Ingenia Communities Group · ASX:INA
Ingenia Communities — FY2022 Earnings Presentation
40 slides from Ingenia Communities's earnings presentation, Aug 24, 2022
Slide 1: FY22 Results Presentation
ASX / MEDIA RELEASE 24 August 2022 For personal use only FY22 Results Presentation Ingenia Communities Group (ASX:INA) provides its FY22 Results presentation. Authorised for lodgement by the Board. ENDS For further information please contact: Donna Byrne General Manager Investor Relations & Sustaina
Slide 2: FY22 Results
~FY22 RESULTS CELEBRATING TO wean
Slide 3: Executing on strategy
Executing on strategy Resilient rents underwrite current and future earnings Enhance scale and market reach in core business segments For personal use only √ Ingenia property portfolio value up 57% on June 21 √ Owned/managed portfolio now $2.1 billion, providing large base of stable rental revenue C
Slide 4: Results summary
Results summary PERFORMANCE OVERVIEW For personal use only REVENUE STATUTORY PROFIT ◊ Total assets now $2.2 billion – up over 60% as $475 million equity raising deployed $338.1m $100.6m ◊ Growth in lifestyle rental base – 43% of portfolio • Successful integration of Seachange group and Federation po
Slide 5: Business overview
Business overview For personal use only * Owned, managed or in development. Note includes acquisitions settled post 30 June 2022 and assets owned by the Joint Venture and the Group’s managed funds. 4
Slide 6: Clubhouse – Ingenia Lifestyle Hervey Bay, QLD
For personal use only CLUBHOUSE – INGENIA LIFESTYLE HERVEY BAY, QLD 5
Slide 7: Key financials
Key financials Result impacted by COVID related losses and equity issuance For personal use only FY22 FY21 Revenue $338.1m $295.6m 14% ◊ Revenue growth driven by record new home settlements, acquisitions, expansion of residential rental base and CPI linked rent increases – offset by COVID impacted h
Slide 8: Earnings growth moderated by supply chain challenges and COVID restrictions
Earnings growth moderated by supply chain challenges and COVID restrictions Outlook positive – demand drivers and increased scale to support future returns EBIT FY22 FY21 Comparable performance impacted by $3.4 million JobKeeper subsidy in FY21 For personal use only Residential Communities Lifestyle
Slide 9: Capital management
Capital management Balance sheet well positioned with hedged debt and further funding capacity Successful equity raise and increase in debt facilities to fund acquisitions For personal use only Debt Metrics 30 Jun 22 30 Jun 21 announced 1 November 2021 Loan to value ratio (covenant <55%) 25.7% 22.2%
Slide 10: Growth in value across core portfolios
Growth in value across core portfolios Lifestyle cap rates continued to compress - supported by recent transactions Av. Cap Rate Av. Cap Rate Jun 222 ♢ Independent valuation of 39 assets in 2H22 (36 assets 1H22) For personal use only Portfolio Jun 221 Jun 211 Book Value ♢ Investment property impacte
Slide 11: Portfolio increased 57% over FY22, with focus on lifestyle communities
For personal use only Ingenia’s portfolio increased 57% over FY22, with focus on lifestyle communities (now 55% by book value) Scale in core businesses (lifestyle and holidays), providing solid base for future returns Business includes embedded growth opportunities (infill sites and new development)
Slide 12: Rental sites increased by 41% over FY22
For personal use only Over FY22, rental sites across Ingenia Lifestyle, Ingenia Rental and Ingenia Gardens increased by 41% Cashflows supported by government payments and CPI linked rents Communities meet growing demand for housing affordability Ingenia Lifestyle Rental Total Gardens Land lease Affo
Slide 13: Ingenia Lifestyle Rental
Ingenia Lifestyle Rental Residential homes providing resilient rental cash flows with CPI adjusted growth ♢ Total revenue up 59%, reflecting focus on acquisition, development and For personal use only Key Data FY22 FY21 investment in long-term rental homes Total revenue $55.1m $34.7m • More than 1,2
Slide 14: Ingenia Gardens (seniors rental)
Ingenia Gardens (seniors rental) Strong, stable, government supported rent Key Data FY22 FY21 Ongoing high occupancy supporting stable cash flows For personal use only Total revenue $27.2m $25.8m ♢ Majority of residents receive Commonwealth Pension and Rent Assistance EBIT $11.5m $10.9m ♢ Residents
