INGENIA COMMUNITIES GROUP — AGM Information 2016

Nov 14, 2016

Ingenia Lifestyle Bethania, QLD

INGENIA COMMUNITIES GROUP

2016 Annual General Meeting

15 November 2016

FY16 Achievements: Strategy

Expansion of cash yielding asset base

Expansion of cash yielding asset base Lifestyle Parks portfolio grown – six assets acquired or contracted Successful capital raising to fund growth Capital initiatives DRP in place Debt facility extended to $224 million Development underway in thirteen communities Development contribution increased Settlement of 107 new homes Strong financial results and increased Distribution per security up 15% returns to investors Underlying profit up 20%

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Distributions Continuing to Increase

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Distributions (cents per security)
$0.06
Interim
15% growth Final
$0.05
17% growth
$0.04
15% growth
9.3 cps
$0.03
8.1 cps
$0.02 6.9 cps
6.0 cps
$0.01
$-
FY13 FY14 FY15 FY16
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The Future

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Ingenia South West Rocks, NSW
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Solid Base For Growth Established

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NT
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6
WA
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SA
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33
NSW
10
VIC
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• 31 RENTAL COMMUNITIES

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5
TAS
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• 29 LIFESTYLE AND HOLIDAY COMMUNITIES

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Delivering on Strategy

	Acquired first Greenfields community
Grow exposure to lifestyle & holiday communities	Development underway at 13 communities with more soon to commence
	Now own 29 communities with a further 6 under option or contract
	FY16 Underlying Profit from continuing operations $20.2 million – up 20%
Improve financial performance	FY16 distribution per security increased to 9.3 cents - up 15%
	Strong operating cashflow of $21.0 million- up 133%
	Garden Villages occupancy -90.7% at 30 June 2016
Improve operations
	Sales momentum building – 107 settlementsFY16 (up 106% on prior year)
	Debt capacity increased to $224 million
Maintain capacity for growth	Funds from equity raising and DRP invested in lifestyle and holiday communities
	Divestedmajorityposition in DMF portfolio

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Business Overview

Creating Australia’s best lifestyle communities

Ingenia has

4,000 Residents

Over 3,100 occupied permanent homes

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Portfolio now
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$490

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million
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60 AustralianCommunities & growing

1,800 tourism sites

760 annuals

Annual revenue $107 million $ Stable rent base - $1 million /per week

Over 2,280 new home sites secured

29 LIFESTYLE AND HOLIDAY COMMUNITIES

31 RENTAL COMMUNITIES

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33
NSW
10
VIC
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TAS [5]
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Key Financials Strong operating earnings and cashflow

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||||||||
|---|---|---|---|---|---|---|
|KEY FINANCIAL METRICS|FY16|FY15|CHANGE|•|
|Statutory profit|marginally|
|Statutory profit|$24.3m|$25.7m|(5.6%)|down – tax benefit reducing as|
|profit grows|
|Revenue|$107.1m|$76.0m|40.9%|
|•|
|Growth in|underlying profit|
|Underlying profit –|
|$20.2m|$16.8m|20.0%|
|continuing operations|[1]|attributable to recent|
|Distribution per security|9.3c|8.1c|14.8%|acquisitions and new home|
|sales|
|Operating cashflow|$21.0m|$9.0m|132.8%|
|•|
|Distribution|growing in line|
|Jun 16|Jun 15|with earnings|
|Loan to value ratio (LVR)|24.9%|22.6%|2.3%|•|Strong|operating cashflow|
|Core interest cover ratio (ICR)|3.73x|2.68x|39.2%|•|Significant improvement in|
|Core ICR|driven by growing|
|Net asset value (NAV) per security|$2.45|$2.34|4.7%|
|rental base|

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1. Underlying profit is a non-IFRS measure designed to present, in the opinion of the Directors, the results from the ongoing operating activities of INA in a way that reflects underlying performance. Underlying profit excludes items such as unrealised fair gains/(losses), and adjustments arising from the effect of revaluing assets/liabilities (such as derivatives and investment properties). These items are required to be included in Statutory Profit in accordance with Australian Accounting Standards. Underlying profit has not been audited or reviewed by EY.

