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  1. #1761
    Legend
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    Dec 2009
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    Quote Originally Posted by blackcap View Post
    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 ?

  2. #1762
    Guru
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    Apr 2003
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    Wellington, New Zealand
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    Quote Originally Posted by nztx View Post
    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.

  3. #1763
    Member
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    Jan 2014
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    480

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    Quote Originally Posted by nztx View Post
    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.

  4. #1764
    percy
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    Oct 2009
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    christchurch
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    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.

  5. #1765
    Senior Member
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    Apr 2008
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    auckland
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    1,453

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    Looking very good for Alf cash cow

  6. #1766
    Senior Member
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    Apr 2008
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    auckland
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    Result out just a little bit off my expectation

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