NZL suspends dividend for share buyback, debt repayment

New Zealand Rural Land Company Limited (NZX.NZL) has announced the suspension of its full-year dividend for the period ending 31 December 2023.

Instead, the company will use cash for its share buyback program and to repay a convertible note that was used for a forest acquisition in April 2023.

The company believes that the current market price of its shares undervalues its assets and free cash flow profile.

The decision to repurchase shares and repay the convertible note is seen as a more beneficial allocation of capital for the company and shareholders at this time.

NZL's long-term goal is to pay regular dividends, but the board's priority is to protect and advance shareholder value in the current market conditions.

The board will consider resuming dividends when full-year results are released in late February 2024.