Ingenia Communities Group · ASX:INA
Ingenia Communities — Goldman Sachs Small and Mid-Cap Conference (May 2016)
24 slides from Ingenia Communities's conference presentation, May 12, 2016
Slide 1: Goldman Sachs Small and Mid-Cap Conference
Ingenia Communities Group Goldman Sachs Small and Mid-Cap Conference For personal use only 12 May 2016 12 May 2016 BETHANIA
Slide 2: Our Business
OUR BUSINESS For personal use only Ingenia is a leading owner, operator and developer of affordable Lifestyle, Retirement and Leisure Communities p2
Slide 3: A Growing Portfolio of Seniors Rental Communities
A GROWING PORTFOLIO OF SENIORS RENTAL COMMUNITIES For personal use only Ingenia has Australian 65 communities and growing Portfolio now NT $480 million 9 QLD 8 WA SA 26 LIFESTYLE PARKS 33 NSW RENTAL 31 VILLAGES DMF 10 8 VILLAGES VIC 5 TAS p3
Slide 4: Rapidly Ageing Population Reliant on Pension
RAPIDLY AGEING POPULATION RELIANT ON PENSION Australia's Over 50's Population Projections Superannuation account balances (by age group) 25.0m 100% For personal use only 44% 6% 14% 13% 4% 90% 22% 24% 20% 42% 20.0m 7% 10% 80% 14% 10% 15% 40% 70% 14% 10% Portion of Population 15.0m 60% 19% No. Persons
Slide 5: Convergence of Ageing Population and Housing Affordability Crisis Creates Opportunity
CONVERGENCE OF AGEING POPULATION AND HOUSING AFFORDABILITY CRISIS CREATES OPPORTUNITY Australian house price index versus wage price index Property ownership without a mortgage (by age group) For personal use only 400 100% 350 House Price Index Wage price index 80% 300 250 CAGR 7.89% 60% 200 150 40%
Slide 6: Portfolio Overview
For personal use only PORTFOLIO OVERVIEW p6
Slide 7: Garden Villages (Seniors Rental)
GARDEN VILLAGES (SENIORS RENTAL) 31 seniors rental villages (Book value: $130.3 million) > Ingenia is the largest owner/operator of seniors rental accommodation in Australia For personal use only > Over 1,600 units > Affordable rental accommodation with modest facilities coupled with services and ac
Slide 8: Active Lifestyle Estates (Lifestyle Parks)
ACTIVE LIFESTYLE ESTATES (LIFESTYLE PARKS) Ingenia’s growth focus > High yielding assets with low risk, capital light development For personal use only > Finite pool of valuable land zoned for lifestyle and tourist parks in tightly held markets > Fragmented ownership offering considerable consolidat
Slide 9: Lifestyle Parks: The Evolution
LIFESTYLE PARKS The evolution > Caravan parks established in the 1950’s to accommodate For personal use only families and couples on holidays ˃ Caravan parks began to offer increasing mix of temporary caravan sites and permanent manufactured home sites ˃ Became a popular low cost permanent accommoda
Slide 10: Lifestyle Parks Business Model
LIFESTYLE PARKS BUSINESS MODEL Land lease rental For personal use only House (above ground) > Resident owns the above ground structure purchased by resident from Ingenia or previous resident > Ingenia owns the freehold land > Resident enters into a ground lease with Ingenia (typically rolling three
Slide 11: Active Lifestyle Estates
ACTIVE LIFESTYLE ESTATES Quality homes For personal use only p11
Slide 12: Rapid Growth in Lifestyle Parks
RAPID GROWTH IN LIFESTYLE PARKS For personal use only > Ingenia has rapidly built a significant lifestyle parks business with a focus on key metropolitan and coastal locations 26 LIFESTYLE PARKS > From an initial investment in 2013, Ingenia has 3,700 INCOME PRODUCING SITES built a $285 million portf
Slide 13: Highest and Best Use Drives Mix
ACTIVE LIFESTYLE ESTATES Highest and best use drives mix For personal use only In select coastal parks, tourism generates significantly higher returns than permanent sites Tourist cabin – 72 m2 Permanent site - 135 m2 Average rent $127 p/n Rent from senior $133 p/w @ 68% occupancy = A$6,900 per year
Slide 14: Tourism and Short-Term Accommodation
TOURISM AND SHORT-TERM ACCOMMODATION Complementary business with significant upside For personal use only Tourism and short term accommodation provides attractive 1 cashflows, underpinned by strong repeat visitations, and increasing rental and annual residents Annuals represent families or seniors w
Slide 15: Recent Acquisitions
RECENT ACQUISITIONS For personal use only Waterfront Cabins at Conjola Lakeside, NSW South Coast p15
Slide 16: Conjola Lakeside
CONJOLA LAKESIDE South Coast, NSW Acquired Sept 2015 for $24 million Established 21 hectare coastal site with significant For personal use only development potential Potential for 210 additional sites (75 approved) Cost per site Income producing sites ~$54,000 Additional potential sites ~$17,000 Lic
Slide 17: Recent Acquisitions: Bethania
RECENT ACQUISITIONS Acquired July 2015 for $8.15 million Pure manufactured home community (Bris. metro) For personal use only Build ready partially developed community with facilities in place and 86 approved sites Adjacent land acquired April 2016 – 115 sites (STA) Cost per site Income producing si
Slide 18: Business Update
BUSINESS UPDATE For personal use only Active Lifestyle Estates, Ettalong Beach, Ettalong Beach, NSW p18
Slide 19: Operating Business
OPERATING BUSINESS Underlying business performing well For personal use only > Strong performance from tourism business > Stable occupancy and increased rents across Garden Villages Further growth of lifestyle parks portfolio > Seven acquisitions year to date with 620 permanent home sites > Addition
Slide 20: Increasing Focus on Stable, Cash Yielding Assets
INCREASING FOCUS ON STABLE, CASH YIELDING ASSETS Supplemented by growth in development returns For personal use only 31 DEC 2015 ASSET TARGET ASSET ALLOCATION ALLOCATION 14% 28% ~25% ~75% 84% DMF Rental Villages Rental Villages TARGET DEC 15 Rental earnings Rental earnings A$462.6M Continued growth
Slide 21: Outlook
OUTLOOK For personal use only ► Optimise performance of existing assets ► Complete DMF divestment to recycle capital into additional lifestyle parks ► Continue sales growth as new projects launch to achieve target of 120 sales for FY16 ► Secure future growth in lifestyle parks business through acqui
Slide 22: Questions
QUESTIONS For personal use only Active Lifestyle Estates Chambers Pines, QLD p22
Slide 23: Contact Information
CONTACT INFORMATION For personal use only SIMON OWEN CEO & Managing Director Tel: +61 2 8263 0501 Mob: +61 412 389 339 sowen@ingeniacommunities.com.au DONNA BYRNE Group Investor Relations Manager Tel: +61 2 8263 0507 Mob: +61 401 711 542 dbyrne@ingeniacommunities.com.au INGENIA COMMUNITIES GROUP Lev
Slide 24: Disclaimer
DISCLAIMER For personal use only This presentation was prepared by Ingenia Communities Holdings The forward looking statements included in this presentation involve Limited (ACN 154 444 925) and Ingenia Communities RE Limited subjective judgment and analysis and are subject to significant (ACN 154 4
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