INGENIA COMMUNITIES GROUP — Investor Presentation 2012

Aug 28, 2012

Ingenia Communities Group 2012 Annual Results Presentation 29 August 2012

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Agenda
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Highlights

Market overview

Group overview

Key financials

Capital management

Portfolio update

Strategy and outlook

Appendices

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Highlights
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Operations

Garden Villages Rental occupancy at record high of 83.4%

DMF Conversion villages recorded 51 settlements grossing $9.7 million in FY12

Change of > Successful management internalisation completed in June 2012, with $4.1m support package from ING management > Lean and experienced team in place across core competencies structure

Divest non-core assets

Settlement of US Non-New York portfolio sale in November 2011 with net proceeds of A$31.3m repatriated > Sale of New York portfolio announced in May 2012 for US$173.3m, settlement expected in late 2012 > Greater WALE[1] on NZ Students portfolio increases sale optionality – negotiations well progressed for a sale at a premium to book value

Growth pipeline > Stage 2 development of Gladstone DMF Conversion Village progressing with DA lodged in May 2012 > Acquisition of Ridge Estate DMF village with > 50% unlevered IRR, settled in July 2012

Refinance debt facilities Capital management

Australian A$82.0m debt facility refinanced for a further three years to September 2015[2]

Refinanced NZ$20.8m New Zealand non-recourse debt facility for seven months to March 2013

Ingenia declares a 0.5¢ per stapled security distribution, funded from recurrent earnings > NAV gap narrowed significantly with security price up > 70% in FY12

1. Weighted Average Lease Expiry

2. Subject to confirmation that all conditions precedent have been satisfied

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Our operating environment

Demand from residents remains steady particularly at the affordable end of the market

Noticeable pick-up in enquiries and sales in key WA and QLD markets

Supply remains well below long term requirements

• Few new villages being built due to inability to secure funding and cautious consumer sentiment

Considerable distressed opportunities

• Pressure from sector lenders creating forced sales opportunities

• Few buyers as major corporates cease acquisition activities

Valuations holding firm (dependent on location and pricing)

• Discount rates for DMF villages remain around13-14% with strongest demand for villages with development upside

• Rental village cap rates remain around 9-11% with increasing demand from investors

• Greenfield sites remain significantly discounted

Ingenia well positioned to take advantage of current market opportunities

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Group overview
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Transitioning to a leading Australian Seniors living business

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Garden Villages Portfolio

• 26 rental properties across Australia A$87.1 million book value

• Settlers Lifestyle Portfolio  4 DMF properties in WA & QLD A$54.0 million

• 3 DMF Conversion properties in QLD A$22.0 million

NZ Students portfolio

• 3 student accommodation buildings in Wellington A$19.5 million

US Seniors portfolio

• 6 assets in Long Island, New York A$159.5m

• Announced the sale of the New York portfolio in May 2012

• Settlement anticipated in late 2012

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Note: All figures as at 30 June 2012

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Group snapshot
as at 20 August 2012
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Security price / NAV 5-year operating income and net profit
36 NAV x 50 50
33 x 45
FY12 NAV: 34.3¢ 0
30 20 Aug price: 25¢ 40
(50)
27 1H12 NAV: 33.2¢ 35
x 3 Jan price: 15¢ 30 (100)
24
21 FY11 NAV: 25.9¢ 25 (150)
1 Jul Security price: 11.5¢
18 20 (200)
15
15 (250)
10
12 5 (300)
9
0 (350)
FY08 FY09 FY10 FY11 FY12
Operating Income Net Profit
Corporate Recent ASX Announcements
ASX Code INA Top Securityholders  Jun 2012: Announced the sale of Lovely Banks village in VIC, a
non-core rental village at premium to book value, settlement
Market cap as at 20 Aug $110m Allan Gray Investments expected first quarter 2013
Securities on Issue 441m Mercantile Investments  Jun 2012: Board approved Cessnock rental village in NSW as next
Register Top 20 65.8% First Samuel DMF Conversion project
Register Top 50 73.7% Intelligent Investor Funds  Jun 2012: Announced INA’s first acquisition of Ridge Estate
Village (NSW), unlevered IRR > 50%
Total securityholders 3,743
 May 2012: Announced sale of New York portfolio, settlement
Security price (¢)
Net Profit $m
Operating income $m
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• May 2012: Announced sale of New York portfolio, settlement anticipated in late 2012, with expected net proceeds of A$49.9m

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Key financials
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Enjoying the Common Room at Marsden Gardens, Marsden , QLD

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Key financials
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Key financials
Key financial metrics		30 June 2012		30 June 2011
Net profit / (loss)	$m	33.6	158%	13.1
Operating income – continuing operations1,2	$m	2.1	NA	(1.8)
Operating income - total1	$m	7.4	8%	6.9
Operating income per security	cents	1.7	8%	1.6
Net cashflow from operations	$m	5.1	40%	8.6
Look through gearing	%	52	25%	69
Net asset value (NAV) per security	cents	34.3	32%	25.9
Assets under management	$m	428.9	33%	644.0

> Net profit of $33.6m includes $29.6m gain from changes in fair value of New York portfolio

• Ingenia has a strong pipeline of conversions, developments and acquisitions to replace earnings from discontinued operations

• Operating cashflows included settlement of $8.0m accrued RE fees on internalisation. Normalised operating cashflows would have been $13.1m, up 53% on FY11

• Operating income is a non-IFRS measure that presents, in the opinion of the Directors, the operating activities of INA in a way that reflects its underlying performance. Operating income excludes items such as unrealised fair value gains / (losses), and includes the uplift in value of DMF units on first loan life leases. The reconciliation between net profit and operating income is provided on slide 9 and has not been audited or reviewed by Ernst and Young.

