INGENIA COMMUNITIES GROUP — Investor Presentation 2016

May 11, 2016

Ingenia Communities Group

Goldman Sachs Small and Mid-Cap Conference

12 May 2016

==> picture [719 x 21] intentionally omitted <==

BETHANIA

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

OUR BUSINESS
----- End of picture text -----

==> picture [186 x 123] intentionally omitted <==

==> picture [182 x 118] intentionally omitted <==

==> picture [176 x 117] intentionally omitted <==

==> picture [172 x 117] intentionally omitted <==

Ingenia is a leading owner, operator and developer of affordable Lifestyle, Retirement and Leisure Communities

==> picture [220 x 148] intentionally omitted <==

==> picture [218 x 142] intentionally omitted <==

p2

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

A GROWING PORTFOLIO OF SENIORS
RENTAL COMMUNITIES
----- End of picture text -----

==> picture [686 x 359] intentionally omitted <==

----- Start of picture text -----

Ingenia has
Australian
communities
65 and growing
Portfolio now
NT
million 8
$480
9 QLD
WA
SA
LIFESTYLE
33
26 PARKS
NSW
RENTAL
31 VILLAGES
10
DMF
VIC
8 VILLAGES
5
TAS
----- End of picture text -----

p3

ON PENSION

Australia's Over 50's Population Projections

Superannuation account balances (by age group)

==> picture [703 x 231] intentionally omitted <==

----- Start of picture text -----

25.0m
100%
44% 6%
14% 13% 4%
90% 22% 24% 20%
10%
42% 20.0m 7%
80% 14%
40% 70% 14% 10% 10% 15%
15.0m
60% 19%
38%
50% 34%
36% 10.0m 54% 43%
40% 81%
66%
34% 30%
51%
5.0m 20%
32% 32%
10% 22%
17%
30% 0.0m 0%
2011 2016 2021 2026 2031 2036 2041 2046 2051
50-54 years 55-59 years 60-64 years 65-69 years 70-74 years 75 years +
Nil $1-99k $100-199k $200k+
% of Pop Population
No. Persons
Portion of Population
----- End of picture text -----

Source: ABS.

==> picture [153 x 7] intentionally omitted <==

----- Start of picture text -----

Source: ASFA Research and Resource Centre.
----- End of picture text -----

Australia’s population is rapidly ageing

• The 2011 Census indicated that 77% of single people over 65 rely on the pension as their primary source of income (ABS, 2011 Census)

• Australia’s growing pool of retirees is living longer - many have limited superannuation savings

• The maximum pension is $437 per week which is insufficient to fund a comfortable retirement

p4

AFFORDABILITY CRISIS CREATES OPPORTUNITY

==> picture [250 x 11] intentionally omitted <==

----- Start of picture text -----

Australian house price index versus wage price index
----- End of picture text -----

==> picture [333 x 172] intentionally omitted <==

----- Start of picture text -----

400
350 House Price Index Wage price index
300
250 CAGR 7.89%
200
150
100
CAGR 3.41%
50
0
----- End of picture text -----

Property ownership without a mortgage (by age group)

==> picture [342 x 205] intentionally omitted <==

----- Start of picture text -----

100%
80%
60%
40%
20%
0%
55–64 65–74 75 and
over
----- End of picture text -----

Source: Colliers Edge and ABS (as at June 2015), INA Analysis.

==> picture [45 x 6] intentionally omitted <==

----- Start of picture text -----

Source: ABS.
----- End of picture text -----

As house prices rise, affordability is decreasing

• The rate of wage (and pension) growth has been far outstripped by growth in house prices

• For many retirees home ownership is a significant source of wealth accumulation

• Releasing equity to fund a comfortable retirement while retaining access to the pension and receiving rent assistance is attractive to many seniors

p5

PORTFOLIO OVERVIEW

==> picture [720 x 151] intentionally omitted <==

==> picture [237 x 154] intentionally omitted <==

==> picture [259 x 152] intentionally omitted <==

==> picture [232 x 156] intentionally omitted <==

p6

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

GARDEN VILLAGES (SENIORS RENTAL)
31 seniors rental villages (Book value: $130.3 million)
----- End of picture text -----

