Ingenia Communities Releases Citi Australia and New Zealand Conference Presentation
- Ingenia outlines robust financial performance
- Resurging demand for holidays subsect
- Solid capital structure for further expansion
Ingenia Communities Group (ASX:INA), has released its 12th Annual Citi Australia and New Zealand investment conference presentation, outlining a diverse portfolio of property assets totalling A$1.1 billion, as well as a robust financial performance for FY20. Within this portfolio, the company operates 74 communities, 9,900 income producing sites, as week as a rental base of A$2 million per week.
The company’s financial performance during FY20 is promising despite the impacts of the Covid-19 pandemic, with revenues up seven per cent on the previous corresponding period to $244.2 million. In addition to this, the company reports earnings before interest and tax of A$71.9 million, an increase of 17 per cent. Moreover, operating cash flow of A$67.2 million and underlying earnings per share of 22.1 cents are outlined in the report. These represent rises of 13 and 5 per cent respectively. Furthermore, the underlying profit for the company totalled A$59.1 million, up 25 per cent.
Ingenia also reports the settlement of 325 new homes, a decrease of three per cent, while the average home price grew to A$430,000, an increase of 12 per cent. Moreover, rental revenue for the business sits at A$94.5 million for FY20, rising five per cent. In addition to this, Ingenia Gardens had record high occupancy of 94.4 per cent. Dampening these robust results is a six per cent decrease in revenues for Ingenia Holidays, and a 40-basis point rise in Ingenia Lifestyle.
Nevertheless, the company is in a strong position to facilitate future growth, with 187 home contracted or deposited in FY21. In addition to this, the company has 3,015 home sites owner or secured, promoting a robust development pipeline. This is compounded upon a 24 per cent increase in Ingenia Lifestyle rental base, promulgating stronger cash flows.
The stable cash flows also solidify the company’s robust balance sheet, allowing for further development and expansions moving forward. The business’ capital raising for A$178 million in May 2020, also promotes growth prospects for the company. Along with this, debt facilities provide Ingenia with over A$370 million in cash and available undrawn debt.
The business outlines expansion plans, as well as increasing demand for the Ingenia Holidays segment, which suffered the most due to forced park closures. In addition to this, several acquisitions are outlined, including rental villages, land parcels for development, sitting at a cost of A$90 million.
With robust results reported by the company, as well as the capacity for substantial expansion moving forward, the business appears to be in a strong position to perform steadily. Increasing demand for the services and facilities offered may also benefit the solidity of Ingenia’s business model.