• FY11 operating income – continuing operations has been restated to reflect the change in classification of US Seniors and NZ Students to discontinued operations

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Key financials
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Operating income versus net profit Net profit driven by $29.6m increase in valuations of US Seniors New York portfolio

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39.0
2.8 (2.7)
36.0 26.7 (0.6) 33.6
33.0
30.0
27.0
24.0
21.0
18.0
15.0
12.0
9.0 7.4
6.0
3.0
0.0
Operating income Discontinued operations Gain on internalisation Change in fair value of Other Net profit
(US/NZ) investment properties
excl.village conversion
revals
A$m
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Note:

• Discontinued operations consist of two categories within the reconciliation found in the Director’s Report between Statutory profit and Operating income. These categories are “Profit from discontinued operations” and “Operating income from discontinued operations”

• ‘Other’ accounts for change in fair value of derivatives $0.1m offset by unrealised net FX loss $0.2m, amortisation of intangibles $0.2m, and fair value movement of resident loans $0.3m

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Key financials
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NAV composition –upside potential remains

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Cents per security
40.0
35.0 5.3 0.6 34.3
30.0
1.7
0.7 0.1
25.9
25.0
20.0
15.0
30-Jun-11 Foreign Other Operating Valuations Internalisation 30-Jun-12
currency income gain
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34.3¢
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1.4 NZ Students (4%)
3.2 DMF Conversion (9%)
7.9 Settlers (23%)
12.7 Garden Villages (37%)
9.1 US Seniors (27%)
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6.7¢ of valuation movement attributable to the US Seniors revaluation uplift during 1H FY12

• Settlement of the New York portfolio sale in late 2012 will convert 9.1¢ into cash and add a further 2.1¢ to NAV

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Key financials
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Earnings reconciliation – FY 2012

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14
1.2 (0.1) (2.5)
12 0.5 0.3
3.4 (1.1)
10
(1.2)
8 6.9 7.4
6
4
2
0
FY11 DMF Garden US Students Finance Fund Derivatives US Seniors Settlers FY12
Operating Conversion Villages Costs Expense Income Operating
Income Income
A$m
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• Strong growth in DMF Conversion with 51 units settled in FY12

• Result from prior year included the non-recurring benefit of a $2.5m cross-currency hedge receipt associated with the US portfolios

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Capital management
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Enjoying the Clubhouse at Settlers Meadow Springs, Mandurah, WA

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Overview

NZ$20.8m non-recourse debt facility has been extended for seven months to March 2013

A$82.0m Australian debt facility refinanced for three years to September 2015[1]

– Debt maturity profile at 30 June 2012 and Post Refinance

– Look through gearing (%) 30 June 2012

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140 80
73%
124.5
Amortised with US Sale 70
120 64%
60
100 52%
%
16.3 50
80
40
30%
60
Target
30
gearing
81.7
40 range
20
20 10
0 0
FY2013 FY2014 FY2015 FY2016 FY2017 > FY2017 Australian Seniors US Seniors NZ Students Total
Australian Seniors US Seniors NZ Students
Australian debt Offshore debt
A$m
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Australian debt Offshore debt

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Fund’s debt position as at 30 June 2012 Fund’s debt position post refinance

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1. Subject to confirmation that all conditions precedent have been satisfied

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Capital management
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Long term funding secured with the refinance of Australian debt facility

• A$82.0 million Australian debt facility refinanced for a further three years to September 2015[1]

• Enables the Group greater flexibility to pursue a disciplined capital management strategy and funding of development and acquisitions

• Debt has been refinanced to a fully revolving facility allowing for more efficient use of cash on hand

• All in cost of debt of 6.68% reducing to 5.98% when LVR < 40%[2]

Key metrics of the new facility

	Existing facility	New facility	INA’s target metrics
LVR covenant	50% - 65%	50%	25% - 35%
Interest coverage ratio covenant	1.4x	1.5x	> 2.0x
TLR	80%	50% upon receiving the proceeds from US Sale
Facility expiry	March 2013	September 2015
Other key terms	Restrictions on distributions, capital raisings, acquisitions etc.	Acquisitions >$20m p.a. will require CBA consent

1. Subject to confirmation that all conditions precedent have been satisfied

2. All in cost of debt based on BBSY as at 27 August 2012

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Further details on the debt facility are available in Appendix 7

Distributions update

• Recommencement of distributions to securityholders since suspension in September 2008

• 0.5¢ per stapled security final distribution declared which is expected to be 100% tax deferred for resident investors

• Directors anticipate 0.5¢ interim and final distribution for FY13 based on current budget

• Ex-distribution date: 3 September 2012

• Record date: 5pm, 7 September 2012

• Payment date: 21 September 2012

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Capital management
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A disciplined approach to capital allocation remains at the forefront of group strategy

Recurrent earnings

Balancing growth funding and capital return to securityholders

Recommencement of distribution

• Payment of 0.5¢ per stapled security for the six months to 30 June 2012

• Funded from recurrent earnings and not asset sales

• Group forecasts 0.5¢ interim and final for FY13

Funding growth

• Stringent assessment of accretive growth projects with targeted minimum unlevered IRR of 15% on acquisitions and 20% on new developments

• Focus on cash earnings and increasing development pipeline

Exploring alternate capital management initiatives

• Investigating up to $10 million buyback upon settlement of NY portfolio sale

• NAV gap has narrowed significantly over past 12 months from 54% to 27% as at 27 August 2012

• Currently no shortage of accretive growth opportunities in the Australian market

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Portfolio update
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A display suite at Settlers Ridge Estate, Hunter Valley, NSW

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The Group has a diversified portfolio of seniors business models

