This beaten-up ASX stock just jumped 5%. Here’s why investors are buying again

Ingenia Communities Group (ASX: INA) shares are having a strong session on Wednesday.

After a difficult year for the stock, investors have responded well to the company’s latest business update.

At the time of writing, the Ingenia share price is up 5% to $3.93.

That gain gives shareholders some relief today. The stock is still down around 24% in 2026 and 32% over the past year.

Let’s take a closer look.

Guidance remains on track

According to the release, Ingenia has reaffirmed its FY26 guidance.

The company said it remains on track to deliver at the top end of its guidance range. That includes EBIT of $180.5 million to $188.7 million, representing growth of around 10% to 15% on FY25.

Ingenia also expects underlying earnings per security (EPS) of 32.5 cents. That reflect an increase of roughly 5% to 10% on FY25.

It seems that after a rough run for the stock, investors are taking some comfort from the guidance holding up.

The company said its business continues to benefit from stable annuity-style cash flows across its land lease and rental communities.

It is also seeing recurring income from tourism operations, while land lease development is expected to support future growth.

Development pipeline keeps growing

The development side of the update also gave investors something to work with.

Ingenia said financial year-to-date sales are up 30% on the prior corresponding period.

The group also has 428 deposits and contracts on hand, which are expected to underpin remaining FY26 settlements and future periods.

Total FY26 settlements are now forecast to land between 560 and 575 homes.

Management said construction programs remain on track, with current projects helping drive settlements across FY27 and FY28.

Ingenia has also been adding to its longer-term development pipeline.

Over FY26 to date, the company has contracted or settled close to 1,600 potential land lease lots across New South Wales, Victoria, and Queensland.

Another 8 sites could add a further 2,200 lots, while 670 lots remain under due diligence.

In total, this lifts Ingenia’s pipeline to more than 8,000 potential land lease lots.

Rental income and holidays remain solid

Furthermore, Ingenia pointed to steady recurring rental income across its core lifestyle, rental, and gardens portfolios.

Occupancy remains high, sitting at 97% in Ingenia Lifestyle, 99% in Ingenia Rental, and 94% in Ingenia Gardens.

The holiday business also appears to be holding up.

Ingenia said Easter trading was resilient, with strong occupancy and rates. Forward bookings are also running 5% to 8% ahead of the prior year.

Foolish bottom line

Without doubt, Ingenia is still trying to tidy up parts of its portfolio.

The company is looking to sell lower-growth assets, which is expected to release about $140 million in capital over the next 6 months.

That could give the group more flexibility as it works through a larger development pipeline.

The post This beaten-up ASX stock just jumped 5%. Here’s why investors are buying again appeared first on The Motley Fool Australia.

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• Ingenia Communities affirms strong FY26 outlook and development pipeline

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.