INGENIA COMMUNITIES GROUP — Annual Report 2018

Aug 20, 2018

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FY18 RESULTS

21 AUGUST 2018

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Highlights

FINANCIAL

STRATEGY

EBIT $48.8 million – up 52% on FY17 – Underlying profit EPS 17.7 cents up 36% on FY17 Revenue of $189.5 million – up 26% on FY17 Operating cash flow of $47.2 million – up 56% on FY17 Non-core asset sales well progressed - $60 million contracted or completed Over 7,000 income producing sites

Largest development pipeline in sector – over 3,240 sites secured (92% in metro and coastal locations)

OPERATIONS

DEVELOPMENT

Lifestyle and Holidays EBIT margin increased 370 basis points on FY17 to 39% High occupancy across Ingenia Gardens portfolio – >92% New home settlements 287 exceeded upgraded guidance All approvals in place for FY19 target of >350 settlements Added 48 holiday and rental cabins in FY18 – immediately accretive in FY19

2

Business overview growing rental portfolio delivering stable cashflows

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Over 7,000 Income producing sites

Over 5,500 rental and lifestyle residents

785,000 ‘room nights’ p.a. Cabins, caravan and camping

Stable rent base >$1.6 million/pw

Portfolio value now

$747

million

Ingenia has

61

Australian communities

3,244 Development sites on balance sheet or under option

Nine communities under development

35 LIFESTYLE AND HOLIDAY COMMUNITIES 26 RENTAL VILLAGES

Note: Excludes communities under option and remaining Settlers villages. Includes land acquired post 30 June 2018.

3

Performance and capital management

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Ingenia Holidays White Albatross, NSW
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4

Key financials successful integration of new assets delivering increased earnings

Key Financial Metrics	FY18	FY17	RevenueandEBITgrowth driven by acquisitions, growing rents and accelerating development 26% 52% 30% 56% 36% 56% 5% 100% 3% Increase in underlyingtax rateas operating earnings and development contribution grow (no tax payable due to carried forward losses) EPSgrowth driven by strong asset performance and additional settlements, partially offset by higher tax rate Strongcashflowdriven by increased settlements, new acquisitions and rental growth, partially offset by investment in display homes and inventory
Revenue	$189.5m	$149.9m
EBIT1	$48.8m	$32.1m
Statutory profit	$34.2m	$26.4m
Underlying profit1	$36.8m	$23.5m
Underlying profit EPS1	17.7c	13.0c
Operating cashflow	$47.2m	$30.3m
Distribution per security	10.75c	10.2c
Effective tax rate (underlying)	14%	7%
	Jun 18	Jun 17
Net Asset Value (NAV) per security	$2.57	$2.50

1. EBIT and underlying profit are non-IFRS measures which exclude non-operating items such as unrealised fair value gains/(losses) and gains/(losses) on asset sales.

5

Strong growth in EBIT from core business

EBIT	FY18	FY17	51% 93% 41% 1% 52% 2% 89%
Lifestyle and Holidays operations	$25.3m	$16.8m
Lifestyle development	$21.0m	$10.9m
Ingenia Gardens	$11.4m	$11.6m
Other1	$0.2m	$1.8m
Portfolio EBIT	$57.9m	$41.1m
Corporate costs	($9.1m)	($9.0m)
EBIT	$48.8m	$32.1m

Margin expansion as scale efficiencies continue to be achieved

EBIT Margin	FY18	FY17
Lifestyle and Holidays operations	38.9%	35.2%
Lifestyle development	24.4%	17.1%
Ingenia Gardens2	40.8%	40.9%
EBIT margin3	25.7%	21.4%

1. Includes Settlers villages plus Fuel, Food and Beverage.

2. Includes impact of sale of five communities April 2018.

Rental base expanding – driven by acquisitions, additional rental cabins and new home settlements

Rental growth and high occupancy offset by sale of five communities

Corporate costs remained flat year on year

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60 Historic performance 200
180
48.8
50
160
140
40
32.1 120
30 100
24.2
80
20 18.1
60
12.1
40
10
20
- -
FY14 FY15 FY16 FY17 FY18
H1 EBIT H2 EBIT Revenue
EBIT ($ m)
Revenue ($ m)
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1. Margin includes Corporate costs.

