Australian farmland registers total annualized return of 12.16%

The Australian farmland total annualized return since inception, from March 31, 2015, to June 30, 2023, was 12.16 percent with contributions from income return of 5.41 percent and capital growth of 6.50 percent, according to the Australian Farmland Index second quarter 2023, compiled by the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV). On a quarter-on-quarter basis, income returns of -1.52 percent and capital growth of 3.26 percent led to a total return of 1.73 percent for second quarter 2023.

The last five years recorded a total annualized return of 10.42 percent, comprising income return of 4.62 percent and capital growth of 5.59 percent. The last three years recorded a total annualized return of 8.95 percent, comprising income return of 3.42 percent and capital growth of 5.38 percent.

The index now constitutes 63 different properties of market value, including more than A$1.99 billion ($1.28 billion) in farmland split between 44 percent