What you need to know about this ASX 300 quiet achiever

The Ingenia Communities Group (ASX: INA) share price has climbed 31% higher so far in 2019 to close last Friday's trade at $3.92. Is it a buy?

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The Ingenia Communities Group (ASX: INA) share price has climbed 31% higher so far in 2019 to close last Friday's trade at $3.92.

Ingenia is a real estate group that focuses on three core areas: selling and renting community accommodation, services for seniors and family friendly holiday parks.

Ingenia may have gone a little under the radar in this reporting season compared to some of the big names, but what you need to know is that this company has been kicking some significant goals.

Its full-year results were delivered on 20 August and current investors would have been pleased with Ingenia's overall performance. Here's why:

  • Guidance was exceeded for the third consecutive year
  • Record EBIT of $61.5 million – up 26% on FY18
  • Underlying EPS of 21.0 cents – up 19% on FY18
  • Revenue of $228.7 million – up 21% on FY18
  • Operating cash flow of $59.3 million – up 26% on FY18

Despite a lacklustre real estate market, Ingenia is doing a terrific job of swimming against the tide. There's every reason to be optimistic about continued growth with 336 new homesites secured and 10 projects under development with two due for completion in FY20.

Potential investors should also note Ingenia's residential rental occupancy rate is at 91%, which indicates a certain level of desirability and demand for these properties. That number is potentially set to grow further through acquisitions and new developments that the company has in the pipeline.

Aside from the residential communities, Ingenia's holiday parks have bucked the trend in a softening tourism market. Holiday rental income was up 9%, driven by the acquisition of two key properties and additional holiday cabins at existing sites.

The Ingenia share price closed out last week at $3.92, and if you need any further reason to delve deeper, that's a 30.6% increase in share value over the past year. This is a quiet achiever to put on your watchlist and if you decide to jump in and invest, I'd hang on to them for the long term.

Foolish takeaway

Fellow writer Tristan Harrison was the last Fool to recommend Ingenia back in August 2018. Had we all listened to him, we could have invested when the share price was at $3.10.

At the time, he was rightly concerned that rising interest rates may have a negative impact on Ingenia's performance going forward. However, as the year has unfolded, we've seen interest rates go down, with some analysts believing that they may yet go even lower. Potentially, this may assist Ingenia in keeping those double-digit growth numbers rolling in.

Motley Fool contributor JWoodward has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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