30 June 2012	Australian	Australian	Australian	NZ	US Rental	Portfolio
	Rental	DMF	DMF Conversion	Students	(New York)	30 June 2012
Properties	26	4	3	3	6	42
Units	1,372	677	216	359	917	3,541
Book Value	A$87.1m	A$54.0m	A$22.0m	A$19.5m	A$159.5m	A$342.1m
(ILF Share)
Occupancy	83%	96%	73%	95%	95%	89%
Occupancy Trend

Changes to come into effect in FY13:

The New York Sale as announced in May 2012 with settlement expected in late 2012, acquisition of Ridge Estate village (DMF) which settled in July 2012, divestment of Lovely Banks (Rental) as announced in June 2012 and the addition of Cessnock village (formerly rental) into the DMF Conversion portfolio

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Transition to an Australian only seniors platform is largely complete

Geographical allocation by value as at 30 June 2012

Geographical allocation by value Proforma position[1]

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NZ
NZ
Students
Students
5%
10%
Australian Rental
26%
Australian DMF
Conversion Australian Rental
14% 45%
US
Seniors
47% Australian DMF
16%
Australian DMF Australian DMF
Conversion 31%
6%
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• The Australian Seniors Rental model accounts for 45% of the Group’s total portfolio by value– providing consistent cashflow stream

• Remaining DMF portfolio enables Ingenia to seek return of capital, earn one-off development profits and receive annuity DMF income

• Proforma takes into account the divestment of 6 New York assets as announced in May 2012, the INA Board approved conversion of Cessnock rental village to DMF as announced in June 2012, the divestment of Lovely Banks rental village as announced in June 2012, and the settlement of the acquisition of Ridge Estate village (DMF) in July 2012

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National portfolio with considerable scale benefits

Garden Villages Settlers Lifestyle DMF Conversions

QUEENSLAND
	Settlers Lifestyle	DMF Conversion		Garden Villages
No of properties:	1		3	2
Total value:	A$6.6m	A$22.0m		A$10.4	m
Total units:	149	216		146
	WESTERN AUSTRALIA
		Settlers Lifestyle Garden Villages
	No of properties:	3		5
	Total value:	A$47.4m		A$19.9m
	Total units:	528		275
	NEW SOUTH WALES		VICTORIA
	Garden Villages		Garden Villages
	No of properties:	7	No of properties:		8
	Total value:	A$20.7m	Total value:	A$23.4m
	Total units:	336	Total units:		416
			TASMANIA
			Garden Villages
			No of properties:		4
			Total value:	A$12.7m
			Total units:		199

Note: Total units excludes development pipeline units

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Portfolio update – Garden Villages (Rental)
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KEY DATA

	FY 2012	FY 2011
Occupancy:	83%	81%
Net property income:	$7.0m	$6.5m
Total properties	26	26
Total units:	1,372	1,371
Development pipeline units:	-	76

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100
Trending towards the target
89%
90
83%
81%
80
73%
70
60
50
Jun-10 Jun-11 Jun-12 Target
Occupancy (%)
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KEY ACTIVITY OVER 12 MONTHS
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• Achieved occupancy of 83.4% as at 30 Jun 2012, portfolio trending well towards long term target of 89%

• Events based resident engagement program ‘Activate 2012’ successfully increased resident tenure and brand awareness

• Record growth of 239 move-ins achieved in the 6 months to 30 Jun 2012

• Exchanged conditional contracts in Jun 2012 to sell Lovely Banks village in VIC for >6% premium to book value. Majority of residents have elected to move into nearby Ingenia communities

KEY INITIATIVES FOR GROWTH

• Continue to drive occupancy to long term target of 89%

• Plans underway for ‘Activate 2013’ to promote resident and community engagement

• Aggressively manage our cost base to extract full scale benefits

• Explore provision of Community Assistance care packages with local providers

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Portfolio update – Garden Villages (Rental)
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• 50% average
margin
• $7.3k average
High profit per unit
• $69.6k average
value per unit
• 42% average
margin
• $5.4k average
profit per unit
• $58.9k average
value per unit
• 40% average
margin
Low
• $4.1k average
profit per unit
• $44.3k average
value per unit
Occupancy (%)
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14 villages presently trading at occupancy 85% and above. These are our Star performers where focus is on maintaining occupancy and improving margins

9 villages presently trading between 70% - 84%. These are our Emerging performers where management is seeking to increase occupancy

3 villages presently trading consistently below 70%. These are our Stragglers and will be divested or converted unless occupancy can be increased to a minimum 75% within the next 12 months

Profitability ($’k)

Low

High

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Portfolio update – DMF Conversion
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KEY DATA

	FY 2012	FY 2011
Total properties	3	3
Net property income:	$3.9m	$0.5m
Total units:	216	216
Sales Settlements:	51	18
Contracted and reserved:	14	22
Development pipeline units:	83	86

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Settlers Gladstone village, QLD
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KEY ACTIVITY OVER 12 MONTHS
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• In FY12, 51 settlements were achieved totaling gross sales of $9.7m, with an additional 14 contracts in place worth $2.5m

• 38% of total stock has been sold or under contract since project launch in 2010

• Strong demand remains across the three villages with Gladstone village Stage 1 maintaining a low stock of 22 units (out of 56 total units in the village)

• ‘Activate 2012’ implemented in Forest Lake Village resulted in an increase in lead generation and a strong pipeline of future sales

KEY INITIATIVES FOR GROWTH

• Board approved the conversion of Cessnock rental village in Jun 2012, with first sale anticipated in early 2013

• Planning for the 53-unit Stage 2 expansion of Gladstone village is progressing well, with DA lodged with Council in May 2012 Construction is anticipated to commence in 2013

