Merricks Capital Agriculture Credit Fund Portfolio and Market Update – March 2024

The Merricks Capital Agriculture Credit Fund (the Fund) returned 0.9%* in March and 10.2%* on an annualised basis since inception.

With the east coast of Australia benefiting from wetter summer conditions and the likely return of La Niña in late 2024, farm incomes are on the rise (ABARES), driving interest in agricultural property transactions and demand for capital.

One new loan settled during the month, a 1.1% allocation to the Fund financing a mixed farming business with four properties in the highly regarded Liverpool Plains region, NSW. The 18-month loan has a forecast investor IRR of 10.4% and modest gearing with a peak LVR of 55%, stepping down to 50% by Q3 2024.

Due diligence continued on $250m of new investment opportunities, specifically targeting mixed-farming, grazing properties, and dairy assets. We expect the Fund to remain fully deployed from a cash perspective for 1H 2024, with opportunities to deploy asset-backed agriculture credit continuing to expand.

*These returns are stated net of fees and costs