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Purpose, Vision and Values

Vision

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Our Values

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Portfolio Update

Ingenia Lifestyle Chain Valley Bay, NSW

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Ingenia Settlers (DMF)

• Divestment of the majority of the DMF portfolio (5 assets) completed in October 2016

• Forum Partners and Ingenia established separate vehicle

• Ingenia to retain a 10% economic interest ($2.2 million net investment)

• Exploring opportunities to divest remaining three villages

• Forum Partners is a global real estate investment management firm with plans to grow its investment

• Capital released ($41 million) to be redeployed in lifestyle and holiday communities by March 2017

Ingenia Settlers Lakeside, Ravenswood WA

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Ingenia Garden Villages and Ingenia Care

Ingenia is the largest owner/operator of seniors rental accommodation in Australia

– 31 communities

Occupancy and rent growth driving operational performance

• Return stable on lower asset base (3 villages sold Jun-15)

• Average rent increased by $10 per week (3.1% growth)

Portfolio occupancy 90.7%

• Average resident tenure now 3 years

Ingenia Care now accessed by over 400 residents No new rental villages being built

• Increasingly valuable, strategic portfolio

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Ingenia Lifestyle and Holidays

Size and growth in permanent rentals driving operational performance

• Average weekly site rent increased to $149 per week – up 2.7% over past 12 months

Development profit building as number of projects, business scale and capacity increase

• Over 2,280 development home sites secured

Growing exposure to high quality metro and coastal locations

• Metro and coastal now represent 89% of portfolio

Our Portfolio

• 1,700 permanent sites

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Current portfolio location
(by value) [1]
Metro Coastal
41% 48%
Regional
11%
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• 760 annual sites

• 1,800 short-term sites

29 LIFESTYLE & HOLIDAY COMMUNITIES

1. Includes post 30 June settlements. Excludes announced acquisitions yet to settle.

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Holiday and Short-term Accommodation Aligned with Ingenia’s focus on affordable seniors living

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• 620 cabins

• 760 annuals

• 1,180 sites

Complementary business with significant upside

1. Tourism and short-term accommodation provides attractive cashflows, underpinned by strong repeat visitations, and increasing rental and annual residents

2. Aligned with ageing of the population – caravan registration growing at 2.5 times faster than car registrations

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3. Annuals represent families or seniors who have purchased their holiday home on Ingenia’s land and pay an annual site rental – huge growth market and similar characteristics to permanent residents

4. Tourism and short term accommodation preserves long-term development optionality for key coastal and metro parks

5. Tourism parks are often first touch point with prospective residents and their families

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Development Pipeline Expanded – Over 2,280 Potential New Home Sites Targeting further strong growth in sales

> Focus on large-scale, multi-year development projects in quality metro and coastal markets

• Supplemented by expansion and conversion of existing and targeted lifestyle and tourism parks

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300
260+ Existing Large Scale Projects
1. Lara – Outer Melbourne 161 sites
250
2. Bethania – Brisbane 194 sites
3. Chambers Pines – Brisbane 256 sites
200
170+
4. Stoney Creek – Sydney 78 sites
150 5. Conjola – NSW South Coast 119 sites
107
6. Avina Van Village – Sydney 250 sites
100 Under Contract / Option
52 7. Upper Coomera – Gold Coast 180 sites
50
8. Latitude One – NSW Coast 229 sites
12
9. Hervey Bay – QLD Fraser Coast 180 sites
0
FY14 FY15 FY16 FY17 FY18
(Forecast) Target
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Building Sales Momentum On target to deliver 170+ settlements FY17

As at 14 November 55 homes settled (year to date) with 58 exchanged contracts and 55 deposits on hand > Average sale price of over $296,000 with average margin of over $105,000 (to 31 October)

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Contracts on Hand
Deposits Received
55
83
113
85
58
21
64
55
30 June 2016 FY17 YTD NetSales FY17 YTD Settlements 14 November 2016
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Recent Acquisitions

Avina Van Village – July 2015

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Avina Van Village, Sydney DA lodged for 247 new homes

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Ingenia Lifestyle Bethania, Brisbane

• Acquired July 2015

• On acquisition - 54 homes and community facilities with approval for 76 homes

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Aerial – August 2015
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Ingenia Lifestyle Bethania, Brisbane

New roads and 25 new homes added

Aerial – October 2016

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Ingenia Lifestyle Chambers Pines, Brisbane

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Acquired March 2015

Partially complete community of 204 homes/units and adjacent golf course

Golf Course

Immediate development opportunity Approved and serviced sites

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Ingenia Lifestyle Chambers Pines, Brisbane

DA secured for 256 new homes

Development works now underway for new club house and first stage of 14 homes > Existing rental village of 118 units and a lifestyle community of 84 homes

Aerial –November 2016

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Ingenia Holidays Lake Conjola

DA now lodged for 119 new homes on golf course land

DA lodged for 119 new homes

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Outlook

• Own, operate, develop and acquire a leading portfolio of rental, lifestyle and holiday communities

• Continue sales growth as new projects launch to achieve target of 170+ settlements for FY17

• Divest remaining DMF assets to provide additional capital for reinvestment in lifestyle & holiday communities

• Improve securityholder returns

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Disclaimer

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 15 November 2016 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.

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.

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.

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