Good morning, everyone. Welcome to the Ingenio Communities 2017 Full Year Results Presentation Teleconference And Vetcast. We will be holding a question and answer session at the star 1 on the telephone keypad. This conference is being recorded today. I would now like to hand the conference over to your first speaker today, Simon Alvin.
Thank you, please go ahead.
Good morning, everyone. It's great to be here and I'm really excited to be presenting Ingenia's results today. The group's performance again demonstrates that our strategy of owning, managing and developing a leading portfolio of lifestyle and holiday communities is working. Before we go into the details, I'd like to make a few introductory comments about our business and the sector and what the next pipeline in key capital city and coastal markets. Over the next 14 months, we intend to launch 8 new or expansion projects.
These are all either on balance sheet or secured by an option. We also intend to execute on the numerous organic growth initiatives that we have identified within the business. And some of which have been identified in today's presentation. What sets Ingenio apart is that we have already locked in our growth for the next 2 to 3 years. NGEN is now at the forefront of land lease communities within Australia.
Over the past 2 years, it has become abundantly clear that consumers are embracing the simplicity and transparency of a model, where residents buy the home and rent the land, where they pay no stamp duty or legal fees. And whether I know the 3rd management fees as they get to keep all of the capital appreciation on their home. This is a housing solution with a genuine and meaningful cash out from selling the family home and moving into a vibrant and engaging community. 2 years ago, many of the conversations that we were having with boomers with about how the model worked and what security of tenure you had if you didn't own the land. Today, the conversations really start about 4 plans and inclusions when is the clubhouse going to get built?
And what sort of activities will be happening within their community? The consumer fully understands how the model works and value with transparency and simplicity. Across land lease communities, no other group has the breadth and depth of projects that Ingenia is currently bringing to market. And finally, Ingenia has a strong balance sheet and capital position. And we are absolutely determined to self fund the build out of our development pipeline.
We will reinvest development profits into future growth projects and are progressing a number of noncore and regional asset sales, and our near term acquisition program has stepped back a notch. And I'm now going to turn to the presentation. Joining me on the call today is Scott Noble, our Acting CFO, who is doing a great job while Tanger is on maternity leave. And Nicky Fisher, our Chief Operating Officer. So let's start on page 3, which are the key highlights.
And I'm going to let Scott talk to the numbers in a moment. But last time on holidays, our market segment, we only entered just over 4 years ago. Is now the largest contributor to earnings. The group has a development pipeline of nearly 2500 home sites, with a 90% rating to key Metro and coastal markets. We really have strong momentum in a business that uniquely meets the convergence of 2 of the key challenges facing Australia today and aging population and housing affordability, supported by strong cash earnings from our growing holiday business and our core Ingenia Gardens business.
But all the areas that we need to work harder, I think firstly on executing and demonstrating the scalability of our management platform. Secondly, working hard to recycle capital quicker from our non core and select regional communities, which will enable us to continue to self fund the build out of our development pipeline. And finally, I think there's more work we can do on standardizing our home designs and looking to further cost out and volume efficiencies in our development business, but we're working very hard on all of these. On to page 4. I think this slide really captures not only the tremendous growth of the business over the past 5 years, but also that we have established a strong framework for future sustainable growth as we accelerate development and integrate and optimize our existing communities.
On to page 5, which highlights our business overview. Today, we have over 4600 residents who pay us rent. In our holiday business, we've now got over 709 1000 room nights per annum across fillers and caravan and camping sites. In terms of earnings, notwithstanding the significant and continuing growth in development. The rent collection side of our business is still represented approximately 3 quarters of earnings.
I do think we have a very stable balance here. And we're really excited about that part of the business in terms of the growth potential at Office. Our annual revenues are now tracking at over $175,000,000 per annum, and we're collecting over $1,500,000 in rent every week, which really underpins the business. If we can now turn to page 7, and I'll hand over to Scott to walk through the financials and capital management.
Thank you, Simon, and thank you everyone for joining the call. Turning to our key financial results on Slide 7, revenue increased $42,800,000 $149,900,000, a 40% increase from the prior year. EBITDA has increased 32.6 percent to $32,100,000, driven by the growth in our the result from our lifestyle and holidays business and the increased contribution from our lifestyle development business. Underlying profit increased 16.3% on prior year, driven by the increase in EBIT. However, this was adversely impacted by the group's tax expense with an effective tax rate of 7% being booked The increase in tax expense from the prior year was largely attributable to the increased portion of profit coming from the group's development business, which is not filtered by the group's cross stable arrangements.
