News

AA Co assets revalued sharply higher, reaching $1.17b

Jon Condon, 09/05/2022

 

THE dramatic surge in Australian grazing property values and cattle prices over the past 12 months has been reflected in a 25 percent increase in asset value held by the Australian Agricultural Co since this time last year.

AA Co told investors through the Australian Securities Exchange this morning that it anticipates an approximate $250 million increase in the fair value of the company’s pastoral property and improvements over the 12 months to 31 March.

That will take the value of the pastoral portfolio including cattle to about $1.17 billion in aggregate.

The forecast follows the completion of AA Co’s 2022 financial year independent valuation report prepared by LAWD Pty Ltd, which is still subject to audit finalisation as the company prepares for the release of its FY22 Financial Report.

Last year’s annual report had net assets (property at $976 million, plus cattle) as the company continued to recover from drought, flood and COVID impacts.

The 2021 financial year saw the company record a net $105 million increase in the value of the  pastoral property assets and improvements, based on increased prices for recent comparable property sales, and capital investments made on the properties during the year.

Despite a 2021 financial year closing herd down 1.8pc in size due to lower calving in prior periods due to the 2019-20 drought and the Gulf flood event, the AA Co herd increased in value in 2021 by $91.4 million to the end of March last year.

AA Co will present its full year financials for the 2022 year ended 31 March on 19 May.

 

  • AA Co shares were trading at $1.71 a few minutes ago, still not far from the top of the recent price rise cycle that started back in February. This time last year, AA Co’s share value was around $1.15.

 

 

 

 

 

HAVE YOUR SAY

Your email address will not be published.

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

  1. James Falkiner, 10/05/2022

    To refer to AA Co as THE Australian Agricultural Company is both grammatically incorrect (which I am sure Beef Central would prefer to rectify) and falsely elevates AA Co as representative of the whole of Australia’s agricultural sector… a compliment to AA Co I am sure many of your readers and others in the sector may find deeply offensive. I look forward to this being corrected in future articles about AA Co.

    Thanks for your comment James. The word ‘The’ has been placed at the front of AA Co’s full name for decades – just as it is for The North Australian Pastoral Co. Part of that may be historically-based – AA Co was established in 1824, and NAPCo, in 1877. AA Co’s own website prefaces its name with the word ‘the’ – click here to view while NAPCo’s website does the same click here to view
    Note that in the abbreviated acronyms that follow the first-reference full spelling (Beef Central’s chosen style), we refer to the company simply as AA Co. There’s no intention on our part to ‘elevate’ AA Co in any way. Editor

Get Beef Central's news headlines emailed to you -
FREE!