Ingenia Communities Group (INA) H2 2024 earnings summary

Executive summary

• FY 2024 results exceeded guidance, with revenue up 20% to $472.3 million, EBIT up 17% to $125.7 million, and underlying EPS up 14% to 23.3c, driven by strong operational improvements and a new executive team focused on organic growth, efficiency, and capital discipline.

• Statutory profit declined 78% to $14 million due to a $96.6–97 million goodwill impairment from the 2021 Seachange acquisition.

• 462 new home settlements were achieved, up 24% on FY23, with average sale price over $600,000 and a development pipeline exceeding 5,300 sites.

• High occupancy across residential communities and a 6% increase in holidays forward bookings year-over-year.

• The business is positioned for growth, supported by disciplined capital management, a streamlined executive team, and a strong development pipeline.

Financial highlights

• Revenue rose 20% year-over-year to $472.3 million, with strong contributions from lifestyle, rental, development, and holidays.

• Group EBIT increased 17% to $125.7 million, above guidance.

• Underlying profit up 14% to $94.8 million; underlying EPS at 23.3c; DPS increased 2.7% to 11.3c.

• Statutory profit fell to $14 million due to goodwill impairment.

• NTA per security up 4.9% to $3.69; LVR at 32.3%, within target range.

Outlook and guidance

• FY25 guidance targets underlying EPS of 24.4–25.6c and EBIT growth of 10–15%, with settlements in line with a three-year target of 1,600–2,000 lots from FY24–FY26.

• Five-year plan aims for development to represent 50–60% of EBIT, up from 35%.

• No balance sheet constraints anticipated for funding the development pipeline; multiple capital levers and $201.9 million in cash and undrawn debt available.

• Cost savings of $6 million annualized, with further efficiency gains expected at the project level.

• Guidance reflects macroeconomic uncertainty, regulatory and competitive changes, and timing of efficiency gains.