Ingenia Communities Group · ASX:INA
Ingenia Communities — Investor Presentation (November 2021)
38 slides from Ingenia Communities's investor presentation, Nov 1, 2021
Slide 1: Transformational Acquisitions and Equity Raising
Images TBU throughout Presented by Simon Owen, CEO 1 November 2021 Seachange Toowoomba, QLD INGENIA COMMUNITIES GROUP Transformational Acquisitions and Equity Raising NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Transaction overview
Transaction overview Acquisitions build on Ingenia’s market leading position in lifestyle and holidays sectors • Approximately $552m1 of fully-funded acquisitions (“Acquisitions”) to deliver step-change in the Group’s growth profile and increased scale in lifestyle communities TRANSFORMATIONAL • Add
Slide 3: Investment highlights
Investment highlights Delivering on strategy and significantly enhancing Ingenia’s growth profile • Reinforces leadership position as Australia’s largest owner, operator and developer of lifestyle, rental and holiday communities Consolidates market • Adds 20 communities and development sites, cement
Slide 4: Secured significant opportunities across multiple individual acquisitions
Secured significant opportunities across multiple individual acquisitions Demonstrates Ingenia’s deep origination and execution capability ~$552m Fully funded acquisitions1 Contracted acquisitions Acquisitions under offer or in due diligence $404m ~$148m • Seachange Group: high quality portfolio of
Slide 5: Trading update
Trading update Resilience demonstrated through 2021 and strong fundamentals for future growth Residential Communities Holiday Parks Residential communities continuing to deliver stable cash flows Extended closures and restrictions materially impacted Holidays • 100% rent collection through COVID-19
Slide 6: Acquisitions Overview
ACQUISITIONS OVERVIEW Creating Australia’s Gest lifestyle and holidays communities
Slide 7: Overview of the Acquisitions
Overview of the Acquisitions Delivers further scale in Lifestyle portfolio and income generating sites • Contracted acquisitions comprising Seachange Group, Caravan Parks of Australia and the lifestyle greenfield site in metropolitan Brisbane, will deliver over 2,000 existing sites and more than 700
Slide 8: Overview of Seachange Group
Overview of Seachange Group Transformational acquisition of a highly complementary lifestyle portfolio • Ingenia has exchanged contracts to acquire Seachange Group, with a portfolio of six lifestyle communities in QLD (settlement in Nov 2021) Acquisition overview • The portfolio includes Acquisition
Slide 9: Overview of Seachange Group communities
Overview of Seachange Group communities Six communities strategically located in South East Queensland’s growth corridor 1 Seachange Arundel (414 sites) 4 Seachange Toowoomba (170 sites) Hervey Bay Seachange Arundel Seachange Toowoomba homes 2 Seachange Emerald Lakes (126 sites) 5 Seachange Victoria
Slide 10: Overview of Caravan Parks of Australia
Overview of Caravan Parks of Australia Strategic acquisition of seven lifestyle and holiday communities to enhance portfolio • Ingenia has entered into unconditional contracts to acquire a portfolio of seven mixed use assets • Three in South East Greater Melbourne - predominantly lifestyle and renta
Slide 11: Additional acquisitions
Additional acquisitions Focus on lifestyle communities Ingenia has exchanged contracts for the acquisition of a greenfield Ingenia has six assets currently under contract/exclusive due diligence site in Queensland • ~$148 million of additional communities – comprising five mature assets in NSW • $24
Slide 12: Impact of Transaction
IMPACT OF TRANSACTION Creating Australia’s Gest; lifestyle and holidays communities
Slide 13: Impact of the Transaction
Impact of the Transaction Acquisitions expected to deliver an uplift in portfolio value of 38% Pro forma Post Key metrics 30 June 2021 Transaction Portfolio value $1.2bn ~$1.8bn +38%1 $3.47 29.1% NAV $3.03 $3.47 Pro forma Pro forma NAV Pro forma LVR Portfolio value per security LVR 22.2% 29.1% uplif
Slide 14: Australia's largest lifestyle and holiday communities group
Australia’s largest lifestyle and holiday communities group Transaction further enhances Ingenia’s position as the clear market leader Long Term Tourism Development Pipeline • Market increasingly competitive with strong demand for assets driving price growth 25,000 • Ingenia is positioned to continu
Slide 15: Consolidating one of the largest development pipelines in the sector
Consolidating one of the largest development pipelines in the sector Pipeline of over 6,200 potential development sites Development Pipeline • Following the Acquisitions, Ingenia will have a 7,000 significant uplift in development sites across the key NSW and QLD markets 6,000 • The increased pipeli
Slide 16: Growing Ingenia's annual development profile
Growing Ingenia’s annual development profile Ingenia is positioned to significantly increase its settlements run-rate Acquisition of Seachange and other contracted / optioned sites offers Ingenia the ability to pursue a significant step up in new home settlements – targeting a cumulative total of 1,
Slide 17: Strong balance sheet for continued future growth
Strong balance sheet for continued future growth Ongoing support from existing lenders with $200m of new debt facilities Debt metrics 30 June 2021 Post Transaction1 Post Transaction, Ingenia will be well-positioned to support investment in future growth and balance sheet resilience Loan to value rat
Slide 18: Equity Raising
EQUITY RAISING FRESHWATER BY INGENIA LIFESTYLE, QLD
Slide 19: Details of the Equity Raising
Details of the Equity Raising Equity Raising Details • 1 for 4.24 accelerated non-renounceable entitlement offer to raise approximately $475 million in total • Proceeds from Equity Raising will be allocated to fund the Acquisitions Use of Proceeds • Proceeds will be initially used to pay down existi
