Ingenia Communities Group · ASX:INA
Ingenia Communities — FY2016 Earnings Presentation
34 slides from Ingenia Communities's earnings presentation, Aug 23, 2016
Slide 1: FY16 Results Presentation
Presented by Simon Owen, Tania Betts & Nikki Fisher 23 August 2016 For personal use only Ingenia Lifestyle South West Rocks INGENIA COMMUNITIES GROUP FY16 Results Presentation
Slide 2: For personal use only
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Slide 3: FY16 Highlights
FY16 Highlights Ingenia now owns 27 Lifestyle Communities with six under contract or option For personal use only STRATEGY Over 2,100 development sites secured (83% in metro and coastal locations) Quality deal flow (metro and coastal) in place Operating cashflows strong at $21.0 million – up
Slide 4: Business Overview
Business Overview Creating Australia’s best lifestyle communities For personal use only Over 5,000 Residents Ingenia has 66 Australian Communities & growing Portfolio now over 4,000 Occupied permanent homes $505 million $ Annual revenue >$100 million Stable rent base - $1 million/pw NT 8 QLD SA 9 WA
Slide 5: Acquisitions: Building scale in key metro and coastal locations
Acquisitions Building scale in key metro and coastal locations ‘Latitude One’, Port Stephens, NSW ($7.0m) For personal use only • DA approved site within a 5 minute drive of Anna Bay shops and Birubi Beach, within existing Hunter – Newcastle cluster Soldiers Point • DA approved greenfield site for 2
Slide 6: Acquisitions: Building scale in key metro and coastal locations
Acquisitions Building scale in key metro and coastal locations For personal use only Confidential Park Confidential Park, Sydney ($33 million) Rouse Hill Sydney Hills • Existing 180 site lifestyle and tourism park with vacant land Stoney Creek for ~190 homes (STA) Nepean • Under contract – due dilig
Slide 7: Acquisitions: Building scale in key metro and coastal locations
Acquisitions Building scale in key metro and coastal locations Confidential Park, Fraser Coast ($9.5 million) For personal use only • Establishes a new cluster in the popular retiree market of Hervey Bay, Queensland • Adds 149 additional permanent and tourism sites in a prime coastal location • Unde
Slide 8: Performance and Capital Management
Performance and Capital Management For personal use only Page 8
Slide 9: Key Financials
Key Financials Strong operating earnings and cashflow KEY FINANCIAL METRICS FY16 FY15 CHANGE • Statutory profit marginally down For personal use only due to reducing tax benefit as profit Statutory profit1 $24.3m $25.7m (5.6%) grows Revenue $107.1m $76.0m 40.9% • Growth in underlying profit attribut
Slide 10: Distributions Continuing to Increase
Distributions Continuing to Increase Jun 16 Jun 15 Change Performance of core business driving strong EBIT For personal use only ($m) ($m) growth from continuing operations (up 33.7%) Continuing operations - EBIT Garden Villages • Lifestyle and Holidays 16.5 8.4 98.1% • Stable earnings despite reduc
Slide 11: Capital Management
Capital Management 30 Jun 16 Debt facility extended ($224 million) Australian debt For personal use only ($m)1 • Additional $24 million funding in place from August 2016 Total facility1 224.0 Total debt drawn 99.1 Drawn debt of $99.1 million at 30 June 2016 Bank guarantees 26.2 • LVR of 24.9% - post
Slide 12: Strategy
Strategy For personal use only Ingenia Holidays Broulee, NSW Page Page112 12
Slide 13: Strategy Underpinned by Significant Opportunity
Strategy Underpinned by Significant Opportunity Rapidly ageing population with limited assets outside of family home Superannuation account balances (by age group) For personal use only Australia's Over 50's Population Projections 39% 18m 100% 6% 14% 13% 4% 38% 16m 90% 22% 24% 20% Portion of Populat
Slide 14: Operational Review
Operational Review Significant revenue growth achieved Ingenia Lifestyle Bethania, QLD For personal use only Page 14
Slide 15: Ingenia Lifestyle and Holidays
Ingenia Lifestyle and Holidays Growing portfolio delivering strong and improving earnings KEY DATA 30 Jun 16 30 Jun 15 Rental revenue up as recent acquisitions integrated – stable For personal use only Total properties 26 20 portfolio delivering >9.5% yield on purchase price Permanent sites 1,620 1,
Slide 16: Tourism Park Demand Increasing but Supply Reducing
Tourism Park Demand Increasing but Supply Reducing > Caravan registrations highly leveraged to > Whilst existing parks converted to alternative For personal use only ageing population use or shut down Caravan Park Establishments and Revenue Campervan & caravan registrations growing at more than 2.5x
Slide 17: Ingenia Holidays: Tourist Accommodation
Ingenia Holidays: Tourist Accommodation Enhancing returns through active management Tourism sites FY16 KEY ACHIEVEMENTS For personal use only (by location) Continuing to build presence in key metro and coastal Coastal, Regional, locations 74% 18% • Acquired over 500 additional income producing sites
Slide 18: Ingenia Lifestyle: Development