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

• Over 1,600 units

• Affordable rental accommodation with modest facilities coupled with services and activities

• Generates $0.5 million per week (funded by government payments)

• Strong demand – no new supply

Portfolio value increasing – operating performance and growing market recognition

Significant organic growth opportunities

Taree Gardens, Taree, NSW

p7

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

ACTIVE LIFESTYLE ESTATES (LIFESTYLE PARKS)
Ingenia’s growth focus
----- End of picture text -----

High yielding assets with low risk, capital light development

• Finite pool of valuable land zoned for lifestyle and tourist parks in tightly held markets

Fragmented ownership offering considerable consolidation opportunities

• Deliver quality seniors housing significantly more affordable than other models

• One Mile Beach Holiday Village near Newcastle

• Acquired for $11m in December 2013 on an ingoing yield of 10.6%

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

LIFESTYLE PARKS
The evolution
----- End of picture text -----

==> picture [218 x 142] intentionally omitted <==

• Caravan parks established in the 1950’s to accommodate families and couples on holidays

==> picture [218 x 141] intentionally omitted <==

• ˃ Caravan parks began to offer increasing mix of temporary caravan sites and permanent manufactured home sites

• ˃ Became a popular low cost permanent accommodation option for a growing segment of seniors

• ˃ Quality and size of mobile homes continued to improve

==> picture [219 x 140] intentionally omitted <==

• ˃ Today, parks primarily built for permanent manufactured home sites

• ˃ Affordable yet better quality manufactured homes with features consistent with master built homes (e.g. with marble bench tops, tiled floors etc.)

p9

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

LIFESTYLE PARKS BUSINESS MODEL
Land lease rental
----- End of picture text -----

• Resident owns the above ground structure

House (above ground) purchased by resident from Ingenia or previous resident

• Ingenia owns the freehold land

• Resident enters into a ground lease with Ingenia (typically rolling three years)

• Resident pays a weekly ground lease rent to Ingenia to reside on the home site

• Upon departure, resident can on-sell the home to an incoming resident or remove their home from site

• Ingenia may act as sales agent and collect commission

• Resident must continue paying the ground lease fee until the home is sold or removed from site

==> picture [313 x 234] intentionally omitted <==

Ingenia retains land ownership and collects ground lease rent

p10

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

ACTIVE LIFESTYLE ESTATES
Quality homes
----- End of picture text -----

==> picture [418 x 289] intentionally omitted <==

==> picture [304 x 192] intentionally omitted <==

p11

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

RAPID GROWTH IN LIFESTYLE PARKS
----- End of picture text -----

• Ingenia has rapidly built a significant lifestyle parks business with a focus on key metropolitan and coastal locations

==> picture [127 x 69] intentionally omitted <==

26 LIFESTYLE PARKS

• From an initial investment in 2013, Ingenia has built a $285 million portfolio

3,700 INCOME PRODUCING SITES 1,600 DEVELOPMENT SITES

==> picture [605 x 232] intentionally omitted <==

----- Start of picture text -----

Portfolio location Development Pipeline
(by value) (number of sites)
Regional
Metro
23% Metro
37% Coastal
56%
50%
Coastal
21%
Regional
13%
----- End of picture text -----

p12

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

ACTIVE LIFESTYLE ESTATES
Highest and best use drives mix
----- End of picture text -----

In select coastal parks, tourism generates significantly higher returns than permanent sites

Tourist cabin – 72 m[2 ] Average rent $127 p/n @ 68% occupancy = A$31,500 per year

Permanent site - 135 m[2] Rent from senior $133 p/w = A$6,900 per year

Active Lifestyle Estates, White Albatross, Nambucca Heads, NSW Acquired December 2014. Includes 135 permanent sites and 165 tourism sites

p13

1

2

3

4

5

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

TOURISM AND SHORT-TERM ACCOMMODATION
----- End of picture text -----

Complementary business with significant upside

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

Annuals represent families or seniors who have purchased their holiday home and pay an annual site rental – huge growth market and similar characteristics to permanent residents

