Rivco Australia has locked in a $11.7 million, five-year water lease with Kyndalyn Park, significantly expanding its contracted revenue and leased portfolio to 82% starting July 2026.
- Five-year water lease valued at $11.7 million
- Lease starts 1 July 2026 with Kyndalyn Park subsidiary
- Leased portfolio rises to approximately 82% by value
- Contracted revenue base strengthened materially
- Partnership with leading horticultural operator Select Harvests
Major Water Lease Agreement with Kyndalyn Park
Rivco Australia (ASX:RIV) has executed a significant five-year water lease agreement with Kyndalyn Park Pty Ltd, a wholly owned subsidiary of Select Harvests Limited, valued at approximately $11.7 million over the term. This deal, commencing 1 July 2026, will see Rivco lease water entitlements worth about $48.6 million, adding a substantial new pillar to its long-term contracted revenue.
Strengthening Contracted Revenue and Lease Portfolio
The agreement boosts Rivco’s leased portfolio to roughly 82% by value from the lease start date, marking a material increase in its water leasing footprint. Chairman Brendan Rinaldi highlighted that the partnership aligns with Rivco’s strategic goal to increase its leased water percentage, underpinning its revenue base amid sustained demand for water security in Australia’s horticultural sector.
This move comes on the back of Rivco’s robust financial performance in 2025, where the company reported a 135% surge in net profit and strong dividends, reflecting both operational momentum and investor confidence. The new lease complements the company’s ongoing efforts to expand contracted revenue streams, as seen in its recent profit growth and strong dividends in 2025.
Implications for Rivco’s Market Position
Securing a long-term contract with a leading horticultural operator like Select Harvests signals Rivco’s growing influence in the water resources sector. While the exact mix of water entitlement zones under the lease remains unspecified, the deal’s scale and duration offer revenue visibility and portfolio stability. It also reflects the broader trend of tightening water supplies and the premium placed on long-term water security contracts in Australia’s agricultural markets.
Investors should note that while the contract value and portfolio impact are clear, the filing does not detail immediate effects on earnings or cash flow, leaving some uncertainty about near-term financial metrics. Monitoring future lease agreements and financial disclosures will be crucial to gauge the ongoing impact on Rivco’s balance sheet and income streams.
Bottom Line?
Rivco’s new $11.7 million water lease significantly fortifies its contracted revenue and leased portfolio, reinforcing its strategic position amid strong sector demand.
Questions in the middle?
- How will the new lease impact Rivco’s earnings and cash flow in the coming financial years?
- What is the composition of the water entitlement zones included in the lease and their market value trends?
- Could Rivco leverage this partnership to secure further long-term contracts with major horticultural players?