INGENIA COMMUNITIES GROUP — Investor Presentation 2017

Feb 20, 2017

Presented by Simon Owen and Shanthi Smith 21 February 2017

Ingenia Lifestyle Lara

INGENIA COMMUNITIES GROUP 1H17 Results Presentation

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We Create Community

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Page 2

Our Business Drivers

Ingenia operates in two complementary sectors with strong growth prospects

Demand Drivers

Opportunity

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Affordable rent-driven
01.
seniors housing
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• Over 65’s fastest growing demographic

• Housing affordability

• More than 70% of seniors own home outright

• Grow market awareness and penetration

• Home design affordability and site yield

• Convert home equity into comfortable retirement

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Experience driven
02.
tourism
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• Rapidly growing caravan and campervan registrations as population ages

• Diminishing caravan parks – conversion to highest and best use

• Sector leadership

• Cottage industry conversion

• Conversion of land to highest and best use

Page 3

Highlights

STRATEGY	Now own 30 lifestyle and holiday communities (four under contract or option) Over 2,350 potential development sites (85% in metro and coastal locations) Refining portfolio in line with strategy (sale of non core villages) ~~~~
FINANCIAL	Underlying Profit $10.6 million–up 26% on 1H16 Distribution per security 5.1 cents – up 21% on 1H16 
	Debt facility increased, tenure extended and additional bank introduced 
OPERATIONS	Growing Lifestyle and Holidays rental revenue – up 30% on 1H16 Record 1H17 settlements - 82 new homes – up 55% on 1H16 Record occupancy across Garden Villages – 91.4% ~~~~  
DEVELOPMENT	Development now underway in 12 communities Expanding ‘above ground’ development margins ($105,890 for new homes) First greenfield community now underway – further sites to follow  

Page 4

Portfolio Evolving In Line With Strategy Rental assets in coastal and metro locations

Growing diversity and footprint in targeted markets

• $123.7 million committed year to date in coastal and metro acquisitions (832 established and 927 development sites)

• Expansion on east coast - acquisition of Cairns Coconut to settle March 2017

• Biggest owner and operator of lifestyle and holiday communities in Sydney

Core Portfolio by Value[1]

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Garden
Villages
24%
$588m
76%
Lifestyle
and
Holidays
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Reduced exposure to non-core assets

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Core Portfolio EBIT [1]
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• Ongoing review of non-core and regional assets

Well positioned to continue growth focus on rental assets in coastal and metro locations

• Expansion now underway in nine key metro and coastal assets

Earnings dominated by rental portfolios

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Garden
Villages Development
23%
34%
Lifestyle
43%
and
Holidays
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1. Garden Villages and Lifestyle and Holidays only (excluding Settlers).

Page 5

Business Overview

Creating Australia’s best lifestyle communities

Over 4,100 Residents

Ingenia has

62

Australian communities & growing

Portfolio now over

3,250 Occupied permanent homes

$588

million

750,000+ room nights p.a Villas and sites

$

Annual revenue >$130 million Stable rent base >$1 million/pw

2,350+ Potential development Sites

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34
NSW
10
VIC
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31 LIFESTYLE AND HOLIDAY PARKS 31 RENTAL VILLAGES

Note: Includes Latitude One.

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Note: Includes Palms Oasis , Radke Road and Cairns Coconut (due to settle March 2017).
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TAS [5]
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Page 6

