Ingenia Communities Group (ASX:INA) executives told investors the business remains on track to meet the targets in its five-year plan as it reported first-half FY26 results that management said were in line with expectations and positioned for a stronger second half.
Management says results tracking to top end of guidance
CEO and Managing Director John Carfi said Ingenia is “well progressed in the delivery of improved shareholder returns,” despite “growing competition in the living sector.” He said the group is now halfway through the second year of its five-year plan, which includes a targeted 10%–15% compound annual growth rate (CAGR) in settlements.
CFO Justin Mitchell said the group is “on track to deliver at the top end of guidance,” citing momentum across operating businesses and the expected settlement skew. Mitchell reported an interim distribution of AUD 0.048 per security, describing it as part of a move toward aligning distributions with taxable earnings from the trust.
Financial results: flat revenue, higher statutory profit on revaluations
Mitchell said revenue was flat compared with the prior year, with growth in holidays revenue and living rents offsetting lower development settlements and the impact of deferred management fee (DMF) income recognized in the prior period. Group EBIT fell 1% to AUD 85 million, which Mitchell said was expected and primarily reflected settlement timing and the prior-period DMF, partly offset by a higher mix of joint venture settlements.
For the half, Ingenia recorded underlying profit of AUD 62 million and EPS of AUD 0.152. Mitchell said the decline reflected the timing factors noted above, higher debt costs, and a normalization of the effective tax rate. He added that, normalizing for tax and DMF, underlying profit was down 3.5%.
Statutory profit rose 11% to AUD 97 million, driven by “positive net revaluations across our portfolio,” which management said reflected strong underlying earnings growth and relatively stable capitalization rates. The revaluation uplift contributed to net tangible assets (NTA) increasing to AUD 4.10.
Segment performance: holidays and rental growth; development skew to second half
Mitchell and the operating leaders highlighted performance across Ingenia’s diversified segments, while noting cost headwinds above CPI, including council rates, utilities, waste, and volume-related expenses in tourism.
- Lifestyle Rental: EBIT of AUD 25.7 million, up 6%, driven by contracted and market rent reviews and annuity income from settled homes. Management said EBIT margins were impacted by lower CPI and legislative changes affecting rental growth, as well as scaling of new communities and the absence of DMF income.
- Lifestyle Development: EBIT of AUD 32 million, with management citing higher marketing costs from new project launches and the expected second-half skew in settlements. Average home prices and gross margin were “relatively flat” year-on-year, with an expectation of improvement in the second half due to project mix.
- Development joint venture: Operating profit of AUD 12 million, up 56%, with 72 settlements in the half and improved average price and gross margin. Mitchell said development gross margin for Ingenia was stable at 46%, while the joint venture gross margin increased to 53%.
- Holidays: EBIT of AUD 31.5 million, up 10%. Management cited higher occupancy and rate growth, supported by investment in acquisitions and new cabins. Tourism revenue increased 12% on a like-for-like basis, Mitchell said.
Development pipeline and sales momentum
Executive General Manager (EGM) Acquisitions and Development Michael Rabey said first-half development performance reflected the expected second-half settlement skew, increased joint venture contribution, and “significant investment in new projects and marketing activity.” The group settled 248 homes in the first half, and Rabey said sales on hand position the business for full-year growth consistent with strategy.
Rabey said the company completed 254 homes in the half, up 17% from the prior corresponding period, and ended the period with limited finished inventory. As of 20 February, he said Ingenia had settled 301 homes, with a further 440 deposits and contracts on hand—an increase of 23% on the prior corresponding period.
Management also discussed geographic and project dynamics:
- Rabey said pricing momentum was strongest in Queensland, followed by solid growth in New South Wales, with “promising early signs” in Victoria and a significant increase in Victorian settlements in the first half versus the prior period.
- Final settlements at Nature’s Edge were completed during the half, with final settlement preparation underway at Hervey Bay and Freshwater for the second half.
- New communities contributing to FY26 settlements include Springside (Victoria) and the Latitude One extension (New South Wales).
- Ingenia said it commenced five new communities in Queensland this year, with first settlements expected from FY27.
On pipeline expansion, Rabey said the company has “7 opportunities, with potential for over 1,700 homes currently in due diligence or contract negotiation,” and is exploring initial moves into new geographic markets.
Balance sheet, capital management, and JV outlook
Mitchell said gearing was 31% at 31 December, “comfortably within” target range, with around AUD 200 million of funding headroom. The group secured an additional AUD 100 million in new facilities in December, and Mitchell said weighted average debt maturity was 3.3 years, with no expiries before January 2027. Drawn debt was 55% hedged at a weighted average cost of 5.03% at December, which Mitchell forecast would increase in the second half.
Management said the company can fund existing projects and may recycle capital from lower-growth assets to support development pipeline expansion and strategic holidays investment.
On the development joint venture, Carfi said JV projects contributed 29% of settlements in the half and are expected to peak in the current financial year, with the proportional contribution moderating as Ingenia-owned projects increase. In Q&A, Carfi said the JV has not made acquisitions during his tenure despite being presented opportunities, and that the partners have the right to participate in acquisitions. He said even if new JV participation began immediately, new projects would likely not enter production for about three years.
In closing remarks, Carfi said the group expects gains from its initiatives to accelerate as it moves into year three of the plan, and reiterated the expectation—assuming no material change in conditions—that settlements will grow this year and the full-year result will be at the top end of guidance.
About Ingenia Communities Group (ASX:INA)
Ingenia Communities Group (ASX:INA) is a leading operator, owner and developer offering quality residential communities and holiday accommodation. Listed on the Australian Securities Exchange, the Group is included in the S&P/ASX 200. Across Ingenia Lifestyle, Ingenia Gardens, Ingenia Holidays and Ingenia Rental, the Group’s $2.3 billion property portfolio includes 107 communities and development sites and is continuing to grow.