Please note, even though we have not even though we've started booking tax expense, the group does not have any cash tax payable due to the group's available tax losses. Statutory profit improved 8.6 percent on prior year. This was driven by the improved underlying profit and achieving higher valuations on our investment properties. The statutory profit was negatively impacted by the loss on the sale of the settler's assets and the impact of the tax expense turnaround from prior year. Seasonally, the group's operating cash flow increased 44.3 percent on 2016, driven by strong recurring rentals returns for our existing portfolio, the impact of new acquisitions distribution of $5..1 per security, taking the full year distribution to $0.10.2 per security.
This represents a 9.7% increase on 2016. This distribution is consistent with the guidance provided to the market at the time of our equity raising in Maine. Turning to Slide 8, the group delivered strong growth in EBIT, increasing 32.6% on prior year. Last cycle holidays increased 58 percent to $17,400,000, attributable to the improved performance of the existing villages, and additional EBIT on our new acquisitions. Last dollar development EBIT increased 98% on prior year with 211 turnkey settlements completing in 2017.
Compared to 107 settling in 2016. The EBITDA from Ingenio Gartner's portfolio increased 5.5% on FY16 driven by higher occupancy and improved operating performance across the portfolio. Corporate costs were higher than prior year, reflecting the increased asset base and the impact of due diligence costs written off in the first half of FY 'seventeen. Turning to the capital management slide on page 9. During the second half of 'seventeen, we raised an additional $74,000,000 in equity to support the acquisition of 4 new villages and accelerate development steps.
2 of these villages Hilton Gerak will apply prior to the end of FY 'seventeen. The timing of the equity raise versus the timing of the deployment of capital raise the impact of reducing our LBR to 27.7 percent at 30 June. This compares to our debt covenant of 50% During the year, the group also increased syndicated facility by $100,000,000 and extended the tenure of our debt facility. Which now has a weighted average term to maturity of 3.8 years, with the next maturity due in February 2020. We will be opening up a distribution reinvestment plan of security holders and will apply a 2% discount.
Turning to Slide 10. During the year, we've certainly revalued approximately half the group's portfolio. Over the last 12 months, we've seen the average capitalization rate lifestyle and holiday portfolio sharpening by approximately 50 basis points across the portfolio. The sharpening of capitalization rate has been driven by a combination of strong macroeconomic conditions with low interest rates and record housing prices, making housing affordability accretion, The impact of new market entrants such as Hometown And Boyer, looking to share in the strong growth outlook for the sector, the maturing of the sector, which is well established in countries like the U. S, and the improved quality of ingenious diligence through capital investment and the implementation of various asset management strategies.
Now, our G And A Gardens capitalization rights have remained largely stable. On slide 11, this highlights the key drivers of our net asset value growth to go as 50 per security. Our net asset value increased due to our strong underlying profit and the impact of the re evaluations on our portfolio, which was driven by both cap rate sharpening and improved operations of our villages. These increases were offset by the loss on sale of our sellers' assets, distributions paid to security holders and the impact of acquisition costs such as stamp duty, on newly acquired assets, which are rebates down to the original purchase price, post the acquisition of the new asset.
Thank you, Scott. So moving on to slides 1213, we thought it would be interesting to show you where recent lifestyle and mixed use communities and development sites are transacted. This is proprietary engineer analysis collected over the last four and a half years. Slide 12 shows very significant tightening in cap rates. For lifestyle and mixed use communities.
In the last six months, we've seen 2 new market entrants acquire existing lifestyle communities at cap rates in the high sixes. Newport and Greenpoint are properties on the New South Wales Coast. Jurak, one of the other transactions on the right there, is a recent Ingenia acquisition located in Metro Brisbane, and I know where I'd rather be. Virginia's 1st lifestyle community was acquired back in March 2013, which was the grant on the left of the screen at a cap rate of 9.45 percent and is now down to the cap rate of 7.8%. And my closing comment on this slide is that the valuers are at least 100 basis points of the pace for lifestyle communities compared to where deals are now transacting.
Page 13 clearly articulates the growing demand and increasing prices for development land, particularly that that has approvals in place. Approved development sites on the recent Newport and GreenTown deals transacted at prices well over $100,000 per home site. That's a lot more than what we even paid for Avina in Western Sydney. And at that sort of price, certainly going to be putting pressure on your development margins. Over the past few years, Ingenia has deliberately focused on auctioning or acquiring development sites at raw land prices and then procuring all necessary approvals internally.
