Ann: Response to Bonitas Research report, page-298

Rural Funds Management Limited (RFM) is one of the oldest and most experienced agricultural fund managers in Australia and established by David Bryant.

Established in 1997, RFM manages approximately $1.2b of agricultural assets. This includes $939m of assets in six investment funds for which RFM is the responsible entity. Assets are located across New South Wales, Queensland, South Australia and Victoria.

Listed Funds:

1. RFF
2. RMF Poultry (Rental income received in 2018 10.670m) (listed in the National Stock Exchange of Australia)

Unlisted Funds

1. RFM Almond Fund 2006 (Rental income received in 2018 2.048m) (Closed to new investment)
2. RFM Almond Fund 2007 (Rental income received in 2018 0.565m) (Closed to new investment)
3. RFM Almond Fund 2008 (Rental income received in 2018 1.599m) (Closed to new investment)
4. 2007 Macgrove Project (Rental income received in 2018 0.757m) (Closed to new investment)

The above are entities that are listed in the RMF website and rental received by RFF.

Below are list of related entities where information is not as visible as the above entities but RFF is receiving rent from:

1. RFM (Rental income received in 2018 0.992m)
2. RFM Farming Pty Limited (Rental income received in 2018 0.288m)
3. Cattle JV (Rental income received in 2018 3.4484m and 1.321m)
4. Cotton JV (Rental income received in 2018 1.969m)
5. RMA Macadamias (Rental income received in 2018 0.326m)

They are related entities as they are managed by RFM. They are the same management that are running RFF who have a long history working in the Agri space.

David Bryant is the MD for RFM and holds 78.20% of shares on issued in RFM.

It also than explained that when the change of Director's interest incorporates the share holding by RFM in RFF under David's disclosure as he has 78% interest in RFM. It a 26.6m investment in RFF by David and entity that he has a controlling stake.

While it is all related, it is run by an experience team with vested interest.

Is there disadvantage for RFF share holders? There is but that is for another post.

There was detailed information for the valuation in the Annual report which is available for viewing.