Ingenia Communities Group · ASX:INA
Ingenia Communities — H1 2024 Earnings Presentation
37 slides from Ingenia Communities's earnings presentation, Feb 20, 2024
Slide 1: 1H24 Results Presentation ASX Media Release
ASX / MEDIA RELEASE 20 February 2024 1H24 Results Presentation Ingenia Communities Group (ASX:INA) provides its 1H24 Results presentation. Authorised for lodgement by the Board. ENDS For personal use only For further information please contact: Donna Byrne General Manager Investor Relations & Sustai
Slide 2: 1H24 Results Presentation
Image: Artist impression community clubhouse pool – Ingenia Lifestyle Drift, QLD For personal use only 1H24 RESULTS PRESENTATION | 20 FEBRUARY 2024
Slide 3: Acknowledgement of country
Acknowledgement of country For personal use only As an owner, operator and developer of real estate across Australia, Ingenia Communities acknowledges the traditional custodians of the lands on which we operate We recognise their ongoing connection to land, waters and community, and pay our respects
Slide 4: Agenda
Agenda 1H24 Results Financial Lifestyle Lifestyle, Rental and Holidays Outlook and Performance Development Gardens Guidance Justin Mitchell Justin Mitchell Von Slater Justin Blumfield Matthew Young Justin Mitchell For personal use only Chief Financial Officer Chief Financial Officer EGM Development
Slide 5: Executing on strategy
Executing on strategy Focus on exposure to sectors with long-term demand drivers • Long term growth supported by ageing population and affordable housing in attractive locations • Strong tail-winds in place for sustained demand in domestic travel • Continuing to expand development pipeline via capit
Slide 6: Results highlights
Results highlights LIFESTYLE RENTAL LIFESTYLE DEVELOPMENT GARDENS HOLIDAYS • Land Lease (Lifestyle) portfolio now • 176 home settlements 1H241 • Ingenia Gardens providing stable high • Revenue up 12% on 1H23 $1.1 billion - 47% of real estate portfolio1 quality cash flow and high occupancy For person
Slide 7: Financial performance & capital management
Financial performance & capital management For personal use only Image: Ingenia Lifestyle Drift, QLD PAGE 6
Slide 8: 1H24 Results
REVENUE STATUTORY PROFIT $211.6m $42.5m For personal use only 22% on 1H23 26% on 1H23 EBIT UNDERLYING PROFIT OPERATING CASH FLOW $55.1m $43.5m $21.8m 34% on 1H23 27% on 1H23 7% on 1H23 1H24 Results DPS UNDERLYING EPS • Solid operational performance driven by diverse revenue streams and CPI linked re
Slide 9: Key financials
Key financials Lifestyle and holidays businesses delivering growth; material increase in home settlements For personal use only 1H24 1H23 REVENUE • Growth driven by increased home settlements (and average home sales price), rent increases and Revenue $211.6m $173.6m 22% growth in holidays occupancy
Slide 10: Underlying rental business delivering EBIT growth
Underlying rental business delivering EBIT growth EBIT margins improving EBIT 1H24 1H23 For personal use only Residential Communities LIFESTYLE RENTAL Lifestyle Rental $19.3m $16.3m 18% • Benefitted from CPI linked rental increases, market rent reviews and growth in rent base Lifestyle Development1
Slide 11: Capital management
Capital management Well positioned balance sheet Debt Expiry Profile Debt Metrics 31 Dec 23 30 Jun 23 ($ million) Loan to value ratio (covenant <55%) 33.3% 31.4% $350 Gearing ratio1 For personal use only 26.5% 25.3% $300 Interest cover ratio (total) $250 4.4x 4.7x (covenant >2x) $200 Interest cover
Slide 12: Significant uplift in Holidays valuation
Significant uplift in Holidays valuation Weighted Av. Weighted Av. • Independent valuation of 45 assets 1H24 representing 51% of total Dec 232 portfolio by value (52 assets 2H23) Portfolio Cap Rate Dec Cap Rate Jun Net revaluation3 Book Value 231 231 • CPI linked rent increases provided value suppor
Slide 13: Business overview
