On-track for 5-year plan and settlements CAGR target
Management confirms the business remains on track to deliver the 5-year plan, targeting a 10%–15% compound annual growth rate in settlements and expects the full year result to be at the top end of guidance.
Strong Holidays performance
Holidays revenue rose 12% like-for-like; Holidays EBIT increased 10% to $31.5 million. Digital initiatives drove website revenue +18% and conversion +32%, with direct-booking shift improving booking efficiency.
Development margins stable with JV outperformance
Group development gross margin remained stable at 46% while the development joint venture saw margin gains and operating profit up 56% to $12 million; JV settlements increased and produced net cash generation exceeding $100,000 per lot.
Settlements, inventory and sales in hand
First half settlements totaled 248 homes (29% from the JV). Completed 254 homes in the half (up 17% on PCP). As at 20 Feb the group had settled 301 homes year-to-date and held 440 deposits/contracts on hand, a 23% increase on PCP.
Improving development execution and new project starts
Commenced 5 new projects during the half, maintained stable build times across 16 active projects, and highlighted efficiency/design improvements (e.g., Sunbury) expected to lift yields and cash generation in H2 and into FY27.
Rental portfolio strength and operational metrics
Lifestyle Rental EBIT grew 6% to $25.7 million; all-age rental occupancy strong at 99%; average weekly rent in land lease communities up 4.6% YoY; resales (133) generated $2.1 million in commissions; Ingenia Gardens satisfaction ~85% and tenure at 4.1 years.
Balance sheet capacity and funding headroom
Gearing at 31% (within target), circa $200 million funding headroom, secured an additional $100 million of facilities in December, weighted average debt maturity 3.3 years, 55% of drawn debt hedged and weighted average cost of debt at 5.03%.
Statutory profit uplift and NTA
Statutory profit increased 11% to $97 million driven by positive net revaluations; NTA rose to $4.10 and an interim distribution of $0.048 per security was declared.