• Assessing conversion opportunity for a further two villages in VIC

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Portfolio update – Settlers Lifestyle (DMF)
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KEY DATA
	FY 2012	FY 2011
Occupancy:	96%	95%
DMF income:	$0.9m	$1.4m
Development income:	$0.7m	$1.4m
Net property income:	$1.6m	$2.8m
Total properties	4	4
Total units:	677	677
Development pipeline units:	60	60

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Settlers Ridge Estate village, NSW
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KEY ACTIVITY OVER 12 MONTHS
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• Gradual recovery in the WA residential market has resulted in a steady increase in enquiry levels and a reduction in sales lead time

• QLD market is showing encouraging signs of improvements

• Despite challenging market conditions, $12.1m of gross sales were completed in 12 months

• Highly accretive acquisition of Ridge Estate village settled in Jul 2012 (IRR > 50%). This 16-unit village is the Group’s first DMF community in NSW and complements the closely situated Cessnock Conversion village

KEY INITIATIVES FOR GROWTH

• Currently assessing development works for an additional 28 units at Ridge Estate village, with an amended DA to be submitted early Sept 2012

• Refurbishment program launched in Noyea QLD village to increase the resale values of the vacated units

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Portfolio update – Overseas portfolios
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US Seniors Portfolio

• In May 2012, conditional contracts were exchanged to sell the Group’s interest in the New York portfolio for US$173.3m.

• Settlement is expected in late 2012, with anticipated net proceeds of A$49.9m

• Portfolio occupancy for FY12 remained strong, with 95% achieved as at 30 June 2012, above pre GFC levels

• Overall A-Grade portfolio valuations have held steady or firmed over the past six months as investors chase yield

NZ Students Portfolio

• Student accommodation occupancy for 2012 has improved to 95% for FY12

• Active negotiations with VUW are progressing for a new long term contract for two of the buildings, expected in late 2012

• Recently negotiated a 15-year accommodation lease over the McKenzies Building to Weltec (Wellington Institute of Technology)

• New leases will underpin asset values and support capex and refurbishment requirements over coming years

• Negotiations well progressed for the portfolio sale at premium to book value

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Strategy & outlook
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Ingenia is committed to operating and building a highly profitable Australian Seniors living portfolio

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Settlers Ridgewood Rise, Ridgewood WA

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Strong organic growth opportunities embedded within existing assets

Development forecast within existing portfolios as at 30 June 2012

Completion Value ($m) # of Units1 FY12 FY13 FY14 FY15 FY16+ Active Development Medium term target	Completion Value ($m) # of Units1 FY12 FY13 FY14 FY15 FY16+ Active Development Medium term target	Completion Value ($m) # of Units1 FY12 FY13 FY14 FY15 FY16+ Active Development Medium term target	Completion Value ($m) # of Units1 FY12 FY13 FY14 FY15 FY16+ Active Development Medium term target
Settlers DMF	Ridgewood, WA $1.3 3	TARGET: 100 units delivered p	a.
	Ridge Estate, NSW $8.7 31
DMF Conversion	Gladstone, QLD $18.9 75 Stage1 Stage 2
	Rockhampton, QLD $14.6 82 Stage 1 Stage 2
	Forest Lake, QLD $14.6 71
	Cessnock, NSW $9.3 49

TARGET: 100 units delivered pa.

Development Opportunities

Settlers DMF Meadow Springs, WA $24.0 60 DMF New conversion, VIC $12.0 100 Conversion $103.4m 471 Units

Stage 2

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Development Sell down

1. Includes built stock and units yet to be developed

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Strategy – FY12 Score card
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Acquire partially built
villages in new markets Planning
Develop, Seed new business models • Assessing several accretive opportunities
acquire and market niches Underway • Exploring partnership with care service providers for
existing rental villages
& seed
Acquire Greenfield
opportunities in new Planning (low priority)
markets
Convert existing rental Finalising conversion plans for
Underway
villages to DMF Cessnock village, NSW – 4 [th]
conversion village
Acquire and develop Assessing several opportunities
Underway
Extend & land adjacent to existing adjacent to high occupancy villages
villages
convert
Bolt-on acquisitions in • Ridge Estate village acquired in Jul
Delivered
existing markets 2012, INA’s first DMF village in NSW
• Assessing further accretive
Underway
opportunities
Drive Garden Villages Achieved new high of 83.4% as at 30
Build & rental occupancy Delivered Jun 2012
execute
operational
Progressing well with Stage 2
capability Expand existing villages Underway
expansion of Gladstone, QLD
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Short term

Long term

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Outlook
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• Repatriation of US sale proceeds anticipated in late 2012 will likely be used to invest in accretive acquisitions and development, a buyback and debt reduction

• Assess various accretive acquisitions and development opportunities to expand Ingenia’s operational and earnings base

• New investment will likely be in existing market clusters to leverage development, operational and sales capabilities

• Continually assess opportunities to divest poorly performing assets at value and recycle capital into projects earning minimum 15% unlevered IRR

• Retain a pool of high performing rental villages that generates consistent cashflow and income

• Conversion of additional rental villages where appropriate if highest and best use as DMF villages

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Appendices
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Settlers Noyea Park, Mt. Warren Park, QLD

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Appendix 1 – Operating income
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	FY12	FY11
Operating income	(A$m)	(A$m)	Comments
Continuing operations
Australian Seniors
- Garden Villages	7.0	6.5	Improved occupancy
- DMF Conversion Properties	3.9	0.5	First fullyear contribution
- Settlers Lifestyle	1.6	2.8	Less development
	12.5	9.8
Net finance costs	(7.7)	(8.9)	Lower average debt balances
Management fee	(2.0)	(1.8)
Fund administration	(0.8)	(0.9)
Operating income – Continuing operations	2.0	(1.8)
Divested or Exiting operations
US Seniors	4.3	5.4	Smallerportfolio in FY12
NZ Students	1.2	1.2
US Students	(0.1)	(0.4)
Derivative Income	-	2.5	Cross currencyterminated in FY11
Operating income – Discontinued operations	5.4	8.7
Operating income	7.4	6.9

