Ingenia: Initiating Coverage; Stock Screens as Fairly Valued

We initiate research coverage of Ingenia Communities, with a fair value estimate of AUD 3.90 per security and a no-moat rating. Ingenia is an Australian real estate investment trust with a property portfolio capitalizing on tourism, retirement, and low-cost housing needs. The largest and fastest-growing source of income is the firm’s land-lease communities targeted at the over-55s population. In a land lease, the resident owns their own premanufactured home and pays rent for the land their home occupies. It appeals to customers who have most of their net wealth tied up in their homes and depend on downsizing to free up wealth to fund their retirement years.