Ingenia Communities Group · ASX:INA
Ingenia Communities — FY2023 Earnings Presentation
38 slides from Ingenia Communities's earnings presentation, Aug 22, 2023
Slide 1: FY23 Results Presentation
ASX / MEDIA RELEASE 22 August 2023 FY23 Results Presentation Ingenia Communities Group (ASX:INA) provides its FY23 Results presentation. Authorised for lodgement by the Board. ENDS For personal use only For further information please contact: Donna Byrne General Manager Investor Relations & Sustaina
Slide 2: Ingenia Holidays, Byron Bay, NSW
Ingenia Holidays Byron Bay, NSW For personal use only
Slide 3: Executing on strategy
Ingenia Holidays Byron Bay, NSW Executing on strategy Extend stable rent based cashflow base and grow diverse revenue base High occupancy and strong demand across rental communities Tourism rental income up 36%, driven by growth in rate and occupancy, recent acquisitions and organic investment F
Slide 4: Business overview: FY23 result in line with guidance
Business overview 1 FY23 Result in line with Guidance INVESTMENT PROPERTY REVENUE STATUTORY PROFIT $2.3b $394.5m $64.4m For personal use only Owned/managed +17% on FY22 (33%) on FY22 COMMUNITIES AND SITES FUTURE DEVELOPMENT EBIT OPERATING CASH FLOW 107 5,778 $109.3m $82.5m +7% on FY22 (28%) on FY22
Slide 5: Financial performance & capital management
Financial performance & For personal use only capital management Ingenia Lifestyle Chambers Pines, QLD 22 AUGUST 2023 | 4
Slide 6: Key financials
Key financials Underlying lifestyle and holidays businesses performing strongly - industry-wide construction FY23 FY22 delays experienced in 1H23 starting to abate in the second half For personal use only Growth in revenue - 23 acquisitions over FY22 and FY23, CPI linked rent growth and growth in
Slide 7: Underlying rental business delivering growth
Underlying rental business delivering growth Focus on scaling development - earnings impacted by first half construction delays and residential market conditions EBIT FY23 FY22 Residential Communities For personal use only Lifestyle Rental benefitted from CPI linked rental increases and material g
Slide 8: Capital management
Capital management Well positioned balance sheet Debt Expiry Profile Debt Metrics 30 Jun 23 30 Jun 22 ($ million) Loan to value ratio (covenant <55%) 31.4% 25.7% $350 For personal use only Gearing ratio1,3 25.3% 20.6% $300 Interest cover ratio (total) $250 4.7x 8.5x (covenant >2x) $200 Interest cove
Slide 9: Marginal cap rate expansion offset by continued NOI growth
Marginal cap rate expansion offset by continued NOI growth Av. Cap Rate Av. Cap Rate Jun 232 Independent valuation of 52 assets 2H23 (20 assets 1H23) Portfolio Jun231 Jun 221 Book Value Portfolio book value supported by high quality stabilised assets, achieving strong Lifestyle Rental 5.33% 5.19
Slide 10: Operating performance
Operating performance The Group’s $2.3 billion portfolio has increasing exposure to lifestyle, rental and development land lease communities (now 57% by value) For personal use only Portfolio EBIT2 (at 30 June 2023) Property Portfolio by value1 28% 18% 8% 36% $2.3b 27% $126.2m 39% 7% 37% Lifestyle D
Slide 11: Residential communities
Residential communities Ingenia Lifestyle, Ingenia Rental and Rental communities For personal use only Ingenia Gardens delivering core rental revenue Cashflows supported by government Ingenia Lifestyle Ingenia Rental Ingenia Gardens payments and CPI linked rents Communities meet growing demand for h
Slide 12: Ingenia Lifestyle Rental
Brisbane North Rental Village, QLD Ingenia Lifestyle Rental Key Data FY23 FY22 Total revenue $76.8m $55.1m EBIT $35.9m $26.8m For personal use only EBIT margin1 48.8% 49.7% 30 Jun 23 30 Jun 22 Total homes/sites 5,824 5,701 Av. weekly rent2 $211 $197 30 Jun 23 30 Jun 22 Book Value $868.4m $827.1m Seg
Slide 13: Ingenia Lifestyle: land lease rent base growing
Ingenia Lifestyle Land lease rent base growing Ingenia Lifestyle Chambers Pines, QLD Significant growth in rental revenues, reflecting larger portfolio CPI linked rent contracts – rents increased across >4,400 homes New home settlements FY23 adding $2.9m rent per annum For personal use only Mo