Performance and Capital Management

Ingenia Lifestyle Bethania, QLD

Page 7

Key Financials Growth in underlying earnings

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|||||||||
|---|---|---|---|---|---|---|---|
|KEY FINANCIAL METRICS|1H17|1H16|CHANGE|
|•|
|Statutory profit|[1]|$7.6m|$10.8m|(30%)|Statutory profit|impacted by|
|$7.5 million loss on sale of Settlers|
|Revenue|$65.4m|$52.2m|25%|assets|
|Underlying profit|[2]|$10.6m|$8.4m|26%|•|Growth in|underlying profit|
|attributable to recent acquisitions|
|Underlying profit EPS|6.0c|5.7c|5%|and increased new home sales|
|•|
|Distribution per security|5.1c|4.2c|21%|Operating cashflow|reflects|
|additional investment in inventory as|
|settlements accelerate|
|Operating cashflow|$10.5m|$11.8m|(11%)|
|•|
|Dec 16|Jun 16|LVR|below target range pending|
|redeployment of Settlers proceeds|
|Net asset value (NAV) per security|$2.44|$2.45|(0.4%)|
|•|
|NAV|reduction driven by loss on sale|
|Covenant|of Settlers|
|Loan to value ratio (LVR)|27.5%|24.9%|50%||•|Core ICR|– significant headroom|
|against covenant|
|Core interest cover ratio (ICR)|3.26x|3.73x|2.0x|
||

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1. 1H17 statutory profit includes $5.4 million fair value write-off of acquisition transaction costs (1H16: $3.9 million).

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

Page 8

Growth in Values Across Core Portfolios

PORTFOLIO	AV. CAP RATE DEC 20161	AV. CAP RATE JUN 20161	DEC 16 BOOK VALUE ($m)
Garden Villages	9.89%	9.95%	139.5
Lifestyle and Holidays	8.45%	8.91%	389.8

1. Excludes acquisitions and leasehold assets.

2. Independently valued 20 assets 1H17 (including five lifestyle and holiday communities)

4. Garden Villages and Lifestyle and Holidays portfolios’ value up 5.5% ($24.5 million) like for like, reflecting improved operating performance and firming cap rates

5. Average capitalisation rate for Lifestyle and Holidays tightened by approximately 50 basis points, contributing to $19.6 million value uplift[1]

Continued cap rate sharpening across Lifestyle and Holidays portfolio* over the last 6 months

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%
(21) bp
10.0
Jun 16 cap rate
Dec 16 cap rate
9.5
(36) bp
9.0
(75) bp
8.5
(45) bp
(56) bp
8.0
7.5
Lifestyle Metro Lifestyle Coastal Mixed Metro Mixed Coastal Mixed Regional
excl. acquisitions and leasehold assets.
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Page 9

Core Business Delivering Growth

	1H17 ($m)	1H16 ($m)	Change	Change
EBIT
• Lifestyle and Holidays	11.4	7.2	58%
• Garden Villages	5.8	5.4	7%
• Settlers	1.2	2.0	(40%)
Portfolio EBIT	18.4	14.6	26%
Corporate costs	(4.7)	(3.7)	27%
EBIT	13.7	10.9	26%

Core business driving strong EBIT growth (up 26%) with stronger second half expected

Ingenia Lifestyle and Holidays (Seniors / Tourism)

• Rental base rapidly expanding with acquisitions and new home sales

• Gross development profit up 90% on 1H16

Garden Villages (Seniors Rental)

• Earnings increased in line with margin and occupancy growth

• Consistent rental cashflow underpinned by government pensions and rent assistance

Settlers (DMF)

1H17 distribution 5.1 cents per security

• Interim distribution 5.1 cps up 21% on 1H16

• 1H17 distribution is 28% tax deferred

• Payment to be made 15 March 2017

• Increase in future distributions to be balanced with investment in growth

• Majority of portfolio divested October 2016

Cost base increase commensurate with business growth and entry into greenfield projects

• Investment in people and systems to position for growth

• Costs include due diligence written off and increased valuation and audit expense as business grows

Page 10

Capital Management

Australian debt	($m)1
Total facility1	300.0
Total debt drawn	126.9
Bank guarantees	13.8
Available debt	159.3
Australian interest rates
Current all in cost of funds	4.7%

Debt Maturity Profile as at 31 December 2016

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$180
$160
$140
80.6
$120
$100
78.6 13.8
$80
$60
$40 80.9
$20 46.0
$0
Feb-2020 Feb-2022
Drawn BG's Undrawn
AUD Millions
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Debt facility now ($300 million)

