Be an investor, not a landlord
OPINION: New Zealanders have a love affair with property investment. After securing a family home, buying a rental property is traditionally seen as a safe way to build wealth over the long term.
For the year ending December 31, 2025, the corporate farmer reports consolidated net profit after tax (NPAT) of $79 million, $90,000 higher than the previous year.
NZL now owns 17,077 hectares of high-quality rural land, fully occupied across nine tenants, with a weighted average lease term of 11.6 years.
Managing director of New Zealand Rural Land Management Richard Milsom said the results reflects steady execution of NZL's strategy.
"AFFO [adjusted funds from operations] per share increased 9.9% to 5.43 cents per share and we have increased the full year dividend to 4.91 cents per share.
"That progression reflects the strength of our CPI-linked lease model, the quality of our tenant base and our continued focus on per-share outcomes.
"During the year we delivered portfolio value growth, reduced gearing to 29.4% and maintained 100% occupancy across long-term leases. Those fundamentals underpin sustainable earnings and dividend growth for shareholders," he says.
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At the five-year mark, the board commissioned an independent capital review to ensure their strategy remains aligned with investor expectations.
Milsom says the review confirmed that NZL is primarily valued for the sustainability and reliability of its cash yield, and we have refined our framework accordingly.
"The rural sector has played a leading role in New Zealand's recovery and continues to perform strongly, providing a strong foundation for ongoing investor confidence.
"We remain constructive on its medium-term prospects and continue to evaluate opportunities to invest in productive rural assets," says Milsom.
