RURAL FUNDS GROUP — Earnings Release 2017

Feb 20, 2017

Rural Funds Group (RFF)

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ASX Release

21 February 2017

Subject: Media Release – RFF half year results reflect strategy in action

Rural Funds Management Ltd (RFM), as responsible entity and manager for the Rural Funds Group (RFF), is pleased to announce RFF’s first half FY2017 financial results.

Highlights of the half year financial results as compared to the previous corresponding period include:

• Earnings of 8.55 cents per unit (cpu), up 150%

• Adjusted funds from operations (AFFO) of 6.29 cpu, up 48%

• Distributions of 4.82 cpu, up 8%

• Adjusted total assets of $552.4m, up 36%

The results were primarily a result of acquisitions, ongoing almond orchard developments and lease indexation.

The acquisition of cattle and cotton properties in Queensland during the period is consistent with RFM’s strategy to expand the sector and climatic diversification within the RFF portfolio.

RFM Managing Director, David Bryant said the half year results reflected a period of solid growth for the Rural Funds Group.

“Cattle and cotton are sectors where RFM has existing expertise and knowledge. RFM will continue to use its fund and farm management expertise to drive returns for investors,” said Mr Bryant.

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Forecast FY17 distribution guidance of 9.64 cpu, up 8% on the FY16 is maintained along with AFFO of $12.42 cpu, up 34% on the FY16 actual.

About Rural Funds Group (RFF)

RFF owns a diversified portfolio of high quality Australian agricultural assets. RFF’s investment objective is to generate a stable income stream derived from leasing its assets to suitable counterparts and capital growth through any appreciation in the value of those assets. RFF is a stapled security, incorporating Rural Funds Trust (ARSN 112 951 578) and RF Active (ARSN 168 740 805), trading under the ASX code ‘RFF’. Rural Funds Management Ltd (RFM) is the responsible entity of RFF.

For further information:	For media enquiries:	For investor relations enquiries:
David Bryant	Stuart Waight	James Powell
Managing Director	Chief Operating Officer	Investor Relations & Distribution
Rural Funds Management	Rural Funds Management	Manager
T 02 6203 9703	T 0419 126 689	Rural Funds Management
E DBryant@ruralfunds.com.au	E SWaight@ruralfunds.com.au	T 0420 279 374
		E JPowell@ruralfunds.com.au