Bush Fire’s Impact Ingenia’s Business12 January 2020
Ingenia Communities Group provided an update on the Group’s communities located on the NSW South Coast, and the impact of recent bush fire activity.
None of the Group’s tourism parks or those owned by Ingenia’s managed funds have suffered substantial fire damage, however two resident owned homes were lost at Ingenia Lifestyle Lake Conjola. No serious health issues were reported to Ingenia and property losses were mitigated.
Business across the tourism parks has been impacted as tourists and residents were asked to leave the region.
Given the lack of services (including telecommunications, power and road access) and uncertainty over future conditions, it is not yet known when the tourism parks will return to normal trading conditions.
Ingenia is continuing to work with emergency services and to monitor conditions at each of the parks. Teams are expected to be on site to undertake a more detailed assessment of damage this week, as access is more readily available.
At this stage tourism revenue across Ingenia’s three South Coast tourism parks is anticipated to be negatively impacted by at least $2 million. Ingenia has insurance for property loss and loss of gross profits. Subject to assessment, insurance is expected to mitigate the Group’s losses.
Based on the expectation that home sales at Ingenia Lifestyle Lake Conjola will be materially impacted (27 settlements forecast for 2H20), Ingenia expects the FY20 result to be at the lower end of the Group’s guidance range (EBIT growth of 15-20% and underlying EPS growth of 5-10%). A further update will be provided in February.