Ingenia Communities Group · ASX:INA
Ingenia Communities — Corporate Update (June 2015)
71 slides from Ingenia Communities's corporate update, Jun 2, 2015
Slide 1: Ingenia hosts Sydney asset tour and provides sales update
ASX / Media Release 2 June 2015 Ingenia hosts Sydney asset tour and provides sales update Ingenia Communities Group (ASX: INA) today hosts an Investor tour in conjunction with an update on its progress over the past months. The tour will provide a deeper insight into the Group’s operations and ongoi
Slide 2: For further information please contact
For further information please contact Simon Owen Donna Byrne Chief Executive Officer Group Investor Relations Manager P 02 8263 0501 P 02 8263 0507 M 0412 389 339 M 0401 711 542 sowen@ingeniacommunities.com.au dbyrne@ingeniacommunities.com.au Ingenia Communities Holdings Limited (ACN 154 444 925),
Slide 3: Asset Tour and Development Update
Ingenia Communities Group Asset Tour and Development Update 2 June 2015 Stoney Creek Estate, Marsden Park (Sydney)
Slide 4: Agenda
Agenda Topic Speaker Page Introduction Simon Owen 3 Development Owen Burnie 9 Case Study Simon Owen 15 Break Sales Kate Melrose 29 Outlook Simon Owen 54 Simon Owen Owen Burnie Kate Melrose Ingenia Communities speakers CEO S. Development Manager GM, Project Sales
Slide 5: Lifestyle Parks – a key pillar of Ingenia's strategy
Strategy overview Lifestyle Parks – a key pillar of Ingenia’s strategy Ingenia’s strategy is focused on the ownership, management and development of a quality portfolio of seniors living accommodation providing investors with exposure to stable cash yielding assets with complementary but modest expo
Slide 6: Focus on stable permanent rent flows
Active Lifestyle Estates Focus on stable permanent rent flows • Attractive holding income pending development Tourism • Diversifies and increases cash flow • Mix of location | product reduces volatility complementary • Regional markets offer all season tourism Permanent Residents strong cash flow re
Slide 7: Strategy rapidly progressed
Strategy rapidly progressed 31 December 2014 Target allocation (post completed acquisitions) Garden Villages Garden Villages Lifestyle ~ 25% 32% Parks 50% Continued growth Target Rental income DMF Lifestyle ~75% 18% Parks Development ~ 75% income $370.4m ~25% > Cash yielding Australian assets now co
Slide 8: Ingenia has 62 Australian communities and growing
Ingenia’s portfolio is dominated by seniors rental communities Ingenia has 62 Australian communities and growing 34 Rental villages 8 DMF villages Largest owner and operator of seniors > 1,801 units > 838 units rental villages in Australia > In all States except SA > WA, QLD and NSW A leading owner
Slide 9: Foundations for growth established
Changes to strategy execution Foundations for growth established Opportunities/Challenges Solutions > Quality and speed of home delivery > Offtake agreements with two key inconsistent builders to secure supply (July 2014) > Sales focus limited - shared > Dedicated General Manager – resources Project
Slide 10: Rapidly expanding development rollout
Rapidly expanding development rollout June 2013 June 2015 Total properties x2 x20 Properties in x1 x9 development mode DA consent requested for 7 homes at the Grange Homes under construction or being installed x0 x45 p8
Slide 11: Development process
Development process Owen Burnie, Senior Development Manager p9
Slide 12: Development process: Approvals
Development process Approvals > Varies between projects and Local Government Areas Existing Stage 2 (Section 96) Masterplan Active Lifestyle Estates, Albury p10
Slide 13: Development process: Infrastructure and staging
Development process Infrastructure and staging > Existing infrastructure often in poor condition or under capacity (sometimes over 30 years old) > Individual house connections > Reticulation – roads, electricity, sewer, water, gas, stormwater, telecommunications > Major Lead in services – electricit
Slide 14: Development process: Community facilities upgrades
