Rural Funds Group (ASX: RFF) Provides Comprehensive Update on Agricultural Asset Portfolio and Management Strategy

Diversified Agricultural Asset Portfolio Across Five Australian States

Rural Funds Group (ASX:RFF) operates as an ASX-listed real estate investment trust managing a $2.1 billion diversified agricultural portfolio distributed across New South Wales, Queensland, South Australia, Western Australia, and Victoria. This geographic diversification exposes RFF to varied climates, soil types, and seasonal cycles, mitigating location-specific risks and optimising asset utilisation across different growing seasons and commodity markets.

The portfolio comprises a carefully selected mix of established, high-value agricultural operations, including almond and macadamia orchards with strong market demand and processing infrastructure, premium vineyards in renowned wine regions, water entitlements critical for irrigation, cattle operations generating steady pastoral income, and cropping assets producing seasonal commodities. This sectoral and asset class diversification reduces exposure to single commodity price fluctuations or operational risks, enhancing distribution stability for unitholders.

Rural Funds Management’s 29 Years of Agricultural Fund Management Expertise

Established in 1997, Rural Funds Management Limited (RFM) serves as the responsible entity for RFF and brings nearly three decades of operational experience in Australian agricultural asset management. With over 260 staff engaged in fund and asset management, RFM has developed deep sector expertise and institutional knowledge across multiple commodities and operational models, successfully navigating various economic cycles, market conditions, and commodity price changes while maintaining investor returns.

RFM’s culture is grounded in a "precision-based approach to asset management" and the motto "Managing good assets with good people," reflecting a commitment to rigorous operational standards and human capital development. Headquartered in Canberra with regional offices in Sydney and Queensland, RFM combines strategic coordination with localized operational expertise, ensuring efficient asset management and responsiveness to regional agricultural and regulatory environments.

Comprehensive Multi-Sector Agricultural Operations and Expertise

RFM’s update highlights its extensive experience across diverse agricultural sectors beyond commodity crops, including almond and macadamia cultivation, poultry, cattle husbandry, viticulture and wine production, cropping, and water entitlements management. Each sector demands specialized knowledge in cultivation, harvest timing, pest control, market dynamics, regulatory compliance, and supply chain logistics. This broad expertise enables RFM to assess investment opportunities across multiple agricultural categories and optimise portfolio balance to manage risk and maximise returns amid varying commodity cycles.

Water entitlements form a strategic component of RFF’s portfolio, representing a valuable resource in Australian agriculture. These entitlements provide essential irrigation capacity for high-value perennial crops and offer potential appreciation independent of commodity prices. RFM’s proficiency in managing water entitlements reflects understanding of complex regulatory frameworks, water trading mechanisms, and the critical role of water availability in agricultural productivity and food security.

Strategic Role of Agricultural Land Ownership in Food Security

The newsletter frames investment in RFF’s agricultural assets within the broader context of food production and supply security. Agricultural land is described as a "securitised interest in open space" and "the means of food production," highlighting farmland ownership as exposure to fundamental economic drivers such as global food demand, commodity prices, and production capacity. Historical examples underscore the national and geopolitical significance of agricultural self-sufficiency and food supply control, positioning RFM’s agricultural asset ownership as investment in essential infrastructure underpinning food security and economic stability.

Given global population growth, evolving dietary preferences, land limitations, and climate variability, productive agricultural assets have become increasingly strategic. Investors in RFF gain access to Australian farmland with established infrastructure, regulatory frameworks, export markets, and supply chains, making it a long-term investment aligned with the non-discretionary demand for food and agricultural products.

Robust Asset Management and Governance Structure

Rural Funds Management acts as the responsible entity for RFF, structured as a stapled entity combining Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805). This structure aligns unitholder interests with management objectives by integrating trust and active management components into a single security. Melbourne Securities Corporation Limited (MSC), holding Australian Credit Licence 160 326 545 and Australian Financial Services Licence 428289, serves as custodian, providing independent asset custody. MSC appoints Certane CT Pty Ltd as sub-custodian, ensuring layered oversight and segregation of fund assets from management’s operational assets.

This governance framework, separating responsible entity and custodial roles, establishes checks and balances protecting unitholder interests and ensuring management decisions undergo custodial oversight. RFM oversees investment strategy, asset transactions, operational management, and unitholder communications, while MSC focuses on asset safekeeping and transaction verification, fostering investor confidence in fund governance and asset security.

Geographic Reach and Operational Scale of RFF’s Agricultural Assets

RFF’s $2.1 billion asset portfolio spans five Australian states, encompassing diverse agricultural regions. New South Wales properties support grazing, cropping, and viticulture across varied climates. Queensland holdings include macadamia farms near Maryborough and cropping operations like wheat production in Kaiuroo. Assets in South Australia, Western Australia, and Victoria further extend RFF’s exposure to distinct growing conditions, water resources, and market access. This geographic diversity reduces concentration risk from localized economic, weather, or regulatory factors.

Managing multi-state properties requires extensive logistical coordination, technical expertise, and local operational presence. RFM’s regional offices in Sydney and Queensland facilitate on-site oversight, supported by long-standing relationships with local suppliers, regulators, and industry bodies. This operational scale and sector diversity position RFF as one of Australia’s largest diversified agricultural investment vehicles, capable of optimising performance across multiple sites, commodities, and regional markets.

Investment Disclosures and Forward-Looking Statements

The newsletter includes detailed disclosure statements outlining the nature of the publication and disclaimers regarding investment risks and forward-looking information. Prepared using data as of 31 December 2025, the update clarifies it does not constitute financial advice and encourages investors to seek qualified professional guidance before making investment decisions.

Forward-looking statements are acknowledged as subject to inherent uncertainties, including weather variability, commodity price fluctuations, input cost changes, and regulatory developments. RFM cautions that actual results may materially differ from expectations and advises investors against undue reliance on such projections, demonstrating transparency about risks affecting agricultural investments and fund performance.

Regulatory Compliance and Custodial Protections for RFF Assets

Melbourne Securities Corporation Limited holds the custodian role for RFF, authorised under Australian Credit Licence 160 326 545 and Australian Financial Services Licence 428289. The appointment of Certane CT Pty Ltd as sub-custodian adds a secondary oversight layer, ensuring fund assets remain segregated from RFM’s operational assets. This custodial structure safeguards investor assets through independent controls and regulatory supervision.

RFM operates under Australian Financial Services Licence 226 701 and ABN 65 077 492 838 as the responsible entity for the stapled entity comprising Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805). These regulatory arrangements provide investor assurance of compliance with Australian managed investment scheme regulations and responsible entity obligations, reflecting best practices in fund administration and asset protection.