Markets are forward looking. RFF was trading at a premium to NAV...

Markets are forward looking. RFF was trading at a premium to NAV during the years when investors (correctly) expected agricultural land prices to grow healthily. It is probably being discounted on the expectation that the next few years or longer won't be as spectacular. I would not like to be buying RFF at NAV in an environment in which ag. land prices were only rising in the low-mid single digits. And if that occurs, the discount could persist for a while - lots of funds have traded at a discount to NAV for years.

The income situation also doesn't help. RFM's fees are based off asset values, so when land prices run and interest rates go up, the increases in these costs combined will exceed property revenue growth. This is why the distribution is stagnant, and just to keep it there they are at 115% of AFFO. The math doesn't make sense for yield growth when land values are rising quickly and rates aren't at pandemic lows, unless they sell assets periodically. If their goal was max NAV then fine, no issue, but their stated goal is 4% yield growth p.a. (i.e. dependable income growth) - hardly a stretch target, but it remains beyond them. This will be a big turn-off for income investors, which is usually a large part of the REIT investor pool.