Ingenia shares jump 7% on strong revenue and earnings figures

Ingenia Communities Group (ASX:INA) has been trading higher, buoyed by final year results which showed that revenue had risen close to 20 percent compared to the 2023 fiscal year, while earnings had also come in strong, going beyond guidance expectations.

At 13:12 AEST, shares in the retirement village property group were trading at $5.45, a rise of 7.28% since the market opened.

In its report for FY2024, the company said its revenue was $472.3 million – a rise of 19.7% compared to the 2023 fiscal year, while EBIT (earnings before income and taxes) were $125.7 million, representing an increase of 17%.

Ingenia had expected earnings to show growth of between 10 and 15% for the 2024 fiscal year.

CEO and Managing Director, John Carfi said the numbers were underpinned by a solid and growing portfolio, plus positive responses to the company’s changes to drive security holder returns, although he warned that development returns for some projects remained below target.

“I have spent considerable time in this area of the business, and we are progressing a range of initiatives that will ensure we move towards targeted returns over the medium term, building development into the growth engine of this business,” he said.

“Our focus is to optimise returns on current and future projects with a critical lens on execution, efficiency and accountability.

“The diversity of projects across location and price points is a significant point of difference for Ingenia, and we have a clear view of our capital needs that are supported by growing cashflows, good debt capacity and ongoing portfolio refinement to support further investment as needed.”