PLP – Quarterly Client Update

Private Land & Property Fund
Quarterly Client Update
Update as at and for the quarter ending 31 March 2024
Booster Investment Scheme 2
Investment performance
While returns of the Private Land and
Property Fund (Fund) have been 8% on an
annualised basis over the two year period to
31 March 2024, and 8.8%p.a. since inception
(after fees and tax), the past quarter and
year have both been moderately negative,
due to a below average grape harvest
expected this year and lower valuations on
some properties - mainly on the kiwifruit
orchard in Kerikeri and avocado orchard
investments earlier during the year.
We expect the level of income on properties
that sell crops to vary from year to year,
and we manage the effect of this by holding
most of the portfolio in properties that
generate income via fixed rate leases. On
average, we generally expect the rate of
return from crop revenue to be higher than
from entering fixed leases – however, this
measured approach has helped support
the Fund’s income throughout the year.
This quarter’s returns include the impact of
updated independent valuations which we
commissioned for several of our properties,
which have been reflected in the Fund’s
value. While the updated assessment for
the Gisborne-based citrus orchard was
materially in line with the existing carrying
value, and the Waimea vineyards had a
small reduction, the most notable change
was for the kiwifruit orchard in Kerikeri
(with a downwards revision of 3.2% of the
net asset value of the Fund at the time).
It’s important to note that property
values do vary over time, though a
longer-term perspective is important.
Taking the kiwifruit orchard for example,
overall there remains a net increase in the
value of the asset since acquisition, in line
with our original investment thesis. The
Wholesale Portfolio (into which the Fund
invests) purchased the orchard in 2019 for
$15.6m – and despite the recent reduction, the
current valuation places it at just under $19m.
Further, throughout these market
fluctuations, cash income from the
property has been underpinned by the
fixed rate lease in place to Seeka.
We continue to actively explore opportunities
to broaden and diversify the portfolio
and support its income, including taking
advantage of opportunities that the move
higher in interest rates is now presenting.
Property updates
Vineyards
The grape harvest is nearing completion
and the overall picture across New Zealand
(mirrored by the properties owned by the
Wholesale Portfolio) was a mixed bag.
Marlborough experienced some frost events
late last year which combined with a very dry
summer affected fruit quantity. It is expected
that volumes will be around 20-30% down
when compared to average crop volumes.

Nelson fared better, with more stable
growing conditions and a volume expected
to be slightly above historic averages.
In Hawke’s Bay, fruit quantity was very low,
with similar dry summer conditions faced,
and likely some stressed vines after the
abnormal weather patterns last year.
As noted the lower crop in Marlborough will
result in less income than originally forecast
for these properties (the current estimates
have been factored into valuations, which has
contributed to the lower returns for the year),
while income on the Nelson and Hawkes Bay
properties is underpinned by fixed rate leases.
Kiwifruit – Kerikeri
Our kiwifruit orchard in Kerikeri has experienced
settled, more normalised growing conditions
this year. Several initiatives on the orchard have
been implemented to improve production,
including a significant pest trapping programme
to address pest damage to the vines, as well as
the addition of further drainage in some areas that
experienced more flooding last year. It is pleasing
to note that crop estimates are up on last year,
which also reflects the maturing of the orchard.
In addition, the planting out of bare land
into lemons is now complete, resulting
in a total of ~14 Ha of lemon trees now
supplementing the 19.6 Ha of kiwifruit vines.
We commissioned and received an updated
independent valuation of the property in March.
This resulted in a downwards revaluation
of $4.3m, with the key reasons being:
Hop garden
Our hop garden in Brightwater, Nelson also had
a mixed bag this season. Growing conditions
reflected a very dry summer which started to place
some stress on the crop, before being alleviated by
the first release from the Waimea dam, of which
Waimea West Hops holds shares in to enhance its
access to irrigation. The processing infrastructure
performed above expectations, processing our
hops in addition to another hop garden’s crop.
Overall, the crop yield was below average but
to be expected given the growing conditions.
• The past two growing seasons have been
impacted by reduced quality impacting export
markets and extreme weather events.
• The general economic conditions have
toughened over the past two years with
higher interest rates and inflationary
pressure on operating costs.
Each of these factors has resulted in a reduction
of buyer demand for kiwifruit land, resulting in a
softening of prices paid for kiwifruit orchards.
However on a more positive note, we have seen
improved pricing forecast for the upcoming season,
with Zespri indicating an expected price per tray
for SunGold to be $12.62 (up from $9.97 last year).
The income from the property has remained
steady due to the lease in place to Seeka.