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Appendix 2 – Look through balance sheet
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Look-through balance sheet	Australian Seniors	US Seniors	NZ Students	Total Look through	Adjustments	Total Statutory	Total Statutory
(A$m)				Balance Sheet		Balance Sheet
Cash	29.6	2.8	2.5	34.9	(5.3)	29.6
Investment property and property under development	327.6	159.5	19.5	506.6	(179.0)	327.6
Otherassets	6.0	6.4	2.0	14.4	(8.4)	6.0
Assets ofdiscontinued ops	-	-	-	-	95.3	95.3
Total assets	363.2	168.7	24.0	555.9	(97.4)	458.5
Interest bearingliabilities	81.7	124.5	16.3	222.5	(140.8)	81.7
Derivatives	1.0	-	-	1.0	-	1.0
Villageresidents’ loans	162.6	-	-	162.6	-	162.6
Other liabilities	16.3	3.9	1.7	21.9	(5.6)	16.3
Liabilities ofdiscontinued ops	-	-	-	-	45.7	45.7
Total liabilities	261.6	128.4	18.0	408.0	(100.7)	307.3
Net assets	101.6	40.3	6.0	147.9	3.3	151.2
Net asset value per unit - cents	23.0¢	9.1¢	1.4¢	33.5¢	0.8¢	34.3¢
Assets less cash and resident loans	171.0	165.9	21.5	358.4	-	-
Total debt less cash	52.1	121.7	13.8	187.6		-
Look through gearing (%)	30%	73%	64%	52%	-	-
Secured assets	165.0	-	-	-	-	165.0
Interest bearing liabilities (AU)	81.7	-	-	-	-	81.7
Actual loan to value ratio (LVR)	49.5%	-	-	-	-	49.5%

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Appendix 3 – Cashflow in detail
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Cashflow Amount A$m Opening cash at 1 July 2011 15.0 Cashflow generated from operations: Australian Seniors 21.4 Overseas portfolios 3.1 RE fees (including backlog of $8.0m) (10.0) Net borrowing costs paid (9.3) Income tax expense (0.1) Net Cashflows from Operations 5.1 Proceeds from sale of US Seniors (Non-New York portfolio) 29.9 Acquisition of 10% NZ Students from REIMA 2.3 Capital expenditure and development costs (2.1) Purchase of 1% US Seniors from REIMA (0.7) Purchase of Plant & Equipment (0.3) Net Cashflows from Investing 29.1 Debt repayments – Australian Seniors debt (17.9) Debt drawdowns – Australian Seniors debt 3.2 Internalisation Payments (1.2) Derivative payments (1.1) Net Cashflows from Financing (17.0) Total Cashflows 17.2 Effects of exchange rate changes on cash 0.6 Closing cash at 30 June 2012 32.8
	Closing cash at 30 June 2012	A$m
	Continuing operations (Balance sheet’s “cash and cash equivalents”)	29.6
	Discontinued operations (note 7 of financial statements)	3.2
	Total cash	32.8

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Appendix 4 – Cashflow reconciliation
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Cashflow reconciliation – FY 2012

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80
29.9 (17.9)
70
60 (10.0)
50 21.4 (9.3)
40 (2.1) (1.1) (1.2) (0.7) 32.8
30
3.2
3.1
20 2.3
15.0 0.2
10
0
A$m
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$10m RE fees paid to ING, of which $8m represents accrued but previously unpaid RE fees

$1.2m one-off payment to cover internalisation costs

$29.9m proceeds from sale of US Non-New York portfolio used to repay $17.9m of debt

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Appendix 5 – Internalisation impact
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Financial impact of management internalisation

$4.1 million support package received from ING > Overall gain on internalisation of $2.8m reflected in FY12 results

Financial impact of management internalisation >$4.1 million support package received from ING >Overall gain on internalisation of $2.8m reflected in FY12 results	Financial impact of management internalisation >$4.1 million support package received from ING >Overall gain on internalisation of $2.8m reflected in FY12 results
Support package	Impact
>Accrued but unpaid RE fees of $2.5m waived	>Positively impacts FY12 profit but no impact on cashflow. Balance of $8.0m of RE fees paid in FY12 which significantly reduces operating cashflows
>Received ING’s 10% interest in NZ Students for nil consideration– valued at $1.3m	>Positively impacts FY12 profit but no impact on cashflow
>Transitional and other support – valued at $0.8m	>$0.8m transitional and rental support recognised as a gain on internalisation that positively impacts FY12 profit but will be recorded as an amortisation expense in FY13

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Appendix 6 – Ingenia operating cost base
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Operating cost base (FY13 - indicative)

Overheads	$m
Corporate (Sydney)
Business development	0.8	Costs associated with development and acquisition
		activities (staff, investigation costs)
Corporate office	2.6	Executives remuneration, finance, investor relations
		(staff,legal fees,office costs,travel)
Board fees	0.3	Directors fees
Regulatory fees	0.9	ASX listing fees, AFSL costs, compliance, insurance,
		audit and other related costs (cost of operating as an
		ASX listed,triple stapled trust)
	4.6
Operational	3.6	Day-to-day operational costs for accounts, payroll,
(Brisbane service centre)		marketing, property management across Australia
	$8.2m / annum

