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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

INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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Page 1: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

21 March 2019

Leaders Summit 2019

INGENIA COMMUNITIES GROUP

Presented by CEO & Managing Director, Simon Owen

Ingenia rental homes at Eight Mile Plains, QLD

Page 2: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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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

Page 3: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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.

Page 4: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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

Page 5: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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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

Page 6: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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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

Page 7: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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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

Page 8: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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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

Page 9: INGENIA COMMUNITIES GROUP Leaders Summit …...21 March 2019 Leaders Summit 2019 INGENIA COMMUNITIES GROUP Presented by CEO & Managing Director, Simon Owen Ingenia rental homes at

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.