolidated statement of
comprehensive income on a straight-line basis over the term of the lease, taking into account rent free periods. Where lease incentives
are provided to customers, the cost of incentives are recognised over the lease term on a straight-line basis as a reduction to rental
income.
31 December
2023
6 month
period ended
31 December
2022
The Group has entered into investment property leases (as lessor) which have remaining non-cancellable lease terms of between 10 and
20 years.
Finance income includes interest income derived from financial assets and any gain on fair value of derivative instruments. Interest
income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of
income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset's net carrying amount on initial recognition.
14
29
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
8Income taxes
8.1Income tax recognised in statement of comprehensive income
$'000$'000
Current tax expense
--
Deferred tax (benefit) / expense
(483)174
Income tax (benefit) / expense
(483)174
Reconciliation of income tax expense to prima facie tax payable:
Profit before tax
10,3715,439
Income tax expense calculated at 28%
2,9041,523
Effect of expenses that are not deductible in determining taxable profit
83
Effect of income that is not assessable in determining taxable profit
(2,069)(632)
Tax depreciation
(1,333)(720)
Gain on sale of fixed assets
--
Prior period adjustment
7-
Income tax (benefit) / expense
(483)174
8.2Deferred tax assets
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in
equity respectively.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the
consolidated Statement of Comprehensive Income because of items of income or expense that are taxable or deductible in other years
and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
It is assumed that the tax book value of tax depreciable assets reflects their market values. This assumes there would be no depreciation
recovered if disposed of for market value.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax
assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred
tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
31 December
2023
6 month
period ended
31 December
2022
15
30
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
8.2Deferred tax assets (continued)
31 December 2023
$'000 $'000 $'000
Lease fees / Lease incentives(618) 74(544)
Tax losses1,531 410 1,941
Other2(1)1
Total deferred tax asset / (liability)9154831,398
31 December 2022
$'000 $'000 $'000
Lease fees / Lease incentives(550)(68) (618)
Tax losses1,637(106) 1,531
Other2-2
Total deferred tax asset / (liability)1,089(174)915
Key Judgement
9Cash and cash equivalents
Dec 2023 Dec 2022
$'000$'000
Cash at bank
1,258 1,942
Total cash and cash equivalents
1,2581,942
10Trade and other receivables
Trade receivables are non-derivative financial assets and measured at amortised cost less impairment.
Dec 2023 Dec 2022
$'000$'000
Trade receivables41 41
Prepayments332 228
Other receivables5 -
Total trade and other receivables378269
Recognised in
profit or loss
Opening
balance
Recognised in
profit or loss
Closing
balance
The Group has chosen not to rebut the presumption in NZ IAS 12 Income taxes that the carrying value of investment properties will be
recovered through sale.
Closing
balance
Opening
balance
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short‑term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts.
The Group considers that any future gain on sale of investment properties will not be assessable for income tax purposes as the sale of a
capital asset.
Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related
items in the statement of financial position as follows:
16
31
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
11Loan receivable
Dec 2023 Dec 2022
$'000$'000
Non-current:
McNaughtons home block
6,943 6,321
Makikihi Farm
13,420 12,823
Total loan receivable
20,36319,144
12Derivatives
Dec 2023 Dec 2022
$'000$'000
Derivative assets
712,506
712,506
13Trade and other payables
Dec 2023 Dec 2022
$'000$'000
Trade payables and accruals
569 436
Revenue in advance
292 -
GST payable
229 158
Total trade and other payables1,090594
The loans are secured by a General Security Deed and cross guarantee from certain Van Leeuwen Group entities.
On 1 June 2021, the Group acquired land at 30 Cooneys Road, Morven (McNaughtons home block) for $5.4 million and simultaneously
entered into a lease and a put and call agreement with Performance Dairy Limited (PDL), a related entity to the vendor. Under the call
agreement, PDL can acquire the land on 31 May in any year (providing a minimum 90 days notice has been provided) from the Group for
$5.4 million plus 10% interest compounding annually. Under the put agreement, from 1 June 2023 the Group can require PDL to acquire
the land on 31 May any year under the same pricing mechanism and notice requirements. The put and call option has a 99 year life.
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid.
