ALF - Allied Farmers Limited

[nztx]

Just waiting patiently Alf will have its day

Still waiting for the day when SP hits the Buck mark

It probably wont be next week or next month ..

Somehow, it could be quite a while if ALF continues taking Performance fees for 100% rather than 50%
in Muddyboots Empire NZL scrip, only to loose their pants badly when the guts drops out of NZL SP
just a matter of 4-5 months later

Then there's the rapidly escalating INTEREST bill NZL have looking forwards on growing borrowings
and increased Interest Rates .. gobbling up even larger chunks of the Lease Revenue..

Having a large wad of Tax Losses aren't going to be much use if the satellite Management outfit
can't afford to be paid it's fees and NZL itself looks to be headed into deeper strife servicing what it has
borrowed further, to cover forestry it signed up for without having dough in kitty - months earlier

Let's see now - are the NZL shares being hocked off now, the same ones that MuddyBoots Management Co
received Oct/Nov last year for Fees and a large bundle of dough has evaporated off since as the NZL share price collapsed by 30-40% since from $1.65 lofty issue price heights back then ?

Some may have difficulty wondering how ALF is managing to stay at circa 75c levels in market view.

No dividend, tax losses coming out it's ears and major revenue source fees from a captive NZL outfit
that seems to be fairly well borrowed up at increasing interest rates, adding more to the pile from Rabo
and where Cap Raise efforts may or may not have seen best of support on not one but further
fundraising efforts of recent times. It's all very well stacking the cards, but a change in wind
direction and velocity may not do many wonders ..


The apparent risks now present look more challenging than those before NZL came along, merchant bankers
clambered onboard and ALF quite happily was paying out some dividend 1-2c back then off it's farming services, broking and financing and real estate activities

[nztx]

https://www.nzx.com/announcements/409019

NZ Rural Land Management Purchase Completion

NZ Rural Land Management Purchase Completion

Allied Farmers Limited (ALF.NZX) is pleased to advise that it has today completed the purchase of the 50 percent of NZ Rural Land Management (NZRLM) that it does not already own.

NZRLM is now wholly owned and controlled by Allied Farmers.

The purchase price of $8.3 million was satisfied by payment to the vendors of $6.55 million of cash, and the transfer to the vendors of 1,800,227 million NZ Rural Land Company Limited (NZL:NZX) shares owned by Allied at their 20-day volume weighted average price prior to completion date of 0.9721 per share, being a total of $1.75 million.

Wonder how much Red Ink ALF wore on that 1.8 million NZL Shares shot out sideways as part of the deal ?

Note C2:
2022 Annual Report


http://nzx-prod-s7fsd7f98s.s3-websit...671/377579.pdf

In December 2020 Allied Farmers Limited acquired 900,000 shares at an issue price of $1.25 per share in New Zealand Rural Land Company Limited ('NZRLC').

In September 2021, Allied Farmers Limited acquired 600,000 shares at an issue price of $1.10 at a total cost of $660,000.

In June 2022 Allied Farmers Limited acquired a further 783,057 shares at an issue price of $1.05 per share in NZRLC.
The total cost was $823,973.

A further 35,362 shares were issued under a dividend reinvestment plan.

A further 581,581 shares were issued under the performance fee arrangement referred to below.

This holding represents a 2.56% ownership in NZRLC as at 30 June 2022 (2021: 1.49%). These shares are equity investments quoted in the active market which the Group has elected to designate as a financial asset at fair value through other comprehensive income.

Under the Management Agreement NZRLC is to pay NZRLM a performance fee which, subject to certain adjustments, is to be equal to 10% of the increase in net asset value of NZRLC in each financial year. The performance fee payable by NZRLC to NZRLM for the year ended 30 June 2022 comprised 2,499,247
(2021: 1,163,162) shares in NZRLC. Fifty percent of these shares were then distributed by NZRLM to Allied Farmers Limited in proportion to Allied's ownership of NZRLM.

These Performance Fee Shares must be the $1.65 a shot NZL jobs issued in Sep 2022

They really performed well in just 5 or 6 months, didn't they - only losing about 41% of their value

Obviously no parachutes were thought necessary at the time to cushion things in case of
descending rapidly into the thick Taranaki muck below


Here are the pricey Muddy Boots jobs, as recorded in the NZL Announcements:

http://nzx-prod-s7fsd7f98s.s3-websit...145/378300.pdf

2 September 2022

Issue of Performance Fee Shares

New Zealand Rural Land Company (NZL.NZX) confirms today it has issued 2,499,747 fully paid ordinary shares to satisfy the Performance Fee for FY22 at an issue price of NZ$ 1.6462.

Total number of shares on issue is now 115,601,570. An NZX capital change notice is attached to this announcement.

Rob Campbell
Independent Chair

[percy]

https://www.nzx.com/announcements/409561

Interesting.

[nztx]

Still doesn't make me any more interested in either NZL or ALF based on the way things are structured

Any trading bank deposit account probably enthuses more

[winner69]

So Waterman have been taking a lot of ex Chair and Rural Land guy guy Swasbrook’s shares

Waterman now have 14% of ALF

[nztx]

Chris Lee's latest newsletter has a bit to say about the "Clip the Ticket" Property Management regime
very similar to what's operating with ALF socking NZL for fees on most things NZL does

Let's see how NZL goes in a higher Interest, Inflationary, Cash Crisis environment where
revaluations might become next years unmentioned Swear word, if they exist at all
in coming periods, also at risk of a predatory Labour CGT regime, if the current mob
dont impale themselves on their own swords first

NZL holders might at worst be left sucking the kumara and licking an empty bowl ..

[golden city]

Financial report should come out next week should we expect some surprise

[nztx]

Financial report should come out next week should we expect some surprise

Yep .. No Div from NZL .. now deep in debt with hefty financing rates .. could it have it's hand out for a prop up
from ALF & other stakeholders ?

Maybe the NZL Management fees might have to be suspended, if things get really rough in the NZL camp ?

So on this likely still no ALF Dividend being paid out - continuing on as the Rural Sector encounters headwinds going forwards ?

[Lola]

Yep .. No Div from NZL .. now deep in debt with hefty financing rates .. could it have it's hand out for a prop up
from ALF & other stakeholders ?

Maybe the NZL Management fees might have to be suspended, if things get really rough in the NZL camp ?

So on this likely still no ALF Dividend being paid out - continuing on as the Rural Sector encounters headwinds going forwards ?

When Chair of NZL ( Campbell) pulls the plug we will know it’s all really packing up. Being tainted ain’t his thing.

[nztx]

When Chair of NZL ( Campbell) pulls the plug we will know it’s all really packing up. Being tainted ain’t his thing.

The smart ones might be more happy to have all four legs of their chairs & stools intact .. regardless of the forecast incoming winds

Did we make the magical buck or did things merrily romp down the hill following the axe falling on dividends ?