6

Drivers of change in EBIT

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60.0
2.3 2.0
6.5 0.2 48.8
50.0
3.0
7.1
40.0
32.1
30.0
20.0
10.0
48.8
0.0
EBIT 30 June Development Development Lifestyle & Improvement in Divestments Other EBIT 30 June
2017 sales volume margin Holiday existing village 2018
acquisitions NOI
•
Key drivers of 52% growth in EBIT are increased development volumes and margins and full year
contribution from recent acquisitions including Cairns Coconut, Durack and Eight Mile Plains
$m
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7

Capital management well positioned to fund development pipeline

Debt Metrics	30 Jun 18	30 Jun 17
Loan to value ratio (covenant <50%)	32.6%	27.7%
Gearing ratio1	26.6%	21.3%
Interest cover ratio (total) (covenant >2x)	5.5x	5.5x
Net Asset Value per security	$2.57	$2.50
Total debt facility ($m)	350.0	300.0
Drawn debt ($m)	229.0	166.5
Net debt ($m) (excl. finance leases)	214.6	156.8

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3.8%
32.6%
$109M 4.3 [YRS]
COST OF
DEBT LOAN TO WT AV DEBT
DRAWN VALUE RATIO
CAPACITY MATURITY
DEBT [2]
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1. Gearing ratio calculated as net debt (borrowings less cash) over total tangible assets (total assets less cash and intangible assets).

Funding growth

Expansion of loan facilities to $350 million with extended term

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Available unutilised debt under existing facilities

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Completed or contracted $60 million non-core asset sales, providing reinvestment capital

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Growing cash inflows – rent collection and home sales

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DRP remains in place

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Continue to explore capital partnering to accelerate growth

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Facility Maturity Profile

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210
180
150
120
90
60
30
0
Feb-22 Jul-23
Drawn Bank Guarantees Undrawn
$m
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1. All in cost of debt 4.1%, including cost of undrawn available facilities as at 30 June 2018.

8

Growth in value across core portfolios lifestyle capitalisation rates continue to compress

Jun 18 Av. Cap Av. Cap Portfolio Book Value Rate Jun 18[1] Rate Jun 17[1] ($m) Lifestyle and Holidays 8.0% 8.4% 592.8[2] Ingenia Gardens 9.9% 9.9% 127.3

1. Excludes acquisitions and leasehold assets.

2. Includes leasehold assets, gross up for finance leases and JV liabilities and excludes assets held for sale (Rouse Hill).

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Independently valued 35 assets in FY18

Ingenia Gardens and Lifestyle and Holidays portfolios’ value up 11% ($62.6 million) like for like

Investment property value gains partially offset by write-off of transaction costs and reduction in development value as new homes are sold and development profit is realised

External valuers over 50 bp behind recent transactions

Continued cap rate sharpening across Lifestyle and Holidays portfolio* over FY15-18

11.0%

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10.0%
9.0%
8.0%
7.0%
68 62 64 33 50 20 52 33 4 58 52 41
6.0%
bp bp bp bp bp bp bp bp bp bp bp bp
5.0%
Lifestyle Metro & Coastal Mixed Metro & Coastal Mixed Regional Portfolio
Jun-15 Jun-16 Jun-17 Jun-18
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10.0%

• Excludes acquisitions and leasehold assets.

