This article first appeared on GuruFocus .
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Tourism Revenue Growth:Increased by 12% on a like-for-like basis.
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Development Gross Margin:Stable at 46% for Ingenia, with joint venture margin at 53%.
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Revenue:Flat relative to the prior year.
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Group EBIT:Reduced by 1% to $85 million.
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Underlying Profit:$62 million, with EPS at $0.152.
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Statutory Profit:Increased by 11% to $97 million.
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NTA (Net Tangible Assets):Increased to $4.10.
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Interim Distribution:Declared at $0.048 per security.
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Lifestyle Rental EBIT:$25.7 million, up 6%.
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Lifestyle Development EBIT:$32 million.
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Development Joint Venture Operating Profit:Increased by 56% to $12 million.
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Holidays EBIT:Increased by 10% to $31.5 million.
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Gearing:31%, within target range.
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Weighted Average Cost of Debt:5.03% as of December.
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Home Settlements:Totaled 248 in the first half.
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Joint Venture Settlements:29% of group settlements.
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Average Weekly Rent Growth:Up 4.6% on prior year.
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Occupancy in All-Age Rental Portfolio:Strong at 99%.
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Ingenia Gardens Average Tenure:At an all-time high of 4.1 years.
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New Website Revenue Growth:Up 18% with conversion up 32%.
Release Date: February 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ingenia Communities Group ( INGEF ) is on track to deliver its five-year plan targets, including a 10% to 15% compound annual growth rate in settlements.
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The Holidays business has shown strong performance with a 12% increase in tourism revenue on a like-for-like basis.
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Development gross margins have remained stable at 46%, with joint ventures seeing an increase to 53%.
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The group has maintained a prudent balance sheet with gearing at 31%, providing capacity for further investment.
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Ingenia Communities Group ( INGEF ) has a strong development pipeline with five new projects commenced and significant progress in key project milestones.
Negative Points
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New home settlements were lower in the first half, consistent with a more pronounced skew to the second half.
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Group EBIT reduced by 1% to $85 million, primarily due to the timing of settlements and DMF impacts.
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Operating costs have increased above CPI, particularly in council rates, utilities, and waste expenses.
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Lifestyle EBIT margins have been impacted by lower CPI and legislative changes reducing rental growth.
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The Holidays business experienced a slight decline in margin due to increased marketing spend and higher variable costs.
Q & A Highlights
Q: You mentioned higher incentives across Victorian projects impacting development profit per site. Do you expect this to persist, and how do Victorian incentives compare to New South Wales and Queensland? A: We haven't experienced higher incentives. We budget for incentives at the start of the year and adjust them as needed. There hasn't been a significant increase compared to last year. - John Carfi, CEO & Managing Director
Q: How are you finding competition for sites, particularly in Queensland? Has there been a step-up compared to last year? A: We were already seeing strong competition last year. We've done strategic work to focus on areas and improve deal flow. We're comfortable with the current deal flow and are backfilling the pipeline at a rate greater than we're using it. - John Carfi, CEO & Managing Director
Q: Can you provide more details on the AI pricing tool used in the Holidays business? Have you seen better rates since its implementation? A: The AI pricing tool helps us adjust prices more frequently, allowing us to optimize occupancy and peak demand. It's a work in progress, but it enables us to reprice more often, improving revenue. - John Carfi, CEO & Managing Director
Q: Regarding the 1,700 homes in due diligence, how should we think about the timing and settlement of these projects? A: These acquisitions are structured over time, often requiring planning outcomes or deferred settlements. Most pipeline builds are for later years, allowing us to continue on our five-year plan within current balance sheet constraints. - John Carfi, CEO & Managing Director
Q: How do you expect margins to change across divisions in the second half, particularly for Development, Rental, and Holidays? A: We expect EBIT margins to improve in the second half due to increased settlements and reduced marketing costs. Holidays should also see improvement, with January being a strong revenue month. Lifestyle margins will likely remain flat. - Justin Mitchell, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