> Future revenues will grow faster than cost base

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Appendix 7 – Debt facilities
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Appendix 7 – Debt	facilities
	Australian Seniors Refinanced Facility1	US Seniors	NZ Students3
Limit ($m)	Revolver A$82.0m	US$126.9m4	NZ$20.8m
Amount drawn ($m)	A$80.2m2	US$126.9m4	NZ$20.8m
Loan to value ratio (LVR) actual 50% N/A 59.6%
LVR bank covenant	50%	N/A	60%
Interest cover ratio (ICR) actual 1.75x N/A 2.3x
ICR bank covenant	1.5x	N/A	1.5x
Leverage ratio actual 58.7% N/A N/A
Leverage covenant	50%6	N/A	N/A
% Hedged (interest rates)5	75%	100%	0%
Facility expiry	Sep 2015	Nov 2017 to Nov 2042	Mar 2013

1. Subject to confirmation that all conditions precedent have been satisfied

2. On completion of refinancing, at least $1.55m of the Group’s $32.8m cash will be applied to CBA debt.

3. The NZ debt facility was refinanced on 9 August 2012, extending the expiry 31 March 2013

4. ILF interest only

5. US Seniors is 100% fixed rate debt for life of the loan

6. 80% reducing to 50% upon receiving the proceeds from the New York sale

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Appendix 8 - Valuations
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Reduction in values primarily due to asset sales and monetisation of inventory

	30 Jun	30 Jun	Movement	Movement	30 Jun 2012	30 Jun 2011
Valuations	2012	2011			Cap rate/	Cap rate /	Key drivers of valuation movement
	Valuation	Valuation	($m)	(%)	Discount	Discount
					rate3	rate3
					(%)	(%)
Garden Villages	87.1	89.7	(2.6)	(2.9)	10.1	10.1	• Reduction due to delays in
(Rental)							occupancy growth in select villages
Settlers (DMF)	54.0	56.5	(2.5)	(4.4)	13.2	13.5	• Reduction primarily due to
							monetisation of stock on hand
DMF Conversion	22.0	26.4	(4.4)	(16.7)	14.94	17.64	• Reduction primarily due to
							monetisation of stock on hand
US Seniors NY1	162.4	132.22	30.2	22.8	7.1	7.3	• Principally driven by investor
(US$m)							demand for quality, yield driven
							seniors housing assets
NZ Students	24.9	22.5	2.4	10.7	10.0	9.5	• Reduction primarily due to short
(NZ$m)							WALE pending renegotiations of
							new occupancy guarantees

1. ILF interest only

2. Tax leakage associated with transaction estimate at $1.4m AUD

3. Weighted average capitalisation rate for all portfolios except Australian Seniors Settlers DMF and conversion assets which uses weighted average discount rate 4. Valuation discount rates for DMF Conversion assets represent a blended discount rate applied to the cashflows.

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Recent examples of Ingenia’s capital allocation

1. Ridge Estate Village, Hunter Valley, NSW

2. Acquisition of a boutique retirement village comprising 11 occupied units, 5 completed but unsold units, and 26 serviced development sites

3. Purchase price was $2m, transaction settled in July 2012

4. Forecast unlevered IRR of >50% primarily due to rapid sell down of unsold units which recoups majority of capital outlay within six months of settlement

5. Gladstone Gardens village, Gladstone, QLD (Stage 1)

6. 56-unit former rental village progressively converted to the DMF model from October 2010

7. Initial investment of $0.9m (in addition to book value of $5.3m) which to date has released gross cashflow of $6.5m

8. Project is expected to deliver an unlevered IRR of 29.1% (excluding DMF)

9. Gladstone Gardens village, Gladstone, QLD (Stage 2)

10. 53-unit medium density expansion of existing high occupancy village

11. DA lodged in July 2012, with construction likely to commence in early 2013 and settlements from 2014

12. Affordability focused project with peak funding of $8.7m and unlevered IRR (excluding DMF) of ~15.2%

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Appendix 10 – Retirement living trends
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Ingenia to focus on affordable segment of market

Median Incomes By Age

Median Net Worth By Age, 2010

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2000
1000
1800 Quartile 4
$958k
1600 Quartile 4
800
1400
1200 600
1000
800 Quartile 3 400 Quartile 3
600 $328k
Quartile 2
400 200 Quartile 2
$189k
200 Quartile 1
Quartile 1
0 0 $61k
15-24 25-34 35-44 45-54 55-64 over 65 Affordable 30-39 40-49 50-59 60-69 70+
Housing Zone
Median Weekly Income
Couple Single Age
Weekly income ($) Net Worth ($’000)
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• Steep drop in weekly income for person over 65 helps drive seniors demand for more affordable housing

• Median net worth of seniors begin to fall as they age

• Decreased net worth in over 65s drives them towards the affordable housing sector

> Strongest part of market remains affordable seniors accommodation

> Majority of peers focused on middle to middle/upper markets

Chart sources: Median Income chart sourced from the Australian Bureau of Statistics, 2009-10 Survey of Income & Housing (SIH) Median Net Worth chart sourced from Household, Income and Labour Dynamics in Australia (HILDA)

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Appendix 11 – The Rental model
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Ingenia Communities’ sizable rental portfolio provides clear differentiation from other A-REIT seniors living players

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DMF Income
5%
Rental
Development
Profit 60%
35%
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Ingenia to focus on market segments where it can increase or grow cash yields and low risk developments

60% of total income is currently derived from rent providing consistent cashflow streams

