NZL reports $2.5m profit, announces buyback

New Zealand Rural Land Company (NZL:NZX) has reported a net profit after tax of $2.5 million for the six months ending June 2023.

The company owns 14,487 hectares of rural land in New Zealand, which is fully tenanted on long-term leases with regular CPI adjustments.

NZL generates shareholder value through asset value appreciation and cash flows from its leases.

In April 2023, NZL acquired approximately 3,137 hectares of forestry estate for a total cost of $70 million.

The purchase was funded through a green loan, a rights issue, and a convertible note.

NZL has also announced an upgrade to its FY24 earnings guidance and a share buyback program.

The company's strategy is to own quality rural land in New Zealand and deliver attractive risk-adjusted returns.