INGENIA COMMUNITIES GROUP

Presented by Simon Owen, CEO and Managing Director 11 OCTOBER 2017

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Morgans Queensland Conference

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Business overview

Creating Australia’s best lifestyle communities

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Over 4,600 rental and lifestyle residents

Ingenia has

66 Australiancommunities & growing

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Portfolio now

4,000 Occupied permanent homes

$689

million

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WA [6]
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790,000+ ‘room nights’ p.a Villas and sites

Annualised revenue >$175 million Stable rent base >$1.5 million/pw

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2,580+ Potential development sites

35 LIFESTYLE AND HOLIDAY COMMUNITIES 31 RENTAL VILLAGES

Note: Excludes assets under option. Excludes three Settlers villages.

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36
NSW
10
VIC
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TAS [5]
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A five year story Delivering growth with significant embedded value

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EBIT (Continuing Operations)

Income Generating Sites

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8,000
7,000
6,000
5,000
4,000 6,843
3,000 5,337
4,435
2,000 3,932
1,000 1,750
0
FY13 FY14 FY15 FY16 FY17
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35
30
25
20 32.1
15 24.2
10 18.1
12.1
5 8.9
0
FY13 FY14 FY15 FY16 FY17
$m
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Ingenia Gardens Occupancy (%)

New Home Settlements

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250
200
150
100 211
50 107107
5252
12
0 0
FY13 FY14 FY15 FY16 FY17
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94.0
92.0
90.0
88.0
92.8
86.0
90.7 90.7
84.0
82.0 85.1 84.6
80.0
FY13 FY14 FY15 FY16 FY17
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FY17 highlights Guidance exceeded, supported by strong sales result


STRATEGY	Portfolio refined in line with strategy – non core assets divested, lifestyle now largest contributor to earnings 33 lifestyle and holiday communities – a further four under contract or option Over 2,470 development sites secured (90% in metro and coastal locations)  ~~~~
FINANCIAL	EBIT $32.1 million – above guidance and up 32.6% on FY16 Strong operating cashflows of $30.3 million – up 44.3% on FY16 Revenue of $149.9 million– up 40.0% on FY16 Strong balance sheet - LVR of 28%    
OPERATIONS	Lifestyle and holidays rental revenue up 35.1% on FY16 Record occupancy across Ingenia Gardens portfolio – 92.8%  
DEVELOPMENT	Record 211 new home settlements – up 97.2% on FY16 Development now underway in 12 communities - two more to follow FY18 ~~~~

A range of value levers to drive growth

Ingenia has significant embedded opportunity within the portfolio to create value

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2,580 Development Sites
$20 million pa incremental rent once built out, over $750 million in sales revenue
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Below Market Rents $170,000 growth pa in rent

Growing Commercial Lease Income Opportunities Monetise land – childcare centres, service stations, food and beverage, retail

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Highest and Best Use Sell 2 – 3 communities for medium density residential

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More than 180 New Tourism Cabins
$4.5 million pa rent once built out
(includes some site conversions)
125+ New Rental Sites
$1.6 million pa rent once built out
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Time
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Key acquisitions over past 12 months Contribution from recent acquisitions

Acquired $180 million assets in FY17


	Cairns Coconut	> Renowned top holiday park in Australia – acquired for $50 million in March 2017 > Ingoing yield >8% - target yield of >10% > Approvals inplace for 34 new tourism cabins
	Avina Van Village	> Sydney lifestyle and holiday community and large land bank acquired October 2016 for $33 million > Ingoing yield on existing community ~8% - target yield of >10% > DA lodged for 247 new homes – awaitingfinal assessment
	Durack Gardens	> Metro Brisbane lifestyle community acquired in June 2017 for $25 million > Ingoing yield >7% - target yield of >10% > DA soon to be lodged for additional 50 homes

Key acquisitions over past 12 months Contribution from recent acquisitions


	Sheldon	> Metro Brisbane lifestyle community acquired in August 2017 for $25 million > Ingoing yield 6.8% - target yield of >10% > DA lodged for additional 49 homes
	Latitude One	> DA approved development site for 229 new homes > Construction now underway > Targetingfirst settlement in 4QFY18
	Glenwood	> DA approved development site for 196 new homes > Final design now underway > Targetingfirst settlements in earlyFY19

Embedded growth Contribution from recent acquisitions

Award winning Cairns Coconut acquired March 2017
Major tourism asset in Cairns, offering strong yield, winter ‘peak season’ and opportunity to enhance returns
Ingoing yield >8%
On acquisition, 34 tourist cabins available to develop
First full year of ownership FY18
Year to date cabin occupancy up 8% and average daily rate up 5% on prior year
Growth in revenue through key online travel agents (OTAs) – booking.com etc

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Ingenia Holidays Cairns Coconut, QLD
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Embedded growth – intensification of assets Additional tourism stock

Potential to add 125+ new rental cabins across existing tourism assets
Timing to be staged in line with demand

Example:

Ingenia Holidays Cairns Coconut

Four new villas installed prior to peak winter season
Cost per villa $138,000
Anticipated IRR 18%
Further five condos/villas planned pre December 17 (forecast IRR of 20%)
Potential to add additional stock on available land in line with demand

