Independent Capital Review and Capital Management Framework

28 January 2026 Independent Capital Review and Capital Management Framework New Zealand Rural Land Company Limited (NZX: NZL) advises that KPMG has completed an independent capital review commissioned by the Board, as part of its five-year review process. KPMG's report on its capital review is attached. The review considered market feedback, valuation drivers and capital management settings. The review indicated that NZL is primarily valued by investors on the sustainability and reliability of its cash yield, with asset values and NTA viewed as secondary considerations. The review also reinforced the importance of scale and liquidity, provided growth is accretive on a per-share basis. Capital Management Framework Following the review, the Board has endorsed a strategic and capital management framework for NZL’s next phase. Chair Rob Campbell said, “The capital management framework will guide our decision-making on acquisitions, dividends and share buybacks going forward.” Strategic Positioning NZL is focused on delivering consistent earnings and dividend growth from ownership and leasing of productive rural land assets. Dividend Policy NZL has adopted a revised dividend policy targeting distributions of approximately 90-100% of AFFO, paid quarterly, consistent with sector practice. The policy is designed to provide greater predictability and transparency for shareholders and will only be suspended in extreme circumstances. At a recent VWAP of $1.07, and adopting the mid-point of distributing 95% of AFFO under the new dividend policy, the cash yield would increase from 4.0% to 4.7% per share.* Alongside the revised dividend policy, the Board has resolved to take a more dynamic approach to the Dividend Reinvestment Plan (DRP). The Board will confirm whether the DRP will apply at each dividend announcement, having regard to the Group’s capital requirements and any potential dilution to earnings and NTA. This approach broadly aligns with other listed property vehicles in New Zealand *Assumes the mid-point of the previous FY25 AFFO guidance of $7.5m - $8.0m. Capital Management and Scale Future capital management decisions will be guided by disciplined AFFO per-share accretion: • New equity will only be raised where it is forecast to be accretive to AFFO per share; • Growth in scale will be pursued to improve liquidity and market relevance, but not at the expense of yield or per-share returns; and, • Share buybacks and alternative uses of capital will be assessed using a yield-based framework that compares the risk-adjusted returns of buybacks versus asset acquisitions. This framework aligns NZL’s strategy with broader market expectations and supports the delivery of sustainable long-term shareholder value. NZL will maintain current leverage targets. Communication NZL will continue with its communication programme and will include additional information on the portfolio and tenants to improve education and transparency. Board Review The Board has commenced a review of its performance and composition, working with Propero Consulting. This will be completed in the first half of 2026. For and on behalf of the Board, Rob Campbell Chair For further information please contact: Richard Milsom Mobile: 021 274 2476 Email: richard@nzrlm.co.nz