Despite construction delays, Ingenia Communities said its revenue increased 32% on 12 months to $173.6 million as it released its HY23 financial results this morning.
It sold 125 homes in the past six months and has 350 contracts and deposits in place.
Its Lifestyle rental base continues to grow, with rental revenue up 51% to $30.3 million. It now makes up 56% of its portfolio.
Ingenia Rental is benefitting from low vacancy rates – especially in South East Queensland, where it has 1,200 rental homes across six communities. Across these communities, occupancy is approximately 99%.
“We are continuing to see rental growth across the Ingenia Lifestyle and Ingenia Gardens business supported by the dual macro tailwinds of housing affordability and an ageing population. Across these communities we have 5,800 sites generating recurring rental revenue, with cashflows further supported by Government payments and CPI linked rents,” said Simon Owen, Ingenia’s CEO.
Ingenia’s underlying profit was $34.8M, up 24% on the prior year. Statutory profit of $33.7M for the half year ending 31 December 2022, was down 16% on the prior corresponding period. Group revenue was up 32% to $173.6M, and EBIT was up 24% to $42 million as high occupancy and rate growth across the lifestyle, rental and holidays communities contributed.
Operating cash flow of $23.5 million was down 39% on 1H22, due to an increase in new home constructions to support 2H23 and FY24 settlements, said Ingenia.
“Pricing is holding up in our key markets and our homes remain an attractive proposition for downsizers seeking to release equity and experience an affordable lifestyle in a desirable location. We remain cognisant of the impact of a slowing residential market on our buyers’ ability to sell and the potential for an extension in the lead times for settlements,” Simon said.
“While we remain confident in demand holding up, ongoing construction program slippage and softening residential market conditions have led to a reduction in our forecast for settlements in FY23, reflecting the heightened uncertainty that these conditions create.”
The delays in construction led the company to downgrade its guidance, revising it to 0-10% EBIT growth and EPS of 19.1 cps to 21.5 cps.