So at Bethania And Chambers Pines in Brisbane and at Conjola on the New South Wales South Coast. These are all recent examples. Of ingenious security development sites at very attractive and below market prices. Now moving on to Page 14, And most of you would know about Avina, which is Ingenia's most valuable project and one of the very few potential lifestyle development sites. In Western Sydney.
A DEA was launched for these projects nearly a year ago, and we anticipate final assessment over the next 3 to 6 months. Pleasingly, over the past 12 months, the suburb in which Havana is located, Vineyard, recorded the 3rd highest house price growth across Australia, which certainly supports our initial investment thesis. I'd like to briefly touch on slide 18, which calls out some of the value levers that management is presently advancing, to unlock maximum value in our portfolio. And I think, again, further demonstrates that the group does not need to acquire any additional operated community in order to continue to grow earnings. Building out our existing development pipeline will add over $20,000,000 per year in incremental rent.
Adding new rental homes at Chambers, Durak and Sheldon on current vacant and underutilized land, we'll add a further $1,600,000 per annum in incremental rent and investing in an additional 182,000,000 cabins across communities such as Ed Cogener, can add another $4,500,000 per annum in incremental rent. Importantly, we believe all of these opportunities can be funded internally. On page 21, we accounted earnings from our key lifestyle and holiday segment. Portfolio EBIT was $28,300,000, up over 70%. Are mature by you guys that are fully built out communities owned for over 12 months and now yielding over 9% on purchase price.
And like for like income is up over 5% in the past 12 months. Concentrated across due and Chambers Pines in Brisbane and Rausch Hills and Sydney Hills in Sydney, the group now owns 574 Homes which are typically rented out at much higher rents than what we've achieved for resident owned homes. Moving on to Slide 22 in junior holidays. This is again where we're really enhancing returns through active management. Life for life, I.
E. Same store revenue growth is up 4% over the past 12 months, and we now have a unique database of upwards of 150,000 members who we communicate with on a regular basis. This is up nearly 50% over the last 12 months. Our strategy here in holiday is about owning the customer, controlling the panel and focusing on yield optimization and length of stay. Rather than meeting the market.
Our whole life business is a compelling and complimentary opportunity with attractive earnings upside. On page 23, talking about development. 2017 was another record year for Virginia with 2 11 settlements and above ground development profit of $97,000 per home site. Pleasingly, we finished the year with 100 and 35 homes deposited or contracted. Basically giving a 50% coverage of our forecasted settlements of between 2.60 and 2.80 homes for 2018.
2nd half margins were impacted by a mix with a larger reliance on projects such as Southwest rocks, which typically has a lower development margin than some of our capital city projects. But we do our forecast to return to our development margin for the current year of around $110,000 per home. And retail hikes and annuals is a growing and new opportunity for Ingenia. And in 2019, we are gearing up over 350 settlements with further growth beyond that. I'll now touch on page 24.
I want to be clear on costs. Over the next year, in January, we'll continue to invest in our sales and development team as we launch 8 new oil expansion projects and continue to identify and option land sites for future growth. Across other areas of the business such as finance and operations, our teams are largely fixed and we have made a number of roles redundant or we restructured them. In June, it's rapidly growing, addressing a huge market opportunity and we need to have a right sized team. I'd also say that the average time of the executive team now is around 5 years.
Moving on to Slide 25. And this is probably my personal favorite in the whole deck. There is no other lifestyle community operator that has a development pipeline anywhere near this quality or breadth. A majority of these projects have been sourced where we've got the DA internally and that's added considerable value. So over the next 14 months, we're launching 8 projects We're also entering Victoria for the first time.
Our success at Lara, near Avalon Airport has given us the confidence to move into the Victorian market and we already have somebody in the ground putting together some sites for us. In recent months, we've recently acquired a joining land at Latitude 1 and we are currently negotiating acquisition of expansion land on an existing sorry, on we're currently negotiating acquisition of expansion land are joining 4 existing communities. Our experience is that when you're acquiring the land next to an existing community, but it typically provides a very low risk and highly profitable development. And these projects detailed on this page continues to demonstrate our focusing on large scale long life and high margin projects. I'll now touch briefly on garden villages, which is on page 27.
