Ingenia Communities Group

Revenue was flat year over year. Group EBIT declined 1% to $85 million. Underlying profit was $62 million and EPS was $0.152. Statutory profit increased 11% to $97 million, and NTA rose to $4.10. First-half settlements totaled 248, with 29% from the joint venture. Development gross margin was 46% for Ingenia and 53% for the joint venture. Holidays tourism revenue increased 12% on a like-for-like basis, and Holidays EBIT rose 10% to $31.5 million. Lifestyle Rental EBIT was $25.7 million, up 6%, and the development joint venture delivered $12 million of operating profit, up 56%. Gearing was 31%, funding headroom was circa $200 million, weighted average debt maturity was 3.3 years, drawn debt was 55% hedged, and weighted average cost of debt at December was 5.03%. Management said it expects to deliver at the top end of guidance for the full year, with second-half settlement activity and mix driving improvement.

John Carfi emphasized execution against the 5-year plan, saying the company is halfway through year 2 and remains on track for a 10% to 15% settlements CAGR. He framed the first half as a setup period for a stronger second half, with new projects, improved design and procurement, and capital recycling expected to lift returns and cash generation. His tone was confident and constructive, repeatedly saying the business is comfortable on sales, pipeline, and capital and expects the full year to land at the top end of guidance.

Justin Mitchell highlighted the key numbers and financial position: flat revenue, EBIT down 1% to $85 million, underlying profit of $62 million, EPS of $0.152, and statutory profit up 11% to $97 million. He said the decline in underlying earnings reflected settlement timing, DMF timing, higher debt costs, and tax normalization, while revaluations lifted NTA to $4.10. On capital, he noted 31% gearing, circa $200 million of headroom, an additional $100 million in facilities secured in December, no debt expiries before January 2027, 55% hedged debt, and a 5.03% weighted average cost of debt, which he expects to rise in the second half.

Analysts focused on whether incentives in Victoria were rising, whether competition for land sites had intensified, and whether higher rates were slowing sales; management pushed back, saying it had not seen a meaningful increase in incentives and that sales inquiries were still improving. On development cash profitability, John Carfi said the business has moved from about negative $25,000 per project to about negative $10,000 or $11,000 and expects positive cash flow by the end of this financial year, with ongoing improvement into FY27 and FY28. Questions on the 1,700 homes in due diligence and the joint venture’s future drew a response that many deals require planning unlocks or deferred settlement, that the company is more opportunity-constrained than capital-constrained, and that JV settlements should peak this year before declining as a percentage of total.