Ingenia Communities Group · ASX:INA
Ingenia Communities — RBS Morgans Conference 2012
23 slides from Ingenia Communities's conference presentation, Oct 12, 2012
Slide 1: Ingenia Communities Group
Ingenia Communities Group RBS Morgans Conference 12 October 2012 Jim Hazel Chairman
Slide 2: Agenda
Agenda Ingenia Communities Group - overview Australian seniors living state of play Retirement sector opportunities Our Australian business - overview Strategy & outlook Appendices p2
Slide 3: Ingenia Communities Group
Ingenia Communities Group Our focus is to build and operate an Australian Seniors Living Group that delivers yield and growth to its investors AUSTRALIAN PORTFOLIO OVERSEAS PORTFOLIO Garden Villages Portfolio (A$87.1m) US Seniors New York Portfolio > Australian Rental portfolio (A$159.5m) > Rental p
Slide 4: Group summary
Group summary Security price / NAV Our registry 36 NAV x 33 x ASX Code INA Top Securityholders FY12 NAV: 34.3¢ 30 20 Aug price: 25¢ Allan Gray Investments Securities on Issue 441m Security price (¢) 27 x 1H12 NAV: 33.2¢ 24 3 Jan price: 15¢ Market cap as at 26 Sep $117m Mercantile Investments FY11 NA
Slide 5: Australian seniors living state of play
Australian seniors living state of play > Abundance of distressed opportunities > Sector lenders exert forced sales, but few buyers > Supply remains well below long term requirements > Few new villages are built due to tight access to capital > Not economic to develop new rental villages > Inadequat
Slide 6: 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 Seniors Living Segments Age “empty nesters” “new retirees” “seniors” “older Australians” 50 60 70 80 Traditional Residential Senior’s Living Aged Care Seniors Home Affordable Lifestyle Resident Funded Parks DMF Vill
Slide 7: Retirement sector opportunities
Retirement sector opportunities . . . 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 aged 65+ years Demand
Slide 8: Our Australian business - overview
Our Australian business - overview The Ingenia difference from our peers Core competencies in owning and managing seniors communities Development expertise currently focused on expanding existing high occupancy villages Rental portfolio accounts for 45% of total Australian Seniors property val
Slide 9: Rental model is a key focus
Rental model is a key focus Ingenia Communities’ sizable rental portfolio provides clear differentiation from other A-REIT seniors living players DMF Income 5% Ingenia to focus on market segments where it Development Rental can increase or grow Profit 60% cash yields and undertake 35% low risk devel
Slide 10: Capital management
Capital management 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 initiatives • Payment of 0
Slide 11: Valuations
Valuations Reduction in values primarily due to asset sales and monetisation of inventory 30 Jun 30 Jun Movement Movement 30 Jun 2012 30 Jun 2011 Valuations 2012 2011 Cap rate/ Cap rate / Key drivers of valuation movement Valuation Valuation ($m) (%) Discount Discount rate3 rate3 (%) (%) Garden Vill
Slide 12: Strategy & outlook
Strategy & outlook Ingenia is committed to operating and building a highly profitable Australian Seniors living portfolio Settlers Ridgewood Rise, Ridgewood WA p12
Slide 13: Strategy for growth to deliver value
Strategy for growth to deliver value > Security price has risen more than 70% in past 12 months Closing the NAV gap > Consider the merits of an on-market buyback of up to $10 million pending settlement of NY sale > Lower gearing and improving liquidity has improved our balance sheet Strengthening th
Slide 14: Strategy for growth to deliver value
Strategy for growth to deliver value Strong organic growth opportunities embedded within existing assets Development forecast within existing portfolios as at 30 June 2012 Completion # of Value ($m) Units1 FY12 FY13 FY14 FY15 FY16+ Medium Active Development term target Ridgewood, WA $1.3 3 Settlers
Slide 15: Outlook
Outlook > Repatriation of US sale proceeds anticipated in late 2012 will likely be used to invest in accretive acquisitions and development, a buyback and debt reduction > Assess various accretive acquisitions and development opportunities to expand Ingenia’s operational and earnings base > New inve
Slide 16: Appendices
Appendices p16
Slide 17: Internalised group Board profile
Internalised group Board profile 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 retirement and village operations experience
Slide 18: Ingenia Communities Key Management
Ingenia Communities Key Management 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 retirement village sector and is currently the National President of the Retirement Villages
Slide 19: Increasing demand in affordable housing
Increasing demand in affordable housing 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 Quartile 2 $300 Quarti
Slide 20: Typical Garden Villages (Rental)
Typical Garden Villages (Rental) 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 and office, resident
Slide 21: Typical DMF Conversion Village
Typical DMF Conversion Village 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 > Typically also include outdoor
Slide 22: Typical DMF Village
Typical DMF Village 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 salon, library, gymnasium
Slide 23: Disclaimer
Disclaimer 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 122 928 410) (together Ingenia
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