Ann: Ingenia FY13 Results Presentation , page-2

Some thoughts...

Overall - solid but unspectacular result.

Surprised to see NAV impacted -1c by valuations going downwards. I was expecting more like 1c valuation growth for a NAV around 36-37c. But no big deal.

It does mean that the days of INA trading at a discount to NAV appear to be over. Anybody not on that boat already has missed it!

Distribution stays at 0.5c so that means two of the three likely drivers to short-term SP rise that I identified in my earlier post haven't eventuated.

However the third is still on the cards - growth rate going forward and the market giving it a premium to NTA accordingly. Most of the acquisitions were late in the FY so haven't had time to impact on the bottom line, and they carry significant cash yields, so over the next 12 months INA stands to benefit from good cashflow growth going forward.

Growth in future will be MHEs for acquisition and retirement villages for development. Should be a good balance IMO.

So to return to the debate going on earlier about INA's value as a stock going forward - we now have full value to NTA (and ~15% premium to it), a lowish div yield of 2.6% unfranked, but a potential IMO for continued slow but steady SP appreciation as a premium to SP, particularly with the expected growth in the distribution.

Obviously everyone has to make their own decision but I still see INA as a solid investment going forward with very good growth prospects. Maybe not in the next 3 months, but fast forward 12 months and I anticipate slow and steady SP rise and significant TSR for this stock.

All just IMO, interested to hear others' views.