Ingenia Communities, an ASX-listed developer focusing on affordable housing for downsizing Baby Boomers, has announced it remains on track to deliver full-year earnings at the top end of its guidance range. This comes even as new home settlements experienced a slight decrease, falling 4 per cent to 248 in the first half of the financial year, compared to 258 in the corresponding period last year.
The company reported that this decline in settlements was a contributing factor to a dip in first-half earnings before interest and tax (EBIT), which landed at $85 million, down from $86.2 million. Consequently, Ingenia has decided to reduce its interim dividend by approximately 8 per cent, setting it at 4.8 cents per share, a decrease from the previous 5.2 cents.
Despite the minor setbacks, Chief Executive Officer John Carfi expressed confidence in the company’s prospects. He stated that settlement activity is expected to increase during the second half of the year. Ingenia stands by its earlier guidance, projecting EBIT earnings between $180.5 million and $188.7 million, and underlying earnings per share between 32.5 cents and 34 cents.
Ingenia Communities specialises in developing and operating a range of lifestyle communities, including those for seniors and families. Carfi emphasised, “Our first half demonstrates targeted execution which puts us on track to deliver the full-year result at the top of our guidance range.” Net profit saw an 11 per cent increase, rising to $97.4 million from $86.6 million, primarily driven by upward revaluations of its investment properties.
