Ingenia Communities Group · ASX:INA
Ingenia Communities — Investor Presentation (June 2016)
29 slides from Ingenia Communities's investor presentation, Jun 14, 2016
Slide 1: Acquisitions and Capital Raising
Acquisitions and Capital Raising 14 June 2016 OCEAN LAKE CARAVAN PARK, SOUTH COAST, NSW
Slide 2: Executive Summary
EXECUTIVE SUMMARY Ingenia has actively built a significant portfolio of lifestyle and tourist parks concentrated in metropolitan and coastal locations > Owns and operates 26 Lifestyle Parks – over 3,700 permanent, annual and short-term sites, with 1,600 development sites > Eleven communities now in
Slide 3: Transaction Highlights
TRANSACTION HIGHLIGHTS Earnings accretion and increased exposure to Sydney Acquisition of four quality Lifestyle Parks with attractive yields Significantly increases income producing sites – adds 760 sites, giving Ingenia 4,475 permanent, annual and short term sites across 30 lifestyle parks A
Slide 4: Overview of the Capital Raising
OVERVIEW OF THE CAPITAL RAISING ˃ Fully underwritten Institutional Placement to raise $60 million ˃ Non-underwritten Security Purchase Plan offered to all eligible Securityholders in Offer Australian and New Zealand ˃ The Placement and Security Purchase Plan will be undertaken at an Offer Price of $
Slide 5: Impact of Acquisitions
IMPACT OF ACQUISITIONS ˃ Increases scale in Lifestyle Parks portfolio – grows Portfolio to 30 communities and increases numbers of sites by 20% ˃ Continues growth in key metro and coastal target markets ˃ Enhances development pipeline Secures scarce site in tightly held Sydney market that will con
Slide 6: Acquisitions
ACQUISITIONS Ocean Lake Caravan Park, Wallaga Lake, NSW p6
Slide 7: Acquisition of Park, Sydney, NSW
USE OF FUNDS Acquisition of Confidential Park, Sydney, NSW > Conditional contracts exchanged for the purchase of a 5.1 hectare established mixed-use park located in Sydney with existing strong operating cash flows > Adds to Ingenia’s existing Sydney cluster – Nepean, Sydney Hills, Rouse Hill and Sto
Slide 8: Expanding in NSW Sydney Cluster
EXPANDING IN NSW SYDNEY CLUSTER Market characteristics Market characteristics* Sydney has a large and growing population – currently 4.7 million people Sydney median house price c. $1m Builds presence in the attractive North West Growth Corridor Existing knowledge of market through strongly
Slide 9: Sydney MHE Market
SYDNEY MHE MARKET Sydney Market Characteristics 1.13 million people over 55 living in Greater Sydney (24% of the population) There are 349 DMF style villages operating in Sydney But only 13 MHE or mixed-use parks operate in Sydney (Ingenia own four plus a confidential park under contract) On
Slide 10: Acquisition of Ocean Lake Caravan Park, NSW South Coast
USE OF FUNDS Acquisition of Ocean Lake Caravan Park, NSW South Coast > Conditional contract exchanged for the purchase of Ocean Lake Caravan Park, an 8.4 hectare lifestyle and tourist park located at Wallaga Lake, NSW > Situated within the Group’s South Coast Cluster, which includes BIG4 Lake Conjol
Slide 11: Expanding in NSW South Coast Cluster
EXPANDING IN NSW SOUTH COAST CLUSTER Chatsbury Gardens BIG4 Lake Conjola BIG4 Broulee Beach Ocean Lake Caravan Park p11
Slide 12: Acquisition of Park, NSW Coast
USE OF FUNDS Acquisition of Confidential Park, NSW Coast Acquisition metrics > Negotiations well progressed for acquisition of mixed-use freehold park located on the NSW Coast Purchase price $7.5m > Situated within an established cluster and consisting of Total sites (incl. DA approved sites) ~200 e
Slide 13: Acquisition of Park – Fraser Coast
USE OF FUNDS Acquisition of Confidential Park – Fraser Coast > Conditional contract exchanged for acquisition of mixed-use park in Hervey Bay on the Queensland Fraser coast > Establishes a new cluster in an area renowned for its beaches, whale watching and rainforest habitat. It is serviced by a lar
Slide 14: Establishing a Presence on QLD Fraser Coast
ESTABLISHING A PRESENCE ON QLD FRASER COAST Market characteristics Market characteristics1 Jefferis Gardens Tourism and Events Queensland are poised for growth in coming years, with a drive to almost double direct overnight tourism expenditure in the Fraser Coast Confidential Park The Fraser Coa
