Why the Ingenia (ASX:INA) share price is moving higher this morning

The Ingenia Communities Group share price is up 1.24% in early morning trade. We look at the announcement driving the share price moves.
The post Why the Ingenia (ASX:INA) share price is moving higher this morning appeared first on The Motley Fool Australia. –

family of four on campervan holiday

The Ingenia Communities Group (ASX: INA) share price is up 1.24% in early morning trade.

This follows on the company’s announcement of a major new acquisition as well as a trading update.

What did Ingenia report to send its shares higher?

In this morning’s ASX release, Ingenia reported it had acquired Merry Beach Caravan Park on the New South Wales South Coast for $20.5 million. The deal is scheduled to settle in March.

The new acquisition adds more than 540 cabins, sites, permanents and annuals to the company’s portfolio. Annuals provide approximatey two-thirds of revenue. This increases the size of its holiday offerings by more than 10%.

Around 3.5 hours south of Sydney, Merry Beach Caravan Park has walking tracks, a swimming pool, a playground and direct beach access.

Commenting on the acquisition, Ingenia Communities Group CEO Simon Owen said:

Merry Beach offers a unique opportunity to acquire a beachfront park with significant upside potential. We have identified a number of ways to enhance performance, including upgrades to facilities and improving the accommodation offer and mix. Like Ingenia Holidays Lake Conjola the Park benefits from a stable revenue base from more than 350 annuals.

The prime location provides easy access to the beach and beauty of the Murramarang National Park. We know the South Coast market well and are excited to add Merry Beach to our established cluster.

Noting that Ingenia is closing monitoring the evolving situation with New South Wales new COVID outbreak, Owen added:

Combined with the acquisition of BIG4 Inverloch Holiday Park and the mixed-use Middle Rock Holiday Parka and Village, we have announced close to $74 million of acquisition this month and are continuing to work through the due diligence for a number of potential acquisitions, including a large lifestyle community.

Ingenia Communities Group share price and company snapshot

Ingenia owns, operates and develops a portfolio of lifestyle and holiday communities (Ingenia Lifestyle and Holidays) and rental communities (Ingenia Gardens). The company’s assets are located throughout Australia, primarily in Queensland, New South Wales and Victoria. Ingenia pays a 2.0% dividend yield, unfranked.

Like most every ASX 200 share involved in the tourism business, Ingenia’s share price was hit hard during the COVID market panic. Shares fell 46% from 5 March through to 23 March.

Since that low the Ingenia share price has soared 75%. Year-to-date shares are down 1.4%. That compares to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO) at time of writing.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Ingenia (ASX:INA) share price is moving higher this morning appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!