Suspension of Full Year Dividend

MKTUPDTE
Mon, Sep 18 2023 09:53 am

18 September 2023

Suspension of Full Year Dividend

New Zealand Rural Land Company Limited (NZX.NZL) advises that it will suspend its full-year dividend for the period ending 31 December 2023. Instead, NZL will continue to apply cash to NZL’s share buyback programme and repaying the convertible note that was drawn down to support NZL’s forest acquisition in April 2023.

The NZL Board considers that the current market price of NZL shares materially undervalues both the assets and the free cash flow profile of the business. This makes NZL shares purchased at prevailing prices attractive and accretive on an asset and free cashflow basis for shareholders. Accordingly, repurchasing shares and repaying the convertible note are considered to be an allocation of capital that is of more benefit to the Company and shareholders than paying a dividend at this time.

NZL’s long-term goal is to pay regular, predictable dividends. However, in prevailing market conditions, the Board’s responsibility is to protect and advance shareholder value. The NZL Board will consider resuming dividends and advise the market when full-year results are released in late February 2024.

For further information please contact:
Richard Milsom - Director, NZRLM
Mobile: 021 274 2476
Email: [email protected]

Christopher Swasbrook - Director, NZRLC
Mobile: 021 928 262
Email: [email protected]


Announcement PDF


Markets News

Fonterra bright spot as NZX 50 lifts 0.2%
Markets Market Close

Fonterra bright spot as NZX 50 lifts 0.2%

Infratil is quickly approaching the $12 mark for the first time since January.

Primary Sector

Cannasouth heading for liquidation, receiver says

General security agreement holders are owed over $2.53m.

Cannasouth heading for liquidation, receiver says
Markets

Forsyth Barr says Mercury Capital eyeing up 25-30% stake

The offer is subject to shareholder approval and other condition.

Forsyth Barr says Mercury Capital eyeing up 25-30% stake