9

Strategy

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- Ingenia’s newest greenfield project
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10

Australia’s best lifestyle communities strategy focussed on growing stable rental returns

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Rental base acquired,
expanded or developed
Development
Return of Capital
Sell: home (development return)
plus new rental contracts
Rent: land
Rent: cabins/sites Rental
Income
Rent: units
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11

Underlying demand drivers remain strong many seniors will struggle to fund a comfortable retirement

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Median House Price ($) Home Ownership (Age) Limited savings or
superannuation
$1.6m 90% 120% Superannuation account balances
$1.4m 80%
100%
$1.2m 70%
$1.0m 60% 80%
50%
$0.8m 60%
40%
$0.6m
30% 40%
$0.4m 20%
20%
$0.2m 10%
$0.0m 0% 0%
55 to 64 65 to 74 75 and over 65-69 70-74 75+
Nil $1-$99k $100k-$199k $200k+
Sydney Melbourne Brisbane
CoreLogic & ANZ Research; INA analysis ABS; INA analysis Source: ASFA Research and Resource Centre
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…but 4 out of 5 seniors have less than $100k in superannuation

Key capital cities have recorded strong growth over the past 20 years

…and with 82% of seniors owning their homes outright with no mortgage

Pension

According to ASFA a couple requires $60,264 a year to fund a comfortable retirement. The age pension is only $31,995[(1)]

…downsizing provides a way to fund a comfortable retirement

1. ASFA Super Guru August 2018. Pension represents base rate.

12

Operations review

Core Portfolio by Book Value

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Under Ingenia
Development Gardens
20% 17%
Lifestyle and
Holidays
63%
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13

Ingenia Lifestyle and Holidays over 90% weighting to capital city and coastal markets

Key Data	30 Jun 18	30 Jun 17	16% 2% 31%
Total properties	35	33
Permanent sites	2,702	2,323
Annual sites	908	909
Tourism sites	2,186	2,139
Development sites	3,244	2,473

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Over 9,000 rental
Growth in rental sites
sites on delivery of
current pipeline
10,000
9,000
8,000
7,000
6,000
5,000
~
4,000
3,000
2,000
1,000
-
30-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 Post dev.
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Portfolio quality enhanced as subscale non-core assets sold and development accelerated

Strong growth in rental sites – 287 new home settlements complete, 48 cabins added to existing tourism and rental communities

Increased weighting to target markets – significant exposure to Brisbane and Sydney

Portfolio Value (by state)

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QLD VIC
35% 3%
NSW
62%
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14

Ingenia Lifestyle and Holidays rental income and margins growing

Key Data	FY18	FY17
Permanent rental income	$21.7m	$14.9m
Annuals rental income	$4.8m	$4.3m
Tourism rental income	$34.9m	$25.3m
Commercial rent	$0.4m	$0.5m
Total rental income	$61.8m	$45.0m
EBIT	$25.3m	$16.8m
EBIT margin	38.9%	35.2%
	30 Jun 18	30 Jun 17
Portfolio value1	$472.2m2	$407.8m

Strong growth in cash flows – rental revenue up over 37%

Average weekly rent $166 per week

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Like for like average weekly rent up 4.9%

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EBIT margin up 370 basis points to 39%

Increased revenue as acquisitions and new homes/cabins contribute

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Actively growing rental base

• New homes – 287 complete and occupied (~$2,425,000 rent per annum)

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New rental cabins – 30 complete (~$335,000 rent per annum); additional 26 under construction

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Additional tourism cabins – 18 new cabins across key tourism assets (~$985,000 revenue per annum)

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Average rent increase of over 3% on review across all communities (more than 3,400 residents)

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1. Excludes value attributed to development (30 Jun 18: $142.9m; 30 Jun 17; $107.1m). 2. Includes assets held for sale (Rouse Hill).

15

Ingenia Holidays portfolio expansion and reinvestment enhancing profile and returns

Significant growth achieved (like for like revenue up 8%)

Strategic partnerships providing incremental revenue

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Cabin occupancy up 3%; RevPOR* up 4%

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Site occupancy up 3%; RevPOR* up 1%

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Brand recognition growing and enhancing return on digital platform

Actively marketing to unique database of 160,000+ members

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Social media, blog and web traffic increasing revenue via www.ingeniaholidays.com.au

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Significant growth opportunities

Potential to add further 150+ cabins in line with demand

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Expanding online travel agent (OTA) distribution networks, including overseas

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Partnering with tour operators and travel agents to drive incremental revenue

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Growing FIT (Free Independent Traveller) market, including China, supported by OTA penetration and online booking channels

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Average Booking Revenue

+15%

($304)

Average length of stay

+5%

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(3.5 days)
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Cabin + Site RevPAR

+17% ($44 per night)

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Website revenue
generation
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+56% ($2.6 million)

Percentage of cabin bookings placed online

+10%

(51.1%)

Cabin + Site RevPOR

+5% ($86 per night)

• RevPOR equals revenue per occupied room night; RevPAR equals revenue per available room night.

