Rural Equities Limited (REL)

Hmm "food for thought" Percy! Attached article suggests the farm might not be the only source of meat in the more distant future... still I doubt the senior Cushing - Selwyn will not be worried! :

https://farmersweekly.co.nz/article/...five-years?p=1

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Originally Posted by malus

Hmm "food for thought" Percy! Attached article suggests the farm might not be the only source of meat in the more distant future... still I doubt the senior Cushing - Selwyn will be worried! :

https://farmersweekly.co.nz/article/...five-years?p=1

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Thanks for the link.
I don't know whether I would eat it.
Can't even buy a decent tomato now days.!
I recently sold my REL.Did well with them,but I have been a lot more aggressive this year.Getting pleasing results ,so will continue with selling poor performers and adding to my good performers.

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Originally Posted by percy

Thanks for the link.
I don't know whether I would eat it.
Can't even buy a decent tomato now days.!
I recently sold my REL.Did well with them,but I have been a lot more aggressive this year.Getting pleasing results ,so will continue with selling poor performers and adding to my good performers.

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Clearly not for our generation Percy... but who knows what future generations will eat if they listen to the marketing... seems a target would the animal rights brigade!!

Interesting you have seen brighter lights elsewhere and moved on from this, I have never held but always interested in what Mr Cushing is up to.

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

After the buyback of 1,515,677 [4.23%] shares at $4.20 from The Rotorua Energy Charitable Trust next January, Cushing family and the directors of REL together would hold about 70% of REL, and there would be nobody else holding a significant percentage of shares.

What would Cushing do from there? Further buyback from more than 1000 small shareholders? Would they get the 90% threshold before a compulsory acquition of the rest?

REL has been successful in selling farms and Fonterra shares at very good price and improving farms. With little debt would it buy farms when price is down?

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Originally Posted by percy

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

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Now those I do have!!

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.

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.

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

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