Ingenia Communities Group · ASX:INA
Ingenia Communities — Investor Presentation (February 2013)
12 slides from Ingenia Communities's investor presentation, Feb 18, 2013
Slide 1: Investment in Manufactured Home Estates
Ingenia Communities Group For personal use only Investment in Manufactured Home Estates 15 February 2013
Slide 2: Executive summary
Executive summary For personal use only > Ingenia Communities announces its acquisition of The Grange Village, a seniors lifestyle community in Morisset, NSW. > This is Ingenia’s first investment into the Manufactured Home Estates (MHE) market, a cash yielding affordable accommodation segment within
Slide 3: The Grange Village acquisition
The Grange Village acquisition For personal use only VILLAGE PROFILE Ridge Estate > 145 existing dwellings with community facilities > Development opportunities of three DA approved home sites, 1 vacant home site and vacant land (30-40 homes) Cessnock Gardens > 113 km from Sydney and 44km from Newca
Slide 4: Overview - Australian retirement living sector
Overview - Australian retirement living sector For personal use only Population over 65 (%) - Where they reside Aged Care 5.6% No interest to Ingenia DMF Villages 3.8% Ingenia’s Rental Villages 0.8% core Significant untapped markets market Caravan / Manufactured Home Estates 2.1% Other 87.7% > Accor
Slide 5: Overview – Manufactured Home Estate market
Overview – Manufactured Home Estate market For personal use only Manufactured Home Estates are lifestyle communities whereby over 50s residents purchase a home where they own the above-ground component and sign a lease to pay rent on the freehold land which remains the property of the operator (Inge
Slide 6: Evolution of the MHE market
Evolution of the MHE market For personal use only Caravan parks began to Today, parks primarily built Caravan parks established in offer increasing mix of for permanent the 1950’s to accommodate temporary caravan sites manufactured home sites families and couples on and permanent holidays manu
Slide 7: MHE business model
MHE business model For personal use only Development Ingenia House (above ground) purchased by resident from > Ingenia supplies / builds new home Ingenia > Development margin 20% - 40% Purchase Ingenia Resident > Land remains property of > Home (above ground) Ingenia purchased from Ingenia > Enters
Slide 8: Ingenia's strategy – Maximising recurrent cash earnings
Ingenia’s strategy – Maximising recurrent cash earnings For personal use only Expansion opportunities in seniors rental is limited > Cannot build new rental villages at acceptable returns Finance, Sales and > Beyond acquisitions, growth is Marketing and Operations largely limited to improving occupa
Slide 9: Ingenia MHE value proposition
Ingenia MHE value proposition For personal use only FINANCIAL Consistent Cash Flow Steady rental annuity stream – typically 10% pa Development Profit Realise upfront development margins of 20-40% Continuous Cash Residents pay ground rents until house is sold – resale risk sits with them Not le
Slide 10: Demand for affordable housing remains
Demand for affordable housing remains For personal use only Australian average weekly Income by Age 2011 1,200 >77% of single people 1,000 Quartile 4 over the age of 65 Weekly income ($) rely on the pension 800 as their primary 600 source of income Quartile 3 400 Quartile 2 200 Quartile 1 - 15-24 25
Slide 11: In summary
In summary For personal use only Ingenia’s MHE acquisition strategy • Acquisition threshold of unlevered IRR > 15% • Focus on villages with development upside beyond passive rent collection • Cluster style acquisition in existing markets to leverage management capabilities MHE the ideal fit to Ing
Slide 12: Disclaimer
Disclaimer For personal use only This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN 154 565 990) as responsible entity for Ingenia Communities Fund (ARSN 107 459 576) and Ingenia Communities Management Trust (ARSN 122 928
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