ASX 200 real estate sock Ingenia Communities Group (ASX: INA) is surging into the green on Tuesday. This comes after the company posted its FY24 results.
At the time of writing, shares in the real estate development and management company are trading more than 7% higher at $5.45 apiece.
Let's see what the company posted.
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ASX 200 real estate stock pops on FY24 results
The key takeouts from the year include the following:
- Revenue came to $472.3 million, up 20% on FY23
- Earnings before interest and tax (EBIT) of $125.7 million, representing a 17% increase from FY23
- Earnings per share (EPS) of 23.3 cents, reflecting a growth of 14%
- Statutory Profit came to $14 million, down 78% from the previous year.
- Development activity consisted of 462 new homes settled in FY24, with an extensive pipeline of 5,311 development sites
- Distribution of 6.1 cents per stapled security
What else happened in FY24?
The ASX 200 real estate stock made significant progress across its residential communities, development projects, and tourism business. Management said it continues to "manage inflation and interest rate risk", linking rent growth in its land-leased communities to the consumer price index (CPI).
The company increased home settlements by 24%, with an average sales price now exceeding $600,000.
The ASX 200 real estate stock also completed 11 asset sales, whilst it obtained an additional $125 million in cash via a debt facility set to mature in five years' time.
It closed the year with $2.5 billion in owned or managed properties, with assets distributed across 102 communities.
Management also declared a final distribution of 6.1 cents per security, bringing the full-year distribution to 11.3 cents per security, up 3% year over year.
Meanwhile, its development pipeline at the end of FY24 consisted of around 16,000 income-generating homes and more than 5,300 land lease homes.
What did management say?
Ingenia CEO John Carfi highlighted the company's resilience and growth during the year:
While we were pleased to increase settlements, development returns for some projects remain below target. I have spent considerable time in this area of the business, and we are progressing a range of initiatives that will ensure we move towards targeted returns over the medium term, building development into the growth engine of this business. Our focus is to optimise returns on current and future projects with a critical lens on execution, efficiency and accountability.
I'm confident our focus on operational efficiency and productivity will improve security holder returns as we build further scale and simplify the business through a clear focus, financial discipline, greater efficiency and excellence in execution.
What's next?
The ASX 200 real estate stock aims to build on its momentum in FY25 by expanding its land lease portfolio and improving development outcomes.
The ASX 200 real estate stock is aiming for earnings of 24.4 cents per share in FY25 and growth in EBIT of 10–15% this year. Carfi added:
The business is well placed to deliver growing returns and capitalise on the value inherent in our
development pipeline and asset base, with good momentum demonstrated into FY25. We have a $2.5 billion portfolio (owned or managed), a pipeline of over 5,300 new home sites and the capacity to increase production to meet customer demand.We are targeting further growth in FY25 as we maintain our focus on the seniors housing and domestic travel sectors, which have proven strong tailwinds. Our recurring revenue streams provide a solid base and are growing, supporting returns as we focus on improving development outcomes.
ASX 200 real estate stock snapshot
This ASX 200 real estate stock is being heavily bought today after the company posted its FY24 results.
In the last 12 months, it has gained 35%, providing a considerable advantage over the broader market.
