Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2020 Earnings Presentation
34 slides from Lifestyle Communities's earnings presentation, February 2020
Slide 1: Results Presentation Half year ended 31 December 2019
A Business for Purpose For personal use only Results Presentation Half year ended 31 December 2019 February 2020 TheLIFESTYLE COMMUNITIES new entry design LIMITED at Lifestyle Ocean Grove A Business for Purpose 1
Slide 2: Contents
Contents Appendix For personal use only 1. Overview 3 A.1 Model of Living 25 2. Operations Update 9 A.2 Growing Recurring Revenue 26 3. Financial Results 15 A.3 Likely Home Settlement Program 27 4. Outlook 20 A.4 Dividend Policy 28 5. Summary 22 A.5 Sales and Settlements 29 A.6 Deferred Management F
Slide 3: 1.1 Our Story
1.1 Our Story For personal use only 2004 2012 2019 Development of first Major capital raising of $36m Over 3,000 homeowners. community at Brookfield. to drive future growth Acquire land for 19th community. First homeowner New home referral rate >50% moved in June 2005 1 2 7 12 20 Community Communiti
Slide 4: 1.2 A Business for Purpose
1.2 A Business for Purpose For personal use only An affordable housing option for Australians aged over 50 An affordable and sustainable financial model where homeowners can prosper An empowering and engaging customer service offering that completely reimagines traditional retirement High quality re
Slide 5: 1.3 Overview Financial Summary
1.3 Overview Financial Summary 1HFY20 1HFY19 ($ Million) ($ Million) Net profit after tax attributable to shareholders $15.1 million $21.9 million 1HFY20 results snapshot For personal use only Total assets $499.7 million $426.9 million Equity $267.2 million $223.4 million Dividend (interim) 3.0 cent
Slide 6: 1.4 1HFY20 Highlights
1.4 Overview 1HFY20 Highlights For personal use only • 158 new sales and 109 new home settlements • 45 resale settlements of which 37 settlements attracted a deferred management fee • Profit after tax attributable to shareholders decreased from $21.9m to $15.1m driven by lower settlement numbers • S
Slide 7: 1.5 Portfolio Overview and Land Acquisition Strategy
1.5 Portfolio Overview and Land Acquisition Strategy 20 Communities in planning, development or under management For personal use only Lifestyle Communities undertakes Focus remains on Melbourne and a detailed vetting of each potential Geelong’s growth corridors: site, and prioritises acquisitions •
Slide 8: 1.6 Portfolio snapshot 1HFY20
1.6 Overview Lifestyle Communities' portfolio continues to grow organically through recycling capital Portfolio snapshot 1HFY20 Homes occupied, or sold For personal use only awaiting settlement Communities Total homes in Homes sold Homes sold and communities and occupied awaiting settlement No. Exis
Slide 9: Operations Update
For personal use only Sec ti on 2 Operations Update Lifestyle Chelsea Heights 9
Slide 10: 2.1 Sales and Settlements
2.1 Sales and Settlements For personal use only • 158 new home sales during 1HFY20 No. of Community Homes Sold % Sold • Actively selling new communities at Mount Duneed, Kaduna Park, Wollert North, Shepparton 300 297 99 and Plumpton Berwick Waters 216 216 100 • New home settlements for FY20 weighted
Slide 11: 2.2 Sales Rates
2.2 Sales Rates The higher the sales rate, the faster capital is recycled to undertake For personal use only more communities • Sales rates driven by continued focus on delivering a 220 Sales profile from date of first sale high level of homeowner experiences and innovation driving referral rate Ber
Slide 12: 2.3 Land Acquisitions & Development Update
2.3 Land Acquisitions & Development Update For personal use only • Clubhouse, Aqua Club and community • Planning permit delays impacted FY20 sales facilities completed and settlements • Planning application lodged and with • Grubb Road access now complete and open • Construction commenced in August
Slide 13: 2.4 Mount Duneed Project Fly Through
2.4 Mount Duneed Project Fly Through For personal use only Key Project Statistics (as at 7 February 2020) • Land settled in September 2018 • Sales launched in August 2018 • First homeowners settled in December 2019 • Display homes completed and opened in January 2020 • 95 sales to date. 96 homes rem
Slide 14: 2.5 Lifestyle Wellness
2.5 Lifestyle Wellness For personal use only The Lifestyle Wellness Program continues to motivate and engage homeowners: • Monthly Wellness topics promoted via interactive seminars, newsletters, expos, as well as regular Facebook content and blog posts • Autumn and Spring inter-community sporting ca
Slide 15: Financial Results
Sec ti on 3 For personal use only Financial Results Taking a stroll at Lifestyle Chelsea Heights 15
Slide 16: 3.1 Financial Results
3.1 Financial Results For personal use only There are two components to Home sites (annuities) under management (1) the annuity stream: 2,393(2) 2,400 1. Site Rental Fee • $186 per single and $214 per couple, per week, 2,200 per home 2,000 • Indexed at greater of CPI or 3.5% p.a. • Gross rental inco
Slide 17: 3.2 Income Statement