Development process Community facilities upgrades > Community building > Swimming pool > BBQ areas > Consultation Rooms > Wellness Centre (Ingenia Care Assist) Active Lifestyle Estates, Ettalong Beach Artist’s impression – Stoney Creek Active Lifestyle Estates, Ettalong Beach p12
Slide 15: Development process: House procurement
Development process House Procurement > Forging strong relationships with our house manufacturers > Supply agreements in place with Parkwood and Glendale > Now working with other builders as business expands > 4 Weeks > 8 Weeks > 12 Weeks Stoney Creek Estate, Marsden Park, Sydney p13
Slide 16: Development process: Design and product
Development process Design and product > Improved standardised plans and specifications > Design innovations and accessibility > On-site building permitted in QLD (Chambers Pines) p14
Slide 17: Case study: Active Lifestyle Estates, Ettalong Beach
Case study Active Lifestyle Estates, Ettalong Beach p15
Slide 18: Ettalong Beach Holiday Village acquisition overview
Ettalong Beach Holiday Village Acquisition overview > Ingenia’s second MHE investment > Facilities > Acquired April 2013 • Community centre with laundry facilities > Leasehold site – lease to 30 June 2029 • Inground pool > Site configuration on acquisition • Administration building and Manager’s res
Slide 19: Mixed use park with dated facilities
On acquisition Mixed use park with dated facilities p17
Slide 20: Original site plan
Ettalong Beach Holiday Village Original site plan p18
Slide 21: Key metrics on acquisition
On acquisition Key metrics • Purchase price $2.1 million • Average weekly rent $121.30 (Permanents) • Yield (ingoing) >18% • Tourism rates from $33 to $220 per night • Forecast Unlevered IRR >20% dependent on accommodation type & season p19
Slide 22: The opportunity
The opportunity Capitalise on attractive beachside location and proximity to services by repositioning the village as a attractive over 50s estate Asset strategy on acquisition > Conversion of tourism to transition village to 100% permanent accommodation > Anticipated an additional 28 plus permanent
Slide 23: Masterplan
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Slide 24: Development approvals process timeline
The process Development Approvals Process > Development Application lodged with Council in March 2014 > Council approval for masterplan received in June 2014 Aug 2014 Sept 2014 Oct 2014 Nov 2014 Dec 2014 Demolition First 8 sites Demolition of Civil works completed Tourism and Manager’s and first uti
Slide 25: Sales process
The process Sales Sales Launch Sold Out Off Plan Community April 15 Settlements Oct 14 Sales Centre (7 mths) p23
Slide 26: Cash flows through development
The process Cash flows through development 120,000 100,000 Peak Tourism revenue 80,000 Forecast cash flows based on new home settlements Operating Revenue ($) 60,000 Operating Expenses Revenue (Post Development) Operating Costs (Post Development) 40,000 Reduction in staff reflecting loss of 20,000 t
Slide 27: On completion
On completion > Leasehold site – lease to 30 June 2029 > Facilities > Site configuration • Community centre with library • 116 permanent home sites • Inground pool p25
Slide 28: Key metrics on completion
On completion Key metrics > Forecast stabilised cash yield (based on > Weekly rents acquisition price) • $165 for new homes • ~10% (post full lease payment) > Forecast unlevered IRR > Development • Average sale price $320,000 • ~19% • Profit in excess of total spend p26
Slide 29: A vibrant community
On completion A vibrant community p27
Slide 30: Break
Break p28
Slide 31: Sales process
Sales process Kate Melrose, GM Project Sales p29
Slide 32: Agenda
Agenda Kate Melrose, General Manager Project Sales Topic Page Strong growth sector 31 Case Study - Ettalong Beach 35 Case Study - Stoney Creek 41 Sales strategy 52 Sales momentum 53 Innovation and cost savings p30
Slide 33: Strong growth sector
Strong growth sector > Manufactured Housing in Australia currently has Dwelling location type by age of reference person, Australia, 2006 relatively low penetration rates and strong growth prospects. > Opportunity lies with the 90%+ of the market sitting in their homes grappling with how to fund the