Slide 15: Ingenia Lifestyle Development
Ingenia Lifestyle Development Demand driven by ageing population and increased home equity Key Data FY22 FY21 FY22 settlements impacted by industry wide trade shortages, global supply For personal use only chain challenges, COVID and weather related delays New home settlements1 (100% INA) 353 350 ♢
Slide 16: Pipeline aligned to regions benefitting from population growth and net migration
Pipeline aligned to regions benefitting from population growth and net migration Portfolio provides exposure to Queensland and regional/coastal locations Significant move to regional/coastal markets and QLD driving acquisition strategy – now 5,900 potential sites in these markets For personal use on
Slide 17: Development projects providing affordable downsizing options
Development projects providing affordable downsizing options in desirable locations New developments broadening offer at accessible price point Median For personal use only Price growth Community Name LGA House Price ♢ Entry prices for current projects range from $267k to $605k (12 mths) (’000s) ♢ P
Slide 18: Strong tailwinds for demand – supply constraints remain key risk
Strong tailwinds for demand – supply constraints and labour shortages remain key risk Development provides pathway to additional scale Greenfield strategy major driver of future growth in rental base For personal use only and creation of sustainable communities Cost growth expected to moderate later
Slide 19: Income producing sites across Ingenia Holidays increased by 36%
For personal use only Over FY22, income producing sites across Ingenia Holidays increased by 36% Occupancy (+30%) and rate (+7%) up in line with strong demand1 Broadening reach - database now 1 million+ 1. 2H22 compared to pre-COVID performance 2H19 (like for like). 18
Slide 20: Ingenia Holidays
Ingenia Holidays Providing diverse locations and revenue streams For personal use only Acquisition of BIG4 Wagga Wagga (August 2022) Key Data 30 Jun 22 30 Jun 21 Holiday cabins 1,340 937 ♢ Acquisition of premium holiday park in largest inland city in NSW Caravan and camp sites 2,916 2,213 • Establis
Slide 21: Ingenia Holidays: domestic travel supporting increased margin
Ingenia Holidays Continuing demand for domestic travel supporting increased margin For personal use only Key Data FY22 FY21 Tourism rental income up 35% as a result of strong second half demand Tourism rental income $71.8m $53.3m ♢ Closure of parks and operating restrictions resulted in circa $10 mi
Slide 22: Work has commenced on new Bobs Farm community
For personal use only WORK HAS COMMENCED ON NEW BOBS FARM COMMUNITY LOCATED ON NSW COAST (WITH PROXIMITY TO LAITUDE ONE) 21
Slide 23: Development Joint Venture with Sun Communities
Development Joint Venture with Sun Communities (NYSE: SUI) Building momentum as four new projects commence Key Data FY22 FY21 Increasing settlements at Freshwater (QLD) as project continues For personal use only Ingenia fee income $1.6m $2.1m ♢ Settlement of 56 homes - growing sales revenue and deve
Slide 24: Funds Management
Funds Management Leveraging operational platform and expertise Funds business expands asset base and leverages existing platform For personal use only ♢ Six communities across five established funds ($77.1 million) ♢ Includes 1,035 income producing sites across six holiday parks (including one conve
Slide 25: First battery installation complete
For personal use only FIRST BATTERY INSTALLATION COMPLETE INGENIA LIFESTYLE HERVEY BAY, QLD 24
Slide 26: Sustainability – focus aligned to strategy, vision and values
Sustainability – focus aligned to strategy, vision and values Commitment to continuing sector leadership For personal use only Environment • Construction of first Green Star home under the GBCA pilot program – certification underway • First detailed emissions disclosures published • Continuing Solar
Slide 27: Business positioned for the future
For personal use only Business positioned for the future Stable rent generating residential communities provide a consistent base of highly predictable, resilient cash flows Key strategy drivers accelerating – ageing population, housing affordability crisis, migration patterns and domestic travel su
