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Sydney-based land lease communities operator Ingenia Communities Group (ASX: INA) has reaffirmed its FY26 earnings guidance at the top of its range, pointing to a 30 per cent jump in year-to-date sales and a development pipeline that has swelled beyond 8,000 potential lots.
The update released today confirms Ingenia expects full-year EBIT of $180.5 million to $188.7 million, representing 10 to 15 per cent growth on the $164.1 million delivered in FY25.
Shares in Ingenia lifted almost 6 per cent on the news to be trading at an intra-day high of $3.96 at 11.46am (AEST), although the stock remains down around 23 per cent since the beginning of this year.
The company reveals it has 428 deposits and contracts on hand and is forecasting total FY26 settlements of 560 to 575 homes, up from 520 settlements in FY25 and well ahead of the 248 settlements booked in the first half to 31 December 2025, underscoring the second-half skew that management flagged at the interim result.
Occupancy across the portfolio sits at 97 per cent in the Lifestyle segment, 99 per cent in Rental, and 94 per cent in Gardens. Holiday forward bookings are tracking 5 to 8 per cent ahead of the prior corresponding period.
Ingenia is also moving to recycle capital, with about $140 million expected to be released through the sale of lower-growth assets over the next six months.
The proceeds are earmarked for reinvestment into the expanding development pipeline, which now spans more than 8,000 potential land lease lots.
About 1,600 lots have been contracted or settled in FY26 year-to-date across NSW, Victoria, and Queensland, with a further 2,200 lots identified across eight additional sites in NSW and Victoria and 670 lots in due diligence.
The update builds on first-half results that delivered revenue of $257.3 million, EBIT of $85 million, underlying profit of $62.1 million, and a half-year distribution of 4.8c per security.
“The group is well positioned to deliver at the top of guidance and to navigate changing market conditions," says John Carfi, CEO of Ingenia Communities Group.
"The business is underpinned by a strong and stable revenue base from our established land lease and rental communities and resilient holidays performance.
"Long-term demand drivers - an ageing population, lack of housing supply and desire for affordable living - remain firmly in place, with the commencement of new projects providing a runway for settlements growth."
Carfi says a sale process for lower growth assets has begun and expected to release about $140 million in capital over the next six months.
A CBRE Seniors Living Report published in April estimates there are only about 40,000 land lease sites nationally, with penetration of just 1 to 1.5 per cent among Australians aged over 65.
The report notes stabilised yields of 5 to 5.75 per cent, net operating income margins of 65 to 75 per cent and development returns of 16 to 20 per cent for the sector.
CBRE says sector is characterised by a scarcity of quality assets and deepening capital pools, with growing offshore interest in Australian land lease platforms.
Across the Ingenia group portfolio the company has more than 100 communities and development sites located across Queensland, NSW and Victoria.
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