Ingenia Communities Group · ASX:INA
Ingenia Communities — Shareholder Meeting (November 2014)
60 slides from Ingenia Communities's shareholder meeting presentation, Nov 12, 2014
Slide 1: Annual General Meeting 2014
Ingenia Communities Group Annual General Meeting 2014 For personal use only 12 November 2014 White Albatross Holiday Park, Nambucca Heads NSW
Slide 2: Chairman
For personal use only Chairman Jim Hazel p2
Slide 3: Agenda
Agenda For personal use only Chairman’s welcome CEO update Tourism strategy Formal business of the meeting p3
Slide 4: Chairman's welcome
Chairman’s welcome For personal use only Non-Executive Executives Directors Jim Hazel Simon Owen Chairman Managing Director and Chief Executive Officer Philip Clark Tania Betts Director Chief Financial Officer Amanda Heyworth Leanne Ralph Director Company Secretary Rob Morrison Nikki Fisher Director
Slide 5: Ingenia today
Ingenia today For personal use only A leading provider of affordable Australian seniors housing built around two key portfolios generating quality recurrent operating cashflows. This scaleable platform is well positioned for further expansion through embedded capital light low risk development and f
Slide 6: Security price performance
Security price performance For personal use only Strong price performance followed by recent lag as development ramps up Growth of INA versus ASX 300 Property Index 400% 350% 300% 250% 200% 150% INA 100% XPK 50% 0% -50% -100% p6
Slide 7: Business repositioning progressed
Business repositioning progressed For personal use only ˃ Market leading position in Lifestyle Parks Business re-focused on affordable rental seniors accommodation in ˃ Expansion of Garden Villages Australia portfolio ˃ Sale of NZ students ˃ New bank facility Capital initiatives ˃ DRP reinstated ˃ S
Slide 8: CEO update
CEO update For personal use only Simon Owen Chief Executive Officer and Managing Director p8
Slide 9: Delivering on strategy
Delivering on strategy For personal use only Increase focus on cash generating portfolios Active Lifestyle Estates and Garden Villages now over 80% of portfolio Divest non core assets Contracts exchanged for sale of NZ Student Portfolio – anticipate settlement in December Largest lifestyle par
Slide 10: Changing business mix
Changing business mix Increasing emphasis on cash yielding assets For personal use only 30 June 2013 Proforma asset value (post Target allocation asset value announced acquisitions & divestments) Garden Villages Garden Garden Villages Lifestyle Parks ~ 25% DMF Villages 31% 50% 35% 44% Continued grow
Slide 11: Financial highlights (FY 2014)
Financial highlights (FY 2014) For personal use only Key financial metrics 30 Jun 2014 30 Jun 2013 Change Statutory profit / (loss)1 $11.5m ($10.3m) nm Underlying profit2 $11.6m $5.9m 97% Underlying profit EPS 1.8c 1.2c 50% Operating cashflow $14.2m $11.2m 27% Loan to value ratio (LVR) 33.9% 37.9% 1
Slide 12: Capital Management
Capital Management For personal use only Strong balance sheet underpins growth strategy > Terms agreed for multibank finance to extend debt facility to $175m (up $45.5m) on improved terms and margins Debt > Tenure extended to 3-5 year term > Blended cost of debt reduced to ~4.25%* > LVR target of 30
Slide 13: Announced acquisitions: Expanding into SE Queensland
Announced acquisitions Expanding into SE Queensland For personal use only BIG4 Bougainvillia Holiday Park, Noosa, QLD > A 6.5 hectare mixed use park located at Tewantin, Qld currently under conditional contract > One of only two freehold parks in the Noosa market > Immediately accretive – ingoing yi
Slide 14: Announced acquisitions: Continuing to build presence in established clusters
Announced acquisitions Continuing to build presence in established clusters For personal use only White Albatross Holiday Park, Nambucca Heads NSW > A 5.2 hectare lifestyle and tourist park situated in the North Coast cluster > Immediately accretive – ingoing yield >10% > Significant reconfiguration
Slide 15: Portfolio Update
Portfolio Update For personal use only White Albatross Holiday Park, Nambucca Heads NSW p15
Slide 16: Ingenia's Business Model
Ingenia’s Business Model For personal use only A large and growing rent roll largely funded through Government pension payments, a complementary and accretive short term accommodation business with significant upside and a capital light, low risk development pipeline ~ 3,000 residents paying fortn
