Market Update

NZX Release 2 August 2021 New Zealand Rural Land Company (NZL.NZX) Market Update Highlights o Unaudited net asset value (NAV) per share is $1.3351 as at 30 June 2021 following independent valuation advice on NZL's dairy assets. o The dividend policy of NZL is to target a pay-out of 90% to 95% of adjusted funds from operations (AFFO) each year. NZL shareholders should continue to expect their first dividend to be paid in February 2022 (based on 31 December 2021 Interim Result). Dividend forecasts will be presented to investors with the Annual Result towards the end of August. o Ms Tia Greenaway will be appointed as a new independent director on 1 September 2021. o Subject to audit completion, a performance fee of $1.183 million has been calculated as payable to NZL's manager. In accordance with the management agreement the performance fee is to be satisfied in shares at $1.3351 per share. Financial Update New Zealand Rural Land Company (NZX:NZL) is currently working through its first audit for the 292 day period ending 30 June 2021 and expects to release its audited full year results in late August. For financial reporting purposes, the Board commissioned independent valuation advice to support the carrying values of the 15 dairy assets that NZL acquired for approximately $124.5 million on 1 June 2021. The advice values these assets (including financial arrangements) at approximately $138.8 million and has been adopted by the Board as the new carrying value for these assets. As at 30 June 2021, NZL had approximately $20.5 million of cash on hand and borrowings of approximately $54.25 million. With the new carrying values above, unaudited net asset value (NAV) per share as at 30 June 2021 was approximately $1.3351 per share. The above figures are all subject to any final audit adjustments. Dividend Policy The dividend policy of NZL is to target a pay-out of 90% to 95% of adjusted funds from operations (AFFO) each year. AFFO is a non-GAAP financial measure and is calculated based on NZL's net profit after tax with certain adjustments as detailed in NZL's dividend policy. NZL's policy is for an interim dividend and a final dividend to be paid each year. NZL shareholders should continue to expect their first dividend to be paid in February 2022 (based on 31 December 2021 Interim Result). Appointment of Tia Greenaway as new Independent Director The Board is pleased to announce the appointment of Tia Greenaway as a director of NZL with effect on 1 September 2021. The Board considers that Tia will be an Independent Director. Hailing from Ngati Tuwharetoa and Waikato-Tainui, Tia Greenaway currently leads the Rautaki Maori team for He Pou a Rangi, Climate Change Commission and is responsible for delivering the Iwi/Maori aspects of the Commission's work programme. Tia has broad experience in the Maori sector and holds various roles on Iwi and Ahu Whenua Trusts and Committees operating mainly in farming and forestry. Tia is passionate about improving wellbeing outcomes for our taiao and our mokopuna and has been a key contributor to the development of the wellbeing framework He Ara Waiora - A Pathway towards Wellbeing, a collaboration between Maori thought-leaders and the Treasury. Tia has a Bachelor of Music, a Masters in Professional Accounting, and is a member of Chartered Accountants Australia and New Zealand. FY21 Performance Fee NZRLC has, subject to final audit, agreed the calculation of the performance fee payable to New Zealand Rural Land Management Limited Partnership (Manager) for the period ending 30 June 2021 in accordance with its management agreement. Subject to certain adjustments, the performance fee payable to the Manager is to be equal to 10% of any increase in net asset value of NZL in a financial year. The performance fee is to be satisfied in NZL shares that are to be issued at an issue price equal to net asset value (NAV) per share at the end of the relevant financial year. For the period to 30 June 2021 a performance fee of $1.183 million has been calculated as payable to the Manager and it is to be satisfied in NZL shares at an issue price of $1.3351 per share. This calculation will be confirmed following audit completion at the end of August and the share issue will be undertaken at that time. ENDS For further information please contact: Christopher Swasbrook Mobile: 021 928 262 Email: chris@nzrlc.co.nz End CA:00376561 For:NZL Type:MKTUPDTE Time:2021-08-02 12:18:42