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Ingenia Communities Group (ASX:INA), a prominent player in the ASX 200 real estate sector, is witnessing a notable rise in its share price, up over 7% to AU$5.45 as of Tuesday. This surge follows the company’s announcement of its fiscal year 2024 (FY24) results, which reveal a mixed but overall positive performance.
The key highlights from Ingenia’s FY24 report include a robust 20% increase in revenue, reaching AU$472.3 million compared to the previous year. The company also achieved an earnings before interest and tax (EBIT) of AU$125.7 million, marking a 17% rise from FY23. Additionally, earnings per share (EPS) grew by 14% to 23.3 cents.
However, despite these encouraging metrics, Ingenia reported a significant decline in statutory profit, which fell by 78% to AU$14 million. This stark drop reflects challenges faced in the broader economic environment, particularly impacting profitability.
Ingenia's development activities have been robust, with 462 new homes settled during FY24 and a substantial development pipeline consisting of 5,311 sites. The company’s focus on expanding its residential communities is evident, with a notable 24% increase in home settlements and an average sales price exceeding AU$600,000.
In terms of financial management, Ingenia has made strategic moves to bolster its cash position. The company completed 11 asset sales and secured an additional AU$125 million through a new debt facility maturing in five years. This financial maneuvering has contributed to a strong closing balance of AU$2.5 billion in owned or managed properties, spread across 102 communities.
In addition to its financial achievements, Ingenia declared a final distribution of 6.1 cents per stapled security, bringing the total full-year distribution to 11.3 cents per security. This represents a 3% increase from the previous year, underscoring the company’s commitment to returning value to its shareholders.
Ingenia continues to navigate inflation and interest rate risks by linking rent growth in its land-leased communities to the consumer price index (CPI). The company’s extensive development pipeline includes approximately 16,000 income-generating homes and more than 5,300 land lease homes, positioning it well for future growth.
Overall, Ingenia Communities’ latest results reflect a company making substantial progress in development and financial management, even as it contends with challenges in profitability. The market’s positive reaction to the results suggests confidence in the company’s ongoing strategic direction and growth prospects.
