Ingenia Communities Group reported an 18% rise in group EBIT to AUD 193 million for the 2026 financial year, exceeding the top end of guidance, though shares fell 4.69% to AUD 4.06 on Tuesday as the company flagged a cautious outlook for the current fiscal year.
Underlying earnings per security increased 16% to AUD 0.358, while statutory profit climbed 45% year-on-year. Underlying net profit after tax reached AUD 145.8 million, with net tangible assets up 9% driven by portfolio revaluations. Return on equity stood at 9% over the last twelve months, while gearing remained at 31% at June 30, within the target range and pro forma combined group gearing estimated at 29.5%.
The lifestyle development segment delivered a 10% rise in settlements, with development gross margins at 48% and EBIT margins at 32%. Lot economics improved from a net loss of AUD 20,000 per lot in FY24 to a positive AUD 15,000 cash return in FY26. Development joint venture equity-accounted profits rose 69% to AUD 33.6 million, supported by 177 settlements. The Freshwater project generated a AUD 4.6 million performance fee, while land at Nambour was sold in June for AUD 15.2 million.
Lifestyle rental EBIT increased 8% to AUD 49.9 million, with average rents in all-age rentals rising 7.3%. Holiday park EBIT grew 9% to AUD 63 million, with total tourism income up 11% and like-for-like rental income rising 12%. The segment added 33 new cabins and completed acquisitions of Kinka Beach and Conway Beach.
Ingenia identified AUD 350 million to AUD 500 million of lower-growth assets for divestment, with an initial tranche of AUD 120 million to AUD 125 million already in progress. Funding headroom stood at approximately AUD 175 million, with weighted average debt maturity at 2.8 years.
For FY27, the company targets 0% to 10% EBIT and EPS growth, supported by six new community contributions and three sales launches in the first half. A land lease community growth target of 10% to 15% compound annual growth was also outlined.
The proposed acquisition of Peet, expected to close via a scheme of arrangement by year-end, would expand Ingenia’s land lease pipeline to about 35,000 lots. The deal is projected to be 11% EPS accretive in FY26 on a pro forma basis and deliver low double-digit EPS accretion over the medium term, with a five-year payback period and no expected goodwill. Transaction costs of approximately AUD 92 million are anticipated, offset by debt reduction from Flagstone City proceeds. Run-rate cost synergies of AUD 10 million are projected, primarily from board and listing cost savings.
The Flagstone City project remains conditional on the sale of a 49.9% stake for an enterprise value of AUD 615 million to Brown-Neaves Investments. Pro forma assets are estimated at AUD 4 billion with net debt of AUD 1.2 billion and gearing at 29.5%.
