Ingenia Communities Group · ASX:INA
Ingenia Communities — Corporate Update (November 2018)
23 slides from Ingenia Communities's corporate update, Nov 7, 2018
Slide 1: Strategic Partnership and Placement
Presented by Simon Owen 7 November 2018 Development precinct Ingenia Lifestyle and Holidays Lake Conjola, NSW Aerial view – September 2018 INGENIA COMMUNITIES GROUP Strategic Partnership and Placement NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Executive Summary
Executive Summary Overview Ingenia has entered into a Strategic Partnership with Sun Communities (NYSE: SUI) – a leading owner, operator and developer of Manufactured Housing and Recreational Vehicle (lifestyle and holiday) communities • Through a Strategic Partnership, managed by Ingenia, Sun and I
Slide 3: Partnership with Global Leader
Partnership with Global Leader Enhances and accelerates Ingenia’s long-term growth opportunity Strategic Partnership with Ingenia is partnering with Sun, a leading owner, operator and developer of Manufactured Housing and a leader in MH and RV Recreational Vehicle (MH and RV, or lifestyle and holida
Slide 4: Complementary Business Models
Complementary Business Models Both Ingenia and Sun bring significant capabilities to the Strategic Partnership • Market leading owner and operator of lifestyle • Leading owner and operator of manufactured home (MH) (manufactured home) and holiday communities in Australia and recreational vehicle (RV
Slide 5: Overview of Sun Communities
Overview of Sun Communities One of the largest manufactured housing REITs globally Overview of Sun Current Portfolio as of September 30, 2018 • Sun is a leading owner, operator and developer of manufactured housing (“MH”) and recreational vehicle (“RV”) communities, with a current market 4,888 capit
Slide 6: Overview of Ingenia
Overview of Ingenia Ingenia has a market leading position in Australia 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 Stable rent base >$1.6 mill
Slide 7: Key Features of Strategic Partnership
Key Features of Strategic Partnership A Strategic Partnership, managed by Ingenia and equally owned by Ingenia and Sun, has been established to invest in greenfield lifestyle communities STRUCTURE Funding will be a mix of equity and bank debt The Strategic Partnership’s Board will comprise two repre
Slide 8: Strategic Partnership to Accelerate New Home Settlements
Strategic Partnership to Accelerate New Home Settlements Ingenia will build out its current on balance sheet pipeline, supplemented and accelerated by future growth from the Strategic Partnership Growth from Strategic Partnership New home settlements 350+ 287 211 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (
Slide 9: Ingenia's Access to Rental Contracts is Enhanced
Ingenia’s Access to Rental Contracts is Enhanced Ingenia will fund 50% of project equity while retaining the right to acquire 100% of the completed community Once 95% of community sold down Strategic Partnership (Managed by Ingenia) • Originates and develops greenfield lifestyle • Ingenia has 12 mon
Slide 10: Equity Placement
Equity Placement Clear alignment of interests through Equity Placement Ingenia will place 23,176,816 securities with Sun, raising approximately $74.6 million to fund immediate and future growth New securities will be issued at $3.2172, a 8.75% premium to the 30 day VWAP (at 5 November 2018) and will
Slide 11: Placement: Use of Funds
Placement: Use of Funds • Proposed acquisitions increase Ingenia’s scale in lifestyle portfolio – growing the number of communities to 37 and increasing the number of income producing sites by 8.3% − Increases scale in South East Queensland market – adds income generating sites in established cluste
Slide 12: Acquisition of Aspley Acres, Brisbane
Use of Funds Acquisition of Aspley Acres, Brisbane Well located, large-scale community Sunshine Coast with significant repositioning potential in close proximity to the Brisbane CBD Gympie Road Aspley Acres Brisbane CBD NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 12
Slide 13: Acquisition of Aspley Acres, Brisbane
Use of Funds Acquisition of Aspley Acres, Brisbane Contract exchanged for 5.8 hectare established all age rental community located 16 kms north of the Brisbane CBD • Adds the largest community in Brisbane (383 rental cabins) to Ingenia’s metro cluster of 960 homes across Chambers Pines, Bethania, Du
Slide 14: Potential acquisition of Holiday Park
Use of Funds Potential acquisition of Confidential Holiday Park Finalising terms for acquisition of premium holiday park • Waterfront location on the Queensland Sunshine Coast • Potential expansion opportunity • Anticipated initial yield of 7.8% Ingenia Holidays Lake Macquarie, NSW NOT FOR DISTRIBUT
Slide 15: Additional investment in infill cabins
Use of Funds Additional investment in infill cabins • Additional $10.1 million to be invested to accelerate the rollout of 103 additional cabins across seven established communities • Ingenia has approvals in place for 260 rental units and holiday cabins across existing communities • Cabins expected
Slide 16: Key Financial Metrics - June 2018 Pro Forma
Key Financial Metrics - 30 June 2018 Pro Forma Actual Capital Deployment Pro forma Jun 181 Raising of Funds2 Jun 18 Net investment property ($ million) 730.4 - 62.6 793.0 Investment in Strategic Partnership - - 22.3 22.3 ($ million) Total assets ($ million) 825.8 - 84.9 910.7 Net debt ($ million) 3
Slide 17: Transaction Benefits
Transaction Benefits 1 Strategic Partnership brings together two industry leading companies with complementary business models • provides Ingenia with access to Sun’s experience and knowledge developed over a 40 year period • provides Sun with access to the Australian market through a market leading
Slide 18: Appendix 1: Sun Communities: Seniors MH and RV Community
Appendix 1: Sun Communities: Seniors MH and RV Community Palm Creek Golf and RV Resort, Casa Grande, Arizona Community type Hybrid (MH & RV) Age restriction 55+ No. sites 2,341 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 18
Slide 19: Appendix 1: Sun Communities: Seniors MH Community
Appendix 1: Sun Communities: Seniors MH Community Gulfstream Harbor, Orlando, Florida Community type MH Age restriction 55+ No. sites 974 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 19
Slide 20: Appendix 1: Sun Communities: All Age MH Community
Appendix 1: Sun Communities: All Age MH Community Cider Mills Crossing, Fenton, Michigan Community type MH Age restriction All age No. sites 434 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 20
Slide 21: Appendix 2: Drivers of Future Growth
Appendix 2: Drivers of Future Growth • As at 5 November 2018 Ingenia has >85% coverage of FY19 settlements target of 350+ homes 350+ FY19 FY19 sales target is underpinned by: Gap to fill Target Strong sales momentum – over 85% of forecast settlements are already settled or at deposit or contract sta
Slide 22: Appendix 3: Australian Competitor Landscape
Appendix 3: Australian Competitor Landscape • Ingenia is now the largest ASX listed owner of lifestyle and holiday communities 80 70 60 Number of communities 50 40 30 20 10 0 Discovery Gateway Ingenia Palm Lakes Lifestyle Hampshire Living Gems/ Serenitas Aspen Secura Allswell Hometown Boyuan Parks L
Slide 23: Disclaimer
Disclaimer This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Not an Offer Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia Communities Fund (ARSN 107 This presentation is not an offer or an invitation to acquire new Securit
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