Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Morgan Stanley Aged Care Forum 2016
21 slides from Lifestyle Communities's conference presentation, May 26, 2016
Slide 1: Growing Through Evolution
Growing Through Evolution Morgan Stanley Aged Care Forum 26 May 2016 LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 1
Slide 2: Business Overview
BUSINESS Business Snapshot Financial Summary OVERVIEW • Founded in 2003 1HFY2016 FY2015 • Develop and manage land lease communities which generate long-term Net profit after tax attributable to shareholders $8.9m $16.7m sustainable revenue streams Total assets $204.3m $179.6m • Focused on affordable
Slide 3: 12 communities in planning, development or under management
BUSINESS 12 communities in planning, Focus remains OVERVIEW development or under in Victoria COMMUNITY management Victoria provides: LOCATIONS • Favourable planning legislation • Better access to zoned, flat land for development Community Homes Settled • Lowest saturation of land lease communities o
Slide 4: Ocean Grove Acquisition
OCEAN GROVE Adding 190 home ACQUISITION sites to the pipeline • Ocean Grove is in the Bellarine Peninsula 15 minutes from Geelong • The site is located next door to a future shopping centre scheduled to be completed in December 2017 • 57,000 people in the primary catchment and a further 184,000 peop
Slide 5: Business Model
BUSINESS Lifestyle Communities aims The growing level of free cash flow from the OVERVIEW to recover 100% of its project community management business provides BUSINESS related costs from home sales the basis for future dividends MODEL Development Business Community Management Business Total annuiti
Slide 6: How does the Lifestyle Communities model of living work?
BUSINESS How does the Lifestyle Communities OVERVIEW model of living work? Homeowners at Lifestyle Communities own their own home and lease the land upon which their Homeowners at homes are located, via a weekly site fee. Lifestyle Communities are fully protected by the Residential Tenancies Act. Ho
Slide 7: Three key emerging trends create the market opportunity
BUSINESS The three key emerging trends OVERVIEW come together to create the SURGE OF RLLC market opportunity INTEREST IN RLLC’S Affordability Baby Boomer • Opportunity to create a • Wants to maintain more affordable model control • Rents sustainable for • Want to own their home pensioners • Wants to
Slide 8: Two Models for Investment
BUSINESS OVERVIEW TWO MODELS FOR INVESTMENT Greenfield Brownfield • Infill sites or urban fringe • Existing RLLC’s and mixed use parks • Conversion of old dwellings to new dwellings • Built from scratch - new homes and facilities and development of additional land • Look to recycle 100% of capital t
Slide 9: Industry advocacy to promote land lease communities
BUSINESS Industry advocacy to promote Government is increasing their OVERVIEW land lease communities understanding of the land lease industry RLLA • Member of the Residential Land Lease Alliance (RLLA) (James Kelly is RLLAs inaugural chair) • Represents the land lease industry • Funded through contr
Slide 10: The Land Lease Industry: our focus remains in Victoria
BUSINESS Our focus remains SA OVERVIEW in Victoria 4 THE LAND LEASE INDUSTRY • There are 2,500 Residential Land Lease Communities (RLLCs) and caravan parks around Australia WA • Of those: 10 - 1,650 are pure tourist parks VIC - 750 are mixed use parks with tourists and 20 permanents - 170 are dedica
Slide 11: Victorian Population Growth
BUSINESS As at 30 June 2013 there were OVERVIEW over 574,000 Victorians aged VICTORIAN over 70 and over 906,000 aged POPULATION between 55 and 69 GROWTH 85+ (114k) War Generation Average age Baby Boomer Generation 80-84 (116k) of Lifestyle Communities’ 75-79 (151k) homeowners 72 years (1) 70-74 (194
Slide 12: Shifting the paradigm to grow sales and referrals
BUSINESS Shifting the paradigm to grow OVERVIEW sales and referrals GROWTH STRATEGY • Business has been undergoing a paradigm shift on meeting and exceeding the expectations of our target customer • Our customer is getting younger with better knowledge of our brand • The baby boomer generation have
Slide 13: Every touch-point drives customer referral
BUSINESS Every touch-point EVOLUTION drives customer referral CUSTOMER REFFERAL Brand Sales Above the line Construction Marketing Process 33% Referral rate for sales(1) Home Website Handover Community Community Management Induction Set organisational goal of 50% referral rate Notes: (1) For FY2016 s
Slide 14: Marketing channels evolved to below the line
NEWS BUSINESS Press OVERVIEW MARKETING Radio TV CHANNELS NEWS Outdoor Press Website Digital ABOVE THE LINE Evolved to BELOW THE LINE Industry Expos Events Mass Direct Mail Referral Digital CRM PR Evolved from mass marketing Sponsorship to targeted communications LIFESTYLE COMMUNITIES LIMITED - Downs
Slide 15: Housing evolution
BUSINESS Over the past 13 years Lifestyle Communities House designs have been OVERVIEW has continued to evolve the business to meet simplified with improved HOUSING the emerging customer base finishes LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 15
Slide 16: Communal facilities
BUSINESS Clubhouse designs have Urban design has focused on OVERVIEW progressively modernised connectivity and landscaping COMMUNAL FACILITIES LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 16
Slide 17: Every facet of our product has evolved
BUSINESS Every facet of our product OVERVIEW has evolved COMMUNITY DESIGNS Urban Layout Entry Landscaping Clubhouse House Designs Ensure that the homes Create a sense of arrival Significant investment in Ongoing evolution with Evolving to meet the needs work together by varying and security landscap
Slide 18: Increasing the sales rate
BUSINESS “Proof is in the pudding” OVERVIEW Increasing the sales rate SALES RATES • Lifestyle Communities’ focus has shifted to SALES PROFILE FROM DATE OF FIRST SALE (TREND LINES) improve pre-sales. This reduces risk by supporting a more aggressive construction program which Sales enables a quicker
Slide 19: Settlements growing with increased sales rates and new projects
BUSINESS Settlements growing with increased EVOLUTION sales rates and new projects SETTLEMENT FY2016 FY2017 FY2018 GOALS - settlement settlement settlement NEW SALES range range range TOTAL 195-210 250-270 260-290 Warragul 1 - - Cranbourne(1) 2 - - Shepparton 48-52 40-55 40-55 Chelsea Heights(1) 27
Slide 20: Well-placed for future growth
BUSINESS Lifestyle Communities is EVOLUTION well-placed for future growth SUMMARY • Business is continually evolving to get match fit for the baby boomer • Forecast between 195-210 settlements for FY2016 • Consistent with previous guidance profit after tax attributable to shareholders in FY2016 will
Slide 21: Downsize to a bigger life
DOWNSIZE TO A BIGGER LIFE LIFESTYLE COMMUNITIES LIMITED Level 2, 25 Ross Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 21
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