Ingenia Communities up 20% from growing base

21 February 2019

Ingenia Communities announced underlying profit of $17.5 million for the half year ended 31 December 2018, an increase of 20% over the previous corresponding period due to a growing rental base and new home settlements. Highlights Revenue up 21% on 1H18, to $93.4 million EBIT of $22.9 million, up 19% on 1H18 Underlying profit of $17.5 million, up 20% on 1H18 Underlying earnings per security (EPS) up 14% on 1H18 (8.1c 1H19 vs 7.1c 1H18) On track to deliver FY19 earnings guidance and target of 350+ settlements JV with Sun Communities tracking ahead of plan Operating cash flow increased 50% on 1H18, to $17.0 million, driven by increased settlements and rental growth, offset by investment in display homes and inventory. Revenue increased by 21% to $93.4 million and EBIT increased by 19% (to $22.9 million) over the prior corresponding period, driven by growing rents and accelerated settlements. Revenue is expected to further increase as a result of: acquisitions of Rivershore Resort and Aspley Acres (settled in November 2018 and February 2019 respectively); increased new home settlements; and the addition of further infill cabins across the Group’s rental and tourism assets. Ingenia has exchanged contracts for the acquisition of a holiday park in the Byron Bay region which is anticipated to settle in early Q4 and contribute to rental revenue in FY19. Statutory profit declined 24%, to $13.0 million, largely due to fair value movements on investment properties, including write down on non-core assets, expensing of acquisition costs and realisation of development profits. Ingenia has declared a half year distribution of 5.4 cents per stapled security, an increase of 6% on the previous corresponding period, with payment to be made on 27 March 2019. INA Trading Chart vs ASX200 AREITs Blue – INA Purple – ASX200 AREITs #Ingenia