PLP - Quarterly Client Update

Private Land & Property Fund
Quarterly Client Update
Update as at and for the quarter ending 30 June 2024
Booster Investment Scheme 2
Investment outlook
While returns of the Private Land and Property
Fund (Fund) have been 8.1% on an annualised
basis over the three year period to 30 June 2024,
and 8.6%p.a. since inception (after fees and tax),
the past quarter delivered a 0.7% return. While
modestly positive it is pleasing to see returns
from both cash income received and property
development gains contributing to the overall
result. The Fund aims to generate an average
long-term return of about 6.5%p.a. over rolling 7yr
periods from a combination of income and gains as
properties reach full productive capability.
This quarter confirmed that our 2024 Marlborough
vineyard grape harvest was substantially lower than
what we might expect on average over the medium
term. This is the result of a handful of severe frosts
in the early part of the season, some of which were
affected despite consistent windmill air circulation.
While these lower volumes will affect the level
of income we receive from properties that sell
crops through supply agreements, there are
some positives from an industry perspective.
The previous two seasons were ‘bumper’ vintages
and this lower-volume harvest is supportive
of maintaining grape prices, by helping avoid
oversupply in the market. As it currently stands,
we see strong underlying demand continuing
because of the lower volumes this season.
It’s worth noting again that most of the portfolio
invests in properties that generate income via fixed
rate leases, and we continue to explore options to
diversify the portfolio.
In April we notified the market that we have
entered into a conditional agreement to purchase
a large scale recently built industrial property,
subject to satisfactory completion of due diligence
and supervisor approval, both of which are ongoing
and well-advanced.
If successful, the property would represent
approximately 30% of the Fund’s total (gross)
property value post transaction. The property
is subject to a long-term net lease with a strong
tenant.
This purchase represents an exciting addition for
the Fund and supplements our core horticultural/
agricultural focus with further diversification
benefits. As we have previously noted, investments
in property outside of our core horticultural and
agricultural focus are actively considered where the
risk/yield proposition is attractive.
It’s important to note that property values do vary
over time, though a longer-term perspective is
important. The Fund’s investment objective remains
focused on producing returns over a 7-year rolling
period which allows for ‘peaks’ and ‘troughs’ in the
business and investment cycle.
As well as this opportunity, 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 vineyards have now lost their leaves and winter
pruning and maintenance is well underway.
The pruning strategy employed has a material
impact on the expected quality and quantity of
growth for the next season. Winter pruning is also
one of the biggest vineyard expenditures. Typically
cane pruning has been the traditional pruning
method of choice, however recent research has
shown that a pruning technique known as ‘Long
Spur’ can reduce labour costs while not adversely
affecting canopy density and yield. This technique
is being trialled at one of our blocks in Marlborough
and we’re looking forward to comparing results.
Kiwifruit
With the 2023/24 packing season now finished,
the industry reported record volumes. Class 1
Trays almost doubled from 2023 to 108,355 at our
Kerikeri orchard.
On the back of larger volumes, smaller size profile
has been reported in Green and Green Organic
fruit, and returns to growers have been clipped
slightly due to foreign currency rates, particularly
Japanese Yen. However, the outlook is positive for
the 2024/25 season with prices forecast to remain
robust, albeit perhaps slightly softer than last year.
The lemons previously planted continue to develop
and a small first harvest is expected in 2025.
The income received from the fund’s kiwifruit
property in Kerikeri has remained steady due to the
fixed lease, which is due for a market review next
quarter.
Avocados
The last quarter has closed the book on the
disappointing 2023/24 season. Fewer than 1.5
million trays were exported, compared to 5 million
trays during favourable and productive seasons.
With that out of the way, early signs point to a more
positive outlook for the upcoming season, largely
due to two macroenvironmental factors. Firstly,
international competitors are likely to experience
reduced supply volumes compared to last season.
Secondly, the probability of local avocado crops
suffering from another perfectly ill-timed weather
event is low, and the industry is looking forward to
a more normalised year.
Providing some insulation from year to year
fluctuations, the income received from our avocado
orchard is a fixed lease that comprises rate
increases as the orchards reach maturity in 2028.
The latest of these stepped increases was in April
2024.
Hops
The hop garden at Waimea West Hops continues to
mature and is on-track to reach full maturity by the
2025 season. This will result in increased yields from
the current garden. As volumes increase we continue
to explore different channels to market in order to
maximise value and ensure security of demand.
Weather-related events
Finally, some good weather news to report as our
Hawkes Bay vineyards and Bay of Plenty orchards
were largely unaffected by the late-June storm
which saw emergency warnings to that part of
the North Island. Latest reports are of no material
damage to report to plant or property.

Fund Size
(net asset value)
$125.2 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)
$125.9 million
Inception Date 07/01/2019
ManagerBooster Investment Management Ltd
SupervisorPublic Trust
Fund TypePortfolio Investment Entity (PIE)
Private Land and Property Fund (Fund)
The Fund obtains its property exposure by investing into the Wholesale Portfolio
alongside some cash held within the Fund.
Investment Holdings
Last 3 months0.5%0.7%
Last 6 months-2.6%-2.4%
Last 12 months-1.6%-1.6%
Last 2 years (p.a)5.0%5.0%
Last 3 years (p.a)8.3%8.1%
Last 5 years (p.a)
*
8.9%8.4%
Since inception 13/06/2017 (p.a)
*
9.2%8.6%
Fund Performance as at 30 June 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
$29.020.3
Hope, Nelson Region
Vineyard properties
$19.013.3
Hawke’s Bay
Winery building
$3.12.2
Hawke’s Bay
Vineyard property
$5.84.0
Mahana, Nelson region
Winery building & Vineyard property
$3.72.6
Kerikeri, Northland
Kiwifruit orchard property
$19.713.7
Waimea, Nelson region
Waimea West Hops Ltd
$11.07. 7
Southland
Dairy farmland
$32.822.9
Bay of Plenty & the Far North
Avocado orchards
$18.012.6
Total property assets$142.1
Other Assets
Cash / Income$0.1
Accrued income$1.1
Total Assets$143.3
Total Liabilities (millions)
Borrowings with BNZ$18.0
Other liabilities
(incl Property Operating Costs)
$0.0
Total liabilities$18.0
Net asset value $125.2
Gearing Ratio12.6
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.
$%