Ingenia Communities Group · ASX:INA
Ingenia Communities — Goldman Sachs Ninth Annual Mid-Cap Conference (April 2018)
24 slides from Ingenia Communities's conference presentation, Apr 17, 2018
Slide 1: Goldman Sachs Ninth Annual Mid-Cap Conference
Presented by Simon Owen, CEO 17 APRIL 2018 For personal use only INGENIA COMMUNITIES GROUP Goldman Sachs Ninth Annual Mid-Cap Conference
Slide 2: Contents
Contents For personal use only Business overview 3 1H18 results highlights 7 Capital management 8 Future growth 10 Outlook 20 2
Slide 3: Business overview
Business overview creating Australia’s best lifestyle communities For personal use only Ingenia has Over 6,700 Income producing sites 59 Australian communities Portfolio now Over 5,000 rental and lifestyle residents $700 million 790,000 ‘room nights’ p.a Cabins, caravan and camping Stable rent base
Slide 4: Ingenia operates across three rental segments
Ingenia operates across three rental segments For personal use only Lease type Residential lease Residential site agreement Short-term Daily/weekly Tenure Ave. 3 years Perpetual Ave. stay 4 nights Annual rental Cabin ~$13,400 - ~$45,500 ~$17,300 ~$8,400 (per annum) Sites ~$7,700 Typical resident/gue
Slide 5: Underlying demand drivers remain strong
Underlying demand drivers remain strong many seniors will struggle to fund a comfortable retirement Median House Price Home Ownership Limited savings or Pension For personal use only ($) (Age) superannuation Superannuation account balances 1,400,000 Source: ASFA Research and Resource Centre. 100% 10
Slide 6: Pension changes supportive of model
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 a curre
Slide 7: 1H18 results highlights
1H18 results highlights For personal use only EBIT $19.3 million – up 41% on 1H17 FINANCIAL Underlying profit EPS 7.1 cents – up 18% on 1H17 Revenue of $76.9 million – up 17.6% on 1H17 Non-core asset sales well progressed Over 7,000 income producing sites STRATEGY Over 2,840 development sites secure
Slide 8: Capital management
Capital management well positioned to fund development pipeline Debt Metrics 31 Dec 17 30 Jun 17 Funding growth For personal use only Loan to value ratio (covenant <50%) 35.1% 27.7% • Non-core asset sales providing capital for reinvestment Gearing ratio1 28.1% 21.8% • Eight assets ($35m) divested ye
Slide 9: Growth in value across core portfolios
Growth in value across core portfolios lifestyle capitalisation rates continue to compress Dec17 • Independently valued 23 assets 1H18 (thirteen lifestyle For personal use only Av. Cap Av. Cap Portfolio Book Value and holiday communities) Rate Dec171 Rate Jun171 ($m) • Garden Villages and Lifestyle
Slide 10: Future growth
Future growth For personal use only Ingenia Holidays Lake Conjola, NSW 10
Slide 11: Excellent visibility on future earnings growth
Excellent visibility on future earnings growth • Increase development to 350+ homes p.a For personal use only • Add land rents on 2,840 new homes • Add 100 new rental cabins at Chambers Pines, Sheldon and Durack • Add 170 new tourism cabins2 across key holiday parks Focus over next three years is on
Slide 12: Significant development pipeline in place
Significant development pipeline in place targeting twelve new or expansion projects For personal use only 600 Latitude One Avina (new) (expansion) 550 > $500 500 Plantations Forecast Home Sales Price ($'000s) (new) Nerang (new, optioned) 450 Bethania Latitude One (expansion) (expansion) Upper Coome
Slide 13: Ingenia's development business has evolved
Ingenia’s development business has evolved focus now on large expansion and greenfield projects • Over the past three years, Ingenia’s development pipeline has been extended and reshaped, moving For personal use only from tourism conversions (e.g. Ettalong) towards expansions (e.g. Bethania) and gre
Slide 14: Rapid growth in settlements since entering the market
Rapid growth in settlements since entering the market in 2014 target sector leadership in new home sales Average settlement growth >140% For personal use only (FY14 - FY18) 14
Slide 15: Ingenia Lifestyle Latitude One, Port Stephens NSW
Ingenia Lifestyle Latitude One, Port Stephens NSW first greenfield project well progressed > Masterplanned community with 270 new homes and quality For personal use only facilities > Staged launch strategy generated pent up demand • Over 70 homes deposited or contracted • Average sales price >$480,0
Slide 16: Ingenia Lifestyle Latitude One, Port Stephens NSW
Ingenia Lifestyle Latitude One, Port Stephens NSW For personal use only 16
Slide 17: Ingenia Lifestyle The Grange, Morisset NSW
Ingenia Lifestyle The Grange, Morisset NSW expansion of existing community well progressed For personal use only • Expansion (56 sites) of established community • First settlements commenced in October 2017 • Further 33 homes on site with service connections underway • 23 homes deposited or contract
Slide 18: Ingenia Lifestyle The Grange, Morisset NSW
Ingenia Lifestyle The Grange, Morisset NSW expansion of existing community well progressed For personal use only March 2018 18
Slide 19: Ingenia Holidays Lake Conjola, Lake Conjola NSW
Ingenia Holidays Lake Conjola, Lake Conjola NSW new homes on track for settlements from April For personal use only • Creation of new lifestyle precinct complementing successful tourist park • Stage 1 (39 homes) civil infrastructure works well progressed with completion due Q4-18 • First homes now o
Slide 20: Outlook
Outlook For personal use only Ingenia Lifestyle Lara, VIC 20
Slide 21: Market outlook remains positive
Market outlook remains positive ageing of population and housing affordability will drive growth For personal use only Macro/Residential Housing • Housing affordability and ageing population driving long-term demand • Slowdown in residential housing remains key risk – diverse product, price point an
Slide 22: Outlook: further growth and capital recycling
Ingenia Outlook: further growth and capital recycling Improve performance of existing assets to drive revenue growth and leverage operating and sales platform Accelerate build out of development pipeline to deliver new rental contracts and increase margins Continue asset recycling to fund developmen
Slide 23: Contact information
Contact information SIMON OWEN CEO & Managing Director Tel: +61 2 8263 0501 sowen@ingeniacommunities.com.au DONNA BYRNE Group Investor Relations Manager Tel: +61.2.8263 0507 Mob: +61 401 711 542 dbyme@ingeniacommunities.com.au INGENIA COMMUNITIES GROUP Level 9, 115 Pitt Street ‘Sydney NSW 2000 wyww.
Slide 24: 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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