Slide 20: Sources & uses of proceeds
Sources & uses of proceeds Sources ($m) Use of proceeds Equity Raising 475 • Equity Raising to partially fund the Acquisitions Debt and deferred consideration 133 • Contracted acquisitions include Seachange Group, Caravan Parks of Australia and a greenfield site in Brisbane Total 608 • Proceeds will
Slide 21: Indicative timetable
Indicative timetable Key event Date Institutional Entitlement Offer Announcement of the Acquisitions and Equity Raising 1 November Institutional Entitlement Offer conducted 1 November Trading resumes on an ex-Entitlement Offer basis 2 November Record date for Entitlement Offer 3 November Settlement
Slide 22: Outlook & Guidance
OUTLOOK & GUIDANCE = willie Creating Australia’s Gest lifestyle and holidays communities
Slide 23: Outlook & guidance
Outlook & guidance Seachange Arundel Underlying demand fundamentals for seniors housing and domestic travel remain strong – announced acquisitions and easing of travel restrictions position Ingenia to benefit from demand across the Group’s core markets • Stable rent from residential communities cont
Slide 24: Appendices
Appendices Creating Australia’s Gest lifestyle and holidays communities
Slide 25: Recent acquisitions
Appendix 1 Recent acquisitions Ingenia’s acquisition strategy has driven material growth • Ingenia has a dedicated acquisitions team driving its pipeline 12 acquisitions ($215 million) settled in FY21 • Acquisitions complement strategy to grow rent based, annuity style $500 million of acquisitions a
Slide 26: Proven track record
Appendix 2 Proven track record Ingenia has consistently outperformed the benchmark S&P/ASX 200 A-REIT index by a significant margin Underlying EPS (cents) 23.6 Underlying EPS • Underlying earnings per security have grown at an 17.7 21.0 22.1 Growth1 13.4 13.0 average rate of over 11% since FY14 10.8
Slide 27: Pro forma Balance Sheet metrics
Appendix 3 Pro forma Balance Sheet metrics Post reporting date Pro forma Pro forma Acquisitions and 30 June 2021 balance sheet 30 June 2021 30 June 2021 Equity Raising adjustments1 (Pre Transaction) (Post Transaction) Total assets ($m) 1,354.4 104.5 1,458.9 557.8 2,016.7 Drawn Debt2 ($m) 250.0 80.6
Slide 28: Risk factors
Appendix 4 Risk factors General Risks This section discusses some of the key risks associated with an investment in Ingenia. A number of risks and uncertainties may adversely affect the operating and financial performance or position of Ingenia and in turn affect the value of Ingenia securities. The
Slide 29: Risk factors (cont'd)
Appendix 4 Risk factors (cont’d) Future tax liabilities may be impacted by changes to the Australian taxation law including changes in interpretation or application of the law by the courts or taxation authorities in Tax Implications Australia. This in turn could impact the value or trading price of
Slide 30: Risk factors (cont'd)
Appendix 4 Risk factors (cont’d) Ingenia has a joint venture arrangement to co-invest in the development of greenfield lifestyle communities. Ingenia also has entered into management agreements to source Joint Venture sites and develop and operate communities within the joint venture. Ingenia genera
Slide 31: International offer jurisdictions
Appendix 5 International offer jurisdictions International Offer Restrictions Any financial information contained in this document has been prepared in accordance with This document does not constitute an offer of new stapled securities (“Offer Securities”) of the Australian Accounting Standards and
Slide 32: International offer jurisdictions (cont'd)
Appendix 5 International offer jurisdictions (cont’d) Hong Kong (cont’d) securities is being made in reliance on the Financial Markets Conduct (Incidental Offers) Exemption No advertisement, invitation or document relating to the Offer Securities has been or will be issued, Notice 2016. or has been
Slide 33: International offer jurisdictions (cont'd)
Appendix 5 International offer jurisdictions (cont’d) Singapore (cont’d) under section 86(1) of the FSMA. This document is issued on a confidential basis in the United or circulate this document to any other person in Singapore. Kingdom to "qualified investors" within the meaning of Article 2(e) of
Slide 34: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation and the announcement to which it is attached have been prepared by the The information in this presentation is provided for informational purpose only in relation to Ingenia Communities Group (Ingenia, INA or the Group) which is a stapled vehicle com
Slide 35: Important Notice and Disclaimer (cont'd)
Important Notice and Disclaimer (cont’d) restrictions. Any failure to comply with such restrictions may constitute a violation of applicable read in conjunction with the Group’s periodic and continuous disclosure requirements lodged securities laws Please refer to the section of this presentation he
Slide 36: Important Notice and Disclaimer (cont'd)
Important Notice and Disclaimer (cont’d) the success of the Group’s business strategies, and they are subject to significant regulatory, Accounting Standards and, therefore, may not be comparable to similarly titled measures business, competitive and economic uncertainties and risks, certain of whic
Slide 37: Important Notice and Disclaimer (cont'd)
Important Notice and Disclaimer (cont’d) By accepting this presentation you acknowledge that neither you nor any members of the assets, securities and instruments. One or more entities within the groups of each Underwriter Limited Parties intend that any member of the Limited Parties act or be respo
Slide 38: Contact Us
Contact Us Scott Noble Donna Byrne Ingenia Communities Group [caption] Chief Financial Officer General Manager Investor Relations & Sustainability Level 3, 88 Cumberland Street Tel: +61 2 8263 0538 Tel: +61 2 8263 0507 Sydney NSW 2000 snoble@ingeniacommunities.com.au dbyrne@ingeniacommunities.com.au
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