Aged just three years and eight months, listed seniors accommodation operator Ingenia has announced its Half Year results, with an $8.4M operating profit, up 40% over the same six months last year. Revenue was $52M an operating profit margin of 16% in a growth phase.
CEO Simon Owen created Ingenia out of the loss making ruins of the ING Real Estate Communities business, convincing existing investors and banks to follow his vision. Ingenia now has 64 communities nationally, including the original business 31 rental villages and 8 DMF retirement villages. The significant growth has come from a standing start just offer two years ago with the acquisition of 25 land lease communities.
The LLC and rental villages generate the $1M cash per week heavily supported by reliable Centrelink rental subsidies.
The company has just acquired its froist LLC greenfield site south of Sydney.
Owens development profit is the envy of the retirement village sector. Over the six months they sold 58 homes at an average gross profit of $83,000 each against a price of $265,000 30% margin excluding land costs but including installation. Construction is to order with virtually no fixed expenditure before delivery.
They forecast 120 home sales for the 12 months to June.
One interesting point made by Ingenia is that their tourist cabins in their parks can generate significantly more rental income than their permanent resident homes. A park located at Nambucca Heads (far North Coast NSW) sized 72sqm generates $31,500 annual rental income ($127 per night and 68% occupancy) compared to a 135sqm permanent home that generates $6,900 annual rental ($13 per week).
Owen says We have made a deliberate play to reinvest in and maximise returns form our tourism parks, as the opportunity is compelling.