16

Development significant contributor to growth in rental base

Key Data	FY18	FY17
New home settlements	287	211
Av. new home sales price1 ($’000)	324	309
Deposited/Contracted (at 30 Jun)	166	135
Av. above ground new home profit ($’000)	121.5	93.6
Gross above ground new home development profit ($m)	34.8	19.7
Development EBIT ($m)	21.0	10.9
EBIT margin (%)	24.4	17.1
	30 Jun 18	30 Jun 17
Investment value	$142.9m	$107.1m

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Ingenia Lifestyle Plantations, NSW - August 2018
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New home settlements up 36% on prior year

New home settlements contributing ~$2,425,000 per annum rent across existing and new communities

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• Above ground margin increasing (average >35%) and scale benefits demonstrated as settlements grow

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Strong interest in established projects continuing – 173 deposits and contracts in place at 17 August 2018

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Key projects progressing well

Ongoing demand at established projects

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Second greenfield project (Plantations – NSW Mid North Coast) successfully launched

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Continuing to drive future opportunities

Ongoing focus on optioning land in key markets, including Victoria and NSW

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Exercised options at Upper Coomera and Hervey Bay (435 potential sites); acquired expansion land at Latitude One

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Recently secured approval for 41 rental cabins at Eight Mile Plains and 52 rental cabins at Durack

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1. Inclusive of GST.

17

Key projects established in market with demonstrated demand increasing focus on large, long-life projects and site expansions

			Development commencement to completion Current Jan 19 Jan 20 Jan 21	Development commencement to completion Current Jan 19 Jan 20 Jan 21	Development commencement to completion Current Jan 19 Jan 20 Jan 21	Development commencement to completion Current Jan 19 Jan 20 Jan 21
		Sites	Development commencement to completion
	The Grange	11
	Lake Conjola	91
	Latitude One	406
	Plantations	196
	Bethania	368
	Chambers Pines	311
	Lara	50
	Albury	46
	Hunter Valley	8
			Current	Jan 19	Jan 20	Jan 21

18

Sector leading pipeline in place supporting sustainable future growth

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All approvals secured for FY19 targeted settlements

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Increasing sites available (ex Sydney) as residential markets slow and banks reduce funding for developers

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750
Approved Not Approved Development Size
Far North Coast NSW >200 sites
(new, secured) 100-200 sites
650
<100 sites
> $550
550 Plantations
Avina
(new)
(expansion)
Blueys Beach
> $375
450 (expansion)
Nerang
(new, optioned) Hervey Bay
(expansion) Chambers Pines
350 (expansion)
> $250 Upper Coomera
Bethania (new) Victoria
250 (expansion) Hervey Bay (new, optioned)
(new)
150
Sep-17 Feb-19 Jun-20 Oct-21 Mar-23 Jul-24
Target first settlement date
Forecast Home Sales Price ($'000s)
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Note: Timing and prices are indicative and subject to change. Includes optioned assets.

19

Market conditions are changing differentiated markets, some sector benefits emerging

Behind the headline data are some mid-term benefits for land lease communities

Prices expected to continue to fall in 2018 and into 2019 Price decline is driven by premium market and credit tightening

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Affordable end shows resilience

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Takes time for sellers to swallow the ‘price adjustment pill’

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Cooling market propels action from downsize procrastinators who have held out riding the property growth wave

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The Ripple Effect will underpin premium coastal and fringe locations as buyers move from capital cities A credit shock rather than prolonged downturn

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The economic and population fundamentals look solid

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Ingenia has a geographically diversified portfolio with strong price diversity providing resilience to changing market conditions

Annual change in dwelling values by decile July 2018

Highest value

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10th
9th
8th
7th
6th
5th
4th
3rd
2nd
1st
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
National Combined Capital Markets Regional
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Source: CoreLogic, Housing Market Chart Pack, August 2018.