Driving occupancy to grow recurrent rental income is key

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Appendix 12
Portfolio statistics: Garden Villages (Rental)
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Property Name	Location	Book Value 30 Jun 2012 (A$m)	Cap Rate	Total Units	Occupancy
Western Australia
Swan View Gardens	Swan Valley, WA	5.5	10.6%	72	96%
Yakamia Gardens	Yakamia, WA	3.1	10.0%	57	70%
Sea Scape Gardens	Erskine, WA	4.2	10.8%	51	100%
Seville Grove Gardens	Seville Grove, WA	3.6	10.0%	45	100%
Carey Park Gardens	Bunbury, WA	3.5	10.0%	50	74%
Total / Average - WA		19.9	10.3%	275	88%
Queensland
Marsden Gardens	Marsden, QLD	8.0	10.5%	96	92%
Jefferis Gardens	Bundaberg North, QLD	2.4	10.0%	50	70%
Total / Average - QLD		10.4	10.4%	146	84%
New South Wales
Cessnock Gardens1	Cessnock, NSW	2.9	10.0%	39	90%
Taloumbi Gardens	Coffs Harbour, NSW	4.2	10.8%	50	100%
Mardross Gardens	Lavington, NSW	2.2	8.5%	52	58%
Chatsbury Gardens	Goulburn, NSW	2.9	10.0%	49	88%
Wheelers Gardens	Dubbo, NSW	3.7	10.0%	52	98%
Taree Gardens	Taree, NSW	2.2	10.0%	50	90%
Oxley Gardens	Port Macquarie, NSW	2.6	10.0%	44	73%
Total / Average - NSW		20.7	10.0%	336	85%

1. The INA Board approved conversion of Cessnock rental village to DMF model was announced on 5 June 2012

Note: All figures as at 30 June 2012

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Appendix 13
Portfolio statistics: Garden Villages (Rental)
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Property Name	Location	Book Value 30 Jun 2012(A$m)	Cap Rate	Total Units	Occupancy
Victoria
Lovely Banks Gardens1	Corio, VIC	2.8	9.8%	66	53%
Grovedale Gardens	Grovedale, VIC	3.3	10.3%	51	88%
St Albans Park Gardens	St Albans Park, VIC	3.4	9.8%	52	87%
Townsend Gardens	St Albans Park, VIC	3.3	9.8%	50	84%
Horsham Gardens	Horsham, VIC	3.1	9.8%	47	85%
Brooklyn Gardens	Brookfield, VIC	2.2	8.5%	51	67%
Coburns Gardens	Brookfield, VIC	2.6	10.0%	51	80%
Hertford Gardens	Sebastopol, VIC	2.7	10.0%	48	98%
Total / Average - VIC		23.4	9.8%	416	79%
Tasmania
Glenorchy Gardens	Glenorchy, TAS	3.2	10.0%	42	98%
Elphinwood Gardens	Launceston, TAS	3.1	10.0%	55	76%
Claremont Gardens	Claremont, TAS	3.5	10.0%	51	82%
Devonport Gardens	Devonport, TAS	2.9	10.0%	51	73%
Total / Average - TAS		12.7	10.0%	199	81%
TOTAL / AVERAGE - GARDEN VILLAGES		87.1	10.1%	1,372	83%

1. The divestment of Lovely Banks village was announced on 25 June 2012

Note: All figures as at 30 June 2012

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Appendix 14
Portfolio statistics: Settlers (DMF)
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Property Name	Location	Book Value	Discount Rate	Total Units	Occupancy
		30 Jun 2012(A$m)
DMF Villages
Lakeside	Ravenswood, WA	24.5	13.0%	232	93%
Ridgewood Rise	Ridgewood, WA	19.1	13.0%	240	98%
Meadow Springs	Mandurah, WA	3.8	14.0%	56	87%
Noyea Park	Mt Warren Park, QLD	6.6	14.0%	149	99%
Total/Average – DMF Villages		54.0	13.2%	677	96%
DMF Conversion1
Forest Lake Gardens	Forest Lake, QLD	8.7	16.8%	86	63%
Rockhampton Gardens	Rockhampton, QLD	8.1	14.9%	74	80%
South Gladstone Gardens	South Gladstone, QLD	5.2	11.8%	56	79%
Total/Average – DMF Conversion		22.0	14.9%	216	73%
TOTAL/AVERAGE - SETTLERS		76.0	13.7%	893	90%
TOTAL / AVERAGE - AUSTRALIAN SENIORS		163.1	-	2,265	86%

1. Valuation discount rates for DMF Conversion assets represent a blended discount rate applied to the cashflows.

Note: All figures as at 30 June 2012

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Appendix 15 – Settlers (DMF) sales
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		S.E. WA		S.E. QLD
	Lakeside	Meadow	Ridgewood	Noyea	Total
		Springs	Rise	(strata)
12 months to 30 June 2012
No. of new sales	5	-	9	-	14
Average new sales prices ($’000)	296	-	451	-	396
No. of resales	5	2	8	9	24
Average resale prices ($’000)	321	288	370	206	291
As at 30 June 2012
Units available for resale	10	7	12	15	44
Occupancy (%)	93	87	98	99	96
Average resident entry age (yrs)	68	71	69	70	69
Average resident age (yrs)	76	75	74	79	76
Average resident tenure (yrs)	8.1	6.8	5.1	10.4	7.5

Resales are the focus at mature Noyea village, with efforts being directed towards working with departing residents to refurbish the aged properties to increase resale values and reduce time on market

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	Appendix 16 Portfolio statistics: Offshore assets Property Name Location Book Value 30 Jun 2012 (US$m) Book Value 30 Jun 2012 ILF Interest (A$m)1 Cap Rate Total Units Occupancy New York assets (Bristal) East Meadow East Meadow, NY 25.3 24.9 7.0% 132 96% Lynbrook Lynbook, NY 26.5 26.0 7.5% 149 90% Massapequa Massapequa, NY 26.8 26.3 7.0% 156 96% North Hills North Hills, NY 41.4 40.6 7.0% 166 95% North Woodmere North Woodmere, NY 16.9 16.6 7.0% 141 93% Westbury Westbury, NY 25.5 25.1 7.0% 173 100% TOTAL / AVERAGE – US SENIORS 162.4 159.5 7.1% 917 95% Property Name Location Book Value 30 Jun 2012 ILF Interest (NZ$m) Book Value 30 Jun 2012 ILF Interest (A$m)2 Cap Rate Total Units Occupancy3 NZ Students assets Cumberland House Wellington, NZ 16.4 12.9 10.0% 187 91% Education House Wellington, NZ 3.5 2.7 10.0% 108 100% McKenzie Apartments Wellington, NZ 5.0 3.9 10.0% 64 100% TOTAL / AVERAGE – NZ STUDENTS 24.9 19.5 10.0% 359 95%

