ALF - Allied Farmers Limited

[golden city]

590k performance fees in shares that will produce ongoing dividends to Alf or Alf can sell those shares into cash that is obvious total income from nzrlm 1.1m. Over time the nzl will just raising more money to buy more land ‘it is a growing benefit trend to Alf . Alf issuing shares for the acqusition not cash. 1.1m out of 2.5m for the first year that is a mega 44% returns what more we expects ? And it is growing .it adds fuels to our tank for further acqusition in the future

[nztx]

590k performance fees in shares that will produce ongoing dividends to Alf or Alf can sell those shares into cash that is obvious total income from nzrlm 1.1m. Over time the nzl will just raising more money to buy more land ‘it is a growing benefit trend to Alf . Alf issuing shares for the acqusition not cash. 1.1m out of 2.5m for the first year that is a mega 44% returns what more we expects ? And it is growing .it adds fuels to our tank for further acqusition in the future

but look - those performance fees on NZL Farm acquisitions are just one-off Fee jobs, aren't they ?

Sure more farms may be bought for/by NZL next year, presumable a similar Buying fee applies
to just the new ones as well.

what's the management fee rate on the value or lease, what-have-you without the one off Acquisition fee jobs ?

the large performance fees on acquisitions are one off's for any increased acquisitions in the year
and wont recur on the same plots of dirt in relation to NZLM managing the buying of them for NZL..

Now halve the Net Management surplus - because ALF holds just 1/2 of the Management outfit - and that's
all that is attributable to ALF - more or less according to normalised run of the mill M'fees, excluding
non repeating one-off jobs. (but probably less if they decide to buy NZL shares - which will only gain in value
if NZL sees gains on farmland - that's increases in value,

ALF buying NZL shares out of revenues means less of the 1/2 cash coming across for distribution to ALF holders
(You'll see it - in book entries, but the cash has already gone, been applied into shares, so not there any more)

Now with ALF - take the half of the Management fee net surplus (ALF own half OF NZLM currently)
add any surplus etc from ALF's continuing operations . bear in mind ALF have pointed to
drought and poor Weaner trading in past, I seem to remember - so possibly less than in past - but who knows

Let's look at ALF - it's Issued Capital has more than doubled in the past year

So any ALF surplus is then divided by roughly twice as many shares = 1/2 of what was EPS per share before
because it is split across double the number of shares

Bear in mind that ALF don't own NZL wholely 100% or 50% even - but may only have parcels of shares in it, so any
NTA gain will only be indirect only in relation to that shareholding in NZL directly held by ALF, as a revaluation movement
on the NZL equities they actually hold etc.

I still dont see how you get to vast amounts of Surplus out of NZL being created for ALF, which you are parroting on about ..

Where is it coming from ?

[Lola]

but look - those performance fees on NZL Farm acquisitions are just one-off Fee jobs, aren't they ?

Sure more farms may be bought for/by NZL next year, presumable a similar Buying fee applies
to just the new ones as well.

what's the management fee rate on the value or lease, what-have-you without the one off Acquisition fee jobs ?

the large performance fees on acquisitions are one off's for any increased acquisitions in the year
and wont recur on the same plots of dirt in relation to NZLM managing the buying of them for NZL..

Now halve the Net Management surplus - because ALF holds just 1/2 of the Management outfit - and that's
all that is attributable to ALF - more or less according to normalised run of the mill M'fees, excluding
non repeating one-off jobs. (but probably less if they decide to buy NZL shares - which will only gain in value
if NZL sees gains on farmland - that's increases in value,

ALF buying NZL shares out of revenues means less of the 1/2 cash coming across for distribution to ALF holders
(You'll see it - in book entries, but the cash has already gone, been applied into shares, so not there any more)

Now with ALF - take the half of the Management fee net surplus (ALF own half OF NZLM currently)
add any surplus etc from ALF's continuing operations . bear in mind ALF have pointed to
drought and poor Weaner trading in past, I seem to remember - so possibly less than in past - but who knows

Let's look at ALF - it's Issued Capital has more than doubled in the past year

So any ALF surplus is then divided by roughly twice as many shares = 1/2 of what was EPS per share before
because it is split across double the number of shares

Bear in mind that ALF don't own NZL wholely 100% or 50% even - but may only have parcels of shares in it, so any
NTA gain will only be indirect only in relation to that shareholding in NZL directly held by ALF, as a revaluation movement
on the NZL equities they actually hold etc.