3.2 Income Statement For personal use only • Net profit attributable to shareholders decreased by 31.1% to $15.1m. This 1HFY20 1HFY19(1) % is due to the lower number of settlements relative to the prior comparative Income statement ($’000) ($’000) Movement period. FY20 settlements will be weighted t
Slide 18: 3.3 Balance Sheet
3.3 Balance Sheet For personal use only • Inventories increased due to a build-up of completed homes at Mount 1HFY20 2HFY19(2)) % Duneed (awaiting settlement) and increased civil construction activity at Balance sheet highlights ($’000) ($’000) Movement Kaduna Park and Wollert Cash and cash on depos
Slide 19: 3.4 Cash Flow
3.4 Cash Flow For personal use only • The $1.9 million outflow from operations included $14.3 million cash 1HFY20 1HFY19 draw for Mount Duneed, Kaduna Park and Wollert which are in their Cash Flow Highlights ($’000) ($’000) development phase Receipts from customers 56,534 76,481 • Included in paymen
Slide 20: Outlook
For personal use only Section 4 Outlook Aqua Club from above taken at Lifestyle Chelsea Heights 20
Slide 21: 4.1 Settlement Progress
4.1 Settlement Progress Settlements for FY20 weighted to the second half due to commencement of settlements at Mount Duneed New sales For personal use only (December 2019) and Kaduna Park (May 2020) • Sufficient forward sales achieved to meet settlement guidance • All current projects remain on trac
Slide 22: Summary
For personal use only S u m m a ry A perfect day at Lifestyle Ocean Grove 22
Slide 23: 5.1 Summary
5.1 Summary For personal use only • 1HFY20 delivered 109 settlements, 158 new home sales and 283 new homes sold and awaiting settlement, sufficient sales to meet settlements • FY20 settlements weighted to the second half due to commencement of settlements at Mount Duneed (December 2019) and Kaduna P
Slide 24: Appendix
A pp e n d i x For personal use only Teddy at Lifestyle Chelsea Heights. 24 Lifestyle Communitie has 814 pets in our communities.
Slide 25: A.1 Model of Living
A.1 Model of Living How does the Lifestyle Communities model of living work? For personal use only 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 protected by the Residential
Slide 26: A.2 Growing Recurring Revenue
The speed at which Lifestyle Communities can A.2 Growing Recurring Revenue create new communities is limited by the size of the capital pool and the speed at which it can Lifestyle Communities' business has two core elements: recover its capital through driving new home For personal use only 1. Crea
Slide 27: A.3 Likely Home Settlement Program
A.3 Likely Home Settlement Program For personal use only Community FY20 FY21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Shepparton Berwick Waters Bittern Ocean Grove Mount Duneed Kaduna Park Wollert Plumpton Tyabb(1) St Leonards(2) Pakenham(1) Homeowners at Lifestyle Ocean Grove taking a dip! Represents tail of develo
Slide 28: A.4 Dividend Policy
A.4 Dividend Policy For personal use only As a general principle, the Board of Lifestyle Communities intends to pay dividends out of post tax, operating cashflow generated from community management including: • Operating cash flow generated from community management (net rental and DMF) • Apportionm
Slide 29: A.5 Sales and Settlements
A.5 Sales and Settlements New home settlements Net sales commitments Resale home settlements For personal use only Existing Communities - sold out 1HFY20 1HFY19 1HFY20 1HFY19 1HFY20 1HFY19 Brookfield at Melton 4 6 Seasons at Tarneit 2 Warragul 4 3 Casey Fields Cranbourne(1) 3 5 Chelsea Heights(1) 9
Slide 30: A.6 Deferred Management Fees
A.6 Deferred Management Fees For personal use only Casey Chelsea Berwick Brookfield Seasons Warragul Fields Shepparton Heights Hastings Lyndarum Officer Geelong Waters Total Historical resales (1) 127 27 64 46 17 43 31 6 10 5 3 379 Average tenure (years) 6.3 5.4 4.4 3.8 3.6 3.6 3.1 2.6 2.1 2.7 1.9 4
Slide 31: A.7 Cash Flow Analysis 1HFY20
A.7 Cash Flow Analysis 1HFY20 For personal use only Supplementary Cash Flow Fully Mount Kaduna Wollert Berwick Ocean settled Shepparton Geelong Bittern Plumpton Tyabb St Leonards Total Analysis for 1HFY20 Communities(4) Waters Grove Duneed Park North Total Number of Homes 1,395 300 164 216 209 220 1
Slide 32: A.8 Cash Flow Analysis 1HFY19
A.8 Cash Flow Analysis 1HFY19 For personal use only Supplementary Cash Flow Analysis Fully Berwick Ocean Mount Kaduna Wollert settled Shepparton Lyndarum Geelong Officer Bittern Plumpton Total for 1HFY19 Communities(4) Waters Grove Duneed Park North Total Number of Homes 1,090 301 154 164 151 216 20
Slide 33: Important notice and disclaimer
Important notice • This Presentation contains general reliance on anything contained in or omitted forward-looking statements. Such statements background information about Lifestyle from this Presentation are subject to significant assumptions, and disclaimer Communities Limited (LIC) and its activi
Slide 34: Lifestyle Communities Limited contact details
For personal use only LIFESTYLE COMMUNITIES LIMITED Level 1, 9-17 Raglan Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au LIFESTYLE COMMUNITIES LIMITED A Business for Purpose 34
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