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Ingenia Communities (ASX:INA) - CEO & Managing Director, Simon Owen
CEO & Managing Director, Simon Owen
Source: Finance News Network
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  • Ingenia (INA) has acquired a portfolio of five coastal holiday parks and lifestyle development sites as it reports a record residential sales month in February
  • The $40 million purchase announcement brings the company’s total acquisitions for the year to date to more than $220 million
  • February was a record month for its sales in the residential market, according to the company, with 223 homes settled to March 31, 2021, and an additional 324 deposits and contracts in place
  • The new portfolio of five holiday parks adds 844 cabins, sites and annuals, increasing their holiday park portfolio by over 20 per cent
  • Furthermore, Ingenia has exchanged contracts for the sale of its last remaining deferred management fee village and a land parcel in Queensland
  • Ingenia shares are up 1.89 per cent, trading a $5.38 apiece

Ingenia (INA) has acquired a portfolio of five coastal holiday parks and lifestyle development sites as it reports a record residential sales month in February.

The $40 million purchase announcement brings the company’s total acquisitions for the year to date to more than $220 million.

Ingenia has a diversified real estate portfolio worth $1.3 billion, with investments in the lifestyle, tourism and retirement living sectors.

February was a record month for its sales in the residential market, according to the company, with 223 homes settled to March 31, 2021, and an additional 324 deposits and contracts in place.

Ingenia Communities Group CEO Simon Owen said that it had been a busy period for the group’s acquisition team as they sought to deploy equity from the May 2020 raising into acquisitions aligned with its strategy to materially grow the lifestyle and holidays business.

“Despite a marked increase in competition for quality communities and development sites, we continue to benefit from a pipeline and relationships that have taken many years to establish,” he said.

“The current buoyant market for domestic travel and greater awareness of the stable cash flows generated from our lifestyle communities have underlined the attractiveness of the sectors we operate in and we remain positive about the outlook for the group as we continue to grow,” he added.

The new portfolio of five holiday parks adds 844 cabins, sites and annuals, increasing the company’s holiday park portfolio by over 20 per cent.

Ingenia’s holidays business has rebounded strongly, according to the company’s investor briefing presentation, with year-to-date revenue to end March up around 20 per cent on the prior corresponding period

Occupancy rate was at 60 per cent, up 5 per cent on the previous year, with the company expecting revenue growth and margin expansion for FY21 supported by
strong holdings through to June and an increased portfolio scale.

Owen said he was pleased to further extend the group’s holidays business through a rare portfolio acquisition.

“These assets provide access to attractive locations with opportunities for our team to add value through investment and active management,” he said.

“The outlook for domestic travel remains very attractive and our holiday parks are benefitting with increased occupancy and rates. The portfolio is anticipated to provide an ingoing yield of over 10 per cent and will benefit from revenue management and asset strategies as well as the strong demand for domestic travel,” he concluded.

Furthermore, Ingenia has exchanged contracts for the sale of its last remaining deferred management fee village and a land parcel in Queensland.

Ingenia shares are up 1.89 per cent, trading a $5.38 apiece at 1:42 pm AEST.

INA by the numbers
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