Rural Funds Group (AU:RFF)
ASX:RFF
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Rural Funds Group
(Sydney:RFF)
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Rating:65Neutral
Price Target:
AU$2.00
▲(3.63% Upside)
Action:ReiteratedDate:02/20/26
The score is driven primarily by stable but mixed financial performance (good margins and balance sheet offset by weakening growth and cash conversion) and a balanced earnings-call outlook (guidance reaffirmed, but leverage/interest costs and reliance on asset sales constrain upside). Technicals are supportive and help the score, while valuation is a headwind due to the high P/E despite the strong yield.
Positive Factors
Long lease tenor & high occupancy
A WALE of 13.2 years and 83% leased exposure provides durable, contracted rental income with low rollover risk. This underpins predictable AFFO, stabilises cash flows across commodity cycles, and allows management to plan refinancing and hedging with greater certainty.
Negative Factors
Gearing above target range
Pro‑forma gearing at c.39.1% sits meaningfully above the stated 30–35% target, increasing financial leverage. Elevated leverage raises interest expense sensitivity, restrains strategic optionality, and makes outcomes contingent on timely asset disposals and favourable market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Long lease tenor & high occupancy
A WALE of 13.2 years and 83% leased exposure provides durable, contracted rental income with low rollover risk. This underpins predictable AFFO, stabilises cash flows across commodity cycles, and allows management to plan refinancing and hedging with greater certainty.
Read all positive factors
Rural Funds Group (RFF) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$787.24M
Dividend Yield5.71%
Average Volume (3M)791.66K
Price to Earnings (P/E)4.1
Beta (1Y)0.51
Revenue Growth18.40%
EPS Growth-67.76%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.11
Shares Outstanding389,723,000
10 Day Avg. Volume501,222
30 Day Avg. Volume791,660
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.65
Price to Sales (P/S)6.02
P/FCF Ratio50.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.35Price Target Upside21.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.12
Revenue Forecast (FY)AU$121.64M
Rural Funds Group Business Overview & Revenue Model
Company Description
Rural Funds Group (RFF) is an Australian real estate investment trust (REIT) that focuses on acquiring, developing, and managing agricultural assets across Australia. RFF primarily invests in sectors such as vineyards, orchards, and livestock, pro...
How the Company Makes Money
Rural Funds Group generates revenue primarily through rental income derived from leasing its agricultural properties to tenants engaged in various farming activities. The company benefits from long-term lease agreements, which provide stable cash ...
Rural Funds Group Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Neutral
The call presented a mix of solid operational and capital-management progress — AFFO in line with guidance, net property income up 7%, completed developments, successful asset sales (some at premiums), and a modest NAV uptick. However, higher cash interest costs, pro forma gearing above the target range (39.1%), dependence on further asset sales and unitholder approvals, low yields on natural-resource assets, and the fact that much of the half’s earnings uplift was noncash mean material execution and macro risks remain. Overall the positives and negatives are balanced: the business is stable with clear remediation plans, but near-term constraints (leverage, interest costs, payout ratio) temper upside.Positive Updates
Net Property Income Growth
Net property income from leased assets increased by $3.0 million (up 7%) to $49.0 million, driven by additional rent from developed macadamia orchards and annual lease indexation.
Negative Updates
Higher Interest Expense
Interest expense increased by approximately $4.0 million in the half, largely because less interest could be capitalized following the completion of several development projects (raising running interest cost).
Read all updates
Q2-2026 Updates
Positive
Negative
Net Property Income Growth
Net property income from leased assets increased by $3.0 million (up 7%) to $49.0 million, driven by additional rent from developed macadamia orchards and annual lease indexation.
Read all positive updates
Company Guidance
RFF reaffirmed full‑year AFFO and distribution guidance: H1 AFFO was $21.5m ($0.55/unit) and H1 distributions totaled $0.0587/unit, with AFFO skewed to H2 as farming income rises from $1.1m in H1 to just over $5m FY (≈$4m in H2). Adjusted NAV was $3.10/unit (+$0.02), pro‑forma gearing ~39.1% (target 30–35%) with $70m development CapEx deployed in H1 and FY27 CapEx materially lower; management plans to reduce gearing via asset sales (sold ~$60m in the period, targeting $200–260m of disposals over ~12 months, with ~$20–22m high‑security water remaining; two sugarcane farms sold ~10% above book and water sold at adjusted book value, ~2.5x purchase price). Core debt facility refinance extended tenor and cut margins ~5–10bp, interest expense rose ~$4m due to less capitalizable interest, debt is ~60–70% hedged (hedges locked through FY29), and a proposed J&F guarantee increase (docs due Mar‑26) could add up to ~$0.01/unit of AFFO if fully utilised.Rural Funds Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 121.19M | 113.82M | 95.06M | 98.11M | 85.29M | 70.97M |
| Gross Profit | 64.41M | 87.04M | 67.95M | 69.47M | 66.96M | 62.82M |
| EBITDA | 111.36M | 70.72M | 53.91M | 54.20M | 53.95M | 51.24M |
| Net Income | 61.35M | 31.46M | 83.25M | 94.50M | 209.14M | 119.63M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 1.91B | 1.90B | 1.67B | 1.41B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 10.93M | 8.91M | 7.24M | 5.75M | 4.96M | 11.65M |
| Total Debt | 847.87M | 811.05M | 787.74M | 640.61M | 457.82M | 346.60M |
| Total Liabilities | 904.81M | 862.84M | 829.90M | 680.34M | 489.75M | 397.21M |
| Stockholders Equity | 1.07B | 1.06B | 1.08B | 993.16M | 917.01M | 648.54M |
Cash Flow | ||||||
| Free Cash Flow | 35.51M | 13.69M | -23.27M | -8.13M | -58.89M | 15.77M |
| Operating Cash Flow | 58.79M | 55.73M | 31.58M | 29.25M | 37.66M | 35.47M |
| Investing Cash Flow | -68.81M | -35.74M | -138.25M | -172.07M | -215.41M | -41.66M |
| Financing Cash Flow | 13.94M | -19.32M | 108.15M | 143.61M | 171.07M | 12.75M |
Rural Funds Group Technical Analysis
Positive
1.93
Price Trends
2.03
Negative
1.99
Positive
1.91
Positive
Market Momentum
-0.01
Negative
50.89
Neutral
45.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RFF, the sentiment is Positive. The current price of 1.93 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.03, and above the 200-day MA of 1.91, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RFF.
