Ingenia Communities Group · ASX:INA
Ingenia Communities — Shareholder Meeting (November 2013)
34 slides from Ingenia Communities's shareholder meeting presentation, Nov 19, 2013
Slide 1: Annual General Meeting 2013
Ingenia Communities Group Annual General Meeting 2013 For personal use only 19 November 2013
Slide 2: Chairman
For personal use only Chairman Jim Hazel p2
Slide 3: Agenda
Agenda For personal use only Chairman’s welcome Year in review CEO update Formal business of the meeting p3
Slide 4: Chairman's welcome
Chairman’s welcome For personal use only Non-Executive Executives Directors Jim Hazel Simon Owen Chairman Managing Director and Chief Executive Officer Philip Clark Tania Betts Director Chief Financial Officer Amanda Heyworth Nikki Fisher Director Chief Operations Officer Rob Morrison Leanne Ralph D
Slide 5: Chairman
For personal use only Chairman Jim Hazel p5
Slide 6: Year in review
Year in review For personal use only Strong security price growth of 87% in the last year has seen INA now trading at a premium to Net Asset Value, and outperforming the ASX 300 INA.ASX XPK.ASX Current: 50¢ Mkt cap:$331m 200% Sept $62m Rights Issue 180% Launch MHE strategy Jun $21m Indexation 160% P
Slide 7: Investing in growth
Investing in growth For personal use only Funds from two successful raisings deployed on accretive MHE acquisitions $30 million $93.0 million June institutional placement Sept Non-Renounceable Rights and Group debt and cash to fund Issue and increased Group debt 6 acquisitions facility to fund 8 acq
Slide 8: CEO update
CEO update For personal use only Simon Owen Chief Executive Officer and Managing Director p8
Slide 9: FY13 Highlights
FY13 Highlights For personal use only Improved Garden Villages Rental portfolio trending well towards long term target of operational 92% results Settlers DMF Conversion sales of 53 homes, grossing $9.1m Stabilised capital position with Australian and New Zealand debts refinanced Prudent capit
Slide 10: Total securityholder returns
Total securityholder returns For personal use only Ingenia has significantly outperformed the benchmark indices over 1, 3 and 5 years Total returns over 1, 3 and 5 years to 31 October 20131 - % per annum 30.7% 5 Years 7.3% 11.1% 89.3% 3 Years 13.1% 9.3% 94.6% 1 Year 13.4% 24.7% 0 10 20 30 40 50 60 7
Slide 11: Our operating environment
Our operating environment For personal use only > Demand improving as most residential property markets firm Demand > Affordable segment of market strong – seniors selling homes to first home buyers who are sensitive to falling interest rates > Few new villages being built due to funding constraints
Slide 12: Financial overview
Financial overview For personal use only Key financial metrics FY13 FY12 Net profit / (loss) $m (10.3) 131% 33.6 Profit from continuing operations $m 2.8 95% 1.4 Operating income – continuing operations $m 3.3 63% 2.1 Operating income - total $m 5.9 21% 7.4 Operating income per security cents 1.3 24
Slide 13: Capital Management
Capital Management For personal use only Strong balance sheet underpins growth strategy > Assessing credit approved term sheet to extend debt facility to $129.5m (up $47.5m) on improved terms and margins Debt > LVR target of 25-35% > Oversubscribed Placement (June) and Rights Issue (September) to ac
Slide 14: Portfolio update
Portfolio update For personal use only Today, Ingenia has Australian 49 communities and growing Rental Deferred Management Fee 29 villages 9 villages > 1,520 units > 950 units Manufactured Home Estates 6 more MHE 11 Estates acquisitions by 1Q 2014 > 668 permanent sites Growing a NSW market > 624 tou
Slide 15: Portfolio update – Garden Villages (Rental)
Portfolio update – Garden Villages (Rental) For personal use only 100 Occupancy on track for further growth 92% > Occupancy at 83.3% as at 31 October 2013 90 (seasonally impacted by winter months) Occupancy % 85% 83% 81% 80 > Portfolio occupancy continues to trend upwards to long term target of 92%
Slide 16: Ingenia Care Assist – driving occupancy growth
Ingenia Care Assist – driving occupancy growth For personal use only Ingenia Care Assist initiative aims to facilitate the delivery of government funded home care packages into our villages by working with approved external care providers % of GV resident move-outs in FY13 Initiative Benefits to nur
Slide 17: Portfolio update – Settlers (DMF)
Portfolio update – Settlers (DMF) For personal use only Commitment to new development remains strong > 14 new sales and 13 resales settled YTD to 31 Oct 2013, grossing $3.2m (pcp Oct 2012 16 new sales and six resales) > Demand increasing for refurbished resale homes in WA > Development continues wit
Slide 18: Settlers Ridge Estate expansion well underway
Settlers Ridge Estate expansion well underway For personal use only > Located in Gillieston Heights near Maitland > 17 new homes being constructed on-site > Priced from $299,500 to $332,000 for two and three bedroom homes > Forecast all homes sold by 30 June 2014 p18
