In relation to your comment:Yes I think I have my head around...

In relation to your comment:

Yes I think I have my head around the relationship although it is not straight forward IMHO.
My understanding is that:

Rural Funds Group (RFF) is a real estate property trust which owns a diversified portfolio of Australian agricultural assets. RFF is also a stapled security, incorporating Rural Funds Trust (an agricultural REIT) and RF Active (a cattle breeding and water trading trust; used to own chook equipment).

Rural Funds Management (RFM) as the responsible entity for their Funds is responsible for strategic direction and day to day management of RFF, including the timing of asset acquisitions and sales, investment structure and portfolio composition. RFM is paid a management fee for provision of these services. RFM manages approximately $1.3b of agricultural assets. This includes over $1.0b of assets in the four investment funds for which RFM is the responsible entity.

In regard to JBS the situation explained in the RFM Board Entitlement Issue Booklet issued back in 2018 is as follows:

“RFM, as Responsible Entity of RFF, has agreed to acquire five Australian feedlots, associated water entitlements and adjacent cropping land (“Feedlots”) from JBS Australia (“JBS”) for $52.7 million including stamp duty. The Feedlots will then be leased back to JBS via a 10 year triple net lease4. RFF will also provide a $75.0 million limited guarantee (“Guarantee”) to J&F Australia Pty Ltd (“J&F”), an entity to be acquired by RFM. J&F will supply JBS with cattle, feed and associated inputs up to a limit of $250.0 million, enabling JBS to replace an existing arrangement. The Feedlots and Guarantee reflect a total capital commitment by RFF of $127.7 million.”

IMHO this therefore gives RFF an exposure of $127.7m to JBS and its cattle supplier J&F. I believe that there is therefore an increased financial risk for RFF as a result.

Would appreciate you opinion.