The amounts are unsecured and are usually paid within 30 days from recognition. Trade payables are recognised initially at fair value and
subsequently measured at amortised cost.
Key Judgement
On 2 August 2021, the Group acquired land at a North Canterbury Dairy Farm (Makikihi Farm) for $12 million and simultaneously entered
into a lease and a put and call agreement with Makikihi Robotic Dairy Limited (MRDL), a related entity to the vendor. Under the call
agreement, MRDL can acquire the land on 31 May in any year (providing a minimum 90 days notice has been provided) from the Group
for 12 million plus 10% interest compounding annually. Under the put agreement, from 1 August 2023 the Group can require MRDL to
acquire the land on 31 May any year under the same pricing mechanism and notice requirements. The put and call option has a 99 year
life.
The loan receivable balances have been considered and determined no impairment is required at reporting date.
Derivative financial instruments, comprising interest rate swaps are classified as fair value through profit or loss ("FVTPL"). They are
initially recognised at fair value on the date the derivative contract is entered in to. Subsequent to initial recognition, changes in fair value
of such derivatives and gains or losses on their settlement are recognised in the consolidated statement of comprehensive income in
finance income and expense.
The Group has determined that these arrangements have the substance of loans with 10% market interest rates per annum (6 month
period ended 31 December 2022: 10%).
17
32
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
14Borrowings
Dec 2023 Dec 2022
Notes$'000$'000
Current borrowings:
Rabobank facility14.1
29,500 1,968
Non-current borrowings:
Rabobank facility14.1
104,000 105,000
Total borrowings
133,500106,968
14.1Rabobank Facility
Total
Undrawn
facility
Drawn
amountFair value
Dec 2023
$'000$'000$'000$'000
Bank facility A1 June 20257.60%46,000 -46,000 46,000
Bank facility B1 June 20247.46%29,500 -29,500 29,500
Bank facility C1 June 20267.76%29,500 -29,500 29,500
Bank facility D14 April 20267.72%28,500 -28,500 28,500
133,500 -133,500 133,500
Total
Undrawn
facility
Drawn
amountFair value
Dec 2022
$'000$'000$'000$'000
Bank facility A1 June 20256.35%46,000 -46,000 46,000
Bank facility B1 June 20246.20%29,500 -29,500 29,500
Bank facility B31 January 20236.20%2,000 321,968 1,968
Bank facility C1 June 20266.50%29,500 -29,500 29,500
107,000 32 106,968 106,968
The terms of the borrowings includes the following covenants that the Group must ensure at all times:
•
Interest coverage ratio is greater than 1.6;
•
Loan to valuation ratio does not exceed 40%; and
•
Capital expenditure in each financial year shall not exceed 120% of the budgeted forecast capital expenditure.
The Group has complied with the financial covenants of its borrowing facilities during the year ended 31 December 2023.
Effective
interest rate
Expiry date
The Group has entered into a revolving credit facility agreement with Rabobank on 21 May 2021 and renewed on 14 April 2023. The
facility agreement has a limit of $133,500,000 with floating interest rates ranging over the four tranches of the debt. Interest is payable
quarterly in arrears.
Expiry date
There is a general security deed over all of the assets of the Group as security of the borrowings.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the consolidated statement of
comprehensive income over the period of the borrowings using the effective interest method. Borrowings are classified as current
liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Effective
interest rate
The Group's interest cover ratio covenant is 1.6 for the period from 30 June 2023 to 31 December 2024, and 1.75 from 31 March 2025
onwards.
18
33
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
15
Dec 2023 Dec 2022
$'000$'000
Current:
Convertible loan
11,980 -
16Issued capital
Notes
Authorised and issued
Balance at 30 June 2022129,632112,648,894
Rights issue to existing shareholders
476452,929
Performance fee issued in ordinary shares
4,115 2,499,747
Transaction costs arising on issue of shares
(43) -
Balance at 31 December 2022
134,180115,601,570
Rights issue to existing shareholders
1723,285 23,375,984
Other share issues
595 628,929
Share buy-back
(530) (611,327)
Performance fee issued in ordinary shares
495 299,844
Transaction costs arising on issue of shares
(606) -
Balance at 31 December 2023
157,419139,295,000
17Dividends
Post October 2024 and at that point, the loan could convert to ordinary shares in the forest owning subsidiary. Should that conversion
have occurred, there were put and call arrangements to enable the Group to return to 100% ownership of the forests.
