Rural Funds Group (RFF) Status update summary

Overview of resolutions and guarantee

• Four resolutions will be voted on, including increases to the J&F Guarantee supporting a cattle finance facility for JBS, with prior increases approved in 2020 and 2022.

• Two new increases are proposed: AUD 28 million (immediate) and AUD 40 million (conditional on AUD 80 million asset sales), potentially raising the limit to AUD 200 million while maintaining pro forma LVR below 50%.

• Approval is also sought for a potential extension of the facility for up to 10 years and changes to trust constitutions for income attribution.

• The guarantee is a security arrangement enabling J&F to provide a cattle supply facility using bank funding, structured to maintain passive income and REIT status.

• JBS has requested further increases due to operational growth and potential inclusion of lamb supply.

Financial impact and returns

• Increases to the guarantee are AFFO-accretive, with a $28m increase adding 0.5cpu and a $68m increase generating 1.0cpu additional AFFO (pro forma).

• The guarantee generated a 10.7% annualized return in 1H26, with the return rate on the additional guarantee assessed at 9.8% to 11.3%.

• FY26 forecast AFFO remains unchanged at 11.7cpu due to short utilisation period.

• The guarantee does not increase gearing and is designed to maintain pro forma LVR below 50%.

• RFM's remuneration is capped at 1.05% of the guarantee.

Counterparty and risk management

• The guarantee is backed by Baybrick Pty Ltd, a JBS N.V. subsidiary with AUD 3.5 billion net assets as of December 2024.

• JBS is a leading global beef and poultry producer, listed on the NYSE, with over 250 facilities and 280,000+ employees.

• Mortality risk is primarily borne by JBS, with insurance and geographic diversification further mitigating risk.

• JBS has a BBB- credit rating and a market cap of USD 17.7 billion as of January 2026.

• Disease risk is considered low due to strong biosecurity and insurance measures.