PLP – Quarterly Client Update – 31 December 2024

Private Land & Property Fund
Quarterly Client Update
Update as at and for the quarter ending 31 December 2024
Booster Investment Scheme 2
Investment outlook
Returns to the fund have been
6.5% on an annualised basis
over the three-year period to 31
December 2024, and 8.8% p.a.
since inception.
The Fund aims to generate
an average long-term return
of 6.5%p.a. after fees but
before tax over a rolling 7yr
period. This Fund objective is
based on returns from income
and development gains as
properties reach full productive
capability. Other returns to the
Fund can arise from property
revaluations.
Overall, we remain
pleased with the long-term
performance of the fund, and
we remain optimistic about
the medium-term prospects
for most of our investments,
aided by the positive effect that
decreasing wholesale interest
rates generally have on capital
values.
New acquisition: Woodland Road Orchard
Hot on the heels of our first investment in industrial property,
we’ve completed a smaller horticultural acquisition in Katikati,
Western Bay of Plenty. Woodland Road orchard is approximately
evenly split between green & gold kiwifruit and avocadoes. The
kiwifruit are grown and on-sold as part of the well-known Zespri
collective and the avocadoes are delivered to a Just Avocadoes
packhouse adjacent to the orchard.
The bulk of the orchard is mature fruit plants but there is also
opportunity for harvest yields to increase as the smaller number
of immature plantings reach their potential. For gold Kiwifruit this
represents a possible 40% increase by 2026/27 and for avocadoes
a possible 33% increase by 2027/28 season, though this depends
on a number of factors. There is also the possibility of further
conversion of green-to-gold Kiwifruit in future years, which may
be attractive given the latter’s higher retail price.
This development potential is something that we found attractive
in considering the investment as the fund earns income via the
net harvest proceeds on this asset, and along with such cash
income, enhanced returns from development align with the fund’s
investment objective.
Kiwifruit plants are ‘dioecious’ which means they are either distinctly
male or female varieties. Male plants produce pollen necessary for female
plants to produce fruit (by wind or insect pollination), so a sufficient
number is needed to be spread throughout an orchard. But an orchardist
doesn’t want too many males as they don’t produce any fruit! The typical
kiwifruit orchard male-to-female ratio is around 1:5 to ensure good pollen
distribution.
DID YOU
KNOW?

Dairy Farm Update
The stars are currently aligned for the NZ dairy
industry. A record Fonterra forecast payout of $9.85
beats the previous $9.30 record from 2021/22, and
when combined with a possible production record,
2024/25 is likely to be the best season ever. A
number of factors have led to this result including
good pasture growth, a low(ish) NZD/USD exchange
rate, and lower production volumes from most of
our global competitors.
Not to get too complacent, watchful eyes are
looking at the possibility of a dry summer which
could impact as the season progresses, and it’s
worth noting that farm input costs are also at a
record as machinery, diesel, and fertiliser costs have
increased faster than the general level of inflation.
Overall the Fund’s farms in Southland should be
well-placed to extract maximum benefit from the
current operating environment. Our next Market
Rent Review for these farms is scheduled for August
2025, with a full valuation having been completed in
September 2024 which contributed a small positive
result.
Avocado Update
Looking for a bounce back after two challenging
years, the avocado industry is quietly optimistic that
this will be a good season. Readers will remember
that Cyclones Dovi (2022) and Gabrielle (2023) led
to the downgrading of fruit which led to reduced
exports and lower returns to growers. This year the
New Zealand avocado industry crop is forecast to
total around 7 million trays, up from around 5 million
last year.
Valuation & Rent Reviews
Our team of independent valuers will be busy in
the first quart of 2025. All of our wine building and
vineyard assets are due for a valuation update, as are
most of our Kiwifruit and Avocado orchards. Further,
our new warehouse in Rolleston. Acquired late in
2024, is also being independently valued as part of
the sale & purchase agreement.
Our next rent review is in August 2025 where we
will get an agreed fixed increase in rent from our
Southland Dairy Farms.
Marlborough Weather; it doesn’t
rain it, hails?...
It appears our wine assets just can’t catch a break.
After two challenging seasons, recent favourable
growing conditions in our Marlborough vineyards
were interrupted by a damaging hailstorm that
swept through the Awatere Valley in late November.
The full extent of the impact will not be able to
be seen until the bunch count in early 2025 as
the extent of the bruising to the inflorescence
flowering (a cluster of flowers arranged on a stem) is
notoriously difficult to quantify.
This type of event once again highlights the
importance of geographic diversification, with our
vineyard assets spread between Marlborough,
Nelson, and Hawke’s Bay. The latter two regions
were unaffected by this event.

Fund Size
(net asset value)
$220.8 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)
$222.4 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 months1.0%0.8%
Last 6 months1.5%1.0%
Last 12 months-1.2%-1.4%
Last 2 years (p.a)3.5%3.5%
Last 3 years (p.a)6.5%6.3%
Last 5 years (p.a)8.2%7.8%
Last 7 years (p.a)
*
9.1%8.4%
Since inception 13/06/2017 (p.a)
*
8.8%8.1%
Fund Performance as at 31 December 2024
Before Tax
After Tax
at 28% PIR
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.
Disclaimer: 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
$29.113.0
Hope, Nelson Region
Vineyard properties
$19.28.5
Hawke’s Bay
Winery building
$3.11.4
Hawke’s Bay
Vineyard property
$5.82.6
Mahana, Nelson region
Winery building & Vineyard property
$3.71.7
Kerikeri, Northland
Kiwifruit orchard property
$20.19.0
Waimea, Nelson region
Waimea West Hops Ltd
$8.23.6
Bay of Plenty & the Far North
Avocado orchards
$18.18.1
Southland
Dairy farmland
$35.015.6
Rolleston
Logistics warehouse
$63.928.5
Bay of Plenty
Kiwifruit and Avocado orchards via
Woodland Road Orchard Limited Partnership
$14.36.4
Total property assets$220.5
Other Assets
Cash / Income$2.3
Accrued income$1.7
Total Assets$224.5
Total Liabilities (millions)
Borrowings with BNZ$3.8
Other liabilities
(incl Property Operating Costs)
$0.0
Total liabilities$3.8
Net asset value $220.8
Gearing Ratio1.7
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.
$%