Slide 17: A growing portfolio
A growing portfolio Diversified Australian portfolio dominated by cash yielding assets Ingenia has 61Australian communities and growing For personal use only 34 Rental villages 8 DMF villages > 1,801 units > 831 units > In all States except SA > WA, QLD and NSW > Focus on occupancy > Divested a QLD
Slide 18: Settlers Lifestyle (Deferred Management Fee)
Settlers Lifestyle (Deferred Management Fee) Maximising home sales For personal use only Portfolio snapshot Total properties 8 Total units 831 Book value $70.6m > Strong start to FY15 sales – 14 new and 11 resales settled YTD to 31 October 2014 – 17 new and 9 resale contracts in place > Expansion of
Slide 19: Garden Villages (Rental)
Garden Villages (Rental) Record occupancy and recent acquisitions drive earnings growth For personal use only Margin Analysis Target Quadrant 26 Villages 100.0% Portfolio snapshot Marsden 90.0% Gardens Total properties 34 80.0% Occupancy Total units 1,801 70.0% FY14 Book value $114.3m 60.0% 50.0% Sh
Slide 20: Ingenia Care Assist
Ingenia Care Assist Delivering occupancy and income growth For personal use only What is Ingenia Care Assist? > An Ingenia facilitated ageing in place strategy that delivers government funded home care packages to our residents through accredited local care providers > ICA is a free service for our
Slide 21: Lifestyle Parks: Ingenia's journey
Active Lifestyle Estates Lifestyle Parks: Ingenia’s journey For personal use only > Ingenia’s initial investment thesis of immediately accretive park acquisitions enhanced by capital-light, low-risk development remains compelling > There is demand for quality and affordable homes > Ingenia’s operati
Slide 22: Ingenia's growth focus - Lifestyle Parks
Active Lifestyle Estates (Lifestyle Parks) Ingenia’s growth focus - Lifestyle Parks For personal use only > High yielding assets with low risk, capital light development > Finite pool of valuable land zoned for lifestyle and tourist parks in tightly held markets > Fragmented ownership offering consi
Slide 23: Market leading position established
Market leading position established For personal use only “Largest owner of lifestyle and tourism parks in NSW” 19 Active Lifestyle Estates 1,637 Permanent Sites 1,587 Short-term Sites >20 communities in due diligence or price 1,297 Development Sites discovery Includes announced acquisitions. p23
Slide 24: Lifestyle Parks - Development
Lifestyle Parks - Development For personal use only New home being installed on site p24
Slide 25: Rapidly accelerating development business
Rapidly accelerating development business For personal use only A year ago… Two parks in delivery mode Eight parks in delivery mode: • Grange Village Lake Macquarie Mudgee Tourist • Nepean River Tourism Park Big4 Valley Vineyard Mudgee Valley Ettalong Sun Country Albury Citygate Ston
Slide 26: Active Lifestyle Estates: Sales performance
Active Lifestyle Estates Sales performance For personal use only > Target 80+ sales in FY15 > Development now underway at 8 sites (2 at November 2013) 1 July to 31 Oct 2014 New Refurbished Reserved Contracted Available Homes Target Settlements Settlements Stock under Sales construction Price 1. Albu
Slide 27: Project snapshot: Ettalong Beach Village
Project snapshot: Ettalong Beach Village For personal use only Location Ettalong Beach, NSW Acquired April 2013 Project Overview Addition of 31 new homes on existing short-term and vacant sites Strong sales following successful launch in August (26 homes contracted or reserved to date) Civil w
Slide 28: Project snapshot: Mudgee Valley Tourist Park
Project snapshot: Mudgee Valley Tourist Park For personal use only Location: Mudgee, NSW Acquired September 2013 Project Overview Road works now complete for the first section of the development precinct Seven new homes currently being installed and finalised VIP Open Day scheduled for 15 Nove
Slide 29: Project snapshot: Mudgee Tourist and Van Resort
Project snapshot: Mudgee Tourist and Van Resort For personal use only Location Mudgee, NSW Acquired October 2013 Project Overview Road works underway for the first section of the development precinct 10 new homes currently being finalised in readiness for the project sales launch planned for mid
Slide 30: Project snapshot: Albury Citygate
