Ingenia shares climb on FY26 guidance reiteration
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More news: Shares in Ingenia Communities rose in afternoon trade after the company reiterated its FY26 guidance and confirmed it remains on track to achieve the top end of that range.
Shares had lifted 5.62% to $3.95 at 1:02pm AEST
UBS analyst Solomon Zhang holds a “buy” rating on the stock, with a $4.60 price target, noting the trading update confirms the business is in good shape despite inflationary pressures and broader macroeconomic headwinds.
Ingenia reaffirms top end of FY26 earnings guidance on strong cashflows
The news: Ingenia Communities has confirmed that it remains on track to deliver the top end of its guidance range for FY26, as the company sees ongoing positive momentum in its annuity-style cashflows.
The numbers: For the full year, the company anticipates home settlements in the range of 560 to 575, with an expanded development pipeline of over 3,400 potential home sites acquired in the second half of the year.
It expects to be at the top end of its earnings before interest and tax guidance range of $180.5 million to $188.7 million, representing year-on-year growth of 10% to 15%, and its underlying earnings per share guidance range of 32.5 cents to 34 cents.
The context: The senior resident property developer said it has made progress in its strategic goals in with the five-year plan announced in August 2024, which included an exit from the funds business in FY25.
The business also noted that it continues to benefit from stable cashflows generated by a combination of rental homes, recurring income from tourism operations and growth in land lease developments.
What they said: “The business is underpinned by strong and stable revenue base from our established land lease and rental communities and resilient holiday performance,” CEO John Carfi said.
“Long-term demand drivers remain firmly in place, with the commencement of new projects providing a runway for settlements growth,” he added.
The sources: ASX, UBS analyst note