The December 2022 performance fee was settled with 0.3 million shares being issued in March 2023 at an equivalent of $1.6507 per
share (internal NAV measurement).
During the period, total dividends of $2.346 million were declared. An ordinary dividend of $0.020 per share with no supplementary
dividend was issued in March 2023. No imputation credits were attached to the dividend.
$'000
No. of
ordinary
shares
All shares have equal voting rights, participate equally in any dividend distribution or any surplus on the winding up of the Company. The
shares have no par value.
Convertible Loan
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity
instruments issued are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Group's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of the Group's own equity instruments.
There have been no payments of the convertible loan balance. The balance as of 31 December 2023 reflects interest and transaction
costs (deducted).
On 14 April 2023, the Group entered into a convertible loan agreement with New Zealand Forest Leasing Limited with a face value of
$12.36 million. In February 2024 the convertible loan was repaid in full (refer to subsequent event note 27).
At 31 December 2023 the convertible loan was expected to be repaid within eighteen months from the date of the loan being issued. The
terms of the agreement required the Group to make quarterly interest payments based on the current outstanding principal amount, at
8% per annum.
In April 2024, the Group was required to make a $1.244 million repayment.
19
34
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
18Share based payment reserve
Dec 2023 Dec 2022
$'000$'000
Arising on share-based payments (performance fee)
901495
Balance at end of the period
901495
19Remuneration of auditors
Dec 2023 Dec 2022
Assurance and other services
$'000$'000
Statutory audit services64 -
64-
Dec 2023 Dec 2022
Assurance and other services
$'000$'000
Statutory audit services23 102
23102
20Related parties
20.1Remuneration of the Manager
• Providing administrative and general services;
• Sourcing and securing potential investors and communicating with investors;
• Sourcing opportunities for the sale and purchase of Land, and operators for lease agreements in respect of Land;
• Overseeing due diligence for and executing transactions for the sale and purchase, and leasing, of Land;
• Managing the Group’s Property, including Land owned by the Group;
• Arranging regular valuations and audits of the Group; and
• Administering the payment of dividends and distributions in respect of the Group.
The Manager is remunerated via management fees, transaction fees and performance fees.
The following fees were paid or payable for services provided by PricewaterhouseCoopers New Zealand as the former auditor of the
Group:
The share based payment reserve relates to the Manager's performance fee that is settled through the issue of shares. More details on
performance fees are provided in note 20.1.
The Group has appointed an external manager, New Zealand Rural Land Management Limited Partnership through a signed management
agreement. The Manager is responsible for all management functions of the Group, including:
During the year, the Company accepted the resignation of PricewaterhouseCoopers New Zealand as the Company's statutory auditor and
appointed William Buck Audit (NZ) Limited in its place.
The following fees were paid or payable for services provided by William Buck Audit (NZ) Limited as the auditor of the Group:
Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or
services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the
equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.
20
35
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
20.1Remuneration of the Manager (continued)
Fees paid and owing to the Manager:
Fees chargedFees charged
$'000$'000$'000$'000
Basic management services fee1,039 89467 90
Land transaction fees878---
Leasing fees60---
Performance fee901901495 495
Total
2,878 990 962 585
Management fee
Transaction fee
•
•
Performance fee
20.2Key management personnel compensation
A monthly management fee is payable equal to 0.5% per annum of the Group's Net Asset Value, calculated on a monthly basis. The total
management fees for the period ended 31 December 2023 were $1.039 million (6 month period ended 31 December 2022: $0.467
million).
For each purchase or sale of land, a fee equal to 1.25% of the acquisition or divestment cost of the land and improvements;
and
A performance fee is payable to the Manager when the Group's net asset value ('NAV') per share exceeds the Group's NAV per share in
the immediately preceding financial year. This annual performance fee is calculated as 10% of the increase in NAV per share and is settled
through the issue of ordinary shares based on the NAV per share at that date. NAV per share is adjusted for the impact of capital
reconstructions (such as a rights issue at a premium or discount), with the intention of the calculation being neither prejudicial nor
advantageous to the Company or the Manager. Half of the ordinary shares issued are held in escrow and cannot be sold for 5 years. The
value of the performance fee in the year ended 31 December 2023 was $0.901 million (6 month period ended 31 December 2022: $0.495
million). The shares will be issued to the Manager subsequent to balance date.
