Ingenia Communities up 20% from growing base
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.
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