Should I buy Rural Funds Group stock in Australia in 2025?

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At HelloSafe, our expert has been tracking the performance of Rural Funds Group for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Rural Funds Group.

What is Rural Funds Group?

What is the Rural Funds Group stock price?

The price of Rural Funds Group stock is rising this week. The current share price sits at 1.82 AUD, reflecting a 1.62% decrease over the last 24 hours and a 0.55% gain for the week. Market capitalisation stands at 709.30 million AUD, with an average daily traded volume of 709,201 shares. Rural Funds Group posts a P/E ratio of 14.47 and offers an attractive dividend yield of 6.48%. Its stock beta is 0.79, suggesting lower volatility than the overall market. This stable performance makes Rural Funds Group appealing for yield-focused investors seeking defensive exposure.

Our full analysis on the Rural Funds Group stock

After an in-depth review of Rural Funds Group’s latest financial statements and its share price performance over the past three years, we have leveraged our proprietary models to synthesise key trends across financial indicators, technical signals, sector data, and peer comparisons. By integrating insights from a spectrum of credible sources and our advanced analytical engines, we aim to clarify the current opportunity within the agricultural REIT sector. So, why might Rural Funds Group stock once again become a strategic entry point into this essential asset class in 2025?

Recent performance and market context

Rural Funds Group (ASX: RFF) has delivered a resilient performance amid evolving market dynamics. Currently priced at 1.82 AUD as of July 3, 2025, the stock has rebounded 2.54% over six months, even as the broader property and REIT sectors experienced intermittent pressure from interest rate volatility and shifting investor sentiment. Although its one-year return is -8.54%, recent weeks have seen a change in momentum, with the stock advancing by 0.55%. Robust rent collection, the signing of new long-term leases—including eight assets let for a combined 119 million AUD—and capital deployment into high-growth macadamia orchards have fortified income visibility and underpinned market confidence. Supported by a sector backdrop of tightening domestic farmland supply, the defensive nature of agricultural assets and inflation protection features make Rural Funds Group particularly well positioned as investors seek yield and security in Australia’s evolving rate environment.

Technical analysis

Technical signals for Rural Funds Group currently tilt positive, highlighting attractive entry levels and strong underlying momentum. The 14-day RSI sits in a neutral zone at 52.87, indicating neither overbought nor oversold conditions and thus room for upside. The MACD, at 0.005, presents a modest but meaningful buy signal, and all four major moving averages—20, 50, 100, and 200 days—are generating consistent “buy” signals, suggesting a broad-based accumulation phase. Key support is reinforced at 1.693 and 1.627 AUD, while resistance levels at 1.863 and 1.967 AUD mark the next potential upside targets. Importantly, the technical consensus aggregates 13 buy signals versus only 9 sell indications, capturing a clear bullish tilt. For disciplined investors, this convergence of positive technical data and broad moving average alignment points to a constructive short- and medium-term structure, making current levels appear highly favourable for building exposure ahead of the next potential breakout.

Fundamental analysis

Defensive growth is at the core of Rural Funds Group’s value proposition. For the first half of FY25, net property revenue surged by 17.3% year-on-year to reach 45.5 million AUD, a testament to the group’s robust lease structure and effective capital deployment. Distributable income (AFFO) remains strong at 5.73 cents per unit, allowing for a sector-leading distribution yield of 6.48%. With a price/earnings ratio of 14.47, Rural Funds Group trades at a compelling multiple relative to both its historical averages and REIT sector peers, while its net asset value per unit stands at 3.10 AUD—offering a clear margin of safety and underlying asset coverage. The strategic thrust into high-value macadamia orchards—supported by a further 155.9 million AUD in available financing—augments future growth capacity and reflects a disciplined expansion strategy. Furthermore, the weighted average lease expiry stands at 13 years, with a high-quality tenant base (79% enterprise/institutional), and built-in rental indexation mechanisms that help insulate cash flows from inflationary shocks. This combination of growth, quality income, conservative gearing, and defensive asset backing makes the current valuation appear highly attractive for long-term investors.

Volume and liquidity

One of the less appreciated but critical indicators of Rural Funds Group’s market credibility is its sustained trading volume. Averaging over 709,000 shares daily, the stock’s liquidity profile supports dynamic price discovery and facilitates the entry and exit of both retail and institutional investors without sharply impacting market prices. Institutional holders own around 32% of the float, and stable director ownership signals long-term alignment with shareholders. Ample liquidity not only reduces transaction friction but also signals heightened market confidence, especially as the group eyes expanding its asset base and institutional interest in agricultural REITs continues to rise across Australia. The ongoing high trading activity underpins valuation support, allowing Rural Funds Group to remain agile and attractive for active market participants.

Catalysts and positive outlook

• Expansion of macadamia orchards, with 45 million AUD already deployed and vast potential in domestic and export demand for premium nuts.
• Securing new long-term leases—such as extensions with Treasury Wine Estates—further lengthens rental duration and assures stable cashflows.
• A strong pipeline of asset development and maintenance, with management targeting consistent 4% annual growth in distributions.
• Built-in rental revaluation and inflation protection offer solid yield sustainability, even in fluctuating macro conditions.
• Broader sector tailwinds, including a heightened focus on food security, sustainability, and supply chain resilience, bolster demand for quality, long-duration farm assets.
• The trust’s eligibility for franking credits enhances after-tax returns for Australian residents, reinforcing its appeal among income-focused investors.
• The Australian management team, led by CEO David Bryant, brings nearly three decades of sector expertise, supporting innovation and prudent risk management.