20

Sales outlook remains positive

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350+
FY19 Forecast
Settlements
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166
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All FY19 settlements will come from communities which are in market and have sales momentum

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FY18 Carry Forward
(47% of forecast)
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FY19 sales target is underpinned by:

Strong pre sales - 47% of forecast settlements are already at deposit or contract

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Time to take action - lifestyle downsizers propelled to ‘take action’ after holding out for the property wave

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Need to ‘cash out’ - they will seek a more affordable solution to maximise ‘cash out’ and lifestyle communities will fare well

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The ‘Ingenia Difference’ - transparent and simple model underpinned by strategic release platform and clear customer and market insights

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Emerging stability - downsizers defer decisions in times of instability

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Education and awareness - will increase the potential pot of buyers

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Quality, geographic spread and price diversity of the portfolio will provide sales resilience

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• carry forward is deposits and contracts from FY18

21

Progressing opportunities to expand product reach

Importing flat packed homes could materially reduce cost and open up new markets

In past 18 months imported and installed 43 flat packed cabins from China for Durack and Chambers Pines

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Additional 30 cabins ordered and first home order about to be placed

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Testing market for homes to assess quality and ability to build to Ingenia’s specifications and design

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Potential to significantly reduce price point and broaden market opportunities

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Price differential compelling, consistent scalable quality remains key focus

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Exploring new ‘build to rent’ community

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New 1 bed rental cabins

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Ingenia Gardens remains an attractive ‘build to rent’ business

Finalising feasibility of building modular 2-3 storey rental community at Chambers Pines to meet demand for affordable rental product

Cost of cabin: ~$60,000 (incl installation) Weekly rent: $280 ($14,500 pa) Gross yield: 24%

22

Ingenia Gardens (seniors rental) strong, stable, government supported earnings

Key Data	FY18	FY17
Total revenue	$28.0m	$28.4m
EBIT	$11.4m	$11.6m
EBIT margin	40.8%	40.9%
	30 Jun 18	30 Jun 17
Total properties	26	31
Total units	1,374	1,628
Av. Weekly rent1	$338	$332
Occupancy1	92.4%	92.6%
Portfolio value	$127.3m	$141.3m

Stable performance as occupancy and rent continue to increase

Sale of five non-core Tasmanian assets complete in April 2018 Average rent now $338 per week (‘same store’ growth of 2%) Average resident tenure 3.1 years

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Ingenia Care

• Care facilitation remains a key resident service and market differentiator

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• Broadening partnerships with approved home care providers to support extended Care platform

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• Expanding into lifestyle communities via tailored ‘Be Active’ program

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1. Like for like basis.

23

Ingenia has delivered on guidance and strategic objectives track record established

Delivery of strategy has resulted in significant growth across key metrics

Divested non-core and subscale assets to refocus portfolio on quality large scale rental communities  Demonstrating quality of platform and ability to drive leverage through scale Created a large, quality portfolio in key markets with embedded growth  Invested in new rental and tourism cabins to deliver growth in earnings across existing assets

Invested in new rental and tourism cabins to deliver growth in earnings across existing assets

FY17	Target/Guidance	Final Target/Guidance	Outcome
Initial guidance – new home settlements	150	190	211
EBIT1	$30m		$32.1m
FY18	Initial Target/Guidance	Final Target/Guidance	Outcome
New home settlements	260 – 280	280 – 285	287
EBIT1	$42 – 46m	>$48.5m	$48.8m
Underlying profit EPS1	-	>17.2 cents	17.7 cents

1. EBIT and underlying profit are non-IFRS measures which exclude non-operating items such as unrealised fair value gains/(losses) and gains/(losses) on asset sales.