31 December 2023
6 month period ended 31
December 2022
Transaction fees incurred for the period ended 31 December 2023 were $0.878 million and $0.060 million (6 month period ended 31
December 2022: $nil) in relation to the purchase and lease fee components (respectively). The purchase fee is included in the initial
carrying amount of the acquired investment property. The leasing fee has been added to the carrying value of the leased asset (being
investment properties) as part of the initial direct costs of arranging the lease.
For each lease agreement entered into, a fee of $30,000.
In addition to remuneration of the Manager outlined above, the Group paid directors fees during the period of $0.227 million (6 month
period ended 31 December 2022: $0.114 million) in cash. There was no other compensation of key management personnel during the
period.
A fee is payable for the following transactions:
Owing at 31
Dec
Owing at 31
Dec
21
36
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
21Subsidiaries
Dec 2023 Dec 2022
Name of entity
Country
incorporatedEquity holdingEquity holding
NZRLC Dairy Holdings LimitedNew Zealand100%100%
SSP NI LimitedNew Zealand100%100%
New Zealand Rural Land Investments GP LimitedNew Zealand100%0%
New Zealand Rural Land Investments Limited Partnership
New Zealand100%0%
22Non-GAAP measures
22.1Reconciliation of net profit after tax to adjusted funds from operations (AFFO)
Notes
$'000$'000
Net profit after tax10,8545,265
Adjustments
Unrealised net (gain) in value of investment properties5(7,388) (2,258)
Performance fee payable in shares18901495
Unrealised net loss / (gain) on derivatives72,512 (671)
Deferred tax (benefit) / expense8.2(483) 174
Amortisation of rent free incentives617688
Amortisation of lease fee30 25
Funds from operations ('FFO')6,6023,118
FFO per share (cents)4.742.70
Adjustments
Incentives and leasing costs120 (315)
Future maintenance capital expenditure¹(663)(329)
Adjusted funds from operations ('AFFO')6,0592,474
AFFO per share (cents)4.352.14
Rural land investment
The following subsidiaries have been consolidated in the Financial Statements of the Group:
Non-GAAP measures do not have a standard meaning prescribed by GAAP and therefore may not be comparable to information
presented by other entities. These measures should not be viewed in isolation, nor considered as a substitute for measures reported in
accordance with NZ IFRS.
31 December
2023
6 month
period ended
31 December
2022
Funds from operations ('FFO') is a non-GAAP financial measure that shows the Group's underlying and recurring earnings from its
operations and is considered industry best practice for a property fund to enable investors to see the cash generating ability of the
business. This is determined by adjusting statutory net profit (under NZ IFRS) for certain non-cash and other items. FFO has been
determined based on guidelines established by the Property Council of Australia and is intended as a supplementary measure of
operating performance. The Manager uses and considers Adjusted Funds From Operations ('AFFO') as a measure of operating cash flow
generated from the business, after providing for all operating capital requirements including maintenance capital expenditure, tenant
improvement works, incentives and leasing costs.
Activities
Rural land investment
Rural land investment
General partner
¹ Represents amounts set aside each financial period for future expected maintenance capital expenditure as considered prudent by the
Manager. These amounts do not qualify for recognition as liabilities on the balance sheet under NZ GAAP.
The consolidated Financial Statements incorporate the assets, liabilities and results of the subsidiaries in accordance with the accounting
policy described in note 2.4.
