Ingenia Communities Group (ASX: INA) climbed up by 6.89 per cent and was trading at $3.10 as on 26 June 2018 (well ahead of market close) as the Group upgraded its FY18 guidance. In FY18, Ingenia expects that it will deliver between 280-285 new home settlements, including twelve settlements at the Group’s first greenfield project, Latitude One in Port Stephens, NSW as compared to the previous guidance which the Company issued earlier to have new home settlements between 260-280 homes. This highlights a growth of 33 per cent in settlements on the record 211 settlements achieved in FY17.
It is expected that FY18’s EBIT and underlying EPS will also exceed prior guidance as the Group sees the benefit of strong performance across the existing asset base and increasing sales volumes and prices. Now it is anticipated that EBIT will be over $48.5 million, and this is against the previous guidance of $45- 47 million while underlying earnings per security are forecasted to demonstrate above guidance growth, with a forecast of over 17.2 cps (up from more than 15.6 cps and a 32 per cent increase on FY17). With this, it expects that it will close the year with some 160 contracts and deposits in place, providing 46 per cent coverage of its forecast of 350+ settlements target for FY19.
Further, Ingenia has exchanged contracts for the sale of the Group’s Rouse Hill community which remains subject to a number of conditions and it is forecasted that it will realise net proceeds of approximately $22 million. The Group has successfully refinanced the loan facilities and delivered $50 million of increased debt capacity. It will soon release an update on its tour of Ingenia Lifestyle Latitude One and Ingenia Lifestyle The Grange. These all developments prove that it is all set to progress as funds from asset sales will be quickly redeployed into higher growth development projects where the Group continues to see the best opportunity to create quality.
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