Eureka, Ingenia and Lifestyle Communities stocks soar on ASX

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Land lease operators Ingenia and Lifestyle Communities, and rental village operator Eureka, are outperforming the top five real estate companies on the ASX, reflecting the confidence in their markets.

“The security price grew from $4.33 on 1 July 2020 to $6.51 at the end of October,” Ingenia Chairman Jim Hazel told its annual meeting. “This growth contributed to outperformance against relevant indices over the one, two, three, five and 10-years.”

Earlier this month, Ingenia announced it had agreed to spend $552 million for the acquisition of 20 communities and development sites. In September, Lifestyle Communities was admitted to the S&P/ASX 200 Index with a valuation of $2.27 billion and Eureka announced it had achieved 98% bed occupancy and 38.3% EDITDA over the past 12 months.

Lifestyle Communities shares have risen 66% this financial year, Eureka Group 51% and Ingenia 25%. Over the past five years, Ingenia’s stock has risen over 138%.

Eureka, which has 32 home sites and eight under management, last week announced it had entered into conditional contracts to acquire the management and letting tights for six villages in southeast Queensland.

Ingenia CEO Simon Owen said earlier this month it will start to construct its largest project in NSW, 427 land lease homes in the southern end of the former Morisset Golf Club, by April next year, with completion expected early 2023.

Lifestyle Communities has just announced a new lifestyle village in Mickleham, in Melbourne’s north (see later story). CEO James Kelly said in August he wants to buy three sites a year in Victoria.