22
37
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
22.2Net assets per share and net tangible assets per share
Dec 2023 Dec 2022
Notes
$'000$'000
Total assets369,831 298,820
(Less): Total liabilities(146,739) (107,881)
Net assets223,092190,939
(Less): Deferred tax asset
8.2
(1,398) (915)
(Less): Derivative asset
12
(71) (2,506)
Net tangible assets221,623187,518
Number of shares issued ('000)139,295 115,602
Net assets per share ($)1.6016 1.6517
Net tangible assets per share ($)1.5910 1.6221
23Financial instruments
Categories of financial instruments:
As at 31 December 2023
Assets
$'000 $'000 $'000 $'000
Cash and cash equivalents-1,258 -1,258
Trade and other receivables-46 -46
Loan receivable-20,363 -20,363
Derivative assets71 --71
71 21,667 -21,738
Liabilities
Trade and other payables--569 569
Convertible loan--11,980 11,980
Borrowings--133,500 133,500
--146,049 146,049
As at 31 December 2022
Assets
$'000 $'000 $'000 $'000
Cash and cash equivalents-1,942 -1,942
Trade and other receivables-41 -41
Loan receivable-19,144 -19,144
Derivative assets2,506--2,506
2,50621,127 -23,633
Liabilities
Trade and other payables--436 436
Borrowings--106,968 106,968
--107,404 107,404
Financial
assets at
amortised
cost
Financial
liabilities at
amortised
cost
Financial
assets/
liabilities at
FVTPL
Total
Financial
assets/
liabilities at
FVTPL
Financial
liabilities at
amortised
cost
Total
The Group presents net assets per share and net tangible assets per share in these financial statements. The Group believes that these
non-GAAP measures provide useful additional information to readers. Net tangible assets per share is a required disclosure under the
NZX Listing Rules and net assets per share is a measure monitored by management and required for calculating the Manager's
performance fee. The calculation of the Group's net assets per share, net tangible assets per share, and its reconciliation to the
consolidated statement of financial position is presented below:
Financial
assets at
amortised
cost
23
38
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
24Financial risk management
24.1Interest rate risk
Dec 2023
Dec 2022
$'000$'000
Financial assets
Cash at bank1,2581,942
Financial liabilities
Bank borrowings (net of economic impact of interest rate swaps)48,00064,968
Interest rate applicable at balance date
Cash at bank<1%<1%
Bank borrowings (net of economic impact of interest rate swaps)7.60%6.34%
Interest rate
decrease of
Interest rate
increase of 2%
Interest rate
decrease of
Interest rate
increase of 2%
$'000$'000$'000$'000
Increase / (decrease) in interest expense(960)960(1,299)1,299
There is no interest rate risk on the loan receivable (note 11) as they accrue interest at a fixed rate.
24.2Credit risk
Dec 2023
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause the Group to
incur a financial loss. Financial instruments which are subject to credit risk principally consist of cash, debtors and loans receivable. The
Group’s exposure to credit risk is equal to the carrying value of the financial instruments.
The Group conducts credit assessments of tenants to determine credit worthiness prior to entering into lease agreements. This includes
requiring tenants to have equity at least six times their annual lease obligations or provide other suitable security arrangements. Where
appropriate, the Group will include guarantees and/or security from tenants within lease agreements to support rental payments. In
addition, debtor balances are monitored on an ongoing basis with the result that exposure to bad debts is not significant.
The risk from financial institutions is managed by placing cash and cash equivalents with high credit quality financial institutions only. The
Group has placed its cash and cash equivalents with ASB Bank Limited and Westpac New Zealand Limited, both who are AA- rated
(Standard & Poor's).
The Group intends to further mitigate this risk in the future by expanding into other primary sectors in New Zealand, such as horticulture,
viticulture, sheep and beef.
Interest rate risk is the risk that fluctuations in interest rates impact the Group's financial performance, future cash flows or the fair value
of its financial instruments.
The Group's policy is to manage its interest rates using a mix of fixed and variable rate debt. To manage this mix, the Group enters into
interest rate swaps, in which the Group agrees to exchange, at specified intervals, the difference between fixed and variable rates for
interest calculated by reference to an agreed-upon notional principal amount. These swaps are designed to economically hedge
underlying debt obligations.
