NZL - NZ Rural Land Co IPO

[kiora]

WillNZL have to raise capital whenever they buy a new property?

Which benefits who?

[nztx]

WillNZL have to raise capital whenever they buy a new property?

Or mortgage up large against the freehold ?

Somehow I can't see that happening given Man Fee impost to ALF
and potentially increasing costs of borrowing going ahead, with what
can be passed onto lessees of the Ag blocks being capped

Revaluations don't represent cash generated after all, so shareholders' pockets (or possibly
pockets of the ones that get landed with placements of otherwise unwanted surplus shares)
would be cheapest easiest form of getting in added new capital, if they're even interested
in throwing extra large wads of readies in to NZL for more of the same ahead ..

[nztx]

And presto -- in comes a NZL Shortfall Bookbuild

The magic $1.05 current market & offer price too, but could that crumble when the dust clears ?

In today's market, could south of 80c be seen in near future ?

[Sideshow Bob]

Substantial NAV Uplift Demonstrates Quality of Portfolio - NZX, New Zealand’s Exchange

FY22 Results: Substantial NAV uplift demonstrates quality of portfolio New Zealand Rural Land Company (NZX. NZL) is pleased to announce its audited FY22 earnings and outlook. NZL recorded a record Net Profit After Tax of $39.7M for the period and a net asset value per share (NAV) increase of +18.6% (+$0.26) alongside a total dividend for the year of 3.61 cents per share.

[nztx]

Substantial NAV Uplift Demonstrates Quality of Portfolio - NZX, New Zealand’s Exchange

FY22 Results: Substantial NAV uplift demonstrates quality of portfolio New Zealand Rural Land Company (NZX. NZL) is pleased to announce its audited FY22 earnings and outlook. NZL recorded a record Net Profit After Tax of $39.7M for the period and a net asset value per share (NAV) increase of +18.6% (+$0.26) alongside a total dividend for the year of 3.61 cents per share.

No tax credits .. revaluations being distributed (or part thereof)

What happens if the rural market turns the other way ?

Was any part of NAV movement due to increase in Cap at a higher or lower value to NAV ?

[beetills]

How positive is this forestry purchase for NZLs future

[kiora]

It depends on CC pricing trajectory & when they might sell the CC & THE FINANCIAL SOUNDNESS OF NZFL
https://www.stuff.co.nz/business/far...carbon-credits

[DTC]

Interesting to note NZL not down in share price as much as other property stocks, depending on measurement dates, from hi of $1.27 at launch in Dec 2020 to $1.05 now- approx 17%. Even tho' gummint beating up on farmers, inc. new greenhouse gas tax, along with supply chain issues, staff shortages, transport costs up, etc...

[nztx]

Interesting to note NZL not down in share price as much as other property stocks, depending on measurement dates, from hi of $1.27 at launch in Dec 2020 to $1.05 now- approx 17%. Even tho' gummint beating up on farmers, inc. new greenhouse gas tax, along with supply chain issues, staff shortages, transport costs up, etc...

The Govt beating up of the Local Ag sector with untold mindless Green policies might still be to happen .. wait until it goes round

Not much of div being paid to keep this sucker up & no imputation credits attached either

Down 3.0c or 2.78% yesterday

Div 3.06c/$1.05 closing SP = a lowly 2.91% .. 'money in da bank' probably pulls in a better return
with both NZL div & Interest from the bank copping a full caning by the taxman in the end.

When the risks on Ag exposures become more apparent, possibly some further SP slippage may be seen

Contrast it with ALF which lost 5.33% of it's opening SP yesterday & it pays no Div

[nztx]

https://www.nzx.com/announcements/405618

Financial Year Ending 31 December 2022 Update

As previously announced, New Zealand Rural Land Company (NZX: NZL) has changed its balance date to 31 December (from 30 June). Accordingly, NZL has begun work with its auditors and valuers on this reporting period.

So what's that ? - an 18 months Full Year ?

At this time, NZL has received preliminary independent valuations of its investment properties. In aggregate, the properties have increased in value by +0.9% (+$2.46 million) which demonstrates both the resilience and quality of the rural land NZL holds in its portfolio. These valuations are subject to final audit confirmation.

NZL expects to report the result for the period ending 31 December 2022 on or before 27 February 2023.

So a revaluation gain of $2.46m pre any tax provision thereon = 2.13 cps across 115.6 m shares issued

Does it actually make any real Cash Profit after stumping up Management fees across to ALF Empire ?

Or more relevant will it be - looking ahead with rising cost of loan servicing, management fees etc ?

The increased $100 mil of borrowings already showing higher rates in FY 22 over the prior year FY 21
and including further $40m Tick then added will be starting to bite hard into any cash generated with loan expiries reported in 2022 accounts of 1 Jun 2024, 2025 & 2026 and some rates reported near doubled in Y/e to 30/6/22.

The hiked up interest / loan servicing has got to come from somewhere, and it won't be Cockies leasing the turf. I'm picking if things get hard the dividend small as it is, could get knifed or another hand gets outstretched to stakeholders to pull the loans outstanding back to some kinder levels

Doesn't seem a h4ll of lot to write home about with sub interest rate dividend 3.37% yield showing on NZX site
and no imputation credits anywhere to be seen.

Probably running the same reporting deal as the rest homes sector booking unrealised revaluations into P&L

No wonder this thing is sitting around $1.08 ( + 0.01 today on the announcement) on NZX recorded NTA of $1.63 reported at close