Ingenia is counting on a strong summer vacation season, with year-over-year revenue per park up 26%, indicating pent-up travel demand from customers looking to stretch their legs after the NSW and Victoria closures.
The owner and operator of the holiday parks as well as affordable housing communities said on Thursday that revenue per park – a measure of bookings, down payments and paid holidays – until the end of June 2022 was up sharply compared to last year.
“This is the best leading indicator that we have travel intentions,” said Simon Owen, CEO of Ingenia. The Australian Financial Review after the annual general meeting of the company.
âWhen you compare holdings today to the same period a year ago, we have a head start. “
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Ingenia’s caravan and chalet activity, which represents around a third of its total turnover, continues to recover. The pandemic restrictions that closed the company’s holiday parks in late June were only recently lifted, slashing revenue for the year to date by around $ 10 million.
In August, although it reported a record number of settlements in its residential business, uncertainty over tourist parks prevented the company from releasing earnings forecasts.
It only remedied earlier this month, when expectations of a rebound in tourism activity prompted it to forecast EBIT earnings growth of 20-25% and underlying earnings per share growth. from 3 to 6% compared to last year.
After seeing after previous closings how quickly holiday business picked up, the company was confident its holiday business – now comprising a portfolio of 40 holiday communities across Queensland, NSW and Victoria – was rebounding, said Mr. Owen.
âPeople want to travel. Even now, almost every one of our vacation parks is full every weekend, âhe said.
âNovember is normally a quieter month and it picks up in December. Even now people are pulling young children out of school saying “We’re taking a break.” The gray nomads are on the road.
Shareholders adopted the four resolutions submitted to them at Thursday’s AGM, with more than 99% of votes for the compensation report and the granting of compensation, short and long term incentive plans to Mr. Owen.
The shares closed down 9 Â¢, or 1.4%, at $ 6.20.
Separately this week, Ingenia announced it had acquired BIG4 Beacon Resort – occupying 3.2 acres in Queenscliff on Victoria’s Bellarine Peninsula – as part of a $ 37 million off-market deal.
The asset, with a combination of short-term vacation villas and sites and long-term annual chalets, was part of a handful of unidentified acquisitions that Ingenia said under contract when it announced a pipeline $ 552 million in acquisitions and a capital raise earlier this month.
Ingenia has purchased the asset from long-term owner and operator Lorraine Golightly in cash and is expected to generate a stabilized return of around 7% from the fleet which currently has 23 annual cabins, 31 caravan and camping pitches and 69 vacation villas.
The park also had the ability to generate additional revenue by adding additional sites and annual cabins, Ingenia said.
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