• Additional $76 million funding in place from February 2017

• New banking partner (Westpac)

• Cost of funds driven by increased capacity and extended tenure

At 31 December 2016

• LVR of 27.5% - post acquisitions increasing to 35.5%[2]

• Core ICR of 3.26x

• Following refinance, weighted average term to maturity 4.3 years with no near term rollover risk

• Subsequent to 31 December hedging sits at 42% of drawn debt

Funding further growth

• Growing cash inflows from existing operations and accelerating sales

• DRP remains in place

• Recycling of capital from non core and regional Lifestyle and Holiday communities

• Includes expansion of facility (in place February 2017).

• Pro forma 31 December 2016 following purchase of Palms Oasis, Radke Road and Cairns Coconut.

Page 11

Strategy

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Ingenia South West Rocks, NSW
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Page 12

Capital Allocation and Strategy

Asset Class	Target Return Threshold1	Strategy	Allocation of Future Capital
Lifestyle / mixed-use (E.g. Avina Van Village)	> 7.5% ingoing yield > 12% IRR	> Immediate cashflow supplemented by reinvestment and expansion > Possible conversion	~50% Core focus Investing in recurrent yield with development upside
Rental Villages (E.g. Garden Villages Swan View)	> 9% ingoing yield	> Immediate cashflow	<10% Reinvestment only – limited acquisition opportunities
Tourism (E.g. Cairns Coconut)	> 8% ingoing yield > 12% IRR	> Immediate cashflow supplemented by reinvestment and expansion	~25% High yielding tourism communities complement rapidly expanding development pipeline
Greenfields (E.g. Latitude One) Note. Asset level returns(unlevered).	> 20% IRR	> Create purpose built long-life community > Return of capital and ongoing cashflow	20 – 25% High return investment in future growth Growing area of focus

Page 13

Strategy Supported by key growth drivers: Seniors Rental

Property ownership without a mortgage (by age group)

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100%
80%
60%
40%
20%
0%
55–64 65–74 75 and
over
Source: ABS.
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Superannuation account balances (by age group) Superannuation account balances (by age group)

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100%
6%
14% 13% 4%
90% 22% 24% 20%
7% 10%
80% 14%
70% 14% 10% 10% 15%
60% 19%
50% 34%
54% 43%
40% 81%
66%
30%
51%
20% Super
32% balance
10% 17% 22% <$100k
0%
50-54 years 55-59 years 60-64 years 65-69 years 70-74 years 75 years +
Nil $1-99k $100-199k $200k+
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Source: ASFA Research and Resource Centre.

• The maximum pension for singles is $439 per week which is insufficient to fund a comfortable retirement

• Australia’s growing pool of retirees is living longer – for people aged 65–69 some 70% have <$100k in accumulated superannuation

• For many retirees, the sole source of accumulated wealth is ownership of the family home – releasing equity whilst retaining Government payments is increasingly attractive

Page 14

Strategy Supported by key growth drivers: Holidays

Tourism GDP

Establishments vs. Revenue

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60
50
40
30
20
10
0
Tourism GDP ($B)
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Financial Year

Source: ABS, Tourism Satellite Accounts.

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1,700 1,600
1,400
1,650
1,200
1,600
1,000
1,550 800
600
1,500
400
1,450
200
1,400 0
Establishments (LHS) Revenue ($m) (RHS)
Source: IBISWorld: Caravan Parks and Camping Grounds in Australia (September 2016).
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• Tourism is a growing industry in Australia, delivering GDP of $53 billion in nominal terms (up 7.4%) in FY16[1]

• Caravan and RV registrations are growing at 2.5x car registrations and are highly leveraged to ageing population

• Travelling seniors and families represent the largest market segments for holiday parks

Growing demand for holiday parks as supply declines, providing opportunity to build market share and grow revenue