In our Gas Builders business, we achieved an all time record occupancy of 92.8% at 30 June, which is really exciting. Garden Village remains a core part of our platform and we collect nearly $500,000 of rent in rent every week most of which is government funded or supported. And over the last 6 months, we've been trialing a new Ingenia care plus which provides an extended care offering. We're trialing that at the moment in 2 Villages, our Devon Port down in Tazmania, Antari on the New South Wales Mid North Coast. By the end of this year, we'll be assessing whether we're going to roll that out across the portfolio.
Touching briefly on to page 28, our noncore assets, We're actively divesting the remaining 3 DMF assets that we have, which are collectively worth around $10,000,000 in addition to select regional lifestyle communities. At this point in time, we have conditional offers in place across 6 communities, totaling $48,000,000. And the capital release from this program will be recycled into accelerating the build out of our development pipeline. I'll now touch on to page 29, which is the market landscape. What we're seeing out there is that housing affordability is a front page issue across Australia.
Combined with an aging population, There's very strong and growing demand from prospective residents. There's limited new supply and there's very strong tailwinds behind our business. I would certainly say that the competition is stepping up. There are new competitors coming into the market, but we have been busy executing our strategy and constructing our portfolio over the past four and a half years. The key risk for our business would be a downturn in the housing market.
But this was likely to require rising unemployment and rising interest rates, and we don't see any near term risks of either of those. We are alert, but certainly not alarmed. We're spending a lot of time on customer research and are continuing to evolve and improving our product and service offering. As we need to, the customer and their families are very informed and prepared when we're talking from about moving into one of our communities. And lastly, on page 25, which is our outlook.
Our absolute number one priority in the business remains on improving the performance of our existing assets. Recycling capital from non core and select regional communities is a key focus over the next 12 months. Acquisitions will likely be far more muted than previous periods, and self funding is a very high priority. In terms of guidance, we remain confident in our ability to hit 260 to 280 settlements this year. And over $350,000,000 in FY 'nineteen, and we would see continuing growth beyond then, subject to where the market's currently trading.
Our earnings guidance remains unchanged with an EBIT of between $42,000,000 $46,000,000, again, subject to no material changes in market conditions. On closing, I think this is another very strong result for Ingenia that demonstrates where delivering on strategy and investing in our platform to become the clear market leader in our segments. And I'll now hand over for Q And A.
Ladies and gentlemen, we will now begin the question and answer session. Our first question comes from the line of Joelisa from Morgan. Is ask a question.
Good morning, Simon. Congratulations on a result ahead of guidance. Just firstly, on the communities were at 46 Mill. Can you just confirm what you think the equity release is there and also the EBIT contribution from those assets for those 6 communities in FY 'seventeen?
Sure, Joseph. We all of the assets in the group basically sit within one security pool. So it put a sale of assets for $46,000,000 then We could invest that into $46,000,000 of equivalent assets and gearing would remain unchanged. So the near term impact of divesting those is that we would probably pay down our gearing a little bit, and we would forgo some earnings until that capital was reinvested. In the EBIT guidance, we've given a $42,000,000 to $46,000,000 we have made an allowance for the divestment.
I'll you could find equivalent value of assets in the current financial yield. So if we Okay. If we sold less than that, then, EBIT may be slightly higher. And if we sold more than that, then EBIT may be slightly lower until we reinvest that capital.
Okay, understood. And just on the corporate costs, just trying to get what you're pointing at there. I mean, that should continue to grow at well than less than EBIT growth, I imagine, next year, but you're also flagging you're growing strongly and there is further investment. Can we, it did fall in the second half. How should we think about that next year?
I think you could say that corporate costs, we would expect to remain flat from here.
And you just didn't provide a settlement update year to date like you normally do. Is there a timing thing there or how do we kind of interpret that?
I've got the numbers right here. I was probably so as of, yesterday, we have settled 24 times. And we have, 122 deposits on and contracts in place. Consistent with a normal residential housing market, the housing market tends to slow down over the winter period. So if you were looking to buy a home at the moment, there's not a lot of product out there.
As we move into, to autumn next week, that will begin to step up. And our 2 key selling periods, which is consistent across the last 4 or 5 years is now moving into order. And then coming out of sort of February, March, April. So if you look over the last 12 months to 20.17, our 2 strongest months of the year were May June. And our softest month last year was July.