Project snapshot: Albury Citygate For personal use only Location Albury, NSW Acquired August 2013 Project Overview Council approvals achieved – development of 37 new homes in new precinct underway Anticipated project sales launch planned for late November Five new homes have now been delivered
Slide 31: Project snapshot: Stoney Creek Estate
Project snapshot: Stoney Creek Estate (Formerly Town and Country Estate) For personal use only Location Marsden Park, NSW Acquired May 2014 Project Overview Estate Major Works – landscaping, new entry statement and site presentation has been fast tracked to support the project sales launch in Febr
Slide 32: Project snapshot: Lake Macquarie Holiday Village
Project snapshot: Lake Macquarie Holiday Village For personal use only Location Morisset, NSW Acquired November 2013 Project Overview Civil works for new development precinct of 29 new homes now underway A VIP preview will be held on the 4th of December with Lake Macquarie pre registered clients
Slide 33: Undertaking eight developments
Undertaking eight developments For personal use only > New projects in delivery mode include large scale precinct developments New home precinct > Previously developed sites (eg Grange, Nepean River) were infill sites > Precinct development projects include Ettalong, Stoney Creek Estate, Lake Macqua
Slide 34: Lifestyle Parks - Tourism
Lifestyle Parks - Tourism Poolside tourist cabins – BIG4 Valley Vineyard, Cessnock NSW For personal use only BIG4 Valley Vineyard, Cessnock, NSW p34
Slide 35: Active Lifestyle Estates: Significant tourism business
Active Lifestyle Estates Significant tourism business For personal use only Growing tourism portfolio > Significant scale; tourism is a complimentary and very profitable business for Ingenia > ~1,000 established tourism short term sites, due to increase to ~1,600 (announced acquisitions) > Diverse p
Slide 36: Active Holidays – Growth Strategy
Active Holidays – Growth Strategy For personal use only Growth Opportunity; in core market segments Family Market; Affiliations and co-operative marketing (e.g. BIG4 Holiday Parks, Top Tourist); unique opportunity to leverage existing consumer trust (and database) with immediate and measurable growt
Slide 37: Active Holidays – Growth Strategy
Active Holidays – Growth Strategy For personal use only Key Business Focus - Growing occupancy and maximising revenue > Digital selling; direct and third party websites (Online Travel Agents e.g. Wotif, Bookings.com, Agoda and Expedia); efficient transaction platform and market capture > Tactical ma
Slide 38: Active Holidays – Investor Discount Card
Active Holidays – Investor Discount Card For personal use only Rewarding our Investors; Investor Discount Card > Official launch at 2014 AGM > Available to all Ingenia Communities securityholders > 25% discount off accommodation; available in all Ingenia tourism assets, valid for 12 month period > R
Slide 39: Rapidly expanding Lifestyle Parks business to drive earnings growth
Rapidly expanding Lifestyle Parks business to drive earnings growth For personal use only 12 months ago Today Properties in development mode x2 x8 Homes under construction or being installed x6 x60 p39
Slide 40: Focus
Focus For personal use only ► Rapidly increase delivery and sales of new homes across existing Lifestyle Parks ► Increase Garden Village occupancy toward medium term target of 92% ► Expand Ingenia Care Assist to support occupancy growth and resident tenure ► Progress with non-core asset sales to rec
Slide 41: Questions
Questions For personal use only The Grange, Morisset NSW p41
Slide 42: Formal business of the meeting
Formal business of the meeting For personal use only Nepean River Holiday Village, Penrith NSW p42
Slide 43: Admission cards
For personal use only Admission cards p43
Slide 44: Proposed Resolutions: Item 1
Proposed Resolutions For personal use only Item 1: Ingenia Communities Group Financial Statements and Reports To receive and consider the Financial Report, the Directors’ Report and the Auditor’s Report of the Group for the year ended 30 June 2014. p44
Slide 45: Proposed Resolutions: Item 2
Proposed Resolutions For personal use only Item 2: Remuneration Report To consider and, if thought fit, to pass the following as an ordinary resolution of the company: “To adopt the Remuneration Report for the year ended 30 June 2014.” p45