1. ABS, Tourism Satellite Accounts.

Page 15

Operational Review Significant revenue growth achieved

Cairns Coconut Holiday Resort, QLD

Page 16

Ingenia Lifestyle and Holidays Growing earnings

KEY DATA	31 Dec 16	31 Dec 15
Total properties	29	24
Permanent sites	1,807	1,550
Annual sites	763	600
Tourism sites	1,751	1,190
Development sites1	2,306	1,580

1. Includes new and recycled permanent and tourism sites – owned or under option.

	1H17	1H16
Rental business
Permanent rental income	$7.1m	$6.0m
Annuals rental income	$2.0m	$1.3m
Holiday rental income	$10.6m	$7.8m
Commercial rent	$0.2m	$0.2m
Total rental revenue	$19.9m	$15.3m
Gross development profit	$8.8m	$4.6m
Portfolio EBIT	$11.4m	$7.2m
	31 Dec 16	30 Jun 16
Portfolio value	$389.8m	$307.3m

Rental revenue up 30%

• Stable portfolio delivering >9.5% yield on purchase price

• Like for like asset level net operating income up over 14%

• Average weekly site rent now $155 per week (up 8%)

• Growing exposure to annuals delivering stable, secure returns – average rent $104 per week (on small land lot)

Gross development profit up 90% as scale increases

Refining portfolio in line with focus on metro and coastal locations

• Tourism capability delivering competitive advantage in mixeduse assets

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Portfolio location
(by value) [1]
Coastal
57%
Metro
35%
Regional
8%
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1. Includes Palms Oasis, Radke Road and Cairns Coconut.

Page 17

Ingenia Holidays

Enhancing returns through active management

1H17 KEY ACHIEVEMENTS

Tourism sites (by location)

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Coastal,
77% Regional,
11%
Metro,
12%
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Extending presence in key metro and coastal locations

• Acquired over 1,000 additional income producing sites year to date

• New iconic parks (Avina and Cairns Coconut) growing footprint

Significant revenue growth delivered (like for like up 6%)

• Significant database (120,000 members) for promotions, off peak ‘sales’ campaigns and cost effective lead generation

Digital platform and management capability driving results

• Revenue from online travel agents now $280,000+ per month

Note: Includes Palms Oasis and Cairns Coconut.

• Targeted campaigns building off peak visitation utilising digital platform (ingeniaholidays.com.au)

Opportunity to deliver further growth through investment in cabin upgrades and new stock

Complementary business with significant upside

1. Attractive cashflows underpinned by strong repeat visitation

2. Preserves long-term development optionality and maximises returns from mixed-use assets

3. Increasingly becoming first touch point with prospective residents offering multiple cross-selling opportunities 4. Fragmented ‘cottage’ industry

4. Leveraged to ageing population

Page 18

Ingenia Holidays Case study – Lake Conjola, NSW

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Key Initiatives
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Initial Outcomes
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Acquired September 15

• Install new cabin stock (six in stage 1)

• Integrate to portfolio website and revenue management platform

• Introduce short stays, mid week specials and tactical campaigns

• Launch with online travel agents (booking.com, expedia)

• Market to Ingenia Holidays database

• Focus on operating standards and online reputation

• Close golf course and lodge DA for new homes

• Asset level operating margin up over 4% (revenue growth and cost management)*

• OTA’s providing average $10k revenue per month

• Digital channel (portfolio website and OTA’s) generated 23% of revenue for 12 months to Dec 2016

• Same period revenue growth (H1 FY16 and H1 FY17) of 12%, driven primarily through higher average daily rate

• Unique visitors increased by 5.6%

• Now 4/5 rating on TripAdvisor

FUTURE GROWTH

Addition of 114 new homes (STCA) to create large scale mixed use community

Page 19

Ingenia Lifestyle: Development Sales growth delivered – targeting 190 sales FY17

Development Portfolio	1H17	1H16
New home settlements	82	53
Deposited/Contracted	100	39
Gross development profit ($m)	8.8	4.6
Average new home sales price ($’000)1	286	265

