Ingenia Communities Group: ASX Spotlight Series March 2016, New York

Interviews

Ingenia Communities Group (ASX:INA) CEO and Managing Director, Simon Owen discusses the company’s focus and outlook at the ASX Spotlight Series 2016, New York
 
 
Ingenia Communities Group (ASX:INA) is focused on providing rent-based affordable housing to Australia’s rapidly aging population. We see our business model really meets the convergence of two of the biggest challenges facing Australia, at the moment. And that is a rapidly aging population and a housing affordability crisis.
 
Probably the key competitive forces, our biggest competitor is encouraging Australian seniors to sell their family home and move into one of our communities. So no less than five per cent of the Australian population lives in a seniors’ living community. So that’s probably our biggest challenge. There are a few other competitors out there, but the market opportunity is so large. And probably to a smaller extent, trying to compete with residential home developers, who can offer and afford to pay more for the land.
 
So we’re really working on a roll-up of the caravan park and manufactured housing sector in Australia. We’re principally focusing in Sydney, Melbourne, Brisbane and the New South Wales coast. And so we see the opportunity over the next one to two years, will be to put together a portfolio of upwards of 50 of these rent-based affordable housing communities, for Australia’s growing aging population.
 
We’ve had a very strong performance financially over the past 12 months. We reported our results about two weeks ago. Our revenue was up over 80 per cent, profit was up around 41 per cent, cash flow was up about 150 per cent. And we’re able to; we’re on track to meet our sales target this year of around 120 sales. So the business is performing very well. Certainly there’s a lot more to do, I think there’s a couple of our assets that aren’t performing to the level that we’d like. But overall, very happy with the way the business is tracking.
 
I’d like to see some of the recent acquisitions we made fully integrated. We’re about to launch three new projects into the market in New South Wales, so I’m very keen to see how they perform. And I think with the strong acquisition pipeline we have in front of us, I think the opportunity to add another 10 communities into the portfolio, would be a great outcome.
 
 
Ends

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?