Sharechat Logo

Rural Equities full-year profit surges on dairy demand

Tuesday 2nd September 2008

Text too small?
Rural Equities Ltd, whose stock trades on the Unlisted market, posted a surge in full-year profit, reflecting rising demand for land that can support dairy farming.

Profit rose to NZ$32.4 million in the year ended June 30, from NZ$2.7 million a year earlier. Total equity rose to NZ$203.3 million from NZ$151.9 million.

"The very strong demand for dairy and arable properties, or those capable of dairy support operations, led to a substantial increase in rural land values of those farm types," chairman Selwyn Cushing said.

Rural Equities owns 62.4% of New Zealand Rural Property Trust and manages its portfolio of 30 farm properties. Dairy prices have reached record levels in the past 12 months stoking prices of farms and land that can be converted to dairying.

Cushing said the outlook for the rural sector is "very encouraging."

"We see continuing strong dairy product and arable crop prices as well as improving sheep and beef product prices," he said. "Combined with the recent decline in the exchange rate for the New Zealand dollar, there are positive signs for the year ahead."

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report