Gunn Agri Cattle Fund has posted an EBITDA profit of A$18.34 million ($13 million; €11 million) for the financial year ending June 30, 2021.
The Gunn Agri Partners-managed vehicle, which held a final close in April 2018, has reached A$290 million in assets under management, which represents a $64.7 million increase on the previous year.
The firm attributed the results to execution of its strategy of investing in productivity-enhancing infrastructure such as increased water points, fencing that has enabled more dense livestock populations and grazing land development.
“The Fund has achieved compounded annual growth in the property portfolio of 13.8 percent since inception after accounting for purchase price and post-acquisition capital expenditure,” Gunn Agri said in a statement.
“The rate of capital growth of the fund’s property portfolio has been at about double the market rate of Northern pastoral properties during this period, due to the active transformation of assets in the portfolio.”
Properties in the portfolio include the 484,000-hectare Abingdon Downs cattle breeding property in Queensland, which was acquired for between A$40 million to A$50 million in October 2018.
The Cattle Fund also acquired pastureland through its purchase of Goodar Station for around A$20 million, which has been converted to cropping land and experienced compounded annual growth rates of 14.5 percent, according to Gunn Agri.
The portfolio’s assets also include 990,000ha of grazing land, 6,375ha of cropping land and an additional 67,300ha of grazing land leased or agisted, as well as a cattle herd of 63,800 head.
“The operating results have enabled investor distributions of 3 percent on total investor contributions in FY2021 with a distribution forecast for Q2 FY2022 of 8 percent on total investor contributions,” Gunn Agri said.
Chief executive Alan Hoppe said in a statement: “The strong wet season, coupled with record prices and a dedicated and hard-working team has delivered excellent results for our owners.
“We have been investing into the long-term productivity of our farms and our people and that is paying off. The focus on maintaining a low cost per kilogram of beef produced will continue to drive profitability into the future.”