Fund Size
(net asset value)
$126.1 million
Inception Date 13/06/2017
ManagerBooster Investment Management Ltd
SupervisorPublic Trust
Fund TypePortfolio Investment Entity (PIE)
Key Facts
Private Land and Property Portfolio
(Wholesale Portfolio)
Fund Size
(net asset value)
$127.2 million
Inception Date 07/01/2019
ManagerBooster Investment Management Ltd
SupervisorPublic Trust
Fund TypePortfolio Investment Entity (PIE)
Private Land and Property Fund (Fund)
The Fund obtains its property exposure by investing into the Wholesale Portfolio
alongside some cash held within the Fund.
Investment Holdings
Last 3 months-3.1%-3.1%
Last 6 months-2.4%-2.4%
Last 12 months-2.1%-2.2%
Last 2 years (p.a)8.1%8.0%
Last 3 years (p.a)10.3%10.0%
Last 5 years (p.a)
*
9.4%8.7%
Since inception 13/06/2017 (p.a)
*
9.5%8.8%
Fund Performance as at 31 March 2024
Before Tax
After Tax
at 28% PIR
Disclaimer: The Private Land and Property Fund (Fund) is part of the Booster
Investment Scheme 2 which is issued and managed by Booster Investment
Management Limited. The Fund’s Product Disclosure Statement is available at
www.booster.co.nz, by contacting your financial adviser or by calling Booster
on 0800 336 338.
This document is for informational purposes only. The information is derived
from sources believed to be accurate as at the date of issue and may change.
The content is of a general nature and does not take into account your
financial situation or goals and is not financial advice. Booster Investment
Management Limited and its related companies do not accept any liability for
any loss or damage arising directly or indirectly out of the use of, or reliance
on, the information provided in this document. The Fund’s performance,
returns, or repayment of capital, are not guaranteed.
All figures are after fees. Please see the Product Disclosure Statement for
further details on fees.
*Returns prior to the inception of PLPF in January 2019 are based on the
underlying wholesale PLPP return.
The Fund has a minimum suggested investment timeframe of four years,
and its performance aims are measured over a 7-year horizon. The return
information below includes returns due to property market movements which
vary over time, so the range of returns may be different over a longer period.
However the Fund aims to achieve a long-run return of 6.5% pa (before tax,
after fees) from a combination of rental and crop income, and capital gain
from improvements in property productive capacity. Past performance is not
an indicator of future performance.
Wholesale Portfolio
Total Assets (millions)
Property Assets (location / region)
Awatere Valley, Marlborough
Vineyard properties
$29.020.4
Hope, Nelson Region
Vineyard properties
$18.413.0
Hawke’s Bay
Winery building
$3.22.2
Hawke’s Bay
Vineyard property
$5.94.2
Mahana, Nelson region
Winery building & Vineyard property
$3.72.6
Kerikeri, Northland
Kiwifruit orchard property
$19.413.7
Waimea, Nelson region
Waimea West Hops Ltd
$10.87. 6
Southland
Dairy farmland
$32.823.1
Bay of Plenty & the Far North
Avocado orchards
$17.812.6
Total property assets$141.0
Other Assets
Cash / Income$0.2
Accrued income$0.7
Total Assets$141.9
Total Liabilities (millions)
Borrowings with BNZ$15.8
Other liabilities
(incl Property Operating Costs)
$0.0
Total liabilities$15.8
Net asset value $126.1
Gearing Ratio11.1
The investment objective and strategy of the Wholesale Portfolio allows it to borrow
to invest in more land and properties or to develop land and properties it already
holds. Bank of New Zealand (BNZ) has provided a loan facility of up to 50% of
the value of the secured properties for use by the Wholesale Portfolio to effect its
gearing strategy which results in BNZ holding a security interest over most of the
assets held by the Wholesale Portfolio. For further information on the Wholesale
Portfolio, please refer to the Fund’s PDS and Other Material Information document.
The gearing ratio shows the level of borrowing the Wholesale Portfolio has
undertaken as a percentage of total assets.
$%