Ingenia Lifestyle: Development Actively targeting quality metro and coastal sites FY16 KEY ACHIEVEMENTS For personal use only Development portfolio Approved Subject To Total Approval Potential pipeline of over 2,100 sites, delivering Metro Sydney 41 396* 437 development in key growth corridors (57%)
Slide 19: Ingenia Lifestyle: Development
Ingenia Lifestyle: Development Increasing scale as pipeline and program expand FY16 KEY ACHIEVEMENTS For personal use only Development portfolio Jun 16 Jun 15 Change Metro projects driving increase in average price Total active development projects 13 8 and margin and longer term sales velocity Sale
Slide 20: Strong Growth in Settlements
Strong Growth in Settlements Targeting further growth (150+ settlements forecast FY17) Settlement of 107 homes ($29.3 million sales revenue) to 30 June 2016 For personal use only Contracts on hand for 39 new homes ($9.4 million sales revenue) at 22 August 2016 Contracts on Hand Deposits Received At
Slide 21: Sales Platform Delivering Results
Sales Platform Delivering Results Progress of development strategy > Focus on large-scale, multi-year development projects in quality metro and coastal markets which For personal use only can deliver increased sales velocity and attractive margins > Supplemented by expansion and conversion of existi
Slide 22: Ingenia Garden Villages (Seniors Rental)
Ingenia Garden Villages (Seniors Rental) Strong, stable, government supported cashflows KEY DATA FY16 FY151 KEY ACHIEVEMENTS FY16 For personal use only Total revenue $27.5m $28.2m Occupancy and rent growth driving operational EBIT $11.0m $11.0m performance 30 Jun 16 30 Jun 15 • EBIT stable on lower
Slide 23: Ingenia Settlers (DMF)
Ingenia Settlers (DMF) Returns stabilising as developments complete KEY DATA 30 Jun 16 30 Jun 15 KEY ACHIEVEMENTS FY16 For personal use only Total properties 8 8 • Development profit reducing as existing stock sold Total units 838 838 down Occupancy1 97% 93% • In FY16, 29 new unit settlements totali
Slide 24: Outlook
Outlook For personal use only ► Continue to improve performance of existing assets including incremental revenue growth ► Complete DMF divestment and recycle capital into accretive acquisition and development opportunities ► Achieve 150+ settlements in FY17 and position for further growth over mediu
Slide 25: Appendices
Appendices For personal use only New Community Centre at Ingenia Albury, NSW Page Page255 25
Slide 26: Appendix 1: Underlying Profit
Appendix 1: Underlying Profit Lifestyle parks established as key driver of earnings growth For personal use only FY16 FY15 (A$m) (A$m) Comments (FY16) Continuing operations Lifestyle and Holidays 16.5 8.4 Rapidly growing development earnings Garden Villages 11.0 11.0 Stable earnings off smaller asse
Slide 27: Reconciliation to EBIT and underlying profit
Appendix 2 Reconciliation to EBIT and underlying profit For personal use only Lifestyle Lifestyle Lifestyle Garden (A$m) Operations Develop. Total Villages Settlers Corporate TOTAL Rental income 33.3 - 33.3 24.0 0.5 - 57.8 Accrued DMF fee income - - - - 4.2 - 4.2 Manufactured home sales - 32.0 32.0
Slide 28: Cashflow in detail
Appendix 3 Cashflow in detail For personal use only (A$m) 30 June 2016 30 Jun 2015 Opening cash at 1 July 15.1 14.6 Rental and other property income 71.2 57.0 Net cashflow associated with manufactured home development 5.1 (3.6) Net borrowing costs paid (5.1) (3.9) Income tax received/(paid) - 0.8 Al
Slide 29: Balance sheet
Appendix 4 Balance sheet For personal use only 30 June 30 June (A$m) 2016 2015 Cash 15.0 15.1 Inventory 17.7 13.2 Investment property and property under development 710.7 539.7 Other assets 23.4 15.7 Assets held for sale - 61.6 Total assets 766.8 645.3 Borrowings 104.1 66.8 Derivatives 0.4 - Retirem
Slide 30: Competitor landscape – lifestyle parks
Appendix 5 Competitor landscape – lifestyle parks Major Operators No. of parks Locations Strategy For personal use only Ingenia Lifestyle & 27 NSW, VIC & QLD Acquire lifestyle and tourism parks and undertake greenfield development. Holidays Tourism and Mining Park Operators Discovery Holiday Parks 6
Slide 31: Board profiles
Appendix 6 Board profiles Jim Hazel For personal use only Non-Executive Chairman Mr Hazel has had an extensive corporate career in both the banking and retirement sectors. His retirement village operations experience includes being Managing Director of Primelife Corporation Limited (now part of Lend
Slide 32: Board profiles
Appendix 6 Board profiles Amanda Heyworth For personal use only Non-Executive Director Ms Heyworth is a professional company director and currently chairs Executive Leadership Connection Pty Ltd. and is a director of Itek Ventures Pty Ltd. She previously served as Executive Director of Playford Capi
Slide 33: Contact Information
Contact Information For personal use only SIMON OWEN CEO & Managing Director Tel: +61 2 8263 0501 Mob: +61 412 389 339 sowen@ingeniacommunities.com.au DONNA BYRNE Group Investor Relations Manager Tel: +61 2 8263 0507 Mob: +61 401 711 542 dbyrne@ingeniacommunities.com.au INGENIA COMMUNITIES GROUP Lev
Slide 34: Disclaimer
Disclaimer For personal use only 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 4
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