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Ingenia Communities share price lifts on record FY20 earnings

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The Ingenia Communities Group (ASX: INA) share price is currently trading 1.07% higher following the release of its FY20 results. 

Ingenia is a leading Australian property group that owns, operates and develops a growing portfolio of lifestyle and holiday communities across key urban and coastal markets.

FY20 results

Despite challenging conditions, revenue of $244.2 million was up 7% on the prior corresponding period (pcp). The group also reported record earnings before interest, tax and depreciation and amortisation (EBITDA) of $71.9 million, up 17% on pcp. 

Ingenia’s underlying earnings per share of 22.1 cents was up 5%. This exceeded analyst consensus estimates of 21.1 cents. The group attributes this rise to strong lifestyle and development performance, impacted by additional securities issued as a result of equity raised during the year.

Operating cash flow of $67.2 million was up 13%. 

Ingenia Communities has a strong balance sheet with capacity to fund growth. A successful $178 million equity raising in May supports the company’s growth plans. Additionally, it closed the year with a loan to value ratio (LVR) of 8.4% and gearing below 6%.

Net assets of the group increased 50% compared to the prior corresponding period with net asset value per security growing 9% to $2.90. 

The group benefitted from having access to the government’s Jobkeeper program. CEO Simon Own said:

Despite COVID-19 operating restrictions impacting the Lifestyle Development and Holidays segments, an increase in above ground margin per new home settlement, cost management and access to Jobkeeper mitigated the impact of mandated closures of the Group’s holiday parks and lower settlements on the result.

Ingenia Communities advised there is solid ongoing demand for communities as illustrated by average rents across its lifestyle communities increasing 3.6% on a like-for-like basis and Ingenia Gardens occupancy reaching a record high of 94.4%.

Outlook

Due to the coronavirus pandemic, no FY21 guidance was provided. 

CEO Simon Owen said:

While the business is well placed, we remain cautious about the outlook for the Group, given the unprecedented conditions and evolving response to the COVID-19 pandemic. Our focus remains the health and safety of our residents, guests and team and ensuring the business is well positioned for the future.

About the Ingenia Communities share price 

After the release of its results, the Ingenia Communities share price is currently trading at $4.72. In the past year, the Ingenia Communities share price has risen by 35.78%.

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Motley Fool contributor Matthew Donald 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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