Slide 19: Portfolio update – MHEs (Active Lifestyle)
Portfolio update – MHEs (Active Lifestyle) For personal use only Momentum building on Manufactured Home Estates > Acquisition of an additional four MHEs in Hunter/Newcastle region builds the Group’s presence in an attractive market > We will soon be the largest owner and operator of MHEs and tourist
Slide 20: Delivering on the MHE pipeline
Delivering on the MHE pipeline For personal use only Ingenia has acquired or contracted 11 parks with an embedded development pipeline of > 520 sites Six homes delivered and installed (The Grange 4, Nepean 2) Additional four homes under construction at Parkwood Homes for Nepean – will diversify manu
Slide 21: New Zealand Students portfolio
New Zealand Students portfolio For personal use only Redevelopment nearing completion, sale process about to commence > A valuable cash yielding portfolio with 15-year anchor leases to quality government backed tenants > Refurbishment works on McKenzies building on track for completion in Jan 2014,
Slide 22: Strategy
Strategy For personal use only Mudgee Valley Mudgee Tourist Park p22
Slide 23: Group strategy
Group strategy For personal use only OPERATE with DEVELOP Disciplined ACQUIRE excellence efficiently capital allocation competently > Increase sales and > Low risk expansion of > Recycle capital to > Focus on recurrent occupancies existing villages grow higher yielding cash yielding assets MHE portf
Slide 24: MHE strategy – Significant pipeline of accretive opportunities
MHE strategy Significant pipeline of accretive opportunities For personal use only Two years of research invested in assembling a proprietary database of over 2,000 Caravan and Tourist Parks and MHEs across the East Coast and WA > Highly fragmented segment creating opportunities for consolidation >
Slide 25: MHE strategy – Acquire, integrate, develop
MHE strategy Acquire, integrate, develop For personal use only Strategy Progress Acquire and integrate MHEs and Building a market leading portfolio of 15 Tourist Parks with a significant land Well MHEs in NSW by early 2014 including a 1. bank and upside potential advanced land bank of over 970 home
Slide 26: MHE tourism strategy
MHE tourism strategy For personal use only Maintaining existing and complementary business line Short-term tourism and trade accommodation preserved where it delivers the highest and best use of land Significant tourism and hospitality experienced staff in senior management level Upgrade existing
Slide 27: New acquisitions – Contracts exchanged
New acquisitions Contracts exchanged For personal use only Purchase Permanent Tourist/Short Development Combined Combined Price homes term upside sites Unlevered IRR Stabilised accomd. yield Lake Macquarie $7.0m 41 27 60+ >16% 9.2% Village (Morisset) Macquarie $3.7m 35 40 20+ Lakeside Village (Chain
Slide 28: New acquisitions – Under option
New acquisitions Under option For personal use only Permanent Tourist/Short Development Combined Combined homes term accomd. upside sites Unlevered IRR Stabilised yield Big4 Valley 6 114 60+ >15% 11.4% Vineyard Tourist Park (Cessnock) Option to purchase Wine Country - 60 35+ Caravan Park (Cessnock)
Slide 29: Further expansion into the Hunter/Newcastle region
Further expansion into the Hunter/Newcastle region For personal use only Building our Hunter/Newcastle market cluster Wine Country Caravan Settlers Ridge Estate Park (Cessnock) (Maitland) • Big4 Valley Vineyard Tourist Park • Settlers Cessnock (Cessnock) • The Grange Village • Lake Macquarie Village
Slide 30: New Manufactured homes at The Grange
New Manufactured homes at The Grange For personal use only > New homes priced from $190,000 for a modest two bedroom home through to $300,000 for a three bedroom, two bathroom home p30
Slide 31: Development
Development For personal use only Development pipeline within existing portfolios as at 31 October 2013 Completion No. of Medium Value ($m) Units FY14 FY15 FY16 FY17+ term target Ridge Estate, NSW 9.2 29 Meadow Springs, WA 24.0 60 Deferred Management Gladstone, QLD 15.3 56 Fee (DMF) Rockhampton, QLD
Slide 32: Outlook
Outlook For personal use only > Acquisitions – Due Diligence well advanced on accretive MHE opportunities with Rights Issue capital expected to be fully deployed by 1Q 2014 > Integration of recent MHE acquisitions progressing well with new homes delivered at The Grange and Nepean, and Mudgee and Alb
Slide 33: Appendix
Appendix For personal use only Additional information from this presentation 1. Slide 12 ‘Financial Overview’ - Operating income is a non-IFRS measure that presents, in the opinion of the Directors, the operating activities of INA in a way that reflects its underlying performance. Operating income e
Slide 34: 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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