Slide 46: Proxy votes: Item 2
Proxy votes For personal use only Item 2: “To adopt the Remuneration Report for the year ended 30 June 2014.” Proxies Received For 551,515,702 Open 1,391,787 Against 5,374,096 Abstain 4,003,028 p46
Slide 47: Proposed Resolutions: Item 3
Proposed Resolutions For personal use only Item 3: Election of Director To consider and, if thought fit, pass the following as an ordinary resolution of the Company: “That Ms Norah Barlow, being a Director who was appointed by the Directors on 31 March 2014 and whose appointment as a Director expire
Slide 48: Proxy votes: Item 3
Proxy votes For personal use only Item 3: “That Ms Norah Barlow, being a Director who was appointed by the Directors on 31 March 2014 and whose appointment as a Director expires at the conclusion of the Annual General Meeting of the Company and, being eligible, offers herself for election, be re-ele
Slide 49: Proposed Resolutions: Item 4
Proposed Resolutions For personal use only Item 4: Re-election of Director To consider and, if thought fit, pass the following as an ordinary resolution of the Company: “That Ms Amanda Heyworth, being a Director who is retiring in accordance with rule 74.1 of the Company’s constitution and Listing R
Slide 50: Proxy votes: Item 4
Proxy votes For personal use only Item 4: “That Ms Amanda Heyworth, being a Director who is retiring in accordance with rule 74.1 of the Company’s constitution and Listing Rule 14.4, and being eligible, offers herself for election, be re-elected as a director of the Company.” Proxies Received For 56
Slide 51: Proposed Resolutions: Item 5
Proposed Resolutions For personal use only Item 5: Ratification of issue of Stapled Securities To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That, for the purposes of Listing Rule 7.4 and for all other purposes, the shareholders approve and
Slide 52: Proxy votes: Item 5
Proxy votes For personal use only Item 5: “That, for the purposes of Listing Rule 7.4 and for all other purposes, the shareholders approve and ratify the allotment and issue of 100,700,734 stapled securities as outlined in the Explanatory Notes.” Proxies Received For 510,560,333 Open 1,388,997 Again
Slide 53: Proposed Resolutions: Item 6
Proposed Resolutions For personal use only Item 6: Approval to issue securities under the Ingenia Communities Group Rights Plan To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of Listing Rule 7.2, Exception 9(b), and for
Slide 54: Proxy votes: Item 6
Proxy votes For personal use only Item 6: “That for the purposes of Listing Rule 7.2, Exception 9(b), and for all other purposes, shareholders approve the issue of securities under the Ingenia Communities Group Rights Plan on the terms and conditions set out in the Explanatory Notes.” Proxies Receiv
Slide 55: Proposed Resolutions: Item 7
Proposed Resolutions For personal use only Item 7: Grant of Short Term Incentive Plan Rights to Simon Owen To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of ASX Listing Rule 10.14 and for all other purposes, shareholder
Slide 56: Proxy votes: Item 7
Proxy votes For personal use only Item 7: “That for the purposes of ASX Listing Rule 10.14 and for all other purposes, shareholders approve the grant by the Company to Mr Simon Owen of Short Term Incentive Rights calculated as outlined in the Explanatory Notes (and the issue of Stapled Securities up
Slide 57: Proposed Resolutions: Item 8
Proposed Resolutions For personal use only Item 8: Grant of LongTerm Incentive Plan Rights to Simon Owen To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of ASX Listing Rule 10.14 and for all other purposes, shareholders
Slide 58: Proxy votes: Item 8
Proxy votes For personal use only Item 8: “That for the purposes of ASX Listing Rule 10.14 and for all other purposes, shareholders approve the grant by the Company to Mr Simon Owen of Long Term Incentive Rights calculated as outlined in the Explanatory Notes (and the issue of Stapled Securities upo
Slide 59: Thank you for your attendance
For personal use only Thank you for your attendance Ingenia Communities Group Level 5, 151 Castlereagh Street Sydney NSW 2000 www.ingeniacommunities.com.au p59
Slide 60: Disclaimer
Disclaimer For personal use only 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
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