ALF - Allied Farmers Limited

[golden city]

We are heading to 10 years high soon looks like

[nztx]

We are heading to 10 years high soon looks like


Thanks for the heads up .. time to sell the few leftover soon as the Feb 2022 $0.92 level reached :)

Thanks folk for turning something red into something positive

[thedrunkfish]

Whats going on with the share price today? Dropped like a stone.

[nztx]

Whats going on with the share price today? Dropped like a stone.

I sold & someone else must have run out of gold :)

[nztx]

Where da trend taking us now ? .. looks like towards the 2 year low

didn't even touch the magic Dollar before getting bucked back down

would doubling the dividend or paying two special dividends from the heaps of Muddy Boots
Empire Performance fees flowing into coffers slow the slide down a muddly slope .. or not ? ;)

things must be bad out there if no-one love ALF anymore :)

[blackcap]

Where da trend taking us now ? .. looks like towards the 2 year low

didn't even touch the magic Dollar before getting bucked back down

would doubling the dividend or paying two special dividends from the heaps of Muddy Boots
Empire Performance fees flowing into coffers slow the slide down a muddly slope .. or not ? ;)

things must be bad out there if no-one love ALF anymore :)

I don't believe they are intending to pay dividends and probably a good thing. They could do a capital return to shareholders if they so wished to get rid of excess cash...

[nztx]

I don't believe they are intending to pay dividends and probably a good thing. They could do a capital return to shareholders if they so wished to get rid of excess cash...


Sub 50c low to be expected, if things get really tough in the debt laden Farm & Forestry clods empire
satelite, if it struggles to perform & cough up on performance ? ;)

[blackcap]

Sub 50c low to be expected, if things get really tough in the debt laden Farm & Forestry clods empire
satelite, if it struggles to perform & cough up on performance ? ;)

I think ALF will be ok. They have the management contract, one could argue a case for it being onerous, but from an ALF perspective, that thing is a goldmine.

[nztx]

I think ALF will be ok. They have the management contract, one could argue a case for it being onerous, but from an ALF perspective, that thing is a goldmine.


Only any good if there is something left to manage .. and the hardening times dont mean more of the dairy
& forestry clods need to be hocked off to keep the Lenders at bay with their butterfly nets out to scoop up
huge usary dallops for the privilege .. like hungry wolves pounding on the door ;)

these sort of situation have a bad habit of arising when large bucketfulls of OPM are roped in to be used
to buy stuff .. and then economic times change to another set of factors .. let's face it - love it or not
but ALF's Divie abolished is just one casualty of this, no matter what excuses are trotted out to cover it ;)

[blackcap]

Only any good if there is something left to manage .. and the hardening times dont mean more of the dairy
& forestry clods need to be hocked off to keep the Lenders at bay with their butterfly nets out to scoop up
huge usary dallops for the privilege ;)

NZL is listed and there is always that left to manage. By last count NZL had mkt cap of $130m and they keep doing the right thing by expanding that by all sorts of means. I think ALF will be fine.

[nztx]

NZL is listed and there is always that left to manage. By last count NZL had mkt cap of $130m and they keep doing the right thing by expanding that by all sorts of means. I think ALF will be fine.


Have they put a price on seats on the board of his cosy little outfit - for a very long session of sucking on the straw
with limited risk of being sent sideways .. while stakeholders get left to suck the kumara or starve ? ;)

[blackcap]

Have they put a price on seats on the board of his cosy little outfit - for a very long session of sucking on the straw
with limited risk of being sent sideways .. while stakeholders get left to suck the kumara or starve ? ;)

Are you referring to NZL or ALF?

NZL in my humble opinion is financial wizardly of the highest order, a company contrived and then saddled with a management contract that at the stroke of an IPO managed to make a lot of money for the owners of the management company which was immediately valued at $xm. ALF bought a piece of this off the "originator" and now owns 100% of this.
Not sure who is on the board of NZL but if shareholders don't like it, they can always vote them off.

[mfd]

Only any good if there is something left to manage .. and the hardening times dont mean more of the dairy
& forestry clods need to be hocked off to keep the Lenders at bay with their butterfly nets out to scoop up
huge usary dallops for the privilege .. like hungry wolves pounding on the door ;)

these sort of situation have a bad habit of arising when large bucketfulls of OPM are roped in to be used
to buy stuff .. and then economic times change to another set of factors .. let's face it - love it or not
but ALF's Divie abolished is just one casualty of this, no matter what excuses are trotted out to cover it ;)

Remember, the recent NZRL deal was good for ALF. The management company gets a cut of the transaction and continues to manage the sold land for the new owner. ALF get to have their cake and eat it, and you're trying to panic shareholders that they might have to suffer another windfall profit in the future?

ALFs dividend policy has been well explained to you on here and by the company itself so let's drop that and reconsider once the stash of tax losses has been worked through.

[percy]

More management fees for ALF.

Apple and Forestry Land Acquisitions
20/2/2024, 5:09 pm TRANSACT
New Zealand Rural Land Company (NZL.NZX) has today entered agreements to acquire the land supporting three apple orchards located in the Hawkes Bay region in the North Island and forestry land located in close proximity to its existing estates for a total purchase cost of approximately $27.6 million ($18.1 million and $9.5 million respectively). The land will be acquired by the Limited Partnership formed as part of the recently announced Roc Transaction.

Apple Orchard Land
The orchard land has a total land area of approximately 97 hectares of which 82 hectares are planted in a range of apple varieties. The orchards will be leased to Kiwi Crunch for a period of 30 years with a year one income of ~$1.4 million (~7.5%), subject to uncapped annual rental adjustments of CPI or 2.5%, whichever is higher. NZL will own only the land not the trees. Located near Twyford, the orchard land features high quality soils well suited to intensive horticulture and enabling a range of alternative uses.

Kiwi Crunch operates a vertically integrated apple and pear business spanning nurseries, orchards, packhouses, coolstores and an export marketing division. The company employs more than 140 people (over 350 during harvest) and has interests in Hawkes Bay, Nelson and Central Otago.

The acquisition is conditional on obtaining certain third party approvals and settlement is expected to occur in March 2024. This acquisition represents entry into a new sub-sector for NZL and sees the addition of an experienced, well capitalised tenant. Furthermore, the 30 year lease term materially increases NZL’s weighted average lease term, increases the frequency of rental reviews and further increases portfolio yield.

Forestry Land
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 (~8.0%), 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 today.

NZL believes this is an attractive acquisition and expects its value, once planted and taking into consideration the lease, to be in excess of its purchase cost. Additionally, forestry assets of scale have proven to be an attractive asset class, this purchase adds to NZL’s estate in one of New Zealand’s preeminent growing areas. The land is moderate to steep hill country poorly suited to other agricultural uses but ideal for forestry. This acquisition further diversifies NZL from a large pastoral farm land base while the 16 year lease term increases NZL’s Weighted Average Lease Term, increases the frequency of rental reviews and further increases portfolio yield.

Acquisition Funding
Both purchases will be funded by equity with NZL contributing 75% and Roc contributing 25%.

NZL’s total outstanding debt remains unchanged and the acquisitions are expected to directly contribute more than $1.5 million ($970k and $530k, respectively) to NZL’s FY24 AFFO. Following the acquistions we expect gearing to sit at approximately 30%. Further information on NZL’s financial position and outlook will be provided to the market on 29 February 2024 with NZL’s full year results.

[golden city]

Looking very good for Alf cash cow

[golden city]

Result out just a little bit off my expectation