Rural Funds Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$903.55M | 4.55 | 13.71% | 3.88% | 41.77% | 60.62% | |
70 Outperform | AU$1.63B | 5.41 | 8.46% | 1.81% | 6.96% | 815.99% | |
69 Neutral | AU$612.55M | 4.51 | 14.27% | 3.32% | 14.95% | 18.79% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | AU$787.24M | 4.05 | 5.76% | 5.71% | 18.40% | -67.76% | |
48 Neutral | AU$561.62M | 9.71 | -31.66% | ― | -38.91% | -453.73% |
* Real Estate Sector Average
AU:RFF
Rural Funds Group
2.02
0.40
24.46%
AU:PPC
Peet Limited
1.95
0.61
45.37%
AU:INA
Ingenia Communities Group
4.05
-1.24
-23.50%
AU:CWP
Cedar Woods Properties Limited
7.38
2.50
51.17%
AU:LIC
Lifestyle Communities Ltd
4.50
-3.15
-41.18%
AU:GLF
Gemlife Communities Group
4.33
0.25
6.13%
Rural Funds Group Corporate Events
Rural Funds Group outlines key metrics ahead of half-year 2026 results
Feb 19, 2026
Rural Funds Group has released a financial results presentation for the half-year ended 31 December 2025, outlining performance metrics, capital structure definitions and valuation methodologies for its agricultural property portfolio. The documen...
Rural Funds Group lifts earnings and advances development while holding FY26 guidance
Feb 19, 2026
Rural Funds Group reported a 6.8% rise in net property income to $48.6m for the half-year to 31 December 2025, driven mainly by additional rental income from macadamia developments. Earnings jumped to $44.1m, largely due to interest rate swap reva...
Rural Funds Group Releases Half‑Year 2025 Financial Statements
Feb 19, 2026
Rural Funds Group has released its financial statements for the half-year ended 31 December 2025, providing investors with consolidated income, financial position, cash flow and changes in net assets attributable to unitholders. The documents incl...
Rural Funds Group posts sharp profit surge and higher asset values in first half
Feb 19, 2026
Rural Funds Group reported a strong first half to 31 December 2025, with revenue from continuing operations rising 13% to $70.24m and profit after tax from continuing operations jumping 292% to $47.37m. Total comprehensive income attributable to u...
Rural Funds Group Sets Date for 1H26 Results and Investor Webinar
Feb 8, 2026
Rural Funds Management, as responsible entity of Rural Funds Group, will release the agricultural REIT’s first-half 2026 financial results on 20 February 2026 and host an investor webinar the same day to brief the market. A recording will be...
Rural Funds Group Confirms Payment of Quarterly Distribution
Jan 30, 2026
Rural Funds Group has confirmed payment of its previously announced quarterly distribution on its fully paid stapled securities (ASX: RFF) for the period ended 31 December 2025. The update, lodged with the ASX as an amendment to its December notif...
Rural Funds Management Showcases Diversified $2.1bn Agricultural Property Portfolio
Jan 29, 2026
Rural Funds Management, responsible entity and manager for the ASX-listed Rural Funds Group, is highlighting its scale and long-standing expertise in Australian agricultural real estate, with a $2.1 billion diversified portfolio spanning orchards,...
Rural Funds Group Sets Estimated Tax Components for December 2025 Quarterly Distribution
Jan 29, 2026
Rural Funds Management, as responsible entity for Rural Funds Group, has released estimated tax components for the trust’s distribution for the quarter ended 31 December 2025, confirming RFF’s status as a withholding managed investment...
Rural Funds Group Director Reports Internal Transfer of Stapled Securities
Jan 19, 2026
Rural Funds Group has announced that director Michael Carroll has reported a change in the nature of his indirect interests in the stapled securities of the trust, although the total number of units he controls remains unchanged at 350,604. The up...
Rural Funds Group Declares Quarterly Distribution
Dec 1, 2025
Rural Funds Group has announced a new distribution of AUD 0.029325 per fully paid unit stapled security, with the ex-date set for December 30, 2025, and the payment date on January 30, 2026. This quarterly distribution reflects the company’s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.