Slide 14: Ingenia Rental (all age rental)
Ingenia Rental (all age rental) Ingenia Rental Chambers Flat, QLD All age ‘built to rent’ experiencing strong demand Vacancy rate vs annual change in rental rates Ingenia Rental communities at peak occupancy (June 2023)1 All age rental communities meeting demand for affordable rental accommodation
Slide 15: Ingenia Gardens (seniors rental)
Ingenia Gardens (seniors rental) Strong, stable, government supported rent Key Data1 FY23 FY22 Ongoing high occupancy delivering stable cash flows Total revenue $27.4m $27.2m Residents attracted to supported environment and social interaction EBIT $10.5m $11.5m Attractive yields (average cap rate
Slide 16: Ingenia Lifestyle Development
Ingenia Lifestyle Development EBIT of $33.3 million reflects growing settlements in 2H23 as supply constraints eased Key Data FY23 FY22 Total of 374 home settlements FY23 New home settlements (100% INA) 318 353 Increasing contribution from Joint Venture fees as new projects contributed New home
Slide 17: Ingenia Lifestyle Development: positioned to capture demand
Ingenia Lifestyle Development Positioned to capture demand Demand drivers remain strong – ageing population and desire for affordable Stabilising construction conditions and availability of inventory supporting lifestyle increased sales activity Homes remain attractive for downsizers seeking to re
Slide 18: Extensive pipeline of 5,778 development sites to drive growth
Extensive pipeline of 5,778 development sites to drive growth For personal use only 18 Projects under Construction (14 selling homes) 22 AUGUST 2023 | 17
Slide 19: Accelerating development activity
Accelerating development activity For personal use only Creation of new communities aligned to focus on sustainable long-term investments Development pipeline by State Commenced first projects targeting Green Star certification 4000 3500 Fullerton Cove, NSW 3000 Beveridge, VIC Largest pipeline o
Slide 20: Expanded pipeline supporting medium settlements target
Expanded pipeline supporting medium settlements target Targeting 1,600 to 2,000 settlements FY24 - FY26 Continuing focus on pipeline expansion New greenfield site (Gordonvale) acquired March 2023 For personal use only Expansion land at Plantations secured Reviewing >20 sites across target mark
Slide 21: Significant latent development landbank value
Significant latent Ingenia Lifestyle Lara, VIC development landbank value Recent development portfolio and platform transactions demonstrate For personal use only the embedded value within Acquisition value per site Ingenia’s development pipeline $200,000 Ingenia’s ability to originate $180,000 Halc
Slide 22: Holidays
Holidays Ingenia Holidays Cape Paterson, VIC Over FY23, Ingenia Holidays For personal use only parks benefitted from an expanded network, buoyant demand Broadening and diverse reach – revenue streams database now 1.4 million 1,396 permanent homes 2,061 ‘annual’ sites generating stable Tourism rents
Slide 23: Ingenia Holidays: diverse locations and revenue streams
Ingenia Holidays Providing diverse locations and revenue streams Enhancing returns – additional accommodation and recent acquisitions • Addition of 38 cabins to existing parks (~50 planned FY24) • Cabins - average daily rate ($129) and occupancy (62%) 12 months to June 23 For personal use only • C
Slide 24: Portfolio benefits from domestic travel demand
Ingenia Holidays Ingenia Holidays One Mile Beach, NSW Portfolio benefits from domestic travel demand Tourism rental income up 36% on FY22, reflecting acquisitions, rate growth and Key Data FY23 FY22 positive trading conditions EBIT up 31% to $46.4 million Tourism rental income1 $97.3m $71.8m Impro
Slide 25: Capital partnerships
Ingenia Lifestyle Natura, NSW For personal use only Capital partnerships 22 AUGUST 2023 | 24
Slide 26: Capital partnerships
