RURAL FUNDS GROUP (RFF)
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24/08/2026

1

Buy

$2.55

32.12%

Bell Potter maintains its Buy recommendation for Rural Funds with its target price increased to $2.55 from $2.50 following an FY26 financial result featuring adjusted funds from operations of $45.4m.

Operating cash flow of $41.9m compared to an inflow of $55.7m in FY25, while net debt expanded to $856.3m to reflect net asset investment of $51.4m.

Post balance date, asset sales were announced for net proceeds of $255.6m against a book value of $208.3m, which alongside available funding facilities of $45.5m will more than cover approved capital expenditure for FY27.

Management established FY27 adjusted funds from operations per unit guidance at 11.7cpu, which is flat year-on-year and reflects lower contributions from farming operations alongside higher expected tax.

The analyst notes that while divesting assets above book value is a positive step, exiting or leasing approximately $356m of assets under development is necessary to remove agricultural volatility and bridge the gap to market net asset value.

FORECAST
Bell Potter forecasts a full year FY27 dividend of 11.70 cents and EPS of 11.70 cents.
Bell Potter forecasts a full year FY28 dividend of 11.70 cents and EPS of 12.50 cents.

27/08/2026

1

Buy

$2.52

30.57%

Canaccord Genuity maintains its Buy rating for Rural Funds with its target price decreased to $2.52 from $2.59 following an FY26 result meeting guidance while FY27 guidance implies consensus downgrades.

Operational performance was driven by net property income increasing 6% year-on-year, supported by additional rental income on capital expenditure and indexation.

The broker's estimates indicate that revenue projections are lowered by -6% to -8% and adjusted funds from operations are reduced by -8% to -11% due to commodity price exposure and lower net farming income.

The analyst highlights that the recently announced sale of five assets for $256m at a 23% premium to book value reduces pro forma gearing to 32% and unlocks long-term value creation.