Local investors are not snapping up shares in a local rural land management firm fast enough, the chair of the company says. Photo: 123rf.com
Local investors are sitting on their hands, an NZX-listed land management company says, and they are now on the hunt for foreign investors.
NZ Rural Land Management (NZL) chair Rob Campbell said in the company's annual report that its manager had been doing an 'excellent job'.
The initial public offering of shares (IPO) were followed by a record full year net profit and a strong increase in the value of shares.
The entity was created to manage the new NZ Rural Land Company Limited (NZRLC), which buys rural land to lease to farming operators. It first listed on the NZX in late 2020.
"NZL provides the purest exposure to New Zealand rural land," Campbell said.
"It is also a relatively new listing which has proven its strategy via excellent execution by our manager in a short period of time.
"In my mind, this ticks several boxes of what investors seem to be requesting in a new listing - yet many investors still sit on their hands and continue to criticise the NZX."
He said the company had made a number of amendments aimed at increasing foreign investment, which was currently sitting at about 24 percent.
"What I believe many investors are failing to appreciate with NZL - and this has been recognised globally - is that quality rural land is an increasingly scarce and critical primary infrastructure asset which serves as one of the best inflationary hedges, with predictable income under long-term leases."
He said the company may look to dual list on another global stock exchange, but did not specify which one or when.
"I would encourage those investors looking to grow our capital markets to consider not watching from the sidelines and support the future growth of NZL on its journey to becoming what we believe can be a sizeable NZX listed company."