Rural Funds Group reports strong FY26 earnings growth

Rural Funds Group (ASX: RFF) reported a significant increase in earnings for the fiscal year ending 30 June 2026, reaching $124.1 million, or 31.8 cents per unit. This represents a $103.8 million rise over the previous year, driven largely by the sale of assets above book values and interest rate swap adjustments.

Net property income rose 5.7% to $100.5 million, supported by lease indexation and capital expenditure in macadamia orchards. The company’s Adjusted Net Asset Value increased by 4.5% to $3.22 per unit.

Strategic divestments totaling $314.9 million were completed at an average 18% premium to prior book values. These sales, which included six properties and water entitlements, helped reduce the group’s pro forma gearing to 31.8%. For FY27, the group forecasts adjusted funds from operations and distributions of 11.7 cents per unit.