New Zealand Rural Land Co made a $2.5 million net profit after tax in the six months to June 30 but any dividend remains suspended in favour of buying back shares and reducing a convertible note balance.
The company has bought back 300,000 shares since announcing the change in policy on May 26 but the fall in the share price has not been halted.
After spending the eight-month period to early March above $1, the share price fell to a low of 83c in early May when the company worked through the settlement of its large forestry acquisition.
It currently stands at 85c, 18% lower than 12 months ago.
In the interim results announcement, the directors repeated their view that the current share price materially undervalues both the assets and the free cashflow profile, making the on-market buyback attractive and accretive for shareholders.
The net asset value per share is $1.53.
Total assets are $362m and net assets $214m.
The forestry purchase boosted the earnings forecasts for both this financial year and the next.
NZRLC said the adjusted funds from operations in FY23 will be $6m to $6.5m and for FY24 between $8m and $8.5m.