And that's consistent with where we are at the moment. But now we're very comfortable in reiterating our target of 260 to 280 sellers. We're very pleased with where we are with Latitude 1 at the moment. So Latitude 1 is our 1st Greenfields project, just north of Newcastle on the New South Wales coast. We have a database at the moment of over 700 people, and we had our first marketing event about a week and a half ago, and we're very encouraged by the level of deposits that we've already secured for that project.
So, we're very comfortable with 260 to 280 settlements given everything that's in front of us at the moment.
Great. And just lastly from me, the Queensland government recently touted proposed amendments to the MATG Act, whereby rent increases will be limited. Any thoughts on their initial proposal there and how that fits in with your practices?
Yes. So what the Queensland government, Mick DeBrenny who is the housing minister out there, what he's proposing is very similar to the legislation we already have in New South Wales. So we do have, those proposals are currently out for industry feedback. Look, if it all came through, there's a couple of things there that at the margin may have a a marginal impact on our business, but we're pretty comfortable with what's been proposed there. I mean, most of the but for us that the changes in the legislation that he's proposing really impact more the traditional retirement diligence or DMS operators.
But No regulatory risk is is something that we're always vigilant about in, you know, through the residential land lease alliance, which is the peak distribution lobby group headed up by James Kelly from Lifestyle Communities. We have a well funded advocacy platform.
Your next question comes from the line of Stephan Lamb from CLSA. Please ask your question.
Hi, Simon and team. Just a few questions. I'm just following up on the non core asset sales. So you mentioned that in the guidance you've assumed to sale of those 46,000,000 assets. What sort of timing are you have you assumed for that?
Are you assuming mid year or early in the year?
I'm probably given our experience with divesting the DMS portfolio, I'm probably reluctant to give too much timing. But I think if you'd assume most of those sales happen in the second half of FY 'eighteen, that would probably the appropriate for modeling.
Yes, great. Thank you. And then, do you have the guidance on sort of the CapEx I understand that it's not always easy to forecast the CapEx and development costs based on the number of sites in terms of your forecast settlement pipeline So what's a rough rule of thumb that we could use? Or perhaps That's
a pretty tough question. So I might hand that over to Scott Thank you, Simon. Yeah.
And from a development spend point of view, we are, we're certainly expecting an increase in FY18, particularly with both Latitude 1 and Glenwood developments, being forecast. My rule of thumb at the moment would be probably to double spent in FY 'seventeen at this stage. But we obviously have a number of levers we can pull to either accelerate or reduce that depending on timing of asset sales and progress. We've certainly got funding in place for that in our facility. And we also have the existing pipeline already in place.
In terms of CapEx on our existing assets, likewise just at this stage, I again recommend probably doubling where we landed in FY 2017. We do have a plan to roll out additional cabins across our sites that will add to revenues in exchange. So that's where the majority of that spend will be targeted.
And when you say doubling, do you expect that rate to be sustained going forward or would it reduce?
Look, I think we're in the probably early stages of sort of ramping up our development. So, for future years, Yes, look, it could, it really depends again on timing of asset sales and a number of other factors. But, I think that's that would be a more of a capped out rate.
I think, Stephen, if you, over the last 2 years, the CapEx we spent has largely been, no reinstatement or maintenance CapEx. Spare dollar of capital we've either put into, developing or expanding communities or buying additional assets. On page 18 of the presentation, we set out there some value levers. So in addition to the development, sites, which were those trust and center at the moment. We've put in there some ideas with some opportunities around putting in, as an example, 180 new tourism cabins.
Most of those have all approvals in place. We're not going to put them all in 1 or 2 years, but over the next probably 3 to 4 years, that's an investment we would like to make. And depending on the where the cabin is and the size of it, that could range from $60,000 up to $200,000 per three bedroom. Waterfront villa at Cairns Coconut. In terms of the 125 plus new rental sites, Again, you're looking at around $60,000 per rental cabin, generating a sort of 12% to 15% yield on investment.
So a lot of the staging of that CapEx will depend on the timing of asset sales and also the timing around when we procure approvals on our, on our DEA. So if you went to,
slide 25.
So what you've got there is that in this in FY 'eighteen, we're building out projects that we have all approvals in place, but depending on the timing of getting an approval for Avena, which is in Western Sydney, which we think would be a highly successful project. So we probably want to bring that to market as quickly as we got approval, at Harvey Bay, on the Queensland Freight Coast, We actually expect to get that DEA in the next 3 to 4 months. So the timing of some of our investment into growth will also depend on when we fewer those approvals.
