Rural Funds Group (RFF) AI Stock Analysis

• Market Cap: AU$834.01M
• Dividend Yield: 5.71%
• Average Volume (3M): 791.66K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.54
• Revenue Growth: 18.40%
• EPS Growth: -67.76%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.11
• Shares Outstanding: 389,723,000
• 10 Day Avg. Volume: 501,222
• 30 Day Avg. Volume: 791,660
• PEG Ratio: -0.35
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 6.02
• P/FCF Ratio: 50.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.36
• Price Target Upside: 22.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): AU$105.86M

• Rating: 65 Neutral
• Price Target: AU$2.00 ▲(3.63% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 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.

Development pipeline delivering income

Completed development work (Kaiuroo stage 1) and maturing macadamia and irrigated crops increase operational cash earnings as farming income rises. With development assets ~$342m (17% portfolio) and lower FY'27 CapEx, this supports medium‑term AFFO growth and reduces future capital intensity.

Proven value crystallisation via asset sales

Repeated transactions at/above book and a material water entitlement gain (c.2.5x purchase price) show the fund can crystallise uplifts and access liquidity. This enhances balance‑sheet flexibility to de‑gear, fund CapEx and manage distributions without relying solely on operating cash.

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.

Weak cash conversion

OCF-to-net-income below 1 and low free‑cash‑flow conversion point to earnings not fully converting to cash. That structural cash quality constraint limits internal funding for distributions and capex, forcing reliance on asset sales or external financing to meet obligations.

High payout ratio limits flexibility

A near‑100% payout ratio leaves minimal retained earnings to rebuild buffers or fund growth, capping distribution upside. Sustained high payout forces dependence on asset sales and balance‑sheet moves to support distributions, increasing execution and timing risk.

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, providing investors with exposure to agricultural land and related infrastructure. The group aims to deliver sustainable returns through a diversified portfolio that includes both operational and rental income from its agricultural holdings.

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 flow. Additionally, RFF may generate supplementary income through the operational activities on its properties, such as crop production and livestock management. Strategic partnerships with farmers and agribusinesses enhance its operational efficiency and income potential. Furthermore, RFF's focus on sustainable agricultural practices aligns with growing market demand for environmentally responsible farming, which can lead to increased asset value and revenue generation over time.

Rural Funds Group Financial Statement Overview

Summary

Stable overall fundamentals with healthy operating margins and balanced leverage, but pressured by declining revenue growth, weaker net margin versus prior years, and below-1 cash conversion (operating cash flow to net income), which raises quality-of-earnings risk.

Income Statement

The income statement shows a mixed performance. The company has strong gross and EBIT margins, indicating efficient operations. However, there is a notable decline in revenue growth, with a negative growth rate in the most recent year, which could be a concern for future profitability. The net profit margin has also decreased significantly compared to previous years, suggesting potential challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The equity ratio is healthy, showing a strong asset base supported by equity. However, the return on equity has decreased over the years, which may indicate less efficient use of equity capital.

Cash Flow

Cash flow analysis reveals some concerns. While there is positive free cash flow growth in the latest year, the operating cash flow to net income ratio is below 1, suggesting potential issues in converting income into cash. The free cash flow to net income ratio is also low, indicating challenges in generating free cash flow relative to net income.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	113.82M	95.06M	98.11M	85.29M	70.97M
Gross Profit	87.04M	67.95M	69.47M	66.96M	62.82M
EBITDA	70.72M	53.91M	54.20M	53.95M	51.24M
Net Income	31.46M	83.25M	94.50M	209.14M	119.63M
Balance Sheet
Total Assets	1.91B	1.90B	1.67B	1.41B	1.05B
Cash, Cash Equivalents and Short-Term Investments	8.91M	7.24M	5.75M	4.96M	11.65M
Total Debt	811.05M	787.74M	640.61M	457.82M	346.60M
Total Liabilities	862.84M	829.90M	680.34M	489.75M	397.21M
Stockholders Equity	1.06B	1.08B	993.16M	917.01M	648.54M
Cash Flow
Free Cash Flow	13.69M	-23.27M	-8.13M	-58.89M	15.77M
Operating Cash Flow	55.73M	31.58M	29.25M	37.66M	35.47M
Investing Cash Flow	-35.74M	-138.25M	-172.07M	-215.41M	-41.66M
Financing Cash Flow	-19.32M	108.15M	143.61M	171.07M	12.75M

Rural Funds Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.05, below the 50-day MA of 2.03, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.27 is Neutral, neither overbought nor oversold. The STOCH value of 80.77 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXI	70 Outperform	AU$818.56M	11.09	7.99%	6.09%	-8.67%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RFF	65 Neutral	AU$834.01M	13.60	2.40%	5.71%	18.40%	-67.76%
CMW	54 Neutral	AU$1.17B	10.93	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$600.32M	9.54	-1.91%	8.63%	-4.50%	88.28%
AOF	49 Neutral	AU$59.18M	-4.95	-23.55%	15.14%	-68.24%	42.03%
LIC	48 Neutral	AU$602.95M	-2.98	-26.73%	―	-38.91%	-453.73%

Rural Funds Group Corporate Events

Rural Funds Group outlines key metrics ahead of half-year 2026 results

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 document emphasises key REIT measures such as adjusted NAV, AFFO, gearing and interest cover, and clarifies how water entitlements and owner-occupied farming operations are treated in assessing asset values and earnings, providing investors with a framework to interpret upcoming detailed financial results and covenant compliance.