1. Excludes GST.

1H17 KEY ACHIEVEMENTS

Settlement of 82 new homes expanding operating margin and yield across key communities

On track to deliver $100,000 new home development profit FY17

• Average gross development profit for new home sales $105,890 – up from $87,900 at Jun 16[2]

New Home Settlements

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300
260+
250
Target 190
200
150
107
100 82
52
50
14
0
FY14 FY15 FY16 1H17 FY18
Target
Av. Price $251,900 $302,960 $301,400 $314,500
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At 18 February 2017, 109 new homes settled with a further 84 homes deposited or contracted

Now targeting 190 sales for FY17 as large scale coastal and metro projects deliver

• Lara, Bethania and South West Rocks rapidly growing sales

• Excludes homes acquired as inventory and refurbishments.

Page 20

Ingenia Lifestyle: Development Positioned for growth - quality metro and coastal sites

Development Portfolio*	Development Portfolio*	Development Portfolio*	Development Portfolio*
	Approved	Subject To Approval	Total
Metro (51%)	463	735	1,198
Coastal (34%)	398	408	806
Regional (15%)	280	72	352
TOTAL	1,141	1,215	2,356

• Includes communities under contract or optioned.

1H17 KEY ACHIEVEMENTS

Potential pipeline grown to over 2,350 sites

• Over 1,100 sites available for immediate development

• Development underway in nine key metro and coastal assets with three projects soon to launch

Focus on large-scale, multi-year metro and coastal development projects

Existing Large Scale Projects

1. Lara – Outer Melbourne	125 sites
2. Bethania – Brisbane	261 sites
3. Chambers Pines – Brisbane	256 sites
4. Stoney Creek – Sydney	49 sites
5. Conjola – NSW South Coast	114 sites
6. Avina – Sydney	247 sites
7. Latitude One – NSW Coast	229 sites
Under Contract / Option
7. Upper Coomera – Bris/Gold Coast	235 sites
9. Hervey Bay – Qld, Fraser Coast	210 sites

• Target high sales velocity, attractive margin projects

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

• Targeting IRR of 20% on new greenfields projects

Projects to launch FY18 will drive further growth

• First greenfield development in strongly performing NSW Mid North Coast cluster (Latitude One)

• Expansion of The Grange now underway

• Approval process at Conjola (NSW South Coast) and Avina (Sydney) well advanced

Page 21

Ingenia Garden Villages (Seniors Rental) Strong, stable, government supported cashflows

KEY ACHIEVEMENTS 1H17

Occupancy and rent growth driving operational performance

• Average rent increased to $326 per week (from $313 at Dec 15)

• Record occupancy achieved (91.4%)

Training of front line staff and use of digital platform providing benefits

• Resident engagement score increasing (up 1.8%)

• Average resident tenure 3 years

• Focus on engagement and retention of residents, supported by Ingenia Care and Activate Lifestyle program

Ingenia Care evolving to add further value

• Over 700 residents have accessed Ingenia Care, with 400 active clients

• Trial launch of new Ingenia Care PLUS to contribute to further occupancy and resident retention, as resident population ages

• Longer term forecast to expand margin

KEY DATA	31 Dec 16	31 Dec 15
Total properties	31	31
Total units	1,628	1,628
Av. weekly rent	$326	$313
Occupancy	91.4%	89.6%
	1H17	1H16
Total revenue	$14.0m	$13.7m
EBIT	$5.8m	$5.4m
	31 Dec 16	30 Jun 16
Portfolio value	$139.5m	$134.6m

Margin Analysis

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105%
100%
95%
90% Sovereign
85% Gardens
80%
75%
70%
Wagga Hertford
65% Gardens Gardens
60%
55%
50%
45%
40%
30% 35% 40% 45% 50% 55% 60% 65% 70% 75%
Operating Margin (%)
Occupancy
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Page 22

Non-Core Assets

	31 Dec 16	30 Jun 16
Settlers (DMF) value	$10.9m	$62.5m
	1H17	1H16
Accrued DMF income	$1.6m	$2.5m
Development income	$0.6m	$0.6m
EBIT	$1.2m	$2.0m

