Ingenia Communities Group · ASX:INA
Ingenia Communities — 12th Annual Citi Australia and New Zealand Investment Conference (October 2020)
22 slides from Ingenia Communities's conference presentation, Oct 15, 2020
Slide 1: ASX / Media Release
ASX / Media Release 15 October 2020 Ingenia Communities Group (INA) provides its 12th Annual Citi Australia and New Zealand Investment Conference presentation which is authorised for release by the Ingenia Communities Group Board. ENDS For further information please contact: Donna Byrne General Mana
Slide 2: 12th Annual Citi Australia and New Zealand Investment Conference
Presented by Simon Owen and Scott Noble 15 October 2020 Ingenia Lifestyle Latitude One, NSW INGENIA COMMUNITIES GROUP 12th Annual Citi Australia and New Zealand Investment Conference
Slide 3: Business overview
Business overview Rental base growing through acquisition and development $ Rent base $1.1B $2 million/pw Over 9,900 Income producing sites Property Portfolio 3,015 Development sites 74 Communities 9 communities under development 37 Lifestyle and Holidays >971,000 ‘room nights’ p.a. 26 Ingenia Garde
Slide 4: Results summary
Results summary Strong performance in FY20, despite COVID-19 impact in fourth quarter FINANCIAL DEVELOPMENT • Settled 325 new homes – down only 3% on • Revenue of $244.2 million – up 7% on FY19 record FY19 result • EBIT $71.9 million – up 17% on FY19 • Average home price up 12% to $430,000 • Underly
Slide 5: Capital management
Capital management Significant balance sheet capacity DEBT METRICS 30 JUN 20 30 JUN 19 Loan to value ratio (covenant <55%) 8.4% 29.8% $450m 2.5% 3.3YRS 8.4% Gearing ratio1 5.7% 23.7% COST OF Interest cover ratio (total) DEBT WT AV DEBT 8.35x 6.4x DRAWN LVR (covenant >2x) CAPACITY MATURITY DEBT3 Tota
Slide 6: Growth in value across core portfolios
Growth in value across core portfolios Lifestyle capitalisation rates continue to compress • Independent valuation of 15 assets in 2H20 Av. Cap Rate Av. Cap Rate Jun 20 Portfolio • Ingenia Gardens and Lifestyle and Holidays portfolio value up 3.6% Jun 201 Jun 191 Book Value ($27.4 million) like for
Slide 7: Sector remains attractive as cash flows demonstrate resilience
Sector remains attractive as cash flows demonstrate resilience Ingenia remains well placed to grow Competitive Landscape Market for lifestyle communities (Total Sites) increasingly competitive • New entrants emerging Long Term Tourism Development Pipeline • Quality lifestyle communities remain tight
Slide 8: Business update
Business update Ingenia Holidays South West Rocks, NSW 7 12th ANNUAL CITI AUSTRALIA AND NEW ZEALAND INVESTMENT CONFERENCE
Slide 9: Transaction activity a key focus for FY21
Transaction activity a key focus for FY21 Continued growth in key markets and divestment of non-core assets • Additional acquisitions totalling $90 million anticipated to settle 2020, including Initial land parcels for Morisset development (Joint Venture with Sun Communities) due to settle in Nove
Slide 10: Acquisition of established community in South East Queensland
Acquisition of established community in South East Queensland Existing rental base with upside Acquisition of established seniors’ rental village for approximately $8 million • PresCare Lake Sherrin currently operates as a 110-unit rental village with an additional 48 bed Residential Aged Care Facil
Slide 11: Ingenia Holidays
Ingenia Holidays Parks now open, demand strong • In 2019 Australians spent approximately $65 billion on trips outside Australia1 Current restrictions represent a unique opportunity to attract new guests • Since restrictions eased, holiday parks are outperforming other Bookings Placed $m accommodat
Slide 12: Ingenia Holidays
Ingenia Holidays Parks now open, demand strong • While Q1 revenue was down slightly on prior year, largely due to a weaker July and August at QLD parks, performance across September and into October was strong September revenue was up 17% on September 2019 September Occupancy was up 2.2% to 61.2
Slide 13: Development
Development Projects remain on track • Ongoing focus on sales program to drive settlements Larger virtual events proving successful – 1,100 enquiries generated by recent “Starts at 60” webinar sponsored by Ingenia Lifestyle At community level have moved to mini events, including small group open
Slide 14: Project snapshots
Project snapshots Ingenia Lifestyle Latitude One, NSW Ingenia Lifestyle Hervey Bay, QLD Over 200 homes settled Experiencing strong demand Only four stages remaining Accelerating program in response to significant increase New prestige homes now under construction in sales activity (prime lakefront l
Slide 15: Despite growing demand, supply growth remains constrained
Despite growing demand, supply growth remains constrained Ingenia’s development pipeline provides significant capacity Forecast demand in 2026 The population aged 65 plus is forecast to grow to 7,000+ 5 million persons by 2026 homes p.a. • This represents an average increase of 130,000 people p.a. f
Slide 16: Greenfield projects
Pipeline supporting ongoing development returns VACANT DEVELOPMENT COMMENCEMENT TO COMPLETION SITES REMAINING1 KEY PROJECTS Jun 20 Jun 21 Jun 22 Jun 23 Latitude One 214 Strong sales – 59 approved sites remaining Additional 155 sites (STA) Greenfield projects Plantations 83 Second greenfield project
Slide 17: Sustainability
Sustainability ESG initiatives and reporting are a key focus for Board and Current projects Management • Audit and Risk Committee oversees the Group’s sustainability program and reporting, and recommends to the Board • Internal working group driving identification of initiatives, key projects and re
Slide 18: Outlook
Outlook The Group is well placed and is maintaining a focus on the future • Rent from residents continuing uninterrupted, providing stable cash flows • Ingenia Holidays demand strong Leveraged to domestic travel Well placed to benefit as domestic borders reopen • Settlements continuing to grow
Slide 19: Appendices
Appendices Ingenia Holidays Rivershore, QLD 18 12th ANNUAL CITI AUSTRALIA AND NEW ZEALAND INVESTMENT CONFERENCE
Slide 20: Appendix 1: Key financials
Appendix 1: Key financials Growth in EBIT despite impact of COVID-19 KEY FINANCIAL METRICS FY20 FY19 Revenue and EBIT growth driven by increase in rental sites from Revenue $244.2m $228.7m 7% development and acquisition, increased development margin and cost management EBIT1 $71.9m $61.5m 17% Underl
Slide 21: Contact Information
Ingenia Holidays One Mile Beach, NSW Contact Information Scott Noble Chief Financial Officer Donna Byrne 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 S
Slide 22: 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 and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia analysis and are sub