Ingenia Communities Group reported an 18% increase in group EBIT to AUD 193 million for the fiscal year ended June 30, 2026, exceeding the top end of its guidance range. Underlying earnings per security rose 16% to AUD 0.358, while statutory profit climbed 45% year-on-year to AUD 145.8 million.
The lifestyle development segment delivered EBIT of AUD 130.5 million, up 27% from the prior year, supported by a 48% gross margin and a turnaround in lot economics. Completed home settlements increased 10% to 177, with only 46 unsold units remaining in inventory. The lifestyle rental division reported an 8% rise in EBIT to AUD 49.9 million, while the holiday parks segment posted a 9% EBIT increase to AUD 63 million, driven by a 10-12% rise in like-for-like tourism revenue.
Net tangible assets per security increased 9% due to portfolio revaluations, and return on equity stood at 9% over the last 12 months. The company’s gearing ratio was 31% at June 30, with funding headroom of approximately AUD 175 million. A targeted divestment program of AUD 350-500 million in lower-growth assets is underway, with an initial AUD 120-125 million tranche in progress.
Shares in Ingenia fell 4.69% to trade between AUD 4.01 and AUD 4.06, paring earlier gains despite the strong financial performance. The stock remains above its 52-week low of AUD 3.64 and below its peak of AUD 6.24, with a market capitalization of AUD 1.19 billion. The company trades at a P/E ratio of 12.2 and offers a dividend yield of 2.16%, having maintained payouts for 15 consecutive years.
Guidance for FY27 indicated EBIT and underlying EPS growth of 0-10%, reflecting a moderation from FY26’s performance. Management outlined plans for six new community settlements, three sales launches in the first half of FY27, and the launch of an in-house construction pilot in Q2 FY27. Land lease communities are expected to deliver 10-15% compound annual growth over time.
Ingenia also confirmed details of its proposed acquisition of Peet via a scheme of arrangement, combining a cash and scrip offer. The deal would expand Ingenia’s land lease pipeline to approximately 35,000 lots, with Peet’s pipeline including 5,000-7,000 lots suitable for conversion to land lease. The transaction is expected to be 11% EPS accretive in FY26 on a pro forma basis and deliver low double-digit EPS accretion over the medium term. Pro forma combined assets would total AUD 4 billion, with net debt of AUD 1.2 billion and gearing of 29.5%. Transaction costs, including stamp duty, are estimated at AUD 92 million, with a projected five-year payback period and no goodwill recognized upon completion.
