This article is from the Australian Property Journal archive
Land lease and lifestyle community developer Ingenia Communities has upgraded its full year guidance following a robust first-half, buoyed by strong development activity and increased margins.
The group announced a statutory profit of $87.6 million, up 106% on the previous corresponding period, EBIT jumped by 48% to $86.2 million and underlying EPS increased by 58% to 16.9 cents.
The group’s revenue surged 21% to $256.9 million, driven by accelerated development activity, a reduced cost base, and strong operational performance.
During the period there were 258 new home settlements, a 47% increase, with the average home sales price climbing 9% to $647,000, thanks to improved margin, primarily due to project mix. This growth was supported by a diversified pipeline of 5,225 development sites, including recent acquisitions in Queensland. The lifestyle rental segment also delivered a 14% increase in EBIT to $24.2 million, benefiting from CPI-linked rental growth and an expanding rent base.
Ingenia’s holiday parks business reported a 3% rise in EBIT to $28.6 million, driven by higher occupancy rates and investment in new cabin stock. The group’s exit from its non-core funds management business further streamlined operations, allowing a sharper focus on core growth areas.
CEO and managing director John Carfi highlighted the progress made under the group’s one, three, and five-year plan, emphasizing improved productivity, operational efficiencies, and accelerated development.
“We are seeing the benefits of our clear strategy and the changes to our organisational structure and operating model begin to emerge,” he said.
“Development activity is accelerating and benefiting from a clear focus on improving financial returns and an integrated structure with clear accountability. We have maintained the gross margin on home sales despite cost pressures and are continuing to progress our pipeline, acquiring two sites in Queensland. We finalised development at our Chambers Pines and Seachange Coomera communities which are now contributing stable rental returns, and we have new projects contributing settlements this financial year.
“We have already identified and are implementing a range of procurement and design changes which will deliver benefits in future years, supporting our longer-term development goals,” he added.
Looking ahead, Carfi said Ingenia is well-positioned to capitalise on strong demand for affordable housing and domestic tourism.
The group has upgraded FY25 EBIT target of $162–$165 million and underlying EPS of 29.0–30.0 cents.
“Short term trading conditions remain somewhat variable given current uncertainty around the interest rate cycle and the pending Federal Election. In the medium term, demand drivers of Australia’s ageing population and the desire for an affordable lifestyle support growth,” Carfi concluded.