The presentation also standardises terminology around its stapled security structure, bank covenants and forecast revenue metrics for FY26, signalling continued focus on disciplined balance sheet management. By setting out these definitions and financial measures upfront, the manager aims to enhance transparency for stakeholders ahead of more granular disclosures, helping the market better understand RFF’s agricultural exposure, valuation approach and risk settings.

The most recent analyst rating on (AU:RFF) stock is a Hold with a A$2.11 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group lifts earnings and advances development while holding FY26 guidance

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 revaluations and asset sale gains, while adjusted funds from operations and distributions were in line with full-year forecasts and adjusted net asset value edged up to $3.10 per unit.

The group continued to recycle capital, with $60.7m of asset divestments at or above book value helping to fund $70.7m of capex and slightly reduce pro forma gearing to 39.1%. Progress on major developments, including the first-stage completion of the Kaiuroo project and ongoing macadamia orchard expansion at Rookwood Farms, along with a largely leased, long-WALE portfolio, underpins its position in defensive food production property and supports reaffirmed FY26 distribution guidance.

The most recent analyst rating on (AU:RFF) stock is a Hold with a A$2.11 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Releases Half‑Year 2025 Financial Statements

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 include the directors’ report, auditor’s independence declaration and review report, offering a formal update on the trust’s performance and governance for the period.

The release of these interim financials gives stakeholders visibility over Rural Funds Group’s mid-year results and the condition of its agricultural investment portfolio. It also reinforces transparency and regulatory compliance, supporting investor assessment of income stability, asset values and the overall health of the managed fund ahead of future strategic or capital decisions.

The most recent analyst rating on (AU:RFF) stock is a Hold with a A$2.11 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group posts sharp profit surge and higher asset values in first half

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 unitholders from continuing operations increased 238% to $44.09m, while net tangible assets per unit lifted to $2.23 and adjusted net asset value, including water entitlements, edged up to $3.10 per unit.

The group maintained quarterly distributions of 2.9325 cents per unit for June, September and December 2025, with only the June payment carrying a minor franking component, and confirmed that its dividend reinvestment plan remains suspended until further notice. The reviewed half-year accounts, audited by PricewaterhouseCoopers without qualification, underscore improved earnings and asset values, but unitholders seeking to reinvest distributions must do so outside the DRP structure.

The most recent analyst rating on (AU:RFF) stock is a Hold with a A$2.11 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Sets Date for 1H26 Results and Investor Webinar

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 made available on the company’s website, underscoring its ongoing engagement with investors and transparency around the performance of its diversified Australian agricultural asset portfolio and distribution-focused strategy.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Confirms Payment of Quarterly Distribution

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 notification, formalises the distribution details including the record date of 31 December 2025 and ex-date of 30 December 2025, providing investors with certainty over the timing and status of the income payment.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Management Showcases Diversified $2.1bn Agricultural Property Portfolio

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, vineyards, water entitlements, cattle and cropping properties nationwide. The latest newsletter underscores RFM’s precision-based asset management culture and broad sector exposure, positioning RFF as a key player in institutional-grade farmland and agricultural infrastructure, while reminding investors that the material is general in nature and that future performance is subject to risk and uncertainty.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Sets Estimated Tax Components for December 2025 Quarterly Distribution

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 trust and Attribution Managed Investment Trust for the 2026 financial year. The Rural Funds Trust cash distribution is set at 2.9325 cents per unit, unfranked, with total fund payments of 3.2555 cents per unit largely comprising non-concessional MIT income from agricultural land acquired after March 2018 and other taxable components, information that is particularly relevant to foreign unitholders facing withholding tax and to all investors for understanding potential tax cost base adjustments under the AMIT regime.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Director Reports Internal Transfer of Stapled Securities

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 update reflects an off-market transfer of units held via two related entities, Productivity Investments Pty Ltd and Mudgegonga Pty Ltd as trustee for the Carroll Family Super Fund, with no units acquired or disposed and no trading during a closed period, indicating an internal restructuring of holdings rather than a change in his overall economic exposure, thereby having limited immediate implications for other securityholders.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.

Rural Funds Group Declares Quarterly Distribution

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 ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness to stakeholders and maintaining its market position in the agricultural investment sector.

The most recent analyst rating on (AU:RFF) stock is a Buy with a A$2.43 price target. To see the full list of analyst forecasts on Rural Funds Group stock, see the AU:RFF Stock Forecast page.