Slide 34: Comparison with Industry Survey
Comparison with Industry Survey Manufactured Homes Survey 2013 Report on Findings Review of the Manufactured Homes (Residential Parks) Act 2003 www.hpw.qld.gov.au p32
Slide 35: Albury survey results snapshot
Customer insight Albury survey results snapshot What Fun, Health and Wellness programs would you use? p33
Slide 36: Understanding market drivers and the purchase decision
Understanding market drivers and the purchase division Marge and Bob are living in the House Value = $550k family home worth $550,000 New Home = $310k They sold their only shares in the Help kids = $20k GFC and so now only have the house. The kids had all left home New Van = $45k and they are gettin
Slide 37: Active Lifestyle Estates, Ettalong Beach sales launch
Active Lifestyle Estates, Ettalong Beach Sales Launch Sold Out Off Plan Community April 15 Settlements Oct 14 Sales Centre (7 mths) p35
Slide 38: Ettalong insights
Ettalong insights Total occupants Single 7% Couple 48% 45% Shared arrangements 31 new homes sold in 6 months Sales Rate – 4 p.m. Almost equal proportion of single to couples 48 occupants – 1.5 per dwelling Average Age 69.7 (From 55 to 89) 100% off plan – customised – takes time Spend Ratio –72% (30%
Slide 39: Ettalong insights: occupants
Occupants Working Part Time Working 5% ; Full T Disability PS oe ae Pension 3% Motivation 0% gt Safety Wy” @ Health Scare 5 Lifestyle & levellocation
Slide 40: Ettalong – SOLD OUT: physical repositioning
Ettalong – SOLD OUT October 2014 May 2015 Physical repositioning 80% complete • Entry complete • Shifting old vans and homes • Community Centre • Boulevards home upgrade Insert video p38
Slide 41: Ettalong – SOLD OUT: product diversity
Ettalong – SOLD OUT October 2014 May 2015 Product diversity 100% complete • 100% Off plan sales • Volume of tailoring took time + PRICE p39
Slide 42: Ettalong – SOLD OUT: community connections
Ettalong – SOLD OUT October 2014 May 2015 Community Connections 90% complete A warm community welcomed new buyers and provided certainty of like • Mature Community at Project Launch minded neighbours p40
Slide 43: Stoney Creek timeline
Stoney Creek timeline Public Sales Displays and Off Physical repositioning Community Launch Plan Sales stage 1 Centre 2016 March 15 (3/mth) Settlements (3-12 weeks) p41
Slide 44: Stoney Creek buyer profile
Stoney Creek Marital Status 95% are from the primary catchment 6% 6% Married 19% Single Divorced Widow 69% Background Career Nationality 7% Work Background 10% 7% Retired 27% Church 10% Australian Admin Assistant Italian 20% School Admin 10% 50% Irish 6% Painter/Hanyman Philipino Factory Worker Malt
Slide 45: Stoney Creek Staged Site Plan
Stoney Creek Staged Site Plan p43
Slide 46: Stoney Creek progress
Stoney Creek Physical repositioning Product diversity Community Connections 40% complete 40% complete 20% complete • Entry complete • Ability to diversify • Emotional repositioning product in FY16 will required to make it a drive sales velocity community people • Shifting old vans and aspire to belo
Slide 47: Community engagement and education
Community engagement and education p45
Slide 48: Community events and connections
Community events and connections p46
Slide 49: Customer experience
Customer experience p47
Slide 50: What will my life be like?
What will my life be like? 10am -121noon ta 10am -12noon g “ 10am -12noon yg 8:30am-12.30pm BINGO / 10am - 12noon 10-11am r) idl, EN / ; 10am -12noon 12noon Cl PIES & PEAS 7 LUNCH 10-11am 1.00pm 6.30pm 1.00pm 6.30pm 1.00pm 6.30pm 1.00pm 6.30pm 1.00pm 6.30pm 1.00pm 6.30pm CARDS POoLs -*, carps | 523"
Slide 51: The Club Card to differentiate and add value
The Club Card to differentiate and add value > The Concept of the Club Card resonated strongly supported by the fact their No 1 goal if they had more money is to travel Australia. > Strong opportunity to cross leverage tourism to target the Grey Nomad sector What would you do if you had extra money?
