RFF 0.27% $1.88 rural funds group

Balanced Discussion of Risks, page-134

  1. 6,461 Posts.
    lightbulb Created with Sketch. 137
    This is how I see it...DYOR though.

    RFF owns the land and assets.
    RFP runs a chicken growing business on that land and within the buildings and pays rent to RFF under a lease agreement.

    I know in commercial lease agreements that the company/business has the buildings to rent but must maintain their own fixtures and fittings within those buildings. Usually returning the buildings back to the original condition when lease expires and they do not continue to lease.

    I could be wrong but I'd say its something like that.
    Quite technical of course.
    The parties are related of course but kept very transparent IMO.
    RFP has plenty of assets, cash, equity itself to draw on to make any changes to their sheds or should I say their own infrastructure within RFF's sheds.

    Anyone else care to weigh in please I may have it wrong, just how I see it works from my view and experience.
 
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