Ingenia Communities Group | KOSEC

Company Description

Ingenia Communities Group (ASX: INA), formerly known as ING Real Estate Community Living Group, owns, operates and develops a diversified portfolio of senior rentals, lifestyle and holiday communities across Australia. Since its establishment in July 2004, the group now employs more than 700 staff to oversee operations across Ingenia Lifestyle, Ingenia Holidays, Ingenia Gardens & Ingenia Rental. Across all of its lifestyle communities, residents are entitled to use Ingenia Care – a complimentary concierge service to complement the living experience.  

Reasons for Potential Opportunity 

In its FY20 results released on 18 August 2020, Ingenia Communities Group reported an underlying profit of $59.1 million, a 25 per cent increase relative to the prior corresponding period. Additionally, group revenue climbed 7 per cent to $244.2 million, with earnings before interest and tax (EBIT) surging 17 per cent to $71.9 million. More notably, these results were fuelled by an increase in rental sites through acquisitions and development, higher average new home sales price as well as development margin and cost management across the Group. However, the upsides were in part offset by temporary holiday park closures as well as reduced settlements as a result of the COVID-19 pandemic. 

Within the 12 months, Ingenia achieved 325 new home settlements across the Group’s development projects, 3 per cent lower than that of the prior corresponding period. The group was initially on its way to achieve a new record for settlements had operating conditions not been disrupted due to lock-down restrictions. Nevertheless, Ingenia achieved an underlying earnings per share of 22.1 cents, a 5 per cent increase relative to the prior corresponding period. This was primarily driven by strong lifestyle and development performance, impacted by additional securities issued as a result of the capital raising held earlier in the year. 

Moving forward, the group’s acquisition pipeline remains strong with additional opportunities surfacing and due diligence being conducted on several established assets. Ultimately, the timing and composition of future acquisitions will impact its FY21 performance, with the remaining capital from the Group’s $178 million equity raise back in May 2020, expected to be deployed progressively over the next 1 – 1.5 years. Even as the firm failed to provide a FY21 guidance, Ingenia remains in a good position as it concluded the financial year with a balance sheet that provides significant support and capacity. This is evident through the 50 per cent increase of the group’s net assets with Net Asset Value per security climbing 9 per cent to $2.90. 

Company Management 

Simon Owen  | Chief Executive Officer 

Simon assumed the role of Chief Executive Officer in November 2009. He boasts more than 20 years’ experience working in ASX-listed groups with roles across mergers and acquisitions, funds management, finance & sales and development. Before joining Ingenia Communities, Mr Owen was the CEO of Aevum, a formerly-listed retirement company. 

Jim Hazel | Non-Executive Chairman 

Mr Hazel boasts an extensive corporate career in both the retirement and banking sectors. He was appointed to the Board in March 2012 and was previously the Managing Director of Primelife Corporation Limited. As a Director of Bendigo & Adelaide Bank Ltd, Mr Hazel holds a Bachelor of Economics degree and is a member of the Investment Committee. 

Fundamental Performance Indicators

Per Share Statistics  FY16 FY17  FY18  FY19  FY20 
Investment  Income (m)  0.70 0.83  0.91 1.00  0.91
Cash Flow ($)  0.14 0.17 0.23 0.26 0.25
Earnings ($)  0.13 0.15 0.18 0.21 0.24
Historical Financials  FY16  FY17  FY18  FY19  FY20 
Net Profit Before Abnormals (m) 19.70 26.70 36.90 48.30 65.30
Rental Income (m) 57.70 70.00 86.50 89.80 94.50
Other Income (m) 49.80 80.10 103.20 138.90 149.70
ROE (%)  4.70 5.20 6.90 7.70 6.90
Net Gearing (%)  70.30 36.50 42.50 37.00 7.90
Dividend Yield (%) 3.20 3.90 3.50 3.50 2.20

 

Capital Structure                   Cash ($m)  Total Debt ($m)  Equity ($m) 
FY20 10.75 149.80 943.00

Institutional Broker Calls

Broker                                                                Recommendation Target Price                            Date                           
N/A  N/A N/A

Comment on this company

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial