Ingenia Communities Group · ASX:INA
Ingenia Communities — Investor Presentation (April 2020)
30 slides from Ingenia Communities's investor presentation, Apr 30, 2020
Slide 1: ASX / Media Release
ASX / Media Release 30 April 2020 Ingenia Communities Group (INA) provides its Equity Raising Presentation which is authorised for release by the Ingenia Communities Group Board. ENDS For further information please contact: Donna Byrne General Manager Investor Relations P 02 8263 0507 M 0401 711 542
Slide 2: Equity Raising Presentation
EQUITY RAISING PRESENTATION “Creating Australia’s best lifestyle and holiday communities” 30 April 2020 Not for release to US wire services or IMPROMPTU RESIDENT EXERCISE SESSION AT INGENIA LIFESTYLE THE GRANGE, NSW distribution in the United States
Slide 3: Overview
Overview • Ingenia Communities (Ingenia) intends to undertake an equity raising comprising: • An institutional placement to raise $150.0 million (the Placement) comprising: A fully-underwritten institutional placement to raise $135.0 million (the Institutional Placement) A conditional placement
Slide 4: Overview
Overview • The proceeds from the Equity Raising will strengthen Ingenia’s balance sheet and provide funding flexibility to continue to deliver on its key strategic priorities of positioning for scale and sector leadership in the lifestyle and holidays sector • Ingenia acknowledges that there is unce
Slide 5: Investment highlights
Investment highlights Strong balance sheet in place, with significant headroom and no debt expiry until February 2022 - growth capacity enhanced with Pro forma LVR 1 reduced to 10.9% and available undrawn debt and cash increases to $352 million Provides flexibility to transact on existing pipeline o
Slide 6: Trading update
Trading update Business remains resilient and is expected to respond quickly as restrictions ease Ingenia moved quickly to respond to COVID-19, rapidly changing business Government mandated closures of tourism accommodation has impacted practices and reducing costs - temporary pay reductions for Dir
Slide 7: Trading update
Trading update Underlying demand for lifestyle communities continues to grow, supporting future settlements Ingenia’s home settlements have grown annually for the past six years and the Group was on track for record settlements prior to the COVID-19 pandemic As at 26 April 2020, Ingenia had settled
Slide 8: Strong balance sheet to be positioned for growth
Strong balance sheet to be positioned for growth PRO FORMA DEBT 31 DEC 2019 • In February 2020, Ingenia executed a $100 million, 7-year bank debt 31 DEC 191 METRICS (Post Placement)1,2 facility on attractive terms Loan to value ratio 27.1% 10.9% • First debt expiry February 2022 (covenant <50%) Gear
Slide 9: Proven track record
Proven track record Ingenia exceeded guidance for the last three years and was on track to deliver above guidance performance until trading conditions materially changed Underlying EPS (cents) 21.0 17.7 Underlying • Underlying earnings per security have exceeded 13.4 12.3 13.0 EPS guidance over the
Slide 10: Proven track record
Proven track record The acquisition of existing communities and accelerating development have been key contributors to performance Total income producing sites 8,598 7,175 7,410 • More than 40 lifestyle and holiday community acquisitions since 20151 5,949 5,225 • Income producing sites have increase
Slide 11: Ingenia remains committed to market leadership
Ingenia remains committed to market leadership Ingenia will be a clear market leader once funds deployed Competitive Landscape (Total Sites) Long Term Short Term Development 14,000 Competition remains firm for quality assets however 12,000 COVID-19 market dislocation is increasing opportunities • Ma
Slide 12: Strong pipeline in place, further opportunities emerging
Strong pipeline in place, further opportunities emerging The current environment is expected to provide the ability to secure tightly held assets which would not normally transact • Ingenia has a strong record of identifying and acquiring quality assets – the Group has transacted on $290 million of
Slide 13: Placement and SPP
Placement and SPP • The Placement to raise $150.0 million comprise: The fully underwritten Institutional Placement to raise $135.0 million The Conditional Placement of $15.0 million to Sun, which Sun has indicated it will take-up subject to ASX granting a waiver in relation Placement to ASX List
Slide 14: Sources & uses of proceeds
Sources & uses of proceeds Sources1 $m Use of proceeds • Proceeds will initially be used to pay down debt, further enhancing headroom Total sources 150.0 against covenants and providing $352 million of available undrawn debt and cash Uses $m • Post the Placement, pro forma LVR will reduce to 10.9%,
Slide 15: Indicative timetable
