Why Has Ingenia Group’s Share Price Increased by 17.87%?

Ingenia Group Unit’s [ASX:INA] share price has increased by nearly 18% over the past week.

The senior living group’s shares are currently trading at $3.10, their highest share value since mid-2014.

Ingenia Communities Group owns, manages and develops 66 quality and affordable, seniors living communities across Australia. Their portfolio has three segments including rental, deferred management fee and manufactured home estates (MHE).

Why has Ingenia Group’s share price increased?

There are a few different factors driving Ingenia’s share price higher this past week.

Firstly, the sector of manufactured home estates has gained some attention following the recent bidding war over Gateway Lifestyle Group [ASX:GTY], the largest operator of land lease communities in Australia.

In addition, yesterday morning Ingenia announced that the group is expecting to exceed their 2018 guidance. They are also well placed to continue their track record growth with settlements continuing to accelerate.

The group has forecast 280–285 new home settlements for the 2018 financial year, which is a 33% increase to the year prior. They will close the year with 160 deposits and contracts in place, a 19% increase to the year before.

Earnings Before Interest and Tax are anticipated to be over $48.5 million, above previous guidance of $45–47 million.

CEO of Ingenia Communities, Simon Owen, said yesterday’s announcement demonstrates the momentum within the business.

We are pleased to announce that we expect to comfortably exceed our guidance and that the Group will close the year with some 160 contracts and deposits in place, providing 46% coverage of our forecast 350+ settlements target for FY19.’

What can we expect to see from Ingenia Group?

Moving forward, Ingenia is on track to deliver 350-plus settlements in FY19, an increase of 25% in comparison to FY18.

The group has been successful in refinancing the Group’s loan facilities, providing $50 million of increased debt capacity, with the new terms including a slight reduction in margin.

In addition, Ingenia is due to settle the sale of their Rouse Hill community in FY19, which is anticipated to realise net proceeds of approximately $22 million.

Things are sounding extremely positive for the manufactured home developer, they might just be one to keep an eye on. Ingenia will release its full year results for FY18 on 21 August 2018.


Dannielle Rawlings,
For Money Morning

PS: You’ll find over 2,000 stocks listed on the ASX and on any given day a bunch will rise, just like Ingenia Group. It’s near impossible to monitor these on your own. Our analyst Vern Gowdie has picked out four Aussie stocks he believes could be top performers in 2018. Download your free report ‘The Four Best ASX Stocks’ today.


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Fat Tail Investment Research, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.

Money Morning Australia