Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Rural Funds has received Ernst and Young (EY) report in response to the Bonitas document and are looking into legal action
  • EY said the claims from Bonitas were not substantiated
  • RFM have instructed Clayton Utz to begin action against Bonitas
  • Rural Funds property revenues have increased by 30 per cent

Rural Funds has received Ernst and Young (EY) report in response to the Bonitas document and are looking into legal action.

Rural Funds is an Australian Real Estate Investment Trust which specialises in leasing agricultural land and assets for rental income.

At the start of the month Rural Funds was accused of fraud by Bonitas and accused them of ‘fabricating rental income’ and RFF shares were “ultimately worthless.”

Soon after Rural Funds claimed that Bonitas manipulated the market for financial gain.

The company then called for EY to look over the financial statements. EY came back and said the claims from Bonitas were not substantiated.

“The independent investigation conducted by EY concludes that the assertions contained within the Document are not substantiated. Further, EY has corroborated the response provided by RFM (rural funds management) on 7 August 2019,” the company said.

RFM has instructed Clayton Utz to commence action against Bonitas for its deliberate and malicious publication of the document. It believes the document represents misleading and deceptive conduct.

The company also reported its financial year 2019 report. It showed the company’s property revenues increased by 29.95 per cent to $66.39 million.

Its Total Comprehensive Income fell 25 per cent to $33.08 million.

The number of properties owned by the company has increased from 38 to 50 this financial year, with an average lease expiry of 11.3 years, which is down from 12.4 years from the year before.

Rural Funds expects that the revenue going forward will be divided as follows:  42 per cent from almonds, 27 per cent from cattle, 14 per cent from poultry, 5 per cent from vineyards, 4 per cent from cotton, 2 per cent from macadamias and 6 per cent from other sources.

Bonitas has not responded to the EY findings yet.

RFF by the numbers
More From The Market Herald
The Market Herald Video

" Vulcan Energy (ASX:VUL) in trading halt after shock short seller report

Vulcan Energy (VUL) remains in a trading halt as it deals with accusations from short-seller J Capital Research that it misled investors.

" Crown Resorts (ASX:CWN) keeps Vic. licence despite damning report

Crowns Resorts (CWN) will keep its Victorian casino licence despite a damning report labelling the operator’s behaviour as “illegal, dishonest, unethical and exploitative”.

" Smartgroup Corporation’s (ASX:SIQ) takeover offer abandoned

An offer to buy out all of the shares in Smartgroup Corporation (SIQ) and take over the employee management services business has been
Aussie Broadband (ASX:ABB) - Managing Director, Phillip Britt

" Aussie Broadband (ASX:ABB) confirms takeover talks with Over The Wire (ASX:OTW)

In response to an article by The Australian, Aussie Broadband (ABB) has confirmed it is in discussions with Over The Wire (OTW) regarding