Rural Equities Limited (REL)

[malus]

lol.
I am till with Mr.Cushing,as I brought SKL..

Now those I do have!!

[Newman]

Dairy Farm Price Index has dropped 21% in 12 months.
http://www.interest.co.nz/rural-news...d-21-12-months

The share price seems following the same trend. It would be interesting to see how land value would be recorded when annual report comes out.

[Sideshow Bob]

The Directors of Hawke's Bay based Rural Equities Limited (REL) are pleased to announce that its audited Total Comprehensive Income for the year ended 30 June 2020 was $3.080 million.
REL’s operating earnings before interest and tax was $4.985 million, a slight increase on the $4.931 million recorded last year.
During the year property revaluation losses and a loss on the sale of a property amounted to $5.712 million. This was partially offset by gains in the Group’s equity investments of $4.831 million.
REL’s net asset value per share (NAV) as at 30 June 2020 was $5.60 which is a six cent per share gain on last year’s NAV of $5.54.
REL’s Executive Chairman David Cushing commented “This is a satisfactory operating result and it is pleasing to record a small increase in NAV in a declining rural property market. The market continues to be subdued due to increasing environmental costs, a lack of foreign investors, tighter bank lending criteria and the disruption caused by Covid-19”.

A fully imputed dividend of three cents per share will be paid with respect to the financial year ended 30 June 2020, the same dividend as last year. The dividend will be paid to shareholders recorded on REL’s share register at 5.00 pm on Thursday 22 October 2020. The dividend will be paid on Tuesday 3 November 2020.
As part of REL’s capital management strategy and to provide liquidity, the Company intends to make an offer to all shareholders to repurchase up to 750,000 REL shares at a price of $4.70 per share. This is a $0.40 premium to the current market price.
Given that REL shares trade infrequently, Directors consider the offer will provide shareholders who are contemplating exiting their investment an ability to realise their shareholding at a premium to market and without paying brokerage fees. It is expected the offer will open on 11 September 2020 and close on 6 October 2020.
REL continues to assess long term investment opportunities in alternative asset classes. Directors have taken a cautious approach due to elevated asset prices and significant uncertainty caused by the current global pandemic.

[Smithy02]

REL’s net asset value per share (NAV) as at 30 June 2020 was $5.60 [snip] offer to all shareholders to repurchase up to 750,000 REL shares at a price of $4.70

Thanks, but no thanks.

S02

[kiora]

June 2020
"During the year property revaluation losses and a loss on the sale of a property amounted to $5.712 million."
Very unlikely to happen again
https://www.agweb.com/news/business/...armland-prices
https://www.scoop.co.nz/stories/BU21...rt-to-2021.htm

Forestry & Carbon Farming pushing up prices in marginal S & B farms

[Waikaka]

Over the years I have occasionally looked at REL and passed it up as a closed shop, too tightly held and thoroughly controlled by the Cushing's.

But still I am occasionally tempted by the share price generally having a significant buffer against underlying assets.

Imagine my surprise when wading though the 200 page Sanford annual report I see that Rural Equities Limited is in the Top 20 shareholders of Sanford. They have 1,257,575 shares at a current face value of $4.89, that's over $6 million dollars worth of Sanford but nothing in the REL 2021 annual report.

Is REL now just a closed investment vehicle for the Cushing's? If so they should just be done with the sham and take it entirely private.

Or should I just sell my currently growing stake in Sanford and buy a whack of REL if they are investing in the same stuff as me?

[kiora]

Over the years I have occasionally looked at REL and passed it up as a closed shop, too tightly held and thoroughly controlled by the Cushing's.

But still I am occasionally tempted by the share price generally having a significant buffer against underlying assets.

Imagine my surprise when wading though the 200 page Sanford annual report I see that Rural Equities Limited is in the Top 20 shareholders of Sanford. They have 1,257,575 shares at a current face value of $4.89, that's over $6 million dollars worth of Sanford but nothing in the REL 2021 annual report.

Is REL now just a closed investment vehicle for the Cushing's? If so they should just be done with the sham and take it entirely private.

Or should I just sell my currently growing stake in Sanford and buy a whack of REL if they are investing in the same stuff as me?

Buying a wack of REL makes a lot of sense. The Cushings 76% gives them good incentive to look after the Co. Farm prices have increased a lot lately so good tail winds & NO debt

[Waikaka]

Buying a wack of REL makes a lot of sense. The Cushings 76% gives them good incentive to look after the Co. Farm prices have increased a lot lately so good tail winds & NO debt

The Cushings through their various companies and trusts actual own at least 82.4%. Has also been bumped with share by backs and cancelations.

Shame as I would like to invest but just too tightly held for me.

[percy]

Over the years you would have noticed REL have been very successful with their share market investments.
Can't remember the name of the Aussie rural company they bought into, however it was taken over by Websters,and REL had a good holding in Websters,which was in turn taken over.REL did very well.Cushings and REL also did well with their PGW holdings,although they would have done better by holding..
However I have my doubts about SAN and Cushings holding in SVR.

[kiora]

Yes REL did very well from Tandou Limited (“Tandou”).
https://www.ruralequities.co.nz/imag...Investment.pdf