FY26 Annual Report
28/08/2026 17:01 NZST, ANNREPP
The Directors of Allied Farmers Limited (“Allied Farmers” or “Allied Group”) (ALF:NZX) are pleased to report an audited profit after tax for the year to 30 June 2026 of $2.613 million (FY25 $3.841 million), with an audited profit after tax attributable to Allied Farmers’ shareholders of $2.989 million (FY25 $2.871 million).
As a result of the New Zealand Farmers Livestock Limited (NZFL) sale on 1 December 2025, Allied Farmers is required to separately report the performance of both continuing operations, and 5 months of NZFL discontinued operations. The above result reflects both continuing and discontinuing operations. The loss before tax from continuing operations was $0.907 million for FY26. This compares to a profit before tax from continuing operations of $0.227 million for FY25. This decrease in profit before tax is predominantly the result of reduced NZRLM fee revenue and increased operational and transactional costs.
The following table summarises consolidated Profit Before Tax over the previous comparable periods from Allied Farmers’ investments and Parent Company Operations:
[see table in attached PDF]
Profit attributable to Allied Farmers’ shareholders
Profit attributable to Allied Farmers’ shareholders reflect its 67.7% ownership of New Zealand Farmers Livestock Limited (NZFL) for the 5 months to 1 December 2025, and 100% of NZRLM. FY26 after tax profit attributable to Allied Farmers’ shareholders was $2.989 million (FY25 $2.871 million).
Allied Farmers’ basic earnings per share (EPS) increased by 4.0% to 10.37 cents per share (FY25 9.97 cps), and Net Tangible Assets (NTA) per share, based on 67.8% direct ownership of NZFL until 1 December 2025 and 100% ownership of NZRLM, equals $0.66 per share (FY25 $0.51 per share).
Sale of New Zealand Farmers Livestock Limited (NZFL)
On 1 December 2025 Allied Farmers sold its 67.7 percent holding of NZFL to Rural Livestock Limited. The sale was approved by shareholders at the 6 November 2025 Annual Meeting. Allied Farmers’ share of the purchase price was $5.878 million in cash. A final amount of approximately $510,000 relating to a Tax Loss Offset agreement, for the 5-month period of 1 July to 1 December 2025, is expected to be received in April 2027.
The NZFL sale provides Allied Farmers with the opportunity to maximise the value of its investment in NZFL, enables a focus on and growth of the strongly performing rural asset management business, and to explore additional complementary investment opportunities.
New Zealand Rural Land Management (NZRLM)
NZRLM is the external manager of NZX listed NZL. At 30 June 2026 NZL owned 17,077 hectares of forestry estates, and pastoral and horticultural land.
Income comprises fees associated with status quo portfolio management, and overall portfolio performance. NZRLM’s FY26 revenue was lower than in FY25 due to NZL not undertaking any transactions.
NZRLM received a retrospective performance fee for the value gain on NZL’s assets for the 12-month period ended 31 December 2025 (NZL’s balance date). This fee is in line with the change in the Net Asset Value (NAV) of NZL’s portfolio during this period and is paid in NZL shares.
Other Investments
In September 2024 Allied Farmers’ wholly owned SPV, Allied FLA Limited, acquired land and buildings in the Waikato funded by a mortgage debt of an equivalent amount. The debt is secured over 4 properties with a GSD over Allied FLA Limited, but there is no exposure to Allied Farmers as the securities are only against Allied FLA Limited.
Also in September 2024 Allied Farmers advanced $3 million to a substantial farming dairy operation in South Canterbury to fund its working capital. During FY26 this was reduced to $2.5 million after a principal repayment. The loan is secured by a second ranking GSD over the assets of the borrower and related entities of the borrower, and a guarantee from a related entity of the borrower.
As at 30 June 2026, Allied held 4,376,732 shares in NZ Rural Land Company Limited (NZL). During FY26 NZL re-commenced paying shareholder dividends.
Assets Valuations
At 30 June 2026 Allied had cash reserves of approximately $11.8 million, with the increase from FY25 predominantly attributable to the proceeds of the NZFL sale.
Allied’s wholly owned subsidiary, New Zealand Rural Land Management Limited Partnership (NZRLM), holds perpetual Management Contracts for NZX listed New Zealand Rural Land Company Limited and Australian investment company ROC Partners. Using similar methodology to that used in the independent valuation for Allied’s purchase in March 2023 of the 50% of the NZRLM Management Contract it did not own, the valuation of these Management Contracts at 30 June 2026 is in the range of $23.9m to $33.9m, calculated as follows:
[see attached PDF]
The total value of Allied’s assets* at 30 June 2026 is therefore:
[see attached PDF]
Allied emphasises that these asset values are estimates only and assets may not be realised at those values.
These asset values imply a net asset value of approximately $1.64 per share, compared with the recent market price of $0.62 per share. This represents an implied discount of approximately 62%.
Outlook
The Board continues to explore opportunities to deploy its cash reserves into new investment opportunities. However, in the absence of such an investment, and the non-recurrence of a FY26 tax benefit, FY27 Profit after tax is expected to be materially lower than in FY26.
Shelley Ruha - Chair