Ingenia Communities Group · ASX:INA
Ingenia Communities — Morgans Queensland Conference 2017
21 slides from Ingenia Communities's conference presentation, Oct 11, 2017
Slide 1: Morgans Queensland Conference
Presented by Simon Owen, CEO and Managing Director 11 OCTOBER 2017 INGENIA COMMUNITIES GROUP Morgans Queensland Conference
Slide 2: Ingenia
Ingenia nS Mo Ingenia Care Ingenia Gardens Ingenia Holidays
Slide 3: Business overview
Business overview Creating Australia’s best lifestyle communities Over 4,600 rental and Ingenia has lifestyle residents 66 Australian communities & growing Portfolio now 4,000 Occupied permanent homes $689 million 790,000+ ‘room nights’ p.a Villas and sites NT $ Annualised revenue >$175 million Stab
Slide 4: A five year story
A five year story Delivering growth with significant embedded value EBIT (Continuing Operations) Income Generating Sites 35 8,000 30 7,000 25 6,000 32.1 5,000 20 $m 4,000 6,843 15 24.2 3,000 5,337 4,435 10 18.1 2,000 12.1 3,932 5 8.9 1,000 1,750 0 0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17
Slide 5: FY17 highlights
FY17 highlights Guidance exceeded, supported by strong sales result Portfolio refined in line with strategy – non core assets divested, lifestyle now largest contributor to earnings STRATEGY 33 lifestyle and holiday communities – a further four under contract or option Over 2,470 development site
Slide 6: A range of value levers to drive growth
A range of value levers to drive growth Ingenia has significant embedded opportunity within the portfolio to create value 2,580 Development Sites $20 million pa incremental rent once built out, over $750 million in sales revenue Below Market Rents $170,000 growth pa in rent Growing Commercial Lease
Slide 7: Key acquisitions over past 12 months
Key acquisitions over past 12 months Contribution from recent acquisitions Acquired $180 million assets in FY17 > Renowned top holiday park in Australia – acquired for $50 million in March 2017 Cairns Coconut > Ingoing yield >8% - target yield of >10% > Approvals in place for 34 new tourism cabins >
Slide 8: Key acquisitions over past 12 months
Key acquisitions over past 12 months Contribution from recent acquisitions > Metro Brisbane lifestyle community acquired in August 2017 for $25 million Sheldon > Ingoing yield 6.8% - target yield of >10% > DA lodged for additional 49 homes > DA approved development site for 229 new homes Latitude On
Slide 9: Embedded growth
Embedded growth Contribution from recent acquisitions > Award winning Cairns Coconut acquired March 2017 > Major tourism asset in Cairns, offering strong yield, winter ‘peak season’ and opportunity to enhance returns • Ingoing yield >8% • On acquisition, 34 tourist cabins available to develop > Firs
Slide 10: Embedded growth – intensification of assets
Embedded growth – intensification of assets Additional tourism stock > Potential to add 125+ new rental cabins across existing tourism assets > Timing to be staged in line with demand Example: Ingenia Holidays Cairns Coconut > Four new villas installed prior to peak winter season • Cost per villa $1
Slide 11: Embedded growth – intensification of assets
Embedded growth – intensification of assets New rental cabins > Potential to add more than 180 new rental Example: cabins across key Brisbane communities to maximise cash rents Ingenia Lifestyle Chambers Pines • Enhances yield and margin (no material • New cabins ($60,000 cost) generating operating
Slide 12: Investing in growth
Investing in growth Acceleration of development New Home Settlements FY17 settled 211 new homes (up 97% on FY16) 400 Target • Contributing to improved operating margin and yield at 350+ key development communities 350 Target 300 260 - 280 Large metro and coastal projects support 250 future sales and
Slide 13: Market leading pipeline secured
Investing in growth Market leading pipeline secured Targeting Further Growth in Settlements Over Next 3 Years 600 550 Latitude One (new) > 500 $500 Avina Forecast Home Sales Price ($'000s) (expansion) 450 Glenwood (new) Upper Coomera 400 > $375 (new) 350 Blueys Beach The Grange (expansion) (expansio
Slide 14: Ingenia Lifestyle Latitude One – Port Stephens
Ingenia Lifestyle Latitude One – Port Stephens First greenfield project on track > Greenfield development comprising 229 new homes (seeking increase to 270 sites) > Civil infrastructure works on schedule > Additional 12.8 hectares acquired for longer term expansion (STCA) > Expect to achieve initial
Slide 15: Ingenia Lifestyle Chambers Pines
Ingenia Lifestyle Chambers Pines • Major expansion (256 homes) underway • Additional land optioned for approximately 120 new homes • Will create one of the largest communities in SE Queensland 15
Slide 16: Ingenia Lifestyle Bethania
Ingenia Lifestyle Bethania • Adjacent land acquired at $25,500 per site • DA now in place for 188 homes • Significant expansion underway Ingenia Lifestyle Bethania, QLD 16
Slide 17: Funding growth
Funding growth Asset sales progressing Range of non-core assets, including DMF, regional and subscale communities under conditional contract or offer secured • Refocusing portfolio on large scale metro and coastal assets Asset sales and operating cashflows to fund accelerating development pipeline I
Slide 18: Market outlook
Market outlook • Housing affordability and ageing population driving long-term core demand • Early signs of slowing in some markets as nationally housing markets move into different stages of ‘property clock’ Residential • Ingenia retains exposure to diverse markets with strong core demand and key a
Slide 19: Outlook: organic growth and capital recycling
Outlook: organic growth and capital recycling • Improve performance of existing assets to drive revenue growth and leverage operating and sales platform • Accelerate development pipeline to deliver new rental contracts and increase development profit • Progress asset sales and capital recycling to f
Slide 20: Contact information
Contact information Oe ji i Ingenia f SIMON OWEN CEO & Managing Director Tel: +61 2 8263 0501 sowen@ingeniacommunities.com.au DONNA BYRNE Group Investor Relations Manager Tel; +61 2 8263 0507 Mob: +61 401 711542 dbyrne@ingeniacommunities.com.au INGENIA COMMUNITIES GROUP Level 9, 115 Pitt Street Sydn
Slide 21: Disclaimer
Disclaimer This presentation was prepared by Ingenia Communities Holdings The forward looking statements included in this presentation involve Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN subjective judgment and analysis and are subject to significant 154 464 990) as responsible
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