Under Ingenia’s land-lease model, accelerated rents and settlements have grown its revenue to $93.4 million.

But the budget provider’s $13 million half-year profit to December 31 was down 24 per cent on the previous period, the result of write downs on development projects and transaction costs.

The group's priority was to grow revenue through investment in new
cabins and facilities across the rental and tourism business, chief executive Simon Owen said.

Operating cash flow increased 50 per cent on the first half, to $17 million, driven by increased settlements and rental growth, but that was offset by investment in display homes and inventory.

“We are working against the backdrop of a slowing residential market yet the underlying fundamentals that make this industry so attractive remain strong,” Mr Owen said.

Australia’s ageing population was still intent on downsizing to desirable coastal locations.

“Our markets are generally more resilient than ... capital city markets and we are seeing ongoing demand from downsizers for the affordable lifestyle our communities offer,” he said.

In November last year the group entered a joint venture with Sun Communities in a bid to speed up its development of greenfield projects.

Mr Owen said Ingenia was on track to deliver 350 settlements for the financial year. An interim distribution of 5.4 cents, or $12.5 million, will be paid on March 27.