Ingenia Communities Group announced that their FY22 results are anticipated to be at the lower end of the Group’s guidance range as construction constraints slow delivery.
In April Ingenia announced they were forecasting FY22 settlements to be in the range of 400 to 425 (down from 475) and have reduced earnings growth to between 5% and 10% on FY21 with underlying EPS anticipated to be 1-2 cents below FY21.
Today, Ingenia confirmed that a total of 409 homes were settled across Ingenia (353) and Joint Venture (56) projects, with a further 17 homes settled in the funds business.
Ingenia had previously indicated that supply chain challenges and shortages of skilled labour were causing delays in new home completion have been exacerbated by the unprecedented rainfall events.
Revenues were also down marginally with the average home sale price at $406,000 vs $415,000 in FY21. Higher prices are being achieved in the Joint Venture projects. While above ground home development margins remain subject to finalisation, they are expected to be generally consistent with the first half.
Ingenia Communities Group CEO, Simon Owen, said that the business delivered a strong outcome, despite industry wide supply chain and labour challenges, that reflected demand for the Group’s developments across the east coast of Australia.
“We have an underlying base of consistent and diverse earnings across the operating business which has increased in scale and contribution over the past 12 months,” Mr Owen said.
The Holidays business has rebounded strongly following forced closures in the first half, and the Group’s residential communities continue to deliver high occupancy and growing rents.
The Group closed the year with 449 contracts and deposits in place, which will support FY23 settlements and the longer term target of 1,800 – 2,000 settlements for the three years to end FY24.
The FY22 result, which remains subject to finalisation of the Group’s accounts and audit process, is expected to be at the lower end of the Group’s guidance range (EBIT growth of 5-10% and underlying earnings per security of 1-2 cents below FY21).
Further information on FY22 financial and operating performance will be provided in the Group’s financial results announcement on 24 August 2022.
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