Rural Funds Group sells assets for $255.6M
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- Rural Funds Group agreed to sell five agricultural assets for a total value of $255.6 million.
- The sale proceeds will initially reduce company debt and lower its gearing ratio to 31.6%.
- The company stated that the divestments align with its strategy to lower debt and improve financial flexibility.
Rural Funds Group (ASX:RFF) has exchanged contracts to sell five agricultural assets for a combined $255.6 million.
The sale price represents an average 22.7% premium over the previous book values from December 2025.
The assets include four cattle properties and a 2,500 megalitre New South Wales river water entitlement.
Net proceeds will initially be used to pay down the core debt facility of Rural Funds Group.
Following the announcement, the Rural Funds Group share price was up at $2.01.
The company stated that pro forma gearing will fall from 39.1% to 31.6%.
The company reaffirmed its forecast for financial year 2026 adjusted funds from operations of 11.7 cents per unit.