1. Exchange rate of A$1 = US$1.0191

2. The divestment of the New York portfolio was announced on 23 May 2012

3. Exchange rate of A$1 = NZ$1.2771

Note: All figures as at 30 June 2012

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Appendix 17 – DMF accounting
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Deferred Management Fee (DMF) accounting – impact on P&L vs. cashflow

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Impact on P&L Accrued DMF income (incl. capital gain share) over 10 years
$14.0k
$13.9k
$13.7k
Development $13.6k
profit: $66k
$13.4k
$13.3k
$13.1k
$13.0k
Initial sale of $12.9k
unit $283k $12.7k
Cost to build
unit: $217k
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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Impact on Cashflow
DMF income accrued but not received until resident departs
Ingenia DMF
fee + capital
gain $134k
Development
profit: $66k Resale of Resident’s
unit capital gain
Initial sale share $49k
Cost to of unit: $381k
build unit: $283k Resident loan
$217k liability less DMF
fee $198k
Year 0 Year 1 to Year 10
resident departs
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Commentary / Assumptions

• Diagrams are not to scale, only for illustrative purposes

• Purchase price forms the basis of the Resident Loan Liability repayable on exit

• Selling cost excluded from calculation of development profit

• DMF fee is based on 30% of original purchase price

• DMF income accrues at 3% p.a.

• Property prices are assumed to grow at 3% p.a.

• Resident is assumed to exit the village at year 10

• Capital gains are shared 50/50 between the resident and Ingenia

• Exit fees comprise capital gain sharing and DMF fees

• Proceeds from resale forms the new Resident Loan Liability

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Appendix 18 – DMF accounting
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De-mystifying DMF in financial statements

Refer to Note 11, Annual Report 2012

• Rental Villages – valuations based on cap rates

	2012	2011
	($’000)	($’000)
Investment properties
Rental Villages	87,129	89,416
DMF Conversion Villages	34,879	29,938
Settlers Lifestyle	203,954	202,336
Total investment properties	325,962	321,690
Resident loans	162,603	150,761
Net Investment in Australian Seniors Villages	163,359	170,929
Rental income & other property income	20,881	33,190
Accrued DMF income	4,453	4,256
Property expenses	(17,928)	(30,369)
Fair value movement of investment properties – developmentprofits	5,124	2,743
Total Australian Seniors Operating Profit	12,530	9,820
Fair value movement of investment properties – excl. developmentprofits	(2,760)	(4,931)
Fair value movement of retirement village resident loans	(284)	182)
Total Australian Seniors Statutory Profit	9,486	5,071

• DMF Conversion and Settlers Lifestyle – underlying value of the physical property plus residual NPV of future cashflow streams after deducting accrued DMF balance

Refer to Note 24L, Annual Report 2012

• Represents value of incoming resident loan plus resident’s share of capital gain less accrued DMF (including operator capital gain share)

Refer to Appendix 12 to 14, Portfolio Statistics slides in this presentation

• Represents market value of Ingenia’s retirement village assets excluding property under construction

Refer to Appendix 1, Operating Income slide in this presentation for the split by portfolio

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De-mystifying the accounting for DMF Conversion projects

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Impact on P&L
Stage 1 Stage 2 Stage 3 DMF income accrued yearly over 10 years
Rental unit Conversion Conversion complete
and DMF unit sold
process
$9.2k
No profit
P&L impact profit $8.8k
recorded as unit
contribution per unit $8.7k
undergoes
refurbishment Development
profit:$44k $8.4k
Initial sale
$4.3k refurb cost: of unit: $8.3k
$4.2k $46k $186k
$4.1k
CV: $95.5k
Year 1 Year 2 Year 3 Year 1 as DMF asset ...... Year 5......................... Year 10
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Impact on Cashflow
Stage 1 Stage 2 Stage 3
Rental unit Conversion Conversion complete DMF fee + Ingenia
process and DMF unit sold DMF income accrued but not capital gains share
$88k
received until resident departs
Cashflow contribution per No rental income
unit received , cash
outlay to convert Resale of Resident’s
unit for sale unit capital gains
Initial sale share $32k
$4.3k of unit: $250k
$4.2k
$186k
$4.1k Loan liability less
2 mths DMF fees $130k
Year 1 Year 2 Year 3 Refurb Cost: $46k Year 1 as DMF asset to Year 10
resident departs
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Commentary / Assumptions

• Diagrams are not to scale, only for illustrative purposes

• CV refers to the carrying value of the unit before conversion

• During the refurbishment period, the unit is vacant and no rent is recorded

• The proceeds from the sale of the unit forms the Resident Loan Liability

• DMF Income is incurred throughout the period of occupancy at a rate based on the expected length of stay (up to 30%)

• Resident is assumed to exit the village at year 10

• On exit, the unit is on-sold to a new resident

• The departing resident is repaid the original loan liability less the DMF fees

• Capital gains are shared 50/50 between the resident and Ingenia

• The departing resident will receive their share of capital gain

• Property prices are assumed to grow at 3% p.a.

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Disclaimer
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This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN 154 565 990) 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 29 August 2012. 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.

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.

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.

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