This article is from the Australian Property Journal archive
INCREASED business scale and the tourism rebound has delivered strong results for listed player Ingenia Communities Group (ASX: INA) which posted a 26% jump in statutory profit of $42.5 million.
The lifestyle and holidays business has delivered an underlying profit of $43.5 million in 1H24, up 27% on 1H23, with an underlying EPS of 10.7 cents.
INA posted an EBIT of $55.1 million, up 34% on the previous corresponding period, with revenue at $211.6 million, up 22% on 1H23.
Ingenia has declared a half year distribution of 5.2 cents per stapled security.
“The 1H24 performance reflects the benefits of diverse revenue streams, strong tourism performance and CPI linked rents coupled with an increase in settlements. This was partially offset by ongoing inflationary cost pressures and the investment in people and systems supporting further business growth,” said Jim Hazel, chairman at Ingenia.
Over the half year period, INA settled 176 new homes and extended its delivery pipeline to 5,935 potential home sites.
Ingenia’s land lease and all age rental base also saw growth, with total Lifestyle Rental segment revenue up 13% to $42.1 million on a portfolio valued at close to $900 million.
With holiday park earnings continue seeing a 12% revenue boost on the prior comparable period to $66.5 million.
“Today Ingenia is a business of substantial scale comprising $2.4 billion in owned or managed property across 102 communities and sites, with a development pipeline of 5,935 land lease home sites and 15,700 income producing sites,” added Hazel.
The group’s operating cash flow was at $21.8 million, down 7% on 1H23, due to a significant increase in work in progress and increased interest expense with 15 active development projects across INA.
At the close of the period, INA has capacity to fund capital commitments and select opportunities with $143 million in cash and available undrawn debt and an ongoing asset recycling program.
Over 1H24, INA recycled $64 million in capital across the sale of nine assets, with a further two—worth a combined $11 million—to settle in 2H24.
Across the balance sheet, INA’s LVR at the lower end of the target range of 30 to 40%, at 33.3%, with no debt expiring before December 2025 and gearing at 26.5%.
Ingenia reaffirmed its FY24 guidance, targeting EBIT growth of 10% – 15% on FY23 and underlying EPS of 20.8 cps to 22.3 cps for FY24.