Tourism and short term accommodation preserves longterm development optionality for key coastal and metro parks

Tourism parks are often first touch point with prospective permanent residents and their families and provide strong cross selling opportunities

==> picture [206 x 134] intentionally omitted <==

==> picture [211 x 137] intentionally omitted <==

No clear market leader

==> picture [149 x 100] intentionally omitted <==

==> picture [148 x 100] intentionally omitted <==

==> picture [148 x 100] intentionally omitted <==

==> picture [148 x 100] intentionally omitted <==

==> picture [148 x 100] intentionally omitted <==

p14

Waterfront Cabins at Conjola Lakeside, NSW South Coast p15

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

RECENT ACQUISITIONS
----- End of picture text -----

CONJOLA LAKESIDE

Established 21 hectare coastal site with significant development potential

Potential for 210 additional sites (75 approved) Cost per site

Income producing sites ~$54,000 Additional potential sites ~$17,000

Land approved for 75 sites

Licensed club

Golf course

Vacant cabin sites

Boat storage

p16

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

RECENT ACQUISITIONS
----- End of picture text -----

Acquired July 2015 for $8.15 million

Pure manufactured home community (Bris. metro)

Build ready partially developed community with facilities in place and 86 approved sites

Adjacent land acquired April 2016 – 115 sites (STA) Cost per site

Income producing sites DA approved sites Adjacent land

~$65,000

~$54,000

~$29,000

p17

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

BUSINESS UPDATE
----- End of picture text -----

Active Lifestyle Estates, Ettalong Beach, Ettalong Beach, NSW p18

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

OPERATING BUSINESS
----- End of picture text -----

Underlying business performing well

Strong performance from tourism business

• Stable occupancy and increased rents across Garden Villages

Further growth of lifestyle parks portfolio

• Seven acquisitions year to date with 620 permanent home sites

• Additional 7.1 hectares of land acquired adjacent to Bethania (ability to develop 100+ sites, subject to approvals)

• DAs lodged for additional 150 new homes

• Total of 94 sales (with 85 settlements) year to date (at 22 April 2016)

Changes to banking arrangements provide additional flexibility to support growth

• Funding facility increased to $225 million with no impact on pricing

Simplified facility covenants

p19

Supplemented by growth in development returns

==> picture [616 x 333] intentionally omitted <==

----- Start of picture text -----

31 DEC 2015 ASSET TARGET ASSET
ALLOCATION ALLOCATION
14% 28% ~25% ~75% 84%
DMF Rental Villages Rental Villages TARGET DEC 15
Rental earnings Rental
earnings
Continued
A$462.6M
growth
TARGET
~25% 16%
~75%
58%
TARGET DEC 15
Lifestyle Parks Lifestyle Parks
Development Development
earnings earnings
----- End of picture text -----

Note: Rental and development earnings represent EBIT.

p20

OUTLOOK

► Optimise performance of existing assets

• Complete DMF divestment to recycle capital into additional lifestyle parks

• Continue sales growth as new projects launch to achieve target of 120 sales for FY16

• Secure future growth in lifestyle parks business through acquisition and development of established and greenfield assets in attractive locations

• Targeting future growth in distributions

p21

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

QUESTIONS
----- End of picture text -----

Active ~~Lifestyle Estates Chambers Pines, QLD~~

p22

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

CONTACT INFORMATION
----- End of picture text -----

==> picture [97 x 94] intentionally omitted <==

SIMON OWEN CEO & Managing Director Tel: +61 2 8263 0501 Mob: +61 412 389 339 sowen@ingeniacommunities.com.au

==> picture [98 x 98] intentionally omitted <==

DONNA BYRNE

Group Investor Relations Manager Tel: +61 2 8263 0507 Mob: +61 401 711 542 dbyrne@ingeniacommunities.com.au

INGENIA COMMUNITIES GROUP Level 9, 115 Pitt Street Sydney NSW 2000 www.ingeniacommunities.com.au

p23

==> picture [720 x 57] intentionally omitted <==

----- Start of picture text -----

DISCLAIMER
----- End of picture text -----

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 April 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.

p24