Ingenia Communities Group · ASX:INA
Ingenia Communities — Investor Presentation (October 2019)
31 slides from Ingenia Communities's investor presentation, Oct 16, 2019
Slide 1: Acquisitions and Equity Raising
Acquisitions and Equity Raising Creating Australia’s best lifestyle and holiday communities 16 October 2019 Not for release to US wire services or distribution in the Accelerating growth - Ingenia Lifestyle Hervey Bay, QLD United States.
Slide 2: Executive summary
Executive summary Ingenia continues to grow its rental income base complemented by high margin development Recent FY19 results continue a strong track record of performance and growth • Guidance exceeded for third consecutive year • Underlying EPS 21.0 cents – up 19% on prior year • Over 7,7751 exis
Slide 3: Market landscape: existing communities and sites
Market landscape Existing communities and sites Ingenia is the largest ASX-listed lifestyle and holidays group with over 8,500 sites across 51 assets Further consolidation expected as global landlords seek entry / scale Market Landscape (existing sites) 14,000 66 assets 12,000 10,000 No. of existing
Slide 4: Market landscape: development pipeline
Market landscape Development pipeline Ingenia has the largest lifestyle development pipeline in Australia, with excellent visibility on short and medium term growth The current pipeline, once built out, is estimated to add over $22 million earnings per annum1 Market landscape (development pipeline)
Slide 5: Transaction Overview
Transaction Overview • Ingenia continues to capitalise on a strong acquisitions pipeline, with $102.7 million of acquisitions under contract or in due diligence, including: › Three existing lifestyle communities in NSW and QLD Acquisitions › Two parcels of land adjoining existing communities › A lar
Slide 6: Transaction highlights
Transaction highlights Immediate yield and future growth through development Consolidates Ingenia’s position as a leader in the lifestyle communities sector – adds 540 income producing 1 sites and 640 development sites Underlying business continues to perform strongly – FY20 EBIT guidance upgraded t
Slide 7: Overview of the Equity Raising
Overview of the Equity Raising $131.1 million fully underwritten Placement and Entitlement Offer • 2 for 17 accelerated non-renounceable pro rata entitlement offer (Entitlement Offer) and Institutional placement Offer Size & (Placement) to raise approximately $131.1 million in total Structure › $109
Slide 8: Sources and uses
Sources and uses Proceeds to fund on-strategy acquisitions and growth Funding commitments include Sources $m • Six identified acquisitions expected to contract or settle during the Placement 21.3 course of FY201 Entitlement Offer 109.8 > Assets located across NSW and QLD, strengthening Ingenia’s Tot
Slide 9: Impact of Acquisitions and Equity Raising
Impact of Acquisitions and Equity Raising Confirms Ingenia’s position as a leader in the lifestyle sector and increases scale ▲ $>970m ▲3,873 ▲51 ▲8,540 income investment development sites1 Communities1 producing sites1 properties1 Adds 540 income Adds 160 potential Adds four new development sites f
Slide 10: Acquisitions
Acquisitions Development underway at Ingenia Lifestyle Plantations, NSW
Slide 11: Overview of Acquisitions
Overview of Acquisitions Acquisitions continue to build out established clusters Delivery of on-strategy acquisitions to grow rental base, development returns and business reach • Majority of proceeds ($70.5 million) deployed to acquire established, income producing communities • $86.0 million to be
Slide 12: Acquisition of Park A, QLD
Use of funds Acquisition of Confidential Park A, QLD (100% Ingenia) Ingenia Holidays Rivershore Acquisition metrics Acquisition price ~$17.5m Confidential Park C Income producing sites ~150 Development sites ~10 Target yield >7% 30km • Finalising due diligence for the purchase of established mixed-u
Slide 13: Acquisition of lifestyle communities in NSW and QLD
Use of funds Acquisition of lifestyle communities in NSW and QLD Acquisition metrics Confidential Park B (NSW) (100% Ingenia) • Progressing due diligence on pure lifestyle community located on NSW Central Coast Acquisition price ~$25.0m • Established community with approximately 190 MHEs approximate
Slide 14: Acquisition of expansion land, Ingenia Holidays Rivershore, QLD
Use of funds Acquisition of expansion land, Ingenia Holidays Rivershore, QLD (100% Ingenia) • Conditional contract exchanged for the purchase of three hectares of land adjacent to Acquisition metrics Ingenia Holidays Rivershore, Sunshine Coast Acquisition price $2.8m • Ability to expand one of the G
