Ingenia Communities Group · ASX:INA
Ingenia Communities — Shareholder Meeting (November 2018)
30 slides from Ingenia Communities's shareholder meeting presentation, Nov 13, 2018
Slide 1: 2018 Annual General Meeting
INGENIA COMMUNITIES GROUP 2018 Annual General Meeting 13 NOVEMBER 2018
Slide 2: Meeting outline
Meeting outline 2
Slide 3: Chairman’s welcome
Chairman’s welcome NON-EXECUTIVE DIRECTORS EXECUTIVES CHAIRMAN MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER Jim Hazel Simon Owen DEPUTY CHAIRMAN CHIEF FINANCIAL OFFICER Rob Morrison Scott Noble DIRECTOR CHIEF OPERATING OFFICER Amanda Heyworth Nikki Fisher DIRECTOR COMPANY SECRETARY Andrew McEvoy Le
Slide 4: Ingenia Communities Group Board of Directors
Ingenia Communities Group Board of Directors 4
Slide 5: Jim Hazel, Chairman
Jim Hazel, Chairman Ingenia Lifestyle Plantations, NSW. xIngenia s
Slide 6: Australia’s best lifestyle communities
Australia’s best lifestyle communities Strategy focussed on growing stable rental returns Rental base acquired, expanded or developed Development Return of Capital Sell: home (development return) plus new rental contracts Rent: land Rent: cabins/sites Rental Income Rent: units 6
Slide 7: Strong rental cash flow
Strong rental cash flow Ingenia Gardens Ingenia Holidays Ingenia 7
Slide 8: FY18 achievements
FY18 achievements Expansion of Lifestyle and Holidays portfolio Lifestyle and holiday communities portfolio now largest contributor to earnings Strategic Partnership with Sun Communities to undertake greenfield development Capital initiatives Non-core asset sales well progressed - $60 million
Slide 9: Security price and total return
Security price and total return Ingenia Security Price ($) Total Securityholder Return (%) to June 2018 3.40 Placement 25 23.1% Issue Price $3.2172 3.20 20 3.00 15 13.7% 2.80 13.2% 13.0% 12.2% 10.0% 10.0% 9.5% 10.3% 2.60 10 2.40 5 2.20 2.00 0 1 year 3 years 5 years Ingenia S&P/ASX Property 300 Accum
Slide 10: Simon Owen, CEO
Simon Owen, CEO xIngenia
Slide 11: Ten communities under development
Business overview Growing rental portfolio delivering stable cashflows Ingenia has Over 7,600 Income producing sites 63 Australian communities Portfolio value Over 5,800 rental and lifestyle residents $800 million 820,000 ‘room nights’ p.a. Cabins, caravan and camping Stable rent base $1.9 million/p
Slide 12: Ongoing growth as business strategy executed
Ongoing growth as business strategy executed Delivering growth with significant embedded value EBIT (Continuing Operations) Income Generating Sites 60 9,000 7,650 48.8 8,000 6,843 7,170 50 7,000 40 6,000 5,337 32.1 4,435 5,000 30 3,932 24.2 $m 4,000 18.1 3,000 20 12.1 1,750 8.9 2,000 10 1,000 0 0 FY
Slide 13: Key financials
Key financials Successful integration of new assets delivering increased earnings Key Financial Metrics FY17 FY18 Revenue $149.9m $189.5m 26% EBIT1 $32.1m $48.8m 52% Underlying profit1 $23.5m $36.8m 56% Underlying profit EPS1 13.0c 17.7c 36% Operating cashflow $30.3m $47.2m 56% Distribution per secu
Slide 14: Strategic Partnership with Sun Communities
Strategic Partnership with Sun Communities Placement and partnership will support growth Strategic Partnership with Sun Communities (NYSE: SUI) – a leading owner, operator and developer of Manufactured Housing and Recreational Vehicle (lifestyle and holiday) communities in North America • Ingenia an
Slide 15: Transaction benefits
Transaction benefits Strategic Partnership brings together two industry leading companies with complementary business models • provides Ingenia with access to Sun’s experience and knowledge developed over a 40 year period • provides Sun with access to the Australian market through a market leading p
Slide 16: Sun Communities: Seniors MH and RV Community
Sun Communities: Seniors MH and RV Community Palm Creek Golf and RV Resort, Casa Grande, Arizona Community type Hybrid (MH & RV) Age restriction 55+ No. sites 2,341 16
Slide 17: Use of placement funds
