My bag is packed, I’ve organised someone to look after the dog and I’ve already checked in for my flights online…I am well and truly READY to get the hell out of dodge this weekend for my first vacation in god knows how long.
In recent years, the pesky pandemic has hindered many Aussies from shutting the laptop and going scram on their lives, even if it’s just for a weekend. And, while the rising cost of living has relegated international travel to those who can afford lettuce, the holiday business is rebounding.
Owner, operator and developer of rental and holiday accommodation, Ingenia Communities (ASX: INA) has seen this trend reflected in their balance sheet as more people choose to holiday closer to home.
With over 100 communities and sites earmarked for development in their portfolio, Ingenia is a well established player in the domestic holiday and property development market.
In April, the Company released guidance figures anticipating EBIT growth of 5% to 10% and an underlying EPS of 1-2 cents below FY22. Despite a rocky few years, the Company is still expecting to deliver FY22 financial results within this guidance range, albeit on the lower end.
The Group’s residential segment rounded out the financial year with an impressive settlements pipeline where 449 contracts and deposits are now in place. This puts Ingenia on course towards their longer term target of 1,800-2,000 settlements for the three years to FY24. The average Ingenia home sale price for the year was $406,000.
The Company can expect their next challenge in the housing market crash, with experts warning that the Australian housing boom is well and truly over, a result of a slowing property market and rising interest rates. On the flip side of this, Ingenia will be able to acquire properties and land at significant discounts.
Ingenia’s holiday business may well be the sweetness to offset the bitterness the property market is bound to experience.
The Group’s holiday portfolio has a value of $678 million and is primarily focussed on the domestic family and grey nomad market with a variety of cabins, glamping tents, caravan and campsites along Australia’s eastern seaboard.
The business has “rebounded strongly following forced closures in the first half.” With more Aussies itching to use banked annual leave and the upcoming summer season, Ingenia is set to see increased traffic to their sites.
In spite of weather related events in QLD and NSW, Ingenia saw its holiday business increase revenue by 45% compared to last year, with bookings through to June 2022 remaining strong.
The Group expects to deliver their full FY22 financial results in late August.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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