This article is from the Australian Property Journal archive
HOLIDAY park and residential communities operator Ingenia is expecting an increase in the contribution from its operating business, as it grows its rental base and holiday occupancies and rates increase.
The group posted a 14% increase in full-year underlying profit to $87.9 million, and 38% increase in statutory profit to $100.6 million.
“The result showcases that Ingenia’s key strategic drivers remain intact – an ageing population, solutions to address housing affordability, internal migration patterns and domestic travel to support long-term demand,” said Ingenia CEO Simon Owen.
“During the period we built a greater exposure to markets benefiting from internal migration and price growth, with 90% of our future development pipeline now located in Queensland and high growth coastal/regional markets.”
Total assets increased by more than 60% over the year. Group revenue was up 14% to $338.1 million, and EBIT by 8% to $101.7 million. Operating cash flow was $114.9 million, down 17%, benefiting from a growing revenue base, but was offset by lost tourism earnings and reduced settlements due to COVID and weather impacts.
Underlying earnings per security dipped 1% to of 23.3c due to an increase in securities on issue following the $475 million equity raising in November, and COVID/supply chain impacts on holidays and development earnings.
The group is targeting FY23 guidance of growth in EBIT of 30% to 35% and underlying EPS growth of 5 to 10%.
Full-year distribution was 11.0c per stapled security, a rise of 4.8%, including a second-half distribution of 5.8 cps.
It achieved 409 new home settlements, and its development pipeline expanded by more than 50%, to 6,580 sites. Between 525 and 550 home settlements are targeted for FY23.
Owen said affordability issues and the appeal of community living post COVID isolation continue to make Ingenia’s communities a highly attractive proposition.
“Downsizers have seen the value of their primary asset increase substantially, which has enhanced their ability to fund the purchase of a new home in one of Ingenia’s communities.
“Ingenia remains keenly aware of the inflationary environment and interest rate pressures facing Australians and is committed to ensuring new home prices and rents remain affordable across a diverse range of communities and locations.”