The Group's exposure to variable interest rate risk and the weighted average interest rate for interest bearing financial assets and
liabilities as at 31 December 2023 was as follows:
The following sensitivity analysis represents the change in interest expense if the floating interest rates on bank borrowings (net of
economic impact from interest rate swaps) had been 2% higher or lower, with other variables remaining constant:
Dec 2022
24
39
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
24.3Liquidity risk
The following table outlines the Groups' liquidity profile, as at 31 December 2023, based on contractual non-discounted cash flows:
Total0-1 year1-2 years2-5 years>5 years
As at 31 December 2023
$'000$'000$'000$'000$'000
Trade and other payables
1,0901,090---
Convertible note
11,98011,980---
Borrowings ¹
149,92738,40251,94559,580-
Total
162,99751,47251,94559,580-
Total0-1 year1-2 years2-5 years>5 years
As at 31 December 2022
$'000$'000$'000$'000$'000
Trade and other payables
594594---
Borrowings ¹
123,3288,78435,11579,429-
Total
123,9229,37835,11579,429-
¹
24.4Capital risk management
25Earnings per share
Dec 2023 Dec 2022
Profit after income tax ($'000)10,854 5,265
Weighted average number of shares for the purpose of basic and diluted EPS ('000)134,646 114,636
Basic and diluted earnings per share (cents)8.06 4.59
Basic and diluted earnings per share amounts are calculated by dividing profit after income tax attributable to shareholders by the
weighted average number of shares on issue.
Includes contractual interest payments based on drawn down amounts at reporting date and assuming no repayments of
principal prior to expiry date.
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income
tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average number of
ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Company has no
dilutive factors.
Liquidity risk is the risk that the Group may encounter difficulty in meeting its obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. Liquidity risk mainly arises from the Group’s obligations in respect of long term
borrowings, derivatives and trade and other payables.
The Group monitors and evaluates liquidity requirements on an ongoing basis and generates sufficient cash flows from its operating
activities to meet its obligations arising from its financial liabilities and has bank facilities available to cover potential shortfalls. The
Group’s approach to managing liquidity risk is to ensure it will always have sufficient liquidity to meet its obligations when they fall due
under both normal and stress conditions.
When managing capital risk, the Manager's objective is to ensure the Group continues as a going concern as well as to maintain optimal
returns to shareholders and benefits for other creditors.
The Group meets its objectives for managing capital through its investment decisions on the acquisition and disposal of assets, dividend
policy, and issuance of new shares. This includes restricting debt to 40% of total assets and debt will generally be sought on interest-only
repayment terms, subject to maintaining the 40% debt limit. The Group will also seek debt with mortgage security over the rural land
acquired to secure the borrowings.
25
40
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
26Reconciliation of profit after income tax to net cash flows from operating activities
$'000 $'000
Profit and total comprehensive income for the period
10,8545,265
Add/(less) non-cash items:
Change in fair value of derivatives2,435(714)
Change in fair value of investment property(7,388)(2,258)
Performance fee payable in shares901495
Interest income accrual(1,226)(590)
Deferred tax(483)174
Lease incentives - rent free period297(228)
Interest expense accrual47(424)
Lease fee amortisation3725
Convertible loan amortisation180-
Movements in working capital items:
Decrease / (increase) in other current assets(31)1,240
Decrease / (increase) in income tax receivable6(3)
Increase in trade and other payables68121
Increase / (decrease) in income in advance292(579)
Net cash generated by operating activities5,9892,524
27Subsequent events
Roc Partners Transaction
Transaction features:
•
•The LP then issued units to Roc Partners such that they have a 25% interest in the LP.
•
•
•
•
On 19 January 2024 NZRLC entered into a conditional agreement to sell a 25% economic interest to Roc Partners for $44.2m. Conditions
were subsequently satisfied, and the transaction settled on 9 February 2024.
There are no contingent liabilities or assets as at 31 December 2023 (31 December 2022: nil).
31 December
2023
6 month
period ended
31 December
2022
NZRLC transferred the group assets (other than cash on hand) to a newly created limited partnership (LP). In substance,
NZRLC’s $133.5m revolving credit facility with Rabobank (note 14) was also transferred to the LP.
The general partner of the LP is a company owned by NZRLC and Roc Partners in the same proportions as the LP, 75% and 25%
for NZRLC and Roc Partners respectively.
New Zealand Rural Land Management Limited Partnership (manager) will continue to be the manager of NZRLC and will also
manage the LP. The NZRLC management agreement was amended at completion of facilitating this new structure, reducing
NZRLC’s liability for manager fees to 75% of the LP.