Business overview1 Image: Artist impression – Clubhouse at Ingenia Lifestyle Beveridge, VIC INVESTMENT PROPERTY COMMUNITIES AND SITES DEVELOPMENT2 OPERATIONS ‘ROOM NIGHTS’ $2.4b 102 5,935 15,700 ~1.7m For personal use only Potential new land lease Income generating homes, Owned/managed home sites vi
Slide 14: Residential Communities
Residential Communities The Group’s portfolio has increasing exposure to land lease communities • Ingenia Lifestyle, Ingenia Rental and Ingenia Gardens delivering core recurring rental revenue • Cash flows supported by government payments and CPI linked rents • Communities meet growing demand for af
Slide 15: Ingenia Lifestyle Development
Ingenia Lifestyle Development Key Data 1H24 1H23 New home settlements (100% INA) New home settlements (Sun/Funds) 143 33 115 13 143 NEW HOME For personal use only Homes constructed 191 136 SETTLEMENTS1 Average home sales price (000’s)1 $594 $480 Gross new home sales profit1 $34.6m $23.6m Other reven
Slide 16: Ingenia Lifestyle Development
Image: Sanctuary, Victoria Point, QLD Ingenia Lifestyle Development Growth in construction and inventory to support Creating future communities and growing high increase in settlements FY24 quality rent base Construction conditions improving • Build timeframes reduced – average now 22 weeks For pers
Slide 17: Development activity supporting sales momentum
Development activity supporting sales momentum Delivering growth in settlements Two new projects launched 1H24, delivering first settlements in FY24 Significant civil infrastructure underway to support future home settlements • Drift, Bargara, QLD • Stage 1 civils at Beveridge (Green Star Homes comm
Slide 18: Extensive pipeline of 5,935 development sites
Extensive pipeline of 5,935 development sites Pipeline provides exposure to diverse markets and price points For personal use only Maintain target of 1,600 to 2,000 settlements FY24 - FY26 Continuing focus on pipeline expansion • Development approvals for Blueys Beach, Latitude One expansion, and Go
Slide 19: Ingenia Lifestyle Rental
Ingenia Lifestyle Rental Image: Brisbane North Rental Village, QLD Delivering growth in annuity cash flows Key Data 1H24 1H23 Total revenue $42.1m $37.3m For personal use only EBIT $19.3m $16.3m EBIT margin 45.9% 43.6% 31 Dec 23 30 Jun 23 Book Value $883.2m $868.4m • Revenue up 13% • 177 income prod
Slide 20: Ingenia Lifestyle: land lease rent base growing
Ingenia Lifestyle Land lease rent base growing Significant growth in rental revenues Communities generating stable cash flows • 143 new home settlements 1H24 adding $1.5 million revenue per annum Ingenia Connect enhancing resident experience and length of stay • Weekly rent increase over 9% (weighte
Slide 21: Ingenia Rental (all age rental)
Ingenia Rental (all age rental) All age ‘built to rent’ experiencing strong demand High occupancy maintained Low vacancy rates, limited new supply and migration driving demand for affordable • Weekly rent increase 9% (weighted average) rental homes • Addition of 34 new rental homes – attracting high
Slide 22: Ingenia Gardens
Ingenia Gardens High occupancy maintained 1,019 95.4% $373 Key Data1 Total revenue 1H24 $13.4m 1H23 $14.1m HOMES OCCUPANCY AVE. WEEKLY EBIT $5.4m $5.8m RENT For personal use only EBIT margin 40.5% 40.8% 31 Dec 23 30 Jun 23 Book value $127.7m $168.0m 1. Horsham and Tamworth divested Nov 2022. Six WA
Slide 23: Ingenia Holidays
Ingenia Holidays 38 2,061 COMMUNITIES1 ‘ANNUAL’ SITES For personal use only WITH 8,100 GENERATING INCOME STABLE RENTS GENERATING SITES 4,639 TOURISM CABINS AND SITES 1,395 PERMANENT HOMES (RENTAL AND LAND LEASE) 1. Portfolio excludes assets held for sale. Includes five holiday parks owned by Ingenia
Slide 24: Ingenia Holidays: continued growth
For personal use only 17% 43 Ingenia Holidays REVENUE FROM PERM 12% NEW ‘CABINS’ ADDED 1H24 Continued growth 1H24 AND ANNUAL INCREASE IN INCOME SITES Key Data 1H24 1H23 (HOMES) Tourism rental income $51.1m $45.9m Tourism rental income up 11% with increase in both occupancy and rate Residential renta