Indicative timetable Key event Date Record date for SPP 29 April Trading halt and announcement of the Equity Raising 30 April Placement bookbuild 30 April Trading halt lifted 1 May Decision on ASX waiver for Conditional Placement (expected) 1 May Settlement of securities issued under the Placement 5
Slide 16: Appendices
APPENDICES Ingenia Lifestyle Plantations, NSW
Slide 17: Pro forma balance sheet metrics
Appendix 1 Pro forma Balance Sheet metrics 31 December 2019 March 2020 DRP 31 December 2019 Pro Forma Post Placement Results and Lake Munmorah Pro Forma1 Placement Net investment property ($m) 948.8 24.0 972.8 - 972.8 Total assets ($m) 1,066.0 24.0 1,090.0 - 1,090.0 Net debt2 ($m) 217.6 25.7 243.2 (
Slide 18: Foreign jurisdictions
Appendix 2 Foreign jurisdictions International Offer Restrictions and interpretations issued by the International Accounting Standards Board. This document does not constitute an offer of New Securities of the Group in any jurisdiction in Unless stated otherwise, all dollar amounts contained in this
Slide 19: Foreign jurisdictions (cont'd)
Appendix 2 Foreign jurisdictions (cont’d) Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce elsewhere that is directed at, or the contents of which are likely to be accessed or read by, the these rights more than: public of Hong Kong (except if permitt
Slide 20: Foreign jurisdictions (cont'd)
Appendix 2 Foreign jurisdictions (cont’d) Norway Switzerland This document has not been approved by, or registered with, any Norwegian securities regulator The New Securities may not be publicly offered in Switzerland and will not be listed on the SIX under the Norwegian Securities Trading Act of 29
Slide 21: Foreign jurisdictions (cont'd)
Appendix 2 Foreign jurisdictions (cont’d) In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Marke
Slide 22: Risk factors
Appendix 3 Risk factors General Risks This section discusses some of the key risks associated with an investment in Ingenia. A number of risks and uncertainties may adversely affect the operating and financial performance or position of Ingenia and in turn affect the value of Ingenia securities. The
Slide 23: Risk factors (cont'd)
Appendix 3 Risk factors (cont’d) Future tax liabilities may be impacted by changes to the Australian taxation law including changes in interpretation or application of the law by the courts or taxation authorities in Tax Implications Australia. This in turn could impact the value or trading price of
Slide 24: Risk factors (cont'd)
Appendix 3 Risk factors (cont’d) Ingenia owns a funds management business where it manages, develops and operates assets within third party owned funds. Ingenia has co-invested in these funds and Funds receives various fees from managing the funds and operating and developing the underlying assets.
Slide 25: Key terms of Placement Agreement
Appendix 4 Key terms of Placement Agreement Ingenia Communities Group comprising Ingenia Communities RE Limited ABN 46 154 464 990 as g) there is material adverse effect when compared to the position disclosed in the offer materials responsible entity for each of Ingenia Communities Fund ARSN 107 45
Slide 26: Key terms of Placement Agreement (cont'd)
Appendix 4 Key terms of Placement Agreement (cont’d) q) responses to the due diligence management questionnaire or any other information supplied aa) trading in all securities quoted or listed on the ASX, the London Stock Exchange, Hong Kong by or on behalf of the Issuers to the Underwriters in rela
Slide 27: Contact information
CONTACT INFORMATION Scott Noble Donna Byrne Chief Financial Officer General Manager Investor Relations Tel: +61 2 8263 0538 Tel: +61 2 8263 0507 snoble@ingeniacommunities.com.au dbyrne@ingeniacommunities.com.au Ingenia Communities Group Level 9, 115 Pitt Street Sydney NSW 2000 26 EQUITY RAISING PRES
Slide 28: Disclaimer
Disclaimer This presentation and the announcement to which it is attached have been prepared by the Communities RE Limited do not receive specific payments of commissions for the authorised Ingenia Communities Group (Ingenia, INA or the Group) which is a stapled vehicle comprised services provided u
Slide 29: Disclaimer (cont'd)
Disclaimer (cont’d) Forward looking statements Distribution This presentation contains forward looking statements with regard to the financial condition, This presentation my not be distributed or released in the United States or to any person acting results of operations and business of the Group a
Slide 30: Disclaimer (cont'd)
Disclaimer (cont’d) Financial data All currency amounts are in Australian Dollars ("$") unless otherwise stated. The pro-forma financial information included in this presentation is for illustrative purposes and does not purport to be in compliance with Article 11 of Regulation S-X of the rules and
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