It is intended that NZRLC and Roc Partners will co-invest (through the LP) in future acquisitions to grow the portfolio. Where
this occurs, Roc Partners will fund 25% of the equity needed for an acquisition reducing NZRLC’s associated capital
requirements.
The business strategy of the LP will be the business strategy of NZRLC and remains unchanged. Where NRLC and Roc Partners
approve an acquisition (and, in particular, the funding for that acquisition) the LP will be the acquiring entity. If Roc Partners
does not wish to fund the LP for an acquisition, NZRLC may proceed with that acquisition on its own, sole account. Third party
debt funding of the LP must continue to not exceed a 40% (loan to value ratio) level at all times.
26
41
NEW ZEALAND RURAL LAND COMPANY
Notes to the consolidated financial statements
For the year ended 31 December 2023
New Zealand Rural Land Company Limited and its subsidiaries
27Subsequent events (continued)
•
Apple and forestry land acquisition
There were no other material events subsequent to balance date.
As of 31 December 2023, NZRLC has determined the transaction was not highly probable. The arrangement was still being negotiated
with significant uncertainty as to whether it would proceed. At that time either party had the ability to walk away from the negotiations.
NZRLC is in the process of assessing how it will account for the LP on settlement date (9 February 2024). Key to that assessment is
whether or not NZRLC has sufficient power to direct the relevant activities (those that significantly affect the investee’s return) of the LP
such that it has reached the threshold required for control (as defined in NZ IFRS 10 Consolidated Financial Statements). NZRLC expect to
consolidate the LP on the basis that the activities requiring Roc Partner’s approval are protective in nature.
If NZRLC consolidates the LP it will reflect the 25% held by Roc Partners as a non-controlling interest with no impact in Profit or Loss.
Whilst not NZRLC’s expectation, if it does not consolidate the LP then on settlement date it will de-recognise the assets and liabilities
from its balance sheet and recognise an investment in the LP, with the difference between the two recognised as an accounting loss in
Profit and Loss of $11.3m.
On settlement date 9 February $11.98 million was used to repay the outstanding convertible loan (refer to note 15). The balance of fund
has been retained as working capital while NZRLC considers future growth and capital options.
On 20 February 2024 NZRLC agreed to acquire the land supporting 3 apple orchards located in the Hawkes Bay region in the North Island
and forestry land in close proximity to its existing estates for a total of $27.6m. The acquisition will be acquired by the Limited
Partnership formed as part of the Roc Partners Transaction (above).
The orchard land has a total land area of approximately 97 hectares of which 82 hectares are planted. The orchards will be leased to Kiwi
Crunch for a period of 30 years with a year one income of c.$1.4 million, subject to annual rental adjustments of CPI or 2.5%, whichever is
higher. NZRLC will legally own only the land not the orchard trees. This acquisition is conditional on obtaining certain approvals and
settlement is expected to occur in March 2024.
The forestry land has a total area of approximately 1,119 hectares and is leased to New Zealand Forest Leasing (NZFL) for a period of 16
years. The estate has year one income of $760,000 and is subject to annual CPI-linked rental adjustments. The tenant will utilise the land
for timber and/or carbon sequestration. This acquisition was both signed and settled 20 February 2024.
Subject to certain conditions, Roc Partner’s interest in the LP has a lock-up period of 6 years where it may not sell to a third
party. During this period NZRLC may sell down up to half of its interest in the LP to third parties (should it wish to do so).
27
42
NEW ZEALAND RURAL LAND COMPANY
43
NEW ZEALAND RURAL LAND COMPANY
Auckland | Level 4, 21 Queen Street, Auckland 1010, New Zealand
Tauranga | 145 Seventeenth Ave, Tauranga 3112, New Zealand
+64 9 366 5000
+64 7 927 1234
info@williambuck.co.nz
www.williambuck.com
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
*William Buck (NZ) Limited and William Buck Audit (NZ) Limited
New Zealand Rural Land Company Limited
Independent auditor’s report to the Shareholders
Report on the Audit of the Consolidated Financial Statements
Qualified Opinion
We have audited the consolidated financial statements of New Zealand Rural Land Company Limited and
its subsidiaries (the Group), which comprise the consolidated statement of financial position as at
31 December 2023, and the consolidated statement of comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies.
In our opinion, except for the possible effects due to the lack of audit evidence of the matter described in
the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements
give a true and fair view of the consolidated financial position of the Group as at 31 December 2023, and of
its consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with International Financial Reporting Standards (IFRS) and New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS).
