This article is from the Australian Property Journal archive
INGENIA Communities Group (ASX: INA) has delivered an operating income of $7.4 million for the year ended June 30 2012 – up from $6.9 million in the previous year.
INA’s net profit for FY2012 was $33.6 million, up from $13.1 million in FY2011.
More importantly INA announced a distribution of 5 cents per security, the first time since September 2008, when it was trading as ING Real Estate Community Living Group.
CEO Simon Owen said the positive results are a significant step forward in Ingenia’s transformation into an actively managed seniors living owner, operator and developer focused on the Australian market.
“The performance of our assets continues to improve in challenging markets, and the fact that 60% of the group’s total income is derived from rental earnings rather than DMF accruals or development profits underpins the quality of our earnings and cashflows.
“Having rebuilt the Group from the precarious position of several years ago, securityholders can be assured that the board and management will continue to exercise extreme diligence in the allocation of capital,” he added.
Owen said in the current environment where market uncertainty persists, lending conditions remain tight, and distressed retirement sales are in abundance.
“The repatriation of US sale proceeds anticipated in late 2012 will provide the group with further financial flexibility to pay down debt, pursue capital management initiatives such as a buyback, and consider investments.
“We will also capitalise on the strong organic growth opportunities embedded within the group’s existing assets. As at 30 June 2012, the group has an internal development pipeline of 471 units with an end sale value of $103.4 million,” he concluded.
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