With $87.9M Underlying Profit, Ingenia is “significantly” larger than when COVID-19 hit

Ingenia is riding the crest of the ageing population wave despite the obstacles of COVID-19, floods, supply shortages, and price hikes being thrown in its way. CEO Simon Owen (pictured) announced an $87.9 million Underlying Profit for the financial year to 30 June, an increase of 14% on last year.

“Ingenia is a significantly larger business today than when we entered into COVID back in February 2020,” Simon told the conference call. “The value of investment properties we own or manage is up over 90% to $2.1 billion. The number of communities we own or manage is up 46% to 110 communities and the size of our development pipeline, a great indicator for future growth and profitability, has increased by upwards of 55%. “Ingenia is one of the fastest-growing REITs in Australia, and I would comfortably predict that we are only several years into a 30-year super cycle being driven by the ageing of the population and the desire for high-quality community living.”

Ingenia’s financial performance is impressive:

• Revenue of $338.1 million, up 14% on the prior corresponding period (pcp);
• Statutory profit of $100.6 million, up 38% pcp;
• Earnings before interest and taxes (EBIT) of $101.7 million, up 8% pcp;
• Operating cash flow of $114.9 million, down 17% pcp;
• Record 409 new home settlements;
• Strong balance sheet maintained with $325 million in cash and undrawn debt; and
• Met FY22 guidance with EBIT growth of 8%.

“Over the past 12 months, we have increased our total assets under ownership or management by some 61%,” Simon said. “And Lifestyle Communities now represent over 55% of group assets and our development pipeline comprises some 6,580 future development sites, which will underpin many years of future growth. Over 90% of our development pipeline is located in Queensland or coastal New South Wales, which is increasingly where many downsizing Australians wish to live, driven by quality of life, value, and the ability to release equity from the sale of their family home.”