Great. Thank you. And just on the corporate cost guidance, just going back for his questions. So first half was, 4.4%. You also loaned by 2nd half 4,100,000.
So what's the actual run rate? Because I think I remember first half you mentioned there was some write off of state E costs
Yes. So the numbers were disclosed in the presentation were 19 for the year. Of that, that was 4.7 in the first half, 4.3 in the second half. And in the first half, we had approximately an additional 400 to 500 of due diligence costs, which we had written off on acquisitions we walked away from.
And finally, last one, of your 135 homes deposit are contracted, how many of those are non refundable?
Yep. So the split would be around 1 third would be contracted and non refundable and 2 thirds would be deposited. Right.
Our next question comes from the line of compared from Goldman Sachs. Please ask your question.
Hi, Simon, it's Scott.
So I was a bit late to the call. Sorry if there's goes over something you might have already mentioned. But just wondering about, seasonality of, settlements first half, second half. Are you expecting? Is it gonna be much difference between the two halves or how do you see it playing out?
We would expect normally a second half SKU of probably 60% compared to 40% in the first half. And that would assume no launch of new projects, but we are launching, 8 new or expansion projects over the next 14 months. If you assumed a similar SKU that we had in 2017, which I I think off the top of my head was around that forty-sixty that would be pretty right. We find the number one peak selling period is after Christmas when families often sit down with extended family and that can be a catalyst for for the parents to start thinking about moving into a community. And then the other peak selling period, which we're about to go into now, is coming out of winter moving into spring.
And Latitude 1, where are you with, getting that out of the ground and, how's that looking for getting some sales or settlements into the into this year, back into this year?
So Slide 21, is progressing exceptionally well. The contractor on-site is ahead of schedule, we've secured all necessary approvals for that project. We, at this stage, remain on track for securing, probably 2030 settlements in the last quarter of this financial year.
Great. And just on Victoria, what sort of timing you're looking at there? And just to confirm, is that greenfields in the greater Melbourne sort of area?
Yes. So in terms of, Victoria, Our strategy will be the same as what we've embarked upon over the last 2, 3 years, and that will be Over the last 12 months, we've mapped out all the key urban growth corridors, out of Melbourne. So anywhere from the ballerine out to the morning to finish lower than 3 growth corridors out of Melbourne. We've got someone on the ground now, looking at our optioning upland will then take it through the development approval process. So it's unlikely that we would be in a position to launch a new project in the Victorian market probably for next 18 months, but we're busily pulling together a land bank, at the moment.
I mean, if you have a look at, again, on page 25, we've already got 8 projects that we're launching or expanding on in the next 14 months. I don't think we've got the bandwidth or the capital to launch another project. But what we want to do is find land that we can secure from maybe $30,000 site, take it through the approval process and then settle the land once all approvals are in place. So that would be our strategy in Victoria, which is exactly what we're doing in South Wales and Southeast Queensland as well at the moment. So I guess to give you some context in New South Wales and Southeast Queensland, in addition to those bubbles on the chart there where we've got offers in on other land where we're negotiating with vendors at the moment to get the right terms in place So that in 6 months' time, there'll be further bubbles to the right of those existing projects so that In 'nineteen, we're planning to hit 350 settlements depending on market conditions, and we will see further growth beyond that.
So it's continuing to invest in our development pipeline. And I think that segway as well is, in terms of costs, I mean, we see there's massive value to Harvey Bay, for instance, we've secured that land at less than $10,000 per DA approved site. Once we get approval for it, it'll be worth three times that. The land adjacent to the same year, we've paid around $24,000 Well, for that land, and we've seen people come and pay over $100,000 for a development side of the New South Wales Coast Coast. So And whilst we're incurring those costs upfront, it is creating significant medium term value for the business.
Great. And, and just how many projects will you be selling in this year in total?
So we've got, 12 projects in market at the moment. And I would expect that and a couple of those will finish. But by the end of this year, we'll probably have another 6 projects in market model. Well, there's no more questions. Thank you very much for listening to Scott and I for the last 3 quarters of an hour.
We look forward to catching up with everyone over the next few weeks and Donna and I was happy to take a call or answer an email today. If there's any specific questions that you have, but Once again, thanks for dialing in and look forward to catching up over the next few weeks.
Ladies and gentlemen, that does conclude our conference today. Thank you for participating. You may now disconnect.