Ingenia Communities Group · ASX:INA
Ingenia Communities — Investor Presentation (February 2013)
24 slides from Ingenia Communities's investor presentation, Feb 6, 2013
Slide 1: Ingenia Communities Group Investor Presentation
Ingenia Communities Group Investor Presentation For personal use only 6 February 2013 Simon Owen Chief Executive Officer
Slide 2: Agenda
Agenda For personal use only Group summary Market overview Retirement sector opportunities Our business models Capital management Strategy and outlook Appendices p2
Slide 3: Ingenia Communities Group
Ingenia Communities Group For personal use only The past two years has seen Ingenia transform from a passive landlord to an active owner, operator and developer of seniors living communities in Australia p3
Slide 4: Ingenia Communities Group
Ingenia Communities Group For personal use only Largest owner of rental Portfolio of 35 seniors living villages in communities in Australia Australia and growing Differentiated business model offering both Garden Villages recurrent cash yield Settlers Lifestyle DMF Conversions and development return
Slide 5: Group summary
Group summary For personal use only Security price / NAV Our registry 35 NAV x x 33 Discount gap ASX Code INA Top Securityholders 31 6.3¢ (22%) 29 Securities on Issue 441m Allan Gray Investments Security price (¢) 27 Discount gap Mercantile Investments At present: Market cap as at 31 Jan $123m 25 15
Slide 6: Market overview
Market overview For personal use only Demand from residents remains steady particularly at the affordable end of the market > Noticeable pick-up in enquiries and sales in key Ingenia markets of WA and QLD (but not Brisbane) Supply remains well below long term requirements > Few new DMF villages bein
Slide 7: The Australian seniors living market consists of an increasing number of sub-markets
The Australian seniors living market consists of an increasing number of sub-markets For personal use only Seniors Living Segments Age “empty nesters” “new retirees” “seniors” “older Australians” 50 60 70 80 Traditional Residential Senior’s Living Aged Care Lifestyle Affordable Lifestyle Resident Fu
Slide 8: Retirement sector opportunities
Retirement sector opportunities For personal use only . . . yet the rate at which villages The growth rate of the 65 year old . . . and will drive a large expected are being built represents a 45 plus demographic is compelling . . . increase in demand. . . village shortfall per year . . . Population
Slide 9: Seniors living sector opportunities
Seniors living sector opportunities For personal use only Population over 65 (%) - Where they reside Aged Care 5.6% DMF Villages 3.8% Rental Villages 0.8% Significant untapped Caravan / Manufactured market 2.1% Home Estates Other 87.7% > According to the 2011 Census, there are 3 million persons over
Slide 10: Our business models
Our business models For personal use only Ingenia has three distinct portfolios with complimentary financial models • Deferred Management Fee (DMF) Portfolio DMF refers to the amount of money payable to the retirement village operator on the departure of a resident from the village. The amount is us
Slide 11: Rental model is a key focus
Rental model is a key focus For personal use only Ingenia Communities’ sizable earnings provide clear differentiation from listed peers DMF Income 5% Ingenia to focus on market segments where it Development Rental can increase cash yields Profit 60% and undertake low risk 35% developments > Driving
Slide 12: Capital management
Capital management For personal use only A disciplined approach to capital allocation remains at the forefront of group strategy Recurrent earnings Balancing growth funding and capital return to securityholders Exploring alternate capital Recommencement of distribution Funding growth management init
Slide 13: Strategy
Strategy For personal use only Ingenia is committed to operating and building a highly profitable Australian Seniors living portfolio > Strict discipline to capital allocation will underpin all investment decisions > Focus acquisitions on cash yielding communities with development or repositioning u
Slide 14: Strategy: development forecast within existing portfolios
Strategy For personal use only Development forecast within existing portfolios as at 25 January 2013 Completion Value ($m) # of Units FY13 FY14 FY15 FY16+ Medium Active Development term target Settlers DMF Ridge Estate, NSW $8.6 29 Stage 1 Stage 2 Gladstone, QLD $16.9 68 Stage1 Stage 2 Rockhampton,
Slide 15: Recent acquisitions
Recent acquisitions For personal use only Ingenia expands its reach in growing markets with a cluster style strategy Key selection criteria for acquisitions: > Situated in areas with strong employment and housing market > Ideal demographics and limited competition > Available adjacent land for devel
Slide 16: Outlook
Outlook For personal use only > Market conditions in Australia remain challenging however demand for affordable seniors accommodation remains firm with few alternatives available > Exit from remaining overseas portfolios near complete, with proceeds to be reinvested in accretive and profitable senio
Slide 17: Appendices
For personal use only Appendices p17
Slide 18: Board profile
Board profile For personal use only Directors bring strong industry expertise and professional experience to the Board Jim Hazel Independent Non-Executive Chairman Mr Hazel has had an extensive corporate career in both the banking and retirement sectors. His seniors living experience includes being
Slide 19: Key Management
Key Management For personal use only Highly experienced Management team Simon Owen Managing Director and Chief Executive Officer Simon joined the Group in November 2009 and brings significant experience in the seniors living sector and is the immediate past National President of the Retirement Villa
Slide 20: Increasing demand in affordable housing
Increasing demand in affordable housing For personal use only Weekly Australian Average Weekly Income by Age 2011 Income $ >77% of single people $1,000 Median over the age of 65 Quartile $900 Income rely on the pension $800 as their primary source of income $700 Quartile 4 $600 $500 $400 Quartile 3
Slide 21: Typical Garden Villages (Rental)
Typical Garden Villages (Rental) For personal use only Site plan for Marsden Village, QLD Village Features > Rental accommodation for over 55s > Independent living options available in a gated community, coupled with services and activities > Community center with modest facilities such as reception
Slide 22: Typical DMF Conversion Village
Typical DMF Conversion Village For personal use only Site plan for Settlers Gladstone Village, QLD Village Features > Independent living retirement village for over 55s in a gated community, coupled with communal services and facilities > Community center with recently upgraded facilities > Typicall
Slide 23: Typical DMF Village
Typical DMF Village For personal use only Aerial view of Settlers Noyea, QLD Village Features > Independent living retirement village for over 55s in a gated community, with resort style facilities > Community center includes residents lounge with bar and modern kitchen, games room, hairdressing sal
Slide 24: 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
Ingenia Communities Group — Investor Presentation (February 2013) on 6ix