24

Thinking ahead

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Increase development to 350+ homes p.a Add land rents on 3,244 new homes

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Add 110+ new rental Add 150+ new tourism cabins at Chambers cabins across key Pines, Eight Mile Plains holiday parks and Durack

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DEV
PROFIT
ON RENTS RENTS
EXTRA ON 3,244 ON 110+ RENTS ON
FY18 50-100+ NEW NEW 150+ NEW
$48.8M HOMES RENTAL RENTAL TOURISM
P.A. HOMES CABINS CABINS
EBIT $’M
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25

Outlook

ageing of population and housing affordability will drive earnings growth

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Macro/Residential Housing

Slowdown in residential housing expected to continue into FY19 – diverse product, price point and market exposure provide mitigation

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Some insulation against short-term housing market, but longterm fundamentals remain strong

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Customer Demands

Growing consumer awareness of lifestyle model and differences from traditional retirement models

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Product and model continuing to evolve, broadening market appeal

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Competition and Market

Acquisition opportunities re-emerging as competitors focus on M&A

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Likely increase in regulatory requirement for retirement villages but expect limited impact of lifestyle communities

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26

FY19 guidance growth forecast

FY19 builds on the strong growth delivered in FY18

Guidance Comment New home 350+ Strong deposits and contracts in place but settlements dependent on timing of key projects, including Plantations EBIT[1] 10-15% growth Growth driven by increased settlements target partially offset by loss of earnings on Underlying 5-10% growth non-core asset sales (~$3.4 million) profit EPS[1,2]

Business positioned for average EBIT growth of 15%+ over FY19 and FY20[3]

1. EBIT and underlying profit are non-IFRS measures which exclude non operating items such as unrealised fair value gains/(losses) and gains/(losses) on asset sales.

2. Guidance is subject to no material adverse change in market conditions.

3. Future growth is based on a number of assumptions, including securing additional development approvals and no material adverse change in market conditions.

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Front Office Manager, Jennifer Richards of
Ingenia Holidays Cairns Coconut testing the new water slide
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FY19 focus

Improve performance of existing assets to drive revenue growth and capitalise on quality operating and sales platform

Accelerate build out of development pipeline to deliver new rental contracts and leverage platform

Secure approvals on existing and optioned land to further extend development pipeline

Monitor market for unique acquisition opportunities with potential to add value

Continue asset recycling to fund development growth

Explore capital partnerships as interest in land lease communities grows

Kate Washington, MP; Latitude One’s first residents; Ryan Palmer, Mayor; and Simon Owen opening Latitude One’s display village

Execute on sector innovation to improve returns and expand market opportunity

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Appendices

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Ingenia Lifestyle Lara, VIC
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Appendix 1 underlying profit

	FY18 ($m)	FY17 ($m)
Lifestyle and Holidays – Operations	25.3	16.8
Lifestyle Development	21.0	10.9
Ingenia Gardens	11.4	11.6
Other	0.2	1.8
Portfolio EBIT	57.9	41.1
Corporate costs	(9.1)	(9.0)
EBIT	48.8	32.1
Net finance costs	(6.1)	(6.9)
Income tax (expense)/benefit	(5.9)	(1.7)
Underlying profit – Total	36.8	23.5
Statutory adjustments	(3.5)	3.2
Income tax benefit/(expense)	0.9	(0.3)
Statutory Profit	34.2	26.4

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Appendix 2 EBIT and underlying profit by segment

