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21 March 2019
Leaders Summit 2019
INGENIA COMMUNITIES GROUP
Presented by CEO & Managing Director, Simon Owen
Ingenia rental homes at Eight Mile Plains, QLD
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792,000 ‘room nights’ p.a.
Cabins, caravan and camping
34 LIFESTYLE AND HOLIDAY COMMUNITIES 26 RENTAL VILLAGES
Ingenia has
Australian
communities60Portfolio value now
million$797Over 4,700 rental and
lifestyle residents
Over 7,700Income producing sites
3,984 Development sites on balance sheet
or under option
Stable rent base >$2 million/pw
Note: Excludes communities under option, remaining Settlers village and assets to be acquired following the Placement.
Overview of IngeniaIngenia has a market leading position in Australia
Ten communities under development
Affordable seniors housing represents a large and growing market
Ingenia pivoted into affordable seniors housing in 2012 –
commenced exit from DMF
• There are presently 285,500 seniors aged over 65
renting – represents 13% of the over 65 market1
• No new privately funded seniors rental villages have
been developed in Australia for past 10 years
• According to ASFA a couple requires $60,843 a year
to fund a comfortable retirement – aged pension is
only $31,9952
• Lifestyle communities provide significant ‘cash out’
for the 75% of seniors who own their own home1
3
1. Source: ABS, Cat. No. 41300, Housing Occupancy and Costs, Australia, 2015-2016.
2. ASFA Super Guru February 2019. Pension represents base rate, and excludes supplements.
Benchmarking construction costs
4
Australian manufactured homeUS manufactured home
• Build cost: US$320 sqm
• Sale price: US$80 – 90,000
• Build cost: A$1,500 sqm
• Sale price: A$300 – 320,000
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Lowering the cost of housingAustralian metrics – land lease communities
Opportunities
• Efficient design
• Standardised production
• Importing homes / bathrooms
• Flat land critical
• Make (lose) money when you
buy the land
• Increasing density
• Planning controls
• Land (per site):
$10 – 80k
• Civil and infrastructure,
taxes (per site):
$60 – 100k
• Home cost:
$150 – 200k
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Affordable rental accommodation
Over the last three years Ingenia has acquired
4 older caravan parks in key Brisbane growth
corridors and repurposed to provide long-
term all age rental accommodation
• 892 rental units and 137 land lease homes
• Collecting ~$230,000 in cash rent every week
• Development upside to add further 130 rental
units at attractive returns
• Internally funds Ingenia’s development
pipeline
• Longer term conversion to medium density
apartments
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Importing homes
• Labour and materials substantially cheaper in key offshore markets
• Prefab supply chain well established in the US, Europe and Asia
• Rental cabins being imported from China at approximately half the cost of Australian product
• Key builders in US have largely automated the process
› Homes can be constructed in 2-3 days
› Large operators (Clayton and Cavco) dominate the market
• Standardised design and committed volume critical to lowering home price costs
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• In November 2018 Ingenia announced a Strategic
Partnership with Sun, a leading owner, operator
and developer of lifestyle and holiday park
communities
• Sun is listed on the New York Stock Exchange, is
valued at US$10 billion and owns 371
communities, comprising over 128,000 sites
across the US and Ontario, Canada
• Ingenia is Sun’s first investment outside North
America
• Accelerates Ingenia’s ambition of being the
largest owner, operator and developer of lifestyle
and holiday communities in Australia and
advances first mover advantage in key growth
opportunities, including importing flat packed
homes, ‘all-age communities’ and resident finance
Partnership with Sun Communities accelerates opportunity
Sun Communities: All Age MH Community
Cider Mills Crossing, Fenton, Michigan
Disclaimer
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This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925)
and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia
Communities Fund (ARSN 107 459 576) and Ingenia Communities Management Trust (ARSN
122 928 410) (together Ingenia Communities Group, INA or the Group). Information contained
in this presentation is current as at 20 March 2019 unless otherwise stated.
This presentation is provided for information purposes only and has been prepared without
taking account of any particular reader’s financial situation, objectives or needs. Nothing
contained in this presentation constitutes investment, legal, tax or other advice. Accordingly,
readers should, before acting on any information in this presentation, consider its
appropriateness, having regard to their objectives, financial situation and needs, and seek the
assistance of their financial or other licensed professional adviser before making any
investment decision. This presentation does not constitute an offer, invitation, solicitation or
recommendation with respect to the subscription for, purchase or sale of any security, nor does
it form the basis of any contract or commitment.
Except as required by law, no representation or warranty, express or implied, is made as to the
fairness, accuracy or completeness of the information, opinions and conclusions, or as to the
reasonableness of any assumption, contained in this presentation. By reading this presentation
and to the extent permitted by law, the reader releases each entity in the Group and its
affiliates, and any of their respective directors, officers, employees, representatives or advisers
from any liability (including, without limitation, in respect of direct, indirect or consequential loss
or damage or loss or damage arising by negligence) arising in relation to any reader relying on
anything contained in or omitted from this presentation.
The forward looking statements included in this presentation involve subjective judgment and
analysis and are subject to significant uncertainties, risks and contingencies, many of which are
outside the control of, and are unknown to, the Group. In particular, they speak only as of the
date of these materials, they assume the success of the Group’s business strategies, and they
are subject to significant regulatory, business, competitive and economic uncertainties and
risks. Actual future events may vary materially from forward looking statements and the
assumptions on which those statements are based. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward looking statements.
The Group, or persons associated with it, may have an interest in the securities mentioned in
this presentation, and may earn fees as a result of transactions described in this presentation or
transactions in securities in INA.
This document is not an offer to sell or a solicitation of an offer to subscribe or purchase or a
recommendation of any securities, including in the United States or any other jurisdiction in
which such an offer would be illegal.