Slide 25: Ingenia Holidays asset management strategies
Ingenia Holidays Asset management strategies to deliver diverse and growing revenue streams Customer insights and affordability of domestic holidays support demand Continue to review and enhance portfolio • Domestic travel forecast to continue to grow1 • Divestment of Ingenia Holidays Broulee ($7.3
Slide 26: Outlook and Guidance
Outlook and Guidance FY24 guidance maintained FY24 guidance reflects caution about short-term outlook • Timing of settlements (2H24 vs 1H25) remains key variable • Holidays delivering more modest growth from higher base For personal use only • Higher costs 2H24 (increase in marketing spend, higher e
Slide 27: Questions
For personal use only Questions Natalie Kwok Justin Mitchell Von Slater Justin Blumfield Matthew Young Chief Investment Officer and Chief Financial Officer EGM Development & Sales EGM Residential EGM Tourism General Counsel Image: Ingenia Lifestyle Sunnylake Shores, NSW PAGE 26
Slide 28: Appendices
For personal use only Appendices Image: Ingenia Holidays Cairns Coconut, QLD PAGE 27
Slide 29: Underlying profit
Appendix 1 Underlying profit 1H24 1H23 ($m) ($m) For personal use only Lifestyle Development 16.0 7.7 Lifestyle Rental 19.3 16.3 Ingenia Gardens 5.4 5.8 Ingenia Holidays 24.3 20.4 Fuel, food & beverage 0.9 0.7 Capital Partnerships 0.6 1.3 Portfolio EBIT1 66.5 52.2 Corporate costs (11.4) (11.1) EBIT1
Slide 30: EBIT by segment and underlying profit
Appendix 2 EBIT by segment and underlying profit Residential Communities Tourism Other Capital Lifestyle Lifestyle Ingenia Fuel, Food ($m) Ingenia Holidays Partnerships1 and Total Development Rental Gardens and Beverage For personal use only Corporate Rental income - 34.7 12.2 62.4 - - 109.3 Lifesty
Slide 31: Cash flow
Appendix 3 Cash flow 1H24 1H23 ($m) ($m) Opening cash at 1 July 45.7 14.5 For personal use only Rental and other property income 141.0 126.8 Property and other expenses (106.2) (98.1) Proceeds from sale of Lifestyle homes 87.3 54.0 Purchase of Lifestyle home inventory (82.1) (49.9) Net borrowing cos
Slide 32: Consolidated balance sheet
Appendix 4 Consolidated balance sheet 31 Dec 23 30 Jun 23 ($m) ($m) For personal use only Cash 11.3 45.7 Inventories 87.2 54.1 Investment properties 2,111.0 2,045.6 Investment in Joint Venture 72.5 61.8 Other financial assets 10.0 13.4 Intangibles 102.4 102.6 Other assets 46.5 54.9 Total assets 2,44
Slide 33: Underlying to statutory profit
Appendix 5 Underlying to statutory profit H1FY24 Underlying to Statutory Profit Bridge 80.0 For personal use only 70.0 24.6 (7.4) (0.3) 60.0 (2.1) (3.9) (16.6) 50.0 4.7 $m 40.0 43.5 42.5 30.0 20.0 10.0 0.0 Underlying Profit Gain on Disposal of Fair Value Gain on Share of Joint Transaction Costs Reva
Slide 34: Joint Venture with Sun Communities
Appendix 6 Joint Venture with Sun Communities (NYSE: SUI) Accelerating development activity – four projects under development • Freshwater (Burpengary, QLD) • Natura (Bobs Farm, NSW) delivered first settlements June 2023 For personal use only • Element Fullerton Cove (NSW) – project launched 1H24 •
Slide 35: Progressing sustainability initiatives
Appendix 7 Progressing sustainability initiatives aligned to strategy, vision and values Environment Disclosures For personal use only Continued Solar and LED Progressed construction at Fullerton Cove Extended disclosures in 2023 installations in new NSW, Bargara QLD, and Beveridge VIC, Sustainabili
Slide 36: Contact us
Contact us For personal use only Donna Byrne Justin Mitchell Ingenia Communities Group GM Investor Relations and Sustainability Chief Financial Officer Level 3, 88 Cumberland Street, dbyrne@ingeniacommunities.com.au jmitchell@ingeniacommunities.com.au Sydney, NSW 2000 Tel: +61 401 711 542 www.ingeni
Slide 37: 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
Ingenia Communities Group — H1 2024 Earnings Presentation on 6ix