Use of placement funds Acquisition of Aspley Acres, Brisbane • Well located, large-scale community with significant repositioning potential in close proximity to the Brisbane CBD • Adds the largest community in Brisbane (383 rental cabins) to Ingenia’s portfolio • Initial yield of over 7% 17
Slide 18: Acceleration of new home settlements
Investing in growth Acceleration of new home settlements Ingenia will build out its current on balance sheet pipeline, supplemented and accelerated by future growth from the Strategic Partnership Growth from Strategic Partnership 350+ New home settlements 287 211 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (
Slide 19: Ingenia Lifestyle Latitude One (NSW, Port Stephens)
Ingenia Lifestyle Latitude One (NSW, Port Stephens) First greenfield project performing strongly • Greenfield development comprising 270 new homes • Strong ongoing demand • Over 45 homes now in place with community facilities • 39 homes settled under construction • 93% of homes released SOLD • Addit
Slide 20: Ingenia Lifestyle Plantations (NSW, Coffs Harbour)
Ingenia Lifestyle Plantations (NSW, Coffs Harbour) Second greenfield project on track • Greenfield development comprising 196 new homes • Settlements forecast to commence from early 2019 • Civil infrastructure works on schedule • Successful initial launch – over 60% of first stage now sold • Home co
Slide 21: Ingenia Lifestyle, Hervey Bay (Qld, Fraser Coast)
Ingenia Lifestyle, Hervey Bay (Qld, Fraser Coast) To be launched in early 2019 • Option secured November 2016 • Development approval for 224 homes in place • Adjacent 2 ha lot acquired April 2018 ($0.3m) – potential for additional 26 homes • Strong database of qualified leads secured from local shop
Slide 22: Sales outlook remains positive
Sales outlook remains positive • As at 12 November Ingenia has >85% coverage of FY19 settlements target of 350+ homes 350+ FY19 sales target is underpinned by: FY19 Target Strong sales momentum – over 85% of forecast settlements are already Gap to fill settled or at deposit or contract stage Time to
Slide 23: Drivers of future growth
Drivers of future growth Expanding ‘build to rent’ Ingenia owns close to 1,200 rental cabins and has approval to add more than 100 new cabins in existing rental parks In past 18 months 43 flat packed cabins from China have been installed at Durack and Chambers Pines Accelerating rollout - over 100 c
Slide 24: Drivers of future growth
Drivers of future growth Additional rental cabins: Durack Acquired • June 2017 ($25 million) • Large community combining resident and park owned cabins on 9.5 ha • Located 15 km south-west of Brisbane CBD adjoining proposed medium density, mixed-use development Strategy • Convert 8 tourist sites and
Slide 25: Charitable partnership established
Charitable partnership established Giving back to our communities Ingenia has established a partnership with Ronald McDonald House Charities® Australia Through the partnership Ingenia is providing financial support to the Ronald McDonald National Learning Program® and is the first National Partner f
Slide 26: Outlook/Guidance
Outlook/Guidance • Guidance – on track for 350+ settlements; FY19 EBIT growth to increase to 15-20%, up from 10-15%; FY19 EPS growth of 5-10% maintained • Enhances ability to capitalise on established pipeline through additional greenfield development and subsequent investment in quality rental stre
Slide 27: Nikki Fisher, COO
Nikki Fisher, COO Ingenia Holidays BROULEE Ingenia
Slide 28: Ingenia Holidays Portfolio
Ingenia Holidays Portfolio 28
Slide 29: Ingenia Holidays
Ingenia Holidays Expanding footprint and growing returns Assets performing well and growing returns Website revenue Average Booking Revenue generation Like for like revenue up 8% in FY18 Room nights sold up 31.8% Average length of stay up 5% +15% +56% ($304) ($2.6 million) Over 50% of Cabin bookings
Slide 30: Disclaimer
Disclaimer This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 The forward looking statements included in this presentation involve subjective 444 925) and Ingenia Communities RE Limited (ACN 154 464 990) as responsible judgment and analysis and are subject to significant
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