Basis for Qualified Opinion
As disclosed in Note 5.1 to the consolidated financial statements the group has recorded forestry assets
located in the Manawatu-Whanganui region within Investment Properties measured at Fair Value at
31 December 2023 of $89.7 million. The Group recorded a revaluation gain of $18.1 million on those
assets in the Consolidated statement of comprehensive income in the year ended 31 December 2023. A
key subjective assumption included in the valuation of these forestry assets is the estimated long term
future prices of New Zealand Emission Units (NZU’s). We have been unable to obtain sufficient
appropriate audit evidence to provide assurance over the estimated future NZU prices which form a
significant part of the valuation. As the future prices of the NZU’s is a material component of the valuations,
we are therefore unable to express an opinion as to whether the carrying value of the Investment property
and related revaluation gains recognised by the Group in the year ended 31 December 2023 are materially
correct and whether any adjustments to these amounts were necessary.
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand
Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our qualified opinion.
|
Other than in our capacity as auditor we have no relationship with, or interests in, New Zealand Rural Land
Company Limited or any of its subsidiaries.
Emphasis of Matter – Subsequent event
We draw attention to Note 27 which describes that on 9 February 2024 the Group has disposed of 25% of
the assets of the Group to a 3
rd
party investor. Our audit report is not qualified in this regard.
Key Audit Matters
Except for the matter described in the Basis for Qualified Opinion section, we have determined that there
are no other key audit matters to communicated in our report.
Other Matter
The consoli dated financial statements of the Group for the six-month period ended 31 December 2022
were audited by another auditor who expressed an unmodified opinion on those consolidated financial
statements on 28 February 2023.
Information Other than the Consolidated Financial Statements and
Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the Chair Report,
Statutory Information and Company Directory, but does not include the consolidated financial statements
and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this
regard.
Directors’ Responsibilities
The directors are responsible on behalf of the entity for the preparation of consolidated financial statements
that give a true and fair view in accordance with New Zealand equivalents to International Financial
Reporting Standards, and for such internal control as the directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
44
NEW ZEALAND RURAL LAND COMPANY
|
Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these financial statements is located at the
External Reporting Board (XRB) website at: Audit Report 1 » XRB. This description forms part of our
independent auditor’s report.
The engagement director on the audit resulting in this independent auditor’s report is Darren Wright.
Restriction on Distribution and Use
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken
so that we might state to the Company’s shareholders those matters which we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for
our audit work, for this report or for the opinions we have formed.
William Buck Audit (NZ) Limited
Auckland
27 March 2024
45
NEW ZEALAND RURAL LAND COMPANY
46
NEW ZEALAND RURAL LAND COMPANY
4
SECTION
Company
Directory
REGISTERED OFFICE
c/o Duncan Cotterill
Level 2, Chartered Accountants
50 Customhouse Quay
Wellington 6011
New Zealand
https://nzrlc.co.nz/
MANAGER
New Zealand Rural Land Management
Level 1
85 Fort Street
Auckland Central
Auckland 1010
New Zealand
SHARE REGISTRAR
Link Market Services Limited
Level 30, PwC Tower
15 Customs Street West
Auckland 1010
New Zealand
https://www.linkmarketservices.co.nz/
AUDITOR
William Buck Audit (NZ) Limited
Level 4
21 Queen Street
Auckland 1010
New Zealand
https://williambuck.com/nz/
INVESTOR CONTACTS
Christopher Swasbrook
chris@nzrlc.co.nz
+64 21 928 262
Level 4, The Blade
12 St Marks Road
Remuera
Auckland 1050
New Zealand
Richard Milsom
richard@nzrlm.co.nz
+64 21 274 2476
Level 1
85 Fort Street
Auckland Central
Auckland 1010
New Zealand
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.