1H17 KEY ACHIEVEMENTS

• Divestment of majority investment in five DMF assets to Forum Partners completed October 2016

• Ingenia continues to manage the assets

• Remaining three assets ($10.9 million) remain noncore and will be divested over time

• Reduced asset base has significantly impacted earnings

Ingenia Settlers Lakeside, Ravenswood WA

Page 23

Market Landscape

• Continuing housing affordability challenges and consumer awareness of lifestyle communities driving increasing demand with limited new supply

• Increasing focus on mixed-use and development opportunities as new entrants seek scale

• Increased activity and demand will likely drive further capitalisation rate tightening – subject to interest rate outlook

• Demand remains firm for metro and coastal homes – no signs of tapering demand

• Tourism market outlook positive – supported by lower currency, changing holiday profile and ageing population

• No new rental communities being developed – supports long-term Garden Village occupancy and rate growth

Page 24

Outlook: Ingenia

• Improve performance of existing assets to drive revenue growth and leverage operating and sales platform

• Accelerate development pipeline to deliver new rental contracts and recycle capital

• Upgrading sales target to achieve 190 settlements in FY17 and position for target of 260+ settlements in FY18

• Continue focus on metro and coastal locations through portfolio remixing, development and established acquisitions pipeline

• EBIT guidance of $30 million for FY17 (subject to no material change in market conditions)

Page 25

Appendices

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Ingenia Holidays Ocean Lake, NSW
Page 26
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Appendix 1: Underlying Profit

Lifestyle communities established as key driver of earnings growth

	1H17	1H16
	(A$m)	(A$m)	Comments
Continuing operations
Lifestyle and Holidays	11.4	7.2	Rapidly growing development earnings combined
			with growth through acquisitions
Garden Villages	5.8	5.4	Stable earnings off same asset base
Settlers	1.2	2.0	Reduction in earnings driven by divestment of
			majority of portfolio
Portfolio EBIT	18.4	14.6
Corporate costs	(4.7)	(3.7)	Increase in corporate costs to support growing
			business
EBIT – Continuing operations	13.7	10.9
Net finance costs	(3.4)	(2.8)	Higher average debt
Income tax benefit	0.3	0.3	Will reduce in future as earnings grow
Underlying profit – Continuing operations	10.6	8.4
Statutory adjustments	(0.9)	1.7	Includes $7.9 million investment property uplift offset byloss on sale of non-core assets
Tax (expense)/benefit associated with adjustments	(2.1)	0.7
Statutory Profit	7.6	10.8

Page 27

Appendix 2

Reconciliation - EBIT and underlying profit

(A$m)	Lifestyle Operations Lifestyle Develop. Lifestyle Total Garden Villages Settlers Corporate TOTAL
Rental income	19.9 - 19.9 12.3 0.2 - 32.4
Accrued DMF fee income	- - - - 1.6 - 1.6
Manufactured home sales	- 24.9 24.9 - - - 24.9
Cateringincome	- - - 1.6 - - 1.6
Otherpropertyincome	1.1 - 1.1 0.2 0.1 - 1.4
Development profit Service station sales	- - - - 0.6 - 0.6
	3.6 - 3.6 - - 3.6
Total segment revenue	24.6 24.9 49.5 14.1 2.5 - 66.1
Property expenses	(6.5) (0.2) (6.7) (4.0) (0.5) (0.3) (11.5)
Manufactured home cost of sales	- (16.1) (16.1) - - - (16.1)
Service station expenses	(3.0) - (3.0) - - - (3.0)
All other expenses	(7.6) (4.7) (12.3) (4.3) (0.8) (4.4) (21.8)
Earnings before interest and tax	7.5 3.9 11.4 5.8 1.2 (4.7) 13.7
Interest income	- - - - - - -
Finance expense	- - - - - (3.4) (3.4)
Income tax benefit	- - - - - 0.3 0.3
Underlying profit – continuing operations	7.5 3.9 11.4 5.8 1.2 (7.8) 10.6

