Rural Funds’ (ASX:RFF) Reports 17% Jump in H1FY25 Revenue, Reaffirms FY25 AFFO and Distribution Guidance

Highlights  

• RFF reported a 17% YoY increase in H1FY25 revenue to AUD 62.16 million, supported by a ~21% rise in property income. 

• RFF reaffirmed FY25 AFFO guidance at 11.4 cents per unit (+4% YoY) and maintained distributions at 11.73 cents for FY25 and FY26. 

• RFF focuses on developing macadamia, cattle, and crop-producing assets while targeting gearing of 30–35% via asset sales. 

Rural Funds Group (ASX:RFF) is an ASX-listed REIT that holds a diverse portfolio of agricultural properties. The company focuses on the acquisition, development, and leasing of farmland and related agricultural infrastructure, primarily to corporate farming operators. 

In the first half of the financial Year 2025 (H1FY25), RFF reported a 17% YoY increase in total revenue to AUD 62.16 million, up from AUD 53.16 million in H1FY24, driven by a ~21% rise in property income to AUD 50.74 million. Total comprehensive income declined to AUD 13.05 million from AUD 71.00 million in the prior corresponding period, which had benefited from one-off property revaluation gains of AUD 45.11 million. 

Company Outlook 

RFF has reaffirmed its FY25 guidance, projecting Adjusted Funds from Operations (AFFO) at 11.4 cents per unit, reflecting 4% YoY growth, while maintaining a stable distribution forecast of 11.73 cents per unit for both FY25 and FY26. Key priorities include the development of macadamia, cattle, and crop-producing assets, along with progressing asset sales to reduce gearing to the target range of 30–35%. 

Real Estate Outlook as Inflation Eases 

According to the data released by the Australian Bureau of Statistics (ABS), the Consumer Price Index (CPI) of Australia increased by 0.7% during the June 2025 quarter, bringing annual inflation down to 2.1%, compared to 2.4% in March. Trimmed mean inflation also eased to 2.7%, as reported by the ABS.  

Housing stood out as a significant contributor to the CPI increase, recording a 1.2% quarterly rise. This suggests ongoing demand and supply-side pressures within the real estate space. Despite inflation easing slightly, the housing component's upward movement highlights persistent cost pressures. 

However, risks to the sector remain notable. Real estate is highly interest rate-sensitive, and any upward adjustments in monetary policy could dampen affordability and raise borrowing costs for both developers and prospective homeowners.  

Bottom of Form 

Share performance of RFF 

RFF shares closed unchanged at AUD 1.820 per share on 31 July 2025. In one year, the stock has declined by 14.55% and down 0.55% over the past week. However, the stock has shown positive momentum in recent periods, gaining 0.55% over one month, 1.68% over three months, and 12.00% over six months.  

The stock’s 52-week high is AUD 2.150, recorded on 1 August 2024, representing a 15.35% drop from that level. The 52-week low is AUD 1.588, reached on 4 February 2025. 

Support and Resistance Summary  

Note 1: Past performance is neither an Indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, and currency, is 31 July 2025. The reference data in this report has been partly sourced from EODHD/Others. 

Technical Indicators Defined:  

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Disclaimer 

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