The share price of Ingenia Communities Group (ASX: INA) fell by 3.75% today after providing an update about the effects of the bushfires on its FY20 guidance.
Ingenia said that none of its tourism parks or those owned by Ingenia’s managed funds have suffered substantial fire damage, however two resident owned homes were lost at Ingenia Lifestyle Lake Conjola.
Business across the tourism parks have also been impacted as tourists and residents were asked to leave the region. Ingenia doesn’t yet know when the parks will return to normal trading conditions because of the lack of operating services and potential further negative conditions. However, Ingenia expects to be able to assess the damage later this week as more access becomes available.
Currently, Ingenia is estimating that tourism revenue across Ingenia’s three South Coast tourism parks is likely to be negatively impacted by at least $2 million. However, Ingenia does have insurance for property loss and gross profits which is expected to mitigate Ingenia’s losses.
Based on the expectation that home sales at Ingenia Lifestyle Lake Conjola will be materially impacted, with 27 settlements forecast in the second half of FY20, Ingenia expects the result to be at the lower end of the guidance range. Earnings before interest and tax (EBIT) growth was expected to be between 15% to 20% and underlying earnings per share (EPS) growth is expected to be 5% to 10%.