Page 28

Appendix 3 Cashflow in detail

(A$m)	31 Dec 2016	31 Dec 2015
Opening cash at 1 July	15.1	15.1
Rental and other property income	39.2	36.4
Net cashflow associated with manufactured home development	3.5	3.5
Net borrowing costs paid	(2.9)	(2.6)
Income tax received/(paid)	0.1	-
All other Australian operatingcashflows	(29.4)	(25.5)
Net cashflows from operating activities	10.5	11.8
Acquisitions of investment properties	(75.1)	(65.6)
Proceeds/(costs) from sale of investment properties	40.9	(0.2)
Capital expenditure and development costs	(12.1)	(6.3)
Amounts received from villages	-	-
Purchase of plant, equipment and intangibles	(0.7)	(1.0)
Net cashflows from investing activities	(47.0)	(73.1)
Net proceeds from/(repayment of) borrowings	27.8	57.0
Net proceeds from equity placement	11.4	6.1
Distributions to security holders	(8.9)	(6.2)
All other Australian financing cashflows	(0.6)	(0.3)
Net cashflows from financing activities	29.7	56.6
Total cashflows	(6.8)	(4.7)
Effects of exchange rate changes in cash	-	-
Closing cash at 31 December	8.3	10.4

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Appendix 4 Balance sheet

	31 Dec	30 June
(A$m)	2016	2016
Cash	8.3	15.1
Inventory	25.3	17.7
Investmentpropertyandpropertyunder development	566.8	710.7
Other assets	23.0	23.3
Assets held for sale	-	-
Total assets	623.4	766.8
Borrowings	132.0	104.1
Derivatives	0.1	0.4
Retirement village resident loans	27.5	207.5
Other liabilities1	31.8	33.2
Liabilities held for sale	-	-
Total liabilities	191.4	345.2
Net assets	432.0	421.6
Net asset valueper security	$2.44	$2.45
Secured assets	481.5	470.3
Net borrowings(AU)2	118.6	90.8
Bankguarantees aspart of loan facility	13.8	26.2
Total includingbankguarantees	132.4	117.0
Loan to value ratio(LVR)	27.5%	24.9%

1. Other liabilities include deferred consideration on acquisitions of $3.0m (June 2016: $15.6m).

2. Includes finance leases and interest rate swaps, less statutory cash balance and excludes prepaid borrowing cost.

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Appendix 5

– Competitor landscape lifestyle communities

Major Operators	Major Operators	No. parks	Locations	Strategy	Strategy
	Ingenia Lifestyle & Holidays	31	NSW, VIC & QLD	Acquire lifestyle and tourism parks and undertake greenfield development.
	Tourism and Mining Park Operators
	Discovery Holiday Parks	60	Across Australia	Majority owned by SunSuper. Exclusively tourist and mining accommodation. Acquired Aspen Parks Property Fund (21 assets) Feb 2016. Expanding.
	North & South Coast Holiday Parks	29	NSW	Manage Crown Reserves including 29 Holiday parks on NSW mid, North and South Coast.
	Aspen	7	NSW, SA & WA	Own growing portfolio of tourist, mining and lifestyle communities. Expanding.
	NRMA Holiday Parks	35	Across Australia	Own and manage trophy coastal tourist parks. Recently acquired largest manager of holiday parks (ATPM).
	Mature Park Consolidators
	Gateway Lifestyle	54	QLD, NSW & VIC		Growing portfolio of lifestyle parks and tourism conversion (ASX: GTY).
	Allswell Communities (Eighth Gate)	8	NSW, VIC, QLD		A combination of lifestyle and residential villages.
	Secura Lifestyle	9	NSW, VIC, QLD		Owns a small portfolio consisting largely of tourist parks and looking to grow.
	Hometown Australia	-	-		Recent entrant. Seeking to build sizeable investment.
	GIC – Singapore				Following acquisition of YES! Communities assessing opportunities in Australian market.
	Greenfield Developers
	Hampshire Villages	8	NSW, VIC, & ACT		Privately owned portfolio of residential parks. Expanding.
	Lifestyle Communities	13	VIC only		Developer and operator of greenfield residential parks (ASX: LIC).
	Living Gems (Gem Life)	10	QLD		Family owned - developer and operator of greenfield residential parks. Joint venture with Singaporean based Thakral to expand.
	Source: Company information, Ingenia analysis. National Lifestyle Villages	11	WA only		Developer and operator of greenfield residential parks. Sold annuity rent roll to Blackstone for $150 million November 2014.
	Palm Lake Resorts (Walter Elliott)	28	VIC, NSW & QLD		Privately owned developer and operator of greenfield residential parks. Page 31

