Paying out greater than AFFO is quite common practice in REITs when they're undertaking a development and going through a lease-up phase. Its something to keep an eye on, but not a red flag. However I am slightly concerned about the changing risk profile of RFF, we're moving further away from a passive landlord to becoming more of a landlord and developer - spending capex to develop uncontracted orchards.
I haven't don't too much research into the demand / supply dynamics of madamias but if this were to move strongly against us we may find ourselves un-tenanted and unable to monetise this capex leaving us with a hole in our AFFO. David has a wealth of experience in agriculture and i'm sure RFM have done the work to justify this, but something to keep in mind - especially as we're now reaching share prices 20%+ above NTA.
Ann: FY21 Financial Results Summary, page-7
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Last
$2.04 |
Change
-0.010(0.49%) |
Mkt cap ! $792.0M | |||
| Open | High | Low | Value | Volume |
| $2.05 | $2.06 | $2.04 | $401.0K | 195.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 6881 | $2.04 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.05 | 7428 | 1 |
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| Last trade - 16.10pm 26/07/2024 (20 minute delay) ? |
| RFF (ASX) Chart |