Slide 15: Acquisition of land adjacent to existing lifestyle community
Use of funds Acquisition of land adjacent to existing lifestyle community (100% Ingenia) • Due diligence underway on land adjacent to existing Ingenia owned development which is Acquisition metrics experiencing strong demand for new home sales Acquisition price ~$2.8m • Potential to add additional 1
Slide 16: Additional equity for Joint Venture and business growth
Use of funds Additional equity for Joint Venture and business growth Joint Venture with Sun Communities achieving rapid progress, with multiple opportunities to deploy additional equity • Since establishment in November 2018, Ingenia’s Joint Venture with Sun Communities has acquired two greenfield s
Slide 17: Equity Raising
Equity Raising Development at Ingenia Lifestyle Latitude One, Anna Bay, NSW
Slide 18: Details of the Offer
Details of the Offer Offer Details • $109.8 million Entitlement Offer and $21.3 million Placement to raise $131.1 million in total, issuing approximately 33.4 million securities Use of Proceeds • Proceeds from the Equity Raising will be allocated to fund identified acquisitions as well as developmen
Slide 19: Indicative timetable
Indicative timetable Key event Date Institutional Placement and Institutional Entitlement Offer Announcement of the Placement and Entitlement Offer 16 October Trading resumes on an ex-Entitlement Offer basis 17 October Record Date for determining entitlements for the Entitlement Offer (by 7pm AEST)
Slide 20: Appendices
Appendices Ingenia Holidays Lake Conjola, NSW
Slide 21: Pro forma Balance Sheet metrics
Appendix 1 Pro forma Balance Sheet metrics Pro forma Capital raising Deployment of funds Pro forma 30 June 20191 Net investment properties ($ million) 846.8 104.52 951.3 Other investments 32.5 16.7 49.2 (JV and Eighth Gate) ($ million) Total assets ($ million) 972.6 - 121.2 1,093.8 Net debt ($ milli
Slide 22: Foreign jurisdictions
Appendix 2 Foreign jurisdictions International Offer Restrictions Any financial information contained in this document has been prepared in accordance with Australian Accounting Standards and also comply with International Financial Reporting Standards This document does not constitute an offer of n
Slide 23: Foreign jurisdictions (cont'd)
Appendix 2 Foreign jurisdictions (cont’d) Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce Hong Kong or only to professional investors as defined in the SFO and any rules made under that these rights more than: (a) in the case of any action for rescis
Slide 24: Foreign jurisdictions (cont'd)
Appendix 2 Foreign jurisdictions (cont’d) Norway Switzerland This document has not been approved by, or registered with, any Norwegian securities regulator The New Securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss under the Norwegian Securities Trading Act
Slide 25: Foreign jurisdictions (cont'd)
Appendix 2 Foreign jurisdictions (cont’d) In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Marke
Slide 26: Risk factors
Appendix 3 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 27: Risk factors (cont'd)
Appendix 3 Risk factors (cont’d) Specific Risks Ingenia’s business strategy is focused on growing the Group’s cash yielding rental portfolio through acquisition, development and increasing occupancy. A key element of Business Strategy the Group’s strategy and earnings is attributable to development
Slide 28: Risk factors (cont'd)
Appendix 3 Risk factors (cont’d) Higher than expected inflation rates could lead to greater development and/or operating costs. While resident leases are subject to rental rate increases, ability to raise Income and Expense future rents and maintain or grow occupancy may be impacted by resident pens
Slide 29: Contact Information
Contact Information Scott Noble Donna Byrne Chief Financial Officer General Manager Investor Relations Tel: +61 2 8263 0538 Tel: +61 2 8263 0507 snoble@ingeniacommunities.com.au dbyrne@ingeniacommunities.com.au Ingenia Communities Group Level 9, 115 Pitt Street Sydney NSW 2000 www.ingeniacommunities
Slide 30: Disclaimer
Disclaimer This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Summary information Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia Communities Fund The information in this presentation is subject to change and does not purpo
Slide 31: Disclaimer (cont'd)
Disclaimer (cont’d) Forward looking statements (continued) such restrictions may constitute a violation of applicable securities laws. Please refer to the section of this presentation headed "Foreign Jurisdiction" in Appendix 1 of this presentation for more information. By These forward looking stat
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