Slide 52: Product diversity to maximise consumer reach and sales velocity
Product diversity to maximise consumer reach and sales velocity p50
Slide 53: Sample floorplans
Product development Sample floorplans 2 1.5 1 2 1.5 Int: 97 sqm Int: 97 sqm Total: 147sqm Total: 147sqm Typical Lot: 195sqm p51 Typical Lot: 195sqm
Slide 54: A dual approach to drive increased sales rates
Sales process A dual approach to drive increased sales rates > Capture ‘in market’ buyers plus build pent up demand and trust > Take buyers and their families on a journey earlier A Dual Sales Approach: Awareness Education Sales Settlements Community 1) Tactical Marketing Campaign to target ‘in mark
Slide 55: Sales momentum
Sales momentum > Of the 81 sites deposited and contracted to date, 35 have settled p53
Slide 56: Outlook
Ha Outlook Poas Ingen Simon Owen, CEO genia
Slide 57: As projects progress, sales are moving through to settlement
As projects progress, sales are moving through to settlement > At 23 Feb reservations and contracts were totaling over $9m were in place > Sales are moving to completion as homes and are delivered and buyers settle 1 July to 31 Dec 2014 New Refurbished Reserved Contracted Available Under Settlements
Slide 58: Active projects
On track to meet target of 75 – 80 sales FY15 > Reservations and contracts in place totalling over $12m will underpin results in 2H15 and into FY16 1 July to 28 May 2015 New Refurb / Reserved Contracted Available Homes under Average Settlements DMF Completed construction Sale Price Settlements Stock
Slide 59: Mature and immature communities
Strong pipeline in place Mature and immature communities FY15 FY16 FY17 BEYOND Ettalong Stoney Creek Lake Macquarie Village Chambers Pines Albury Citygate Mudgee Valley Mudgee Tourist Macquarie Lakeside Big4 Valley Vineyard Projects comprise conversion of existing sites/limited infill lots and devel
Slide 60: Ettalong Beach, Ettalong Beach, NSW
Current projects Ettalong Beach, Ettalong Beach, NSW Acquired April 2013 Sales launched October 2014 31 new homes – project sold out - final settlements expected to complete 1H16 p58
Slide 61: Stoney Creek Estate, Marsden Park (Sydney), NSW
Current projects Stoney Creek Estate, Marsden Park (Sydney), NSW Acquired May 2014 Sales launched March 2015 Stage 1 underway – 6 homes settled, 10 homes contracted or reserved Insert floorplan of new home with Sold on it – from tour booklet p59
Slide 62: Lake Macquarie Village, Morisset, NSW
Current projects Lake Macquarie Village, Morriset, NSW Acquired November 2013 Sales launched March 2015 Project in market – 4 homes settled, 11 homes contracted or reserved p60
Slide 63: Chambers Pines, Logan, Queensland
Current projects Chambers Pines, Logan, Queensland Acquired March 2015 Existing stock (5 homes) – all contracted or reserved DA lodged for further 256 sites May 2015 Potential to add additional rental units to enhance returns p61
Slide 64: Albury Citygate, Albury, NSW
Current projects Albury Citygate, Albury, NSW Acquired November 2013 Stage 1 – 5 of 6 homes sold or deposited Stage 2 – first 5 homes launched May 2015 DA for Masterplan lodged May 2015 p62
Slide 65: BIG4 Valley Vineyard, Cessnock, NSW
Current projects BIG4 Valley Vineyard, Cessnock, NSW Acquired February 2014 Infrastructure upgrades complete April 2015 Stage 1 (20 homes) - sales launch planned late 2015 p63
Slide 66: Mudgee Valley and Mudgee Tourist and Van Resort
Current projects Mudgee Valley and Mudgee Tourist and Van Resort Mudgee Valley Resort, Mudgee NSW Acquired September 2013 Stage 1 infrastructure upgrades and landscaping works complete Masterplan finalised following land consolidation, DA being prepared BIG4 Mudgee Tourist and Van Resort, Mudgee
Slide 67: Macquarie Lakeside, Chain Valley Bay, NSW
Future projects Macquarie Lakeside, Chain Valley Bay, NSW Acquired November 2013 All approvals in place Works anticipated to commence 2nd quarter FY16 p65
Slide 68: Government funding supports affordability
Market overview Government funding supports affordability > The recent 2016 Federal Budget changes support residents retaining access to the pension > From 1 January 2017 the aged pension asset test threshold will increase > Based on changes to the minimum asset test, 170,000 pensioners will receive
Slide 69: Outlook
Outlook ► Strong pipeline of sales to underpin FY16 settlements ► Ongoing improvements in development and sales, driven by experienced, dedicated team ► Anticipate growth in sales (target 120) in FY16 as additional developments move into selling phase and projects are repositioned ► Active asset rec
Slide 70: Contact Information
Contact Information Simon Owen Donna Byrne CEO & Managing Director Investor Relations Tel: +61 2 8263 0501 Tel: +61 2 8263 0507 Mob: +61 412 389 339 Mob: +61 401 711 542 Email: sowen@ingeniacommunities.com.au Email: dbyrne@ingeniacommunities.com.au p68
Slide 71: Disclaimer
Disclaimer This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN 154 464 990) 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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