👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Ingenia Communities (ASX:INA) Surges 7% on ASX After Strong FY24 Results Despite Profit Decline

Published 21/08/2024, 12:20 am
© Reuters Ingenia Communities (ASX:INA) Surges 7% on ASX After Strong FY24 Results Despite Profit Decline
AXJO
-

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.

Read more on Kalkine Media

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.