Appendix 6

Board profiles

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Jim Hazel

Non-Executive Chairman

Mr Hazel has had an extensive corporate career in both the banking and retirement sectors. His retirement village operations experience includes being Managing Director of Primelife Corporation Limited (now part of Lend Lease). Other current listed company directorships include Bendigo and Adelaide Bank Limited and Centrex Metals Limited. He also serves on the Boards of Coopers Brewery Limited and the Adelaide Football Club.

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Robert Morrison

Deputy Chairman

Mr Morrison has extensive experience in property investment and funds management. During his 21 years at AMP, Mr Morrison’s executive roles included Head of Property for Asia Pacific and Director of Asian Investments. Mr Morrison’s investment experience includes senior portfolio management roles where he managed both listed and unlisted property funds on behalf of institutional investors. Mr Morrison was previously a Non-Executive Director of Mirvac Funds Management Limited, an Executive Director of AMP Capital Limited and a National Director of the Property Council of Australia. He is a founding partner and Executive Director of alternative investments firm, Barwon Investment Partners.

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Philip Clark AM

Non-Executive Director

Mr Clark is the Chair of SCA Property Group Limited. He is a member of the J.P. Morgan Advisory Council and also chairs a number of government and private company boards. He was Managing Partner and Chief Executive Officer of Minter Ellison and worked with that firm from 1995 until June 2005. Prior to joining Minter Ellison, Mr Clark was Director and Head of Corporate with ABN Amro Australia and prior to that he was Managing Partner with Mallesons Stephen Jaques for 16 years.

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Appendix 6

Board profiles

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Amanda Heyworth

Non-Executive Director

Ms Heyworth is a professional company director and currently chairs Executive Leadership Connection Pty Ltd. and is a director of UniSA Ventures Pty Ltd. She previously served as Executive Director of Playford Capital Venture Capital Fund. She has a wealth of experience in the finance, technology and government sectors and teaches in the Australian Graduate School of Management’s MBA program. Ms Heyworth brings a finance and growth focus to the Group, having worked on many product launches and geographic expansions and over 40 capital raisings and M&A transactions. She sits on a number of public sector and private boards.

Simon Owen

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Chief Executive Officer and Managing Director

Simon joined the Group in November 2009 as the Chief Executive Officer. He initiated the internalisation of management and exit from the ING Group as well as Ingenia’s focus on lifestyle parks. Simon leads the management team and has overall responsibility for all facets of the business. He brings to the Group in-depth sector experience. Simon is currently a Director of BIG4 Holiday Parks and was a member of the Retirement Living Council (part of the Property Council of Australia) until February 2017. He is also a past National President of the Retirement Villages Association a role he held for four years. Simon has over 20 years’ experience working in ASX listed groups with roles across finance, funds management, mergers and acquisitions, business development and sales and marketing. Prior to joining Ingenia Communities, Simon was the CEO of Aevum, a formerly listed seniors housing company.

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Contact Information

SIMON OWEN CEO & Managing Director

Tel: +61 2 8263 0501 Mob: +61 412 389 339 sowen@ingeniacommunities.com.au

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

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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 February 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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