($m)	Lifestyle Operations	Lifestyle Develop.	Ingenia Gardens	Fuel, Food and Beverage	Corporate and Other	TOTAL
Rental income	61.8	-	24.6	-	0.1	86.5
Manufactured home sales	-	85.9	-	-	-	85.9
Cateringincome	-	-	3.1	-	-	3.1
Fuel, food and beverage income	-	-	-	9.0	-	9.0
Other income	3.3	-	0.3	-	1.4	5.0
Total segment revenue	65.1	85.9	28.0	9.0	1.5	189.5
Propertyexpenses	(15.3)	(0.6)	(7.9)	(0.5)	(1.2)	(25.5)
Manufactured home cost of sales	-	(50.3)	-	-	-	(50.3)
Employee expenses	(19.6)	(9.2)	(7.1)	(1.3)	(6.7)	(43.9)
Service station expenses	-	-	-	(6.3)	-	(6.3)
All other expenses	(4.9)	(4.8)	(1.6)	(0.5)	(2.9)	(14.7)
Earnings before interest and tax	25.3	21.0	11.4	0.4	(9.3)	48.8
Segment margin(%)	38.9%	24.4%	40.8%	4.5%	-	-
Net finance expense	-	-	-	-	(6.1)	(6.1)
Income tax expense	-	-	-	-	(5.9)	(5.9)
Underlying profit	25.3	21.0	11.4	0.4	(21.3)	36.8

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Appendix 3 cash flow

	30 Jun 18 ($m)	30 Jun 17 ($m)
Opening cash at 1 July	9.6	15.0
Rental and otherpropertyincome	102.1	82.7
Propertyand other expenses	(81.4)	(63.9)
Net cash flow associated with manufactured home development	34.6	15.8
Net borrowingcostspaid	(8.9)	(6.0)
All other operatingcash flows	0.8	1.7
Net cash flows from operating activities	47.2	30.3
Acquisitions of investmentproperties	(51.2)	(180.3)
Netproceeds from sale of investmentsproperties	32.7	40.8
Capital expenditure and development costs	(66.1)	(27.2)
Purchase ofplant, equipment and intangibles	(2.8)	(1.6)
Net cash flows from investing activities	(87.4)	(168.3)
Net proceeds from/(repayment of) borrowings	62.5	67.4
Net proceeds from equity placement	4.4	85.0
Distributions to security holders	(21.1)	(18.0)
All other financing cash flows	(0.8)	(1.8)
Net cash flows from financing activities	45.0	132.6
Total cash flows	4.8	(5.4)
Closing cash at 30 June	14.5	9.6

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Appendix 4 consolidated balance sheet

	30 Jun 2018 ($m)	30 Jun 2017 ($m)
Cash	14.5	9.6
Inventories	30.2	21.6
Investment properties	730.4	693.5
Assets held for sale	28.7	-
Other assets	22.0	23.5
Total assets	825.8	748.2
Borrowings (excluding finance leases)	229.0	166.5
Derivatives	0.1	0.3
Retirement village resident loans	8.2	27.2
Liabilities held for sale	3.9	-
Other liabilities	50.7	38.4
Total liabilities	291.9	232.4
Net assets	533.9	515.7
Net asset value per security ($)	2.57	2.50

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Appendix 5 capitalisation rates have progressively tightened

Lifestyle and Mixed-use Communities

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11.50%
10.50%
Surfrider,NSW
Darwin FreeSpirit,NT
Armidale,NSW
9.50%
Ballina,NSW
Rainbow Waters,QLD
8.50% Bonny Hills,NSW Dunbogan,NSW
Fraser Lodge,QLD
Sanctuary,NSW Akuna,VIC Empress,QLD Bass Hill,NSW
7.50% Rockhampton,QLD Green Wattle,QLD
Durack,QLD Lake Macquarie,NSW
Rosetta,SA
Newport,NSW Eight Mile Plains,QLD Chain Valley
6.50% Bay,NSW Sea Change,SA
Greenpoint,NSW
Gateway Portfolio Bid
(Implied cap rate)
5.50%
Jan-16 May-16 Aug-16 Nov-16 Mar-17 Jun-17 Sep-17 Dec-17 Apr-18 Jul-18
Trend Line Trend Line
Mixed-use Lifestyle (M Poly. (Mixed-use)ixed-use) Poly. (Lifestyle)(Lifestyle)
Implied cap rate %
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Appendix 6 competitor landscape

