2 Sep 2008

Record profit for Rural Equities

12:33 pm on 2 September 2008

Rural Equities has made a record full year profit on the back of higher rural property values.

The rural property investment and management company controlled by Sir Selwyn Cushing made $32.4 million for the year to the end of June, compared to a $2.7 million profit the previous year.

Rural Equities owns 62% of New Zealand Rural Property Trust, which owns 30 farms and a pine forest. Rural Equities also manages the trust.

Earnings per share jumped from 12 cents to $1.30 per share following revaluation gains, as higher dairy and crop prices boosted demand for rural land.

Looking ahead, Sir Selwyn says signs are encouraging for the rural sector.

He expects strong dairy product and arable crop prices to continue, while sheep and beef prices are improving and a declining New Zealand dollar will help lift returns.