Ingenia Communities Group · ASX:INA
Ingenia Communities — Morgans Queensland Conference 2018
20 slides from Ingenia Communities's conference presentation, Oct 11, 2018
Slide 1: Ingenia Communities Group
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Slide 2: Business overview
Business overview Growing rental portfolio delivering stable cashflows For personal use only Ingenia has Over 7,000 Income producing sites 61 Australian communities Portfolio value now Over 5,500 rental and lifestyle residents $747 million 785,000 ‘room nights’ p.a. Cabins, caravan and camping Stabl
Slide 3: Australia's best lifestyle communities
Australia’s best lifestyle communities Strategy focussed on growing stable rental returns For personal use only Rental base acquired, expanded or developed Development Return of Capital Sell: home (development return) plus new rental contracts Rent: land Rent: cabins/sites Rental Income Rent: units
Slide 4: Underlying demand drivers remain strong
Underlying demand drivers remain strong Many seniors will struggle to fund a comfortable retirement For personal use only Median House Price Home Ownership Limited savings or Insufficient ($) (Age) superannuation Pension $1.6m 90% Superannuation account balances Source: ASFA Research and Resource Ce
Slide 5: Recent pension changes supportive of model
Recent pension changes supportive of model For personal use only From 1 July eligible seniors can contribute up to $300,000 ($600,000 for a couple) into their super from the sale of their primary place of residence • Commonly referred to as ‘downsizer contributions’ • Need to be over 65 and selling
Slide 6: Land lease model provides an attractive proposition
Land lease model provides an attractive proposition For personal use only • Resident owns the relocatable home structure • Resident pays a weekly ground lease rent to reside on the home site • Upon departure, resident can on-sell the home structure or remove it from site (no DMF) • Ingenia owns the
Slide 7: Land lease model provides an attractive proposition
Land lease model provides an attractive proposition Median Brisbane house price For personal use only 600,000 $561,059 500,000 Ingenia Lifestyle 400,000 Chambers Pines $295,000 ($) 300,000 200,000 100,000 0 Asset Test Single Couple Asset Test Threshold $258,500 $387,500 Hayman Home Design $295,000 A
Slide 8: Drivers of future growth
Drivers of future growth For personal use only Increase development Add 110+ new rental Add 150+ new tourism to 350+ homes p.a cabins at Chambers cabins across key Add land rents on Pines, Eight Mile Plains holiday parks 3,244 new homes and Durack RENTS ON 150+ NEW TOURISM RENTS CABINS ON 110+ EBIT
Slide 9: Drivers of future growth: Expanding 'build to rent'
Drivers of future growth Expanding ‘build to rent’ Ingenia owns over 800 rental cabins and has For personal use only approval to add more than 100 new cabins in existing rental parks In past 18 months 43 flat packed cabins from China have been installed at Durack and Chambers Pines Additional 30 cab
Slide 10: Additional rental cabins: Eight Mile Plains
Drivers of future growth Additional rental cabins: Eight Mile Plains M1 Freeway to Acquired For personal use only Gold Coast • August 2017 • $25 million • Large rental community with development upside on 5.8 ha located 15km south-east of Brisbane CBD Strategy • Convert 35 tourist sites, upgrade old
Slide 11: Additional rental cabins: Durack
Drivers of future growth Additional rental cabins: Durack Acquired For personal use only • June 2017 • $25 million • Large community combining resident and park owned cabins on 9.5 ha • Located 15 km south-west of Brisbane CBD adjoining proposed medium density, mixed-use development Strategy • Conve
Slide 12: Growing development – expanding rental base with quality communities
Drivers of future growth Growing development – expanding rental base with quality communities • Ingenia’s development pipeline has been extended and reshaped, moving from tourism conversions For personal use only (e.g. Ettalong) towards expansions (e.g. Bethania) and greenfields projects (e.g. Latit
Slide 13: Drivers of future growth: growing development
Drivers of future growth: growing development Ingenia Lifestyle Hervey Bay Overview For personal use only • Option secured pre DA in November 2016 • DA received and option exercised in April 2018 (acquired for $1.8 million) • Adjacent 2 ha lot acquired April 2018 ($0.3m) • Database of >500 leads sec
Slide 14: Sales outlook remains positive
Sales outlook remains positive • As at 8 October Ingenia has >65% coverage of FY19 settlements target of 350+ homes For personal use only 350+ FY19 sales target is underpinned by: FY19 Strong sales momentum – over 65% of forecast settlements are already Gap to fill Target settled or at deposit or co
Slide 15: Competitor landscape
Competitor landscape • Ingenia will shortly be the largest ASX listed lifestyle and holidays Group For personal use only • Further consolidation expected as global land-lords seek entry/scale 80 70 60 50 40 30 20 10 0 Discovery Gateway Ingenia Palm Lakes Lifestyle Hampshire Living Gems/ Serenitas As
Slide 16: Outlook
Outlook Ageing of population and housing affordability will drive earnings growth For personal use only Macro/Residential Housing Slowdown in residential housing expected to continue into FY19 – diverse product, price point and market exposure provide mitigation Some insulation against short-term ho
Slide 17: As Ingenia has focussed on lifestyle communities, returns have grown
As Ingenia has focussed on lifestyle communities, returns have grown Further growth is forecast in FY19 large Divested non-core and subscale assets to refocus portfolio on quality For personal use only scale rental communities scale Demonstrating quality of platform and ability to drive leverage
Slide 18: Questions
Questions For personal use only Ingenia Lifestyle Chambers Pines, QLD 18
Slide 19: Contact information
For personal use only Contact information Simon Owen CEO & Managing Director Tel: +61 2 8263 0501 sowen@ingeniacommunities.com.au Ingenia Communities Group Level 9, 115 Pitt Street Donna Byrne Sydney NSW 2000 Group Investor Relations Manager Tel: +61 2 8263 0507 www.ingeniacommunities.com.au dbyrne@
Slide 20: Disclaimer
Disclaimer 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 For personal use only and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingeni
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