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Major Competitor Properties Locations Strategy
Ingenia Communities 35 NSW, QLD, and VIC Acquire and operate lifestyle and tourism parks and undertake site
(ASX: INA) expansions and greenfield development.
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Major Competitor	Major Competitor	Properties	Locations	Strategy
	Ingenia Communities (ASX: INA)	35	NSW, QLD, and VIC	Acquire and operate lifestyle and tourism parks and undertake site expansions and greenfield development.
	Discovery Parks	65	All states	Acquired from private equity by SunSuper. Exclusively tourist and workforce accommodation. Recently acquired “Top Parks” marketing platform.
	Gateway Lifestyle (ASX: GTY)	58	NSW, QLD, VIC, ACT and SA	Growing portfolio of lifestyle parks, tourism conversion and greenfield lifestyle development. Subject to takeover offers by Brookfield and Hometown Australia (both US based).
	NRMA	39	NSW, QLD, VIC, TAS, SA	Own, franchise and manage tourist parks. Acquired external manager ATPM (June 2017) which added 31 parks.
	Palm Lake Resorts	27	NSW, QLD, VIC	Largest privately owned developer and operator of greenfield residential parks. Portfolio includes 4 nursing homes and several DMF retirement villages.
	Reflections Holiday Parks	38	NSW	Manage Crown Reserves Holiday Parks including 37 holiday parks on NSW Mid and North Coast and regional NSW. Formerly North and South Coast Holiday Parks.
	Lifestyle Communities (ASX: LIC)	15	VIC	Developer and operator of greenfield residential parks. Victoria only.

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Appendix 6 competitor landscape (cont)

Major Competitor	Major Competitor	Properties	Locations	Strategy
	Living Gems / Gem Life	13	QLD, NSW, VIC	Family owned - developer and operator of greenfield residential parks. Joint venture (Gem Life) with Singaporean based Thakral to expand.
	Serenitas (National Lifestyle Villages)	10	WA	Developer and operator of greenfield residential parks. Recently acquired by Serenitas (joint venture between Tasman Capital Partners and Singapore’s sovereign wealth fund, GIC).
	Hampshire	10	NSW, VIC, ACT	Privately owned portfolio of residential parks. Looking to grow.
	Aspen (ASX: APZ)	9	WA, NSW and SA	Own small portfolio of tourist, mining and lifestyle parks. Looking to grow with recent divestment of non core assets.
	Secura Lifestyle	9	NSW, QLD, and VIC	Asset aggregator looking to expand.
	Allswell Communities (Eighth Gate)	8	NSW, QLD, and VIC	Asset aggregator looking to expand.
	Boyuan Group (ASX: BHL)	5	NSW	Media speculation suggests sale process underway.
	Hometown Australia	6	NSW and QLD	Australian subsidiary of US$3 billion group. Recently made unsolicited takeover offer for Gateway Lifestyle.

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Appendix 7 credit rating of lifestyle communities

A Grade office: 126 Phillip Street, Sydney CBD Current independent cap rate: 4.75% Deutsche Bank, FIIG Securities, Qantas, Sinopec, Tenants (include): TCorp, Wellington Management Constant, often involving rental voids and leasing Re-leasing risk: incentives Rent growth: Market driven Rent paid: Typically monthly in advance

Ingenia Lifestyle, The Grange, Morriset NSW	Ingenia Lifestyle, The Grange, Morriset NSW
Current independent cap rate:	6.9%
Residents:	182
Re-leasing risk:	Nil – existing residents continue to pay land rent until sell home or remove from site
Rent growth:	Typically CPI+$2 (per annum)
Rent paid:	Fortnightly and underpinned by Government pension and rent assistance. Residents own home outright with no mortgage.

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Contact information

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Simon Owen CEO & Managing Director Tel: +61 2 8263 0501 sowen@ingeniacommunities.com.au

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Ingenia Communities Group
Level 9, 115 Pitt Street
Sydney NSW 2000
www.ingeniacommunities.com.au
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Donna Byrne Group Investor Relations Manager Tel: +61 2 8263 0507 dbyrne@ingeniacommunities.com.au

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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 21 August 2018 unless otherwise stated.

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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.

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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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