Slide 15: Business Update
BUSINESS UPDATE White Albatross Holiday Park, Nambucca Heads, NSW p15
Slide 16: Rapid Growth in Lifestyle Parks
RAPID GROWTH IN LIFESTYLE PARKS > Ingenia has rapidly built a significant lifestyle parks business with a focus on key metropolitan and coastal locations > Announced acquisitions and increased development capacity will drive ongoing growth 30 LIFESTYLE PARKS (POST ANNOUNCED ACQUISITIONS) NT 4,475 IN
Slide 17: Development and Sales Update
DEVELOPMENT AND SALES UPDATE Development pipeline > Continuing momentum in sales as key developments (No. sites) become established > Development now underway across eleven Regional, 15% communities > 130 net sales; 98 settlements at 31 May 2016 > Targeting 150+ settlements in FY17 Coastal, 26% Metr
Slide 18: DMF Update
DMF UPDATE Ingenia continues its strategy to sell down DMF portfolio ˃ Negotiations continue with the global investment and asset management group in relation to the DMF portfolio ˃ Parties negotiating for the sale of the majority of the portfolio ˃ Consideration currently at a modest discount to bo
Slide 19: Distributions Growing
DISTRIBUTIONS GROWING > Final distribution for FY16 of 4.9 cps, full year distribution of 9.1 cps > Represents annual distribution growth of 12% > Distribution growth balanced with reinvestment into accretive acquisitions and development > Remain committed to continuing distribution growth Distribut
Slide 20: Capital Raising
CAPITAL RAISING BIG4 Broulee Beach, Broulee, NSW p20
Slide 21: Details of the Offer
DETAILS OF THE OFFER > Fully underwritten Institutional Placement of approximately 21.4 million securities to raise $60 million Capital Raising > Non-underwritten Security Purchase Plan (SPP) of up to $15,000 per Securityholder to be offered to eligible Securityholders in Australia and New Zealand U
Slide 22: Key Financial Metrics
KEY FINANCIAL METRICS Capacity remains for further growth Pro Forma Capital Identified Fully (Dec 15)1 Raising Acquisitions deployed (Institutional (Four assets) Placement) Net investment property ($ million) 2 489.8 - 63.1 552.9 Total assets ($ million) 743.8 - 63.1 806.9 Net debt ($ million) 3 175
Slide 23: Indicative Timetable
INDICATIVE TIMETABLE Timetable Date Institutional Placement Trading halt and announcement of Institutional Placement and SPP 14 June 2016 Announcement of completion of Institutional Placement and trading halt lifted 15 June 2016 Settlement of New Securities under the Institutional Placement 20 June
Slide 24: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia Communities Fund (ARSN 107 459 576) and Ingenia Communities Management Trust (ARSN 122
Slide 25: Appendices
APPENDICES New homes, Chain Valley Bay, NSW p25
Slide 26: Foreign jurisdictions
APPENDIX 1 Foreign jurisdictions This document does not constitute an offer of new Securities of the Group in any jurisdiction in which it would be unlawful. New Securities may not be offered or sold in any country outside Australia and New Zealand except to the extent permitted below. Hong Kong WAR
Slide 27: Risk factors
APPENDIX 2 Risk factors This section discusses some of the key risks associated with an investment in Ingenia. A number of risks and uncertainties may adversely affect the operating and financial performance or position of Ingenia and in turn affect the value of Ingenia securities. These include spe
Slide 28: Risk factors
APPENDIX 2 Risk factors Specific Risks Business strategy Ingenia’s business strategy is focused on growing the Group’s cash yielding rental portfolio through acquisition, risk development and increasing occupancy. Ingenia’s future growth is dependent on the successful execution of this strategy. Any
Slide 29: Risk factors
APPENDIX 2 Risk factors Specific Risks Homeowner The DMF model requires the new homeowners to purchase existing homes in Ingenia’s portfolio on the exit of existing turnover homeowners before Ingenia can realise its DMF receipts. This causes the cashflows of the DMF business to be lumpy and any redu
Ingenia Communities Group — Investor Presentation (June 2016) on 6ix