Capital partnerships Leveraging Ingenia’s platform and extending asset base via co-investment Sun Development Joint Venture with Sun Communities Ingenia Communities Total The Joint Venture provides Ingenia with a capital partner in the development of Managed Funds Joint Venture greenfield communitie
Slide 27: Development Joint Venture with Sun Communities
Development Joint Venture with Sun Communities (NYSE: SUI) Building momentum as four projects commence now underway Ingenia Lifestyle Natura, NSW Accelerating development activity to increase fee stream and settlements (four projects under development) Freshwater (Burpengary, QLD) now has 131 comp
Slide 28: Sustainability
Sustainability Aligned to strategy, vision and values For personal use only Environment Established minimum Commenced first projects targeting Green Installed public electric vehicle standards in development with Star – Communities rating (Bargara, chargers at 3 Holiday parks through solar, energy e
Slide 29: Outlook and Guidance
Outlook and Guidance Enhanced exposure to sectors with ongoing demand - seniors housing and domestic travel Now ~15,500 operational revenue generating sites For personal use only Continuing to refine portfolio via select divestments and targeted development activity Core businesses delivering gr
Slide 30: Appendices
Drift, Bargara, QLD Appendices For personal use only 22 AUGUST 2023 | 29
Slide 31: Underlying profit
Appendix 1 Underlying profit FY23 FY22 ($m) ($m) For personal use only Lifestyle Development 33.3 35.8 Lifestyle Rental 35.9 26.8 Ingenia Gardens 10.5 11.5 Ingenia Holidays 46.4 35.3 Fuel, food & beverage 1.1 0.9 Capital Partnerships 2.5 7.0 Portfolio EBIT 129.7 117.3 Corporate costs (20.4) (15.6) E
Slide 32: EBIT and underlying profit by segment
Appendix 2 EBIT and underlying profit by segment Residential Communities Tourism Other Capital Lifestyle Lifestyle Ingenia Fuel, Food ($m) Ingenia Holidays Partnerships1 and Total For personal use only Development Rental Gardens and Beverage Corporate Rental income - 64.9 24.8 119.1 - - 208.8 Lifest
Slide 33: Cash flow
Appendix 3 Cash flow FY23 FY22 ($m) ($m) Opening cash at 1 July 14.5 18.8 For personal use only Rental and other property income 259.2 205.1 Property and other expenses (189.6) (148.1) Proceeds from sale of Lifestyle homes 152.3 144.6 Purchase of Lifestyle home inventory (116.8) (75.8) Net borrowing
Slide 34: Consolidated balance sheet
Appendix 4 Consolidated balance sheet 30 Jun 23 30 Jun 22 ($m) ($m) For personal use only Cash 45.7 14.5 Inventories 54.1 19.5 Investment properties 2,045.6 1,937.9 Investment in Joint Venture 61.8 66.1 Other financial assets 13.4 9.6 Intangibles 102.6 103.2 Other assets 54.9 32.2 Total assets 2,378
Slide 35: House prices and time on market stabilising across key markets
House prices and time on market stabilising across key markets Days on Days on New developments broadening offer and price diversity Price growth LGA Median market market (year Community Name LGA (12 mths to House Price Entry prices for current projects range from $322k to (12 mths to on year Jun
Slide 36: Competitive landscape
Competitive landscape Land Lease Sites For personal use only 14000 12000 10000 No. sites 8000 6000 4000 2000 0 Ingenia Hometown Stockland Gem Life Palm Lakes Lifestyle Serenitas Aspen Lincoln Place Hampshire Property Communities Group Total Operational Development Pipeline Source: Ingenia Business D
Slide 37: Contact us
Ingenia staff Volunteer Day – tree planting at Latitude One, NSW Contact us For personal use only Ingenia Communities Group Level 3, 88 Cumberland Street, Sydney, NSW 2000 www.ingeniacommunities.com.au Donna Byrne GM Investor Relations and Sustainability dbyrne@ingeniacommunities.com.au Tel: +61 401
Slide 38: Disclaimer
Disclaimer This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) The forward looking statements included in this presentation involve subjective judgment and and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia analysis and are sub
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