Ingenia Communities Group reported an 18% year-over-year increase in EBIT to $193.4 million for fiscal 2026, driven by higher development activity and improved land lease economics. Underlying earnings per security rose 16% to 35.8 cents, while total revenue increased 8% to $555.3 million. The company maintained its 9.6 cents per security distribution, marking 15 consecutive years of dividend payments.
The lift in profitability reflected a $35,000 swing per lot in land lease development economics, shifting from a net cash loss in FY24 to a positive $15,000 return in FY26. Development settlements rose 10% to 573 homes, with an average sales price of $681,000 and a gross margin of 48%. Joint venture operations contributed $33.6 million to operating profit, up 69%, supported by 21% higher settlements and 56% gross margins.
Rental operations expanded, with lifestyle rental revenue up 11% to $103.1 million and a 48% margin maintained. The portfolio grew to 7,500 rent-generating homes after adding 410 income-producing sites, while occupancy remained at 100% in lifestyle communities. Holiday park revenue rose 11% to $159.3 million, with EBIT margins of 40%, supported by acquisitions at Kinka Beach and Conway Beach for $13.5 million combined.
Capital management metrics showed gearing at 31%, within the 25–35% target range, and total debt facilities expanded to $1.13 billion with $948.9 million drawn. The weighted average cost of debt declined to 5.18%, and 53% of drawn debt was hedged. Cash reserves totaled $174.6 million, including undrawn facilities.
Strategic initiatives included plans to divest $350–$500 million of lower-growth assets, with an initial tranche of $120–$125 million already in process. The proposed acquisition of Peet Limited would expand Ingenia’s land lease pipeline from 8,800 to approximately 35,000 lots, expected to be 11% EPS accretive in FY26 on a pro forma basis. Five-year targets aim for development to contribute 50–60% of EBIT by FY29, with incremental capital densification yields of 14%.
Forward guidance for FY27 indicated EBIT and underlying EPS growth of 0–10%, a deceleration from FY26. Management cited moderating residential market conditions, prolonged sales cycles, and cost pressures exceeding CPI inflation as key headwinds. Six new communities are expected to contribute settlements in FY27, alongside three sales launches and an in-house construction pilot commencing in Q2 FY27.