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Embedded growth – intensification of assets New rental cabins

Potential to add more than 180 new rental cabins across key Brisbane communities to maximise cash rents

Example:

Ingenia Lifestyle Chambers Pines

Enhances yield and margin (no material operating cost increases)
New cabins ($60,000 cost) generating $260 per week (>20% yield)
Maximises value of existing assets
Cabins can be relocated if site use changes
Rental community occupancy currently at 96%
Opportunity to add a further 50 cabins

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Ingenia Lifestyle Chambers Pines, QLD
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Investing in growth Acceleration of development

New Home Settlements

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400 Target
350+
350
Target
260 - 280
300
250
211
200
150
107
100
52
12
50
0
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Target Target
Av. Price $251,900 $302,960 $301,400 $309,061
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FY17 settled 211 new homes (up 97% on FY16)

Contributing to improved operating margin and yield at key development communities

Large metro and coastal projects support future sales and margin growth

Metro and coastal projects offer higher margins and greater sales velocity

Four key projects commencing FY17

The Grange – 56 home expansion
Latitude One – 229 home greenfield community
Lake Conjola – 114 home addition to tourism site
Glenwood – 196 home greenfield community

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Investing in growth Market leading pipeline secured

Targeting Further Growth in Settlements Over Next 3 Years

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600
550
Latitude One
(new)
> $500500 Avina
(expansion)
450
Glenwood
400 (new) Upper Coomera
> $375 (new)
350 Blueys Beach
The Grange (expansion)
(expansion)
300
Bethania Development Size
> $250250 Lake Conjola(expansion) (expansion) Hervey Bay(new) Chambers Pines > 200 SITES
(expansion)
100-200 SITES
200
< 100 SITES
150
Sep-17 Dec-17 Apr-18 Jul-18 Oct-18 Feb-19 May-19 Aug-19 Dec-19 Mar-20
Target Commencement Date
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Includes assets under option.

Ingenia Lifestyle Latitude One – Port Stephens First greenfield project on track

Greenfield development comprising 229 new homes (seeking increase to 270 sites)
Civil infrastructure works on schedule
Additional 12.8 hectares acquired for longer term expansion (STCA)
Expect to achieve initial settlements Q4 FY18
Stage 1 to comprise 30 homes
24 deposits in place

Ingenia Lifestyle Chambers Pines

Major expansion (256 homes) underway
Additional land optioned for approximately 120 new homes
Will create one of the largest communities in SE Queensland

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Ingenia Lifestyle Bethania

Adjacent land acquired at $25,500 per site
DA now in place for 188 homes
Significant expansion underway

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Ingenia Lifestyle Bethania, QLD
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Funding growth Asset sales progressing

Range of non-core assets, including DMF, regional and subscale communities under conditional contract or offer secured

Refocusing portfolio on large scale metro and coastal assets

Asset sales and operating cashflows to fund accelerating development pipeline

Market outlook

Residential
Housing Market
• Housing affordability and ageing population driving long-term core demand
• Early signs of slowing in some markets as nationally housing markets move into different stages of
‘property clock’
• Ingenia retains exposure to diverse markets with strong core demand and key affordability
thematic
• Model accommodates rapid response to demand with product and price changes
• Rental cashflows represent majority of EBIT
Customer
Demands
• Rapidly growing consumer awareness of lifestyle community model and advantages over
traditional retirement models
• Product and model continuing to evolve and broaden market appeal
• Care, accessibility and sustainability are key emerging enablers
Competition and
Market
• Increasing interest from overseas and larger domestic groups in lifestyle market
• Likely increased regulatory requirement for retirement villages but expect limited impact on lifestyle
communities

Outlook: organic growth and capital recycling

Improve performance of existing assets to drive revenue growth and leverage operating and sales platform
Accelerate development pipeline to deliver new rental contracts and increase development profit
Progress asset sales and capital recycling to fund future growth through development
Achieve 260 – 280 new home settlements in FY18 and position for target of 350+ settlements in FY19 and beyond
Deliver FY18 EBIT of $42-46 million (subject to no material change in market conditions)

Contact information

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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 October 2017 unless otherwise stated.

This presentation is provided for information purposes only and has been prepared without taking account of any particular reader’s financial situation, objectives or needs. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Accordingly, readers should, before acting on any information in this presentation, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assistance of their financial or other licensed professional adviser before making any investment decision. This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, nor does it form the basis of any contract or commitment.

The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Group. In particular, they speak only as of the date of these materials, they assume the success of the Group’s business strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.

The Group, or persons associated with it, may have an interest in the securities mentioned in this presentation, and may earn fees as a result of transactions described in this presentation or transactions in securities in INA.

This document is not an offer to sell or a solicitation of an offer to subscribe or purchase or a recommendation of any securities.

Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation. By reading this presentation and to the extent permitted by law, the reader releases each entity in the Group and its affiliates, and any of their respective directors, officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any reader relying on anything contained in or omitted from this presentation.

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INGENIA COMMUNITIES GROUP — Investor Presentation 2017

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