These catalysts collectively reinforce the strength and reliability of Rural Funds Group’s cashflow profile and underpin optimism over multiple time horizons.

Investment strategies

• Short term: Following positive technical momentum, investors may seek entry between the strong support band around 1.69 AUD and upside targets of 1.86 AUD, aiming to capture a technical rebound or follow-through to resistance.
• Medium term: Recent asset deployment, robust tenants, and underlying rental growth provide visibility for stable distribution growth and capital appreciation, making holding through upcoming quarterly and annual results a potentially rewarding strategy.
• Long term: For those focused on income and capital preservation, Rural Funds Group’s commitment to steady 4% annual growth in distributions—combined with a defensive agricultural asset base, strong track record, and inflation-linked leases—represents a compelling means to diversify and stabilise portfolio returns. Strategic positioning now, with valuations comfortably below net asset value, could secure exposure ahead of future re-rating driven by operational delivery or further sector tailwinds.

With its low beta (0.79), the stock’s price has historically been less volatile than the broader market, offering a sense of resilience during periods of wider equity turbulence. Coupled with the group’s alignment with the sustainable investment themes increasingly favoured by Australian and global institutional allocators, entry at these levels seems particularly timely.

Is it the right time to buy Rural Funds Group?

Balancing recent performance, sector context, fundamental quality, and technical structure, Rural Funds Group stands out as a disciplined and innovative leader within the agricultural REIT space in Australia. Its rare combination of robust cashflows, inflation-protection, long-term asset quality, and above-average yield make a strong case for renewed investor attention. With ample development capacity, expert management, and significant market tailwinds favouring agricultural assets, the stock may be entering a new bullish phase that justifies serious consideration from both income-focused and total-return oriented investors. The alignment of positive technical indicators, fair valuation, and operational resilience suggests that Rural Funds Group represents an excellent opportunity to participate in one of the most stable and forward-looking themes of the local market.

In summary, Rural Funds Group seems ideally placed to deliver attractive returns while minimising risk—making this an opportune moment to engage with a defensive yet dynamic segment of the property market. The convergence of proven fundamentals and compelling future growth levers points to an environment rich with upside potential for discerning investors.

How to buy Rural Funds Group stock?

Buying Rural Funds Group stock online is very straightforward and secure when you use a regulated Australian broker. You can choose to invest directly with cash (spot buying) or trade with CFDs, which allow you to use leverage for larger exposure. Both methods are accessible even for beginners, and each has its pros and cons. To help you find the best provider, you'll find a comparison of Australian brokers further down the page.

Spot buying

With cash buying, you directly purchase Rural Funds Group shares through your brokerage account, becoming their registered owner. Fees typically include a fixed commission per order, which is usually around $5 to $15 AUD per trade, depending on the broker. This is the most transparent and long-term method for investors.

Gain scenario

If the Rural Funds Group share price is $1.82 AUD, you can buy around 547 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading lets you speculate on the price changes of Rural Funds Group shares without owning them. This method involves paying a spread (the broker’s margin on buy/sell prices) and overnight financing fees if you keep your position open after market hours. CFDs also allow you to use leverage, so even a small price move can mean a larger percentage gain (or loss).

CFD Gain Scenario

You open a CFD position on Rural Funds Group shares, with 5x leverage. This gives you a market exposure of $5,000 with an initial $1,000 stake.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, be sure to compare the fees and trading conditions of different Australian brokers—looking at commissions, spreads, available markets, and customer support. Your choice of method depends on your goals: spot buying suits those seeking long-term ownership, while CFDs may appeal to short-term traders comfortable with higher risk and leverage. For detailed broker comparisons, check the section below.

Our 7 tips for buying Rural Funds Group stock

The latest news about Rural Funds Group

The current share price of Rural Funds Group is up 0.55% over the last week to 1.82 AUD. This short-term upward performance comes on stronger-than-average trading volume, which reached a three-month average of 709,201 shares, reflecting renewed interest in the stock among Australian investors seeking yield.

Rural Funds Group maintains an attractive dividend yield of 6.48%, with stable cash flow from a diversified agricultural property portfolio. The reliable distribution and management’s guidance for 4% per year distribution growth continue to support institutional and retail demand in the local market.

Recent rental contract renewals have locked in new long-term tenants, boosting long-term income security. Lease extensions, particularly with Treasury Wine Estates and large agri-corporates, reinforce stability and underpin the trust’s ability to generate predictable revenue.

Technical analysis signals remain positive, with all major moving averages showing buy signals and a low beta of 0.79. This indicates lower volatility than the broader ASX, an appealing trait for local portfolios seeking defensive assets during uncertain market conditions.

Analysts maintain a 12-month target of 2.34 AUD, implying a 30% upside potential from current levels. Positive sentiment is fuelled by ongoing macadamia development projects, robust asset management, and tax-effective distributions for Australian investors eligible for franking credits.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.