good summary in today's afr...Our assets are performing well,...

good summary in today's afr...

Our assets are performing well, says Rural Funds boss David BryantLarry SchlesingerBy Larry SchlesingerFeb 21, 2019 — 5.02pm

Rural Funds Group was unaffected by the recent devastating Northern Queensland floods and in fact received "beneficial rain" on some of its cattle properties, according to managing director David Bryant.

The trust, which lifted the value of its diversified portfolio to over $800 million over the six months to December, was also coping well with drought conditions in other parts of the country, Mr Bryant said."In Central Queensland, where we are experiencing dry conditions, our properties are located in high-rainfall areas and we are hopeful of a break in the weather in the near future," said Mr Bryant. He added: "We're very happy with the way our assets are performing."

Cobungra is one of a number of recent acquisitions by Rural Funds Group Supplied

The trust, whose portfolio stretches from cattle stations in Northern Queensland to almond orchards in southern NSW and vineyards in the Barossa Valley, re-affirmed its full-year guidance of a 4 per cent rise in both adjusted funds from operations (AFFO) and distributions after reporting AFFO growth of 7 per cent to $20.3 million for the half year. Net profit was up 10 per cent to $18.4 million.

The six-month period to December was one of the trust's most acquisitive and included a $150 million equity raising to fund the acquisition of cattle feedlots, cattle stations and one cotton station.Related QuotesPost the reporting period, RFF also acquired two further cattle stations including renowned Wagyu property Cobungra at Mt Hotham for $35 million.

With gearing at 33 per cent, near the "upper end" of its 30-35 per cent target range, Mr Bryant said the trust had "paused" on further acquisitions and would turn its attention to its capital expenditure program with a focus on irrigation works and pasture improvements."We'll use the next six months and this calendar year to make sure developments and improvements are completed," he said.