I still dont see how you get to vast amounts of Surplus out of NZL being created for ALF, which you are parroting on about ..

Where is it coming from ?

June year accounts due 30th August NZTX. Get that toxic pen ready. There will be plenty of Investment Bank speak to try and understand.

[nztx]

Oh Management fees converted into extra Shares in Muddy Boots Management Co. ... must equal NO Cash changed hands

Some of us aren't befuddled by magic ring-a-ring-a-rosy book entries & revaluation movements ..

Revaluations can go up & disappear as quickly .. just like the ALF SP


Try paying out no cash received as a dividend

[golden city]

Very funny NZtx. Profit is profit. Either in share or cash Don’t know what is your intention or matter

[nztx]

Very funny NZtx. Profit is profit. Either in share or cash Don’t know what is your intention or matter

What happens if an adverse event affects Farming (for eg - outwards Supply chain problems worse than now for exports)
Farm valuations downturn, ability of the Cockie Leasees to meet their obligations to the Muddy Boots empire ?

The downwards spiral including valuations is likely to go round a full circle NZL through to ALF

Dont think it couldn't happen, because it can..

Look no further than ATM's recent 2 years of Export Markets issues

Anything in primary sector is this country is & can be susceptible to climate, weather, diseases, market & other factors

ALF investors should be well aware of this with past warnings of Drought conditions & other Livestock sectors in their trading
portfolio.


Exposure to further primary sectors / structures may well represent increased risk to Farming stacked on those previously within ALF

In adverse times the stack of cards sometimes may be teetering in risk of collapse according to worst of prevailing conditions out there when they occur ..

These occurences can take in places 5, 10 or longer years to see tangible recovery from..

In face of NZL adverse results, added to by inhouse ALF risks becoming reality, any dividend from ALF would be first at risk

Dont underestimate the exposure of companies to certain sectors

Droughts in the early 1980's affected a wide range of Farming activities, and could well happen again.

The climate we are lead to believe is changing - wetter areas suitable for certain activities can change to the opposite
and vice versa. NZL as a long term land holder would be exposed to possibility of adverse conditions appearing
and with it NZLM & ALF also ..

[mfd]

It's nothing new for ALF to be exposed to risks in the primary sector. The NZRLC management fees gives them a useful, comparably reliable, income and diversifies the company.

All companies have risks, this is why we have portfolios.

[golden city]

What companies doesn’t have risk factor ? I can’t imagine

[golden city]

The way I see Alf is working on to diversifying income. It is on its way to recovery

[nztx]

The way I see Alf is working on to diversifying income. It is on its way to recovery

Nothing like doubling up on more risk in the same sector .. fine if it pans out, but then many primary sectors
are cyclical .. ones with knowledge through the 1980's - 1990's will know this ..

Dairy is increasingly seeing more large scale entrants into the game in China, South America & elsewhere
- all capable of cheaper base production

NZ has the disadvantage of being further from markets, and possibly affects of global shipping routes
congestion / higher shipping costs / shortages of empty boxes etc, etc

that's before climate / weather / other sector risks come into play or the merry band of Politicians
really get interested in having a fiddle at destocking, as our Green mates have hinted at enjoying

Dairy has had a good run - it wasn't always that way & the dial could turn back the other way
like many other sectors have experienced. A2 Milk demonstrates market issues nicely of late.

Of course these things go right back up the supply chain to producer to bods owning the leased out farms etc
when they occur dependent on severity - ultimately affecting or influencing market values for dairy acreage

but don't let me discourage anyone that a flutter at ALF & it's wider NZL turf empire doesn't look like an undiscovered
gold mine with a treasure trove hidden within ..

A bit of a shame that most of the easy gold may have already been harvested from the muddy boots empire
long before it hit the market in a loud fanfare & rapid card building exercise ..