Slide 28: Lifestyle communities - attractive housing option aligned to demographic trends
Lifestyle communities - attractive housing option aligned to demographic trends Ageing population and migratory trends supported by increasing market awareness ♢ Lifestyle (land lease) communities service a growing demographic ♢ Demand supported by ability to provide affordable, quality housing (pur
Slide 29: Lifestyle strategy
Lifestyle strategy Migration patterns and price growth supporting demand for Queensland and regional markets Development pipeline positioned to benefit - well located projects and diverse For personal use only price points ♢ Downsizers have seen the value of their homes increase materially over the
Slide 30: Positive outlook for holiday parks
Positive outlook for holiday parks Strong demand for domestic travel as overseas markets slow to recover ♢ Caravan and camping proved resilient over 2021 with a total of 50.6 million visitor ♢ Long-term fundamentals support continued demand for caravan and camping For personal use only nights (up 23
Slide 31: Competitive landscape
Competitive landscape Sector maturing - consolidation continuing For personal use only ♢ Consolidation continuing as key players gain Total Sites scale and new competitors enter market 25,000 • Seachange (Ingenia) and Halcyon (Stockland) transactions complete FY22 • Further portfolio transactions an
Slide 32: Outlook
Outlook Portfolio growth has enhanced the exposure to seniors housing and domestic travel For personal use only ♢ Operational sites increased by 30% to 15,600 sites and development pipeline expanded to 6,580 home sites Core businesses demonstrating resilience, assisted by diverse asset base and reve
Slide 33: Ingenia Holidays Byron Bay, NSW
For personal use only INGENIA HOLIDAYS BYRON BAY, NSW 32
Slide 34: Underlying profit
Appendix 1 Underlying profit For personal use only FY22 FY21 ($m) ($m)1 Lifestyle Development 35.1 46.1 Lifestyle Rental 26.8 16.5 Ingenia Gardens 11.5 10.9 Ingenia Holidays 35.3 28.7 Fuel, food & beverage 0.9 1.3 Capital Partnerships 7.7 4.1 Portfolio EBIT 117.3 107.6 Corporate costs (15.6) (13.2)
Slide 35: EBIT and underlying profit by segment
Appendix 2 EBIT and underlying profit by segment Residential Communities Tourism Other For personal use only Capital Lifestyle Lifestyle Ingenia Fuel, Food ($m) Ingenia Holidays Partnerships1 Total Development Rental Gardens and Beverage and Corporate Rental income - 49.1 24.4 91.9 - - 165.4 Lifesty
Slide 36: Cash flow
Appendix 3 Cash flow FY22 FY21 ($m) ($m) For personal use only Opening cash at 1 July 18.8 10.8 Rental and other property income 205.1 159.5 Property and other expenses (148.1) (120.9) Proceeds from sale of Lifestyle homes 144.6 156.1 Purchase of Lifestyle home inventory (75.8) (55.4) Net borrowing
Slide 37: Consolidated balance sheet
Appendix 4 Consolidated balance sheet For personal use only 30 Jun 22 30 Jun 21 ($m) ($m) Cash 14.5 18.8 Inventories 19.5 13.6 Investment properties 1,937.9 1,231.3 Investment in Joint Venture 66.1 32.8 Other financial assets 9.6 13.9 Intangibles 103.2 8.5 Other assets 32.2 35.5 Total assets 2,183.0
Slide 38: Increasing scale – $650 million in acquisitions
Appendix 5: Increasing scale – $650 million in acquisitions Acquisitions dominated by lifestyle communities ♢ Acquisitions in line with strategy to grow rent based, annuity For personal use only 30 Communities / Sites FY22 style revenue and expand development Portfolio of five holiday communities, i
Slide 39: For personal use only
For personal use only Scott Noble Chief Financial Officer Tel: +61 2 8263 0538 snoble@ingeniacommunities.com.au Donna Byrne General Manager Investor Relations & Sustainability Tel: +61 2 8263 0507 dbyrne@ingeniacommunities.com.au Ingenia Communities Group Level 3, 88 Cumberland Street Sydney NSW 200
Slide 40: Disclaimer
Disclaimer For personal use only This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) The forward looking statements included in this presentation involve subjective judgment and and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingeni
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