Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — FY2021 Earnings Presentation
40 slides from Lifestyle Communities's earnings presentation, Aug 18, 2021
Slide 1: Results Presentation Year ended 30 June 2021
For personal use only Results Presentation Year ended 30 June 2021
Slide 2: Contents
Contents Appendix Overview 1 A.1 Model of Living 27 For personal use only Operations Update 10 A.2 Growing Recurring Revenue 28 Financial Results 17 A.3 Dividend Policy 29 Outlook 22 A.4 Sales and Settlements 30 LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Summary 24 A.5 Investment Property Analysis
Slide 3: Our story
1.1 Our story For personal use only 2012 2004 Major capital raising of Development of first community at $36m to drive future growth Brookfield. First homeowner moves in June 2005 2021 Over 4,000 homeowners. Acquire land for 24th community 1 Community 2 Communities 7 Communities 12 Communities 24 Co
Slide 4: A business for purpose
1.2 A business for purpose An affordable housing option for Australians aged over 50 For personal use only A sustainable financial model where homeowners can prosper An empowering and engaging customer service offering that reimagines traditional retirement LIFESTYLE COMMUNITIES A BUSINESS FOR PURPO
Slide 5: FY21 Results snapshot
Financial Summary FY21 ($ Million) FY20 ($ Million) 1.3 Overview FY21 Results snapshot Net profit after tax attributable to shareholders 91.1 42.8 Total assets 781.3 596.7 Equity 378.1 291.4 For personal use only Dividend 8.0 cents per share 5.5 cents per share Net debt 187.7 128.6 Net debt to net d
Slide 6: FY21 Highlights
1.4 Overview FY21 Highlights For personal use only • Opened new clubhouses at Mount Duneed, Kaduna Park, Wollert, and Deanside • Launched new display homes at Wollert, Deanside and St Leonards • Welcomed first homeowners at Wollert, Deanside and St Leonards • 248 new sales and 255 new home settlemen
Slide 7: Portfolio snapshot FY21
Lifestyle Communities’ portfolio continues 1.5 Overview to grow organically through recycling capital Portfolio snapshot FY21 For personal use only Homes occupied or sold and awaiting settlement Total homes in Homes sold and Homes sold and Communities communities occupied awaiting settlement No. % E
Slide 8: Portfolio overview and land acquisition strategy
1.6 Portfolio overview and land acquisition strategy 24 Communities in planning, development or under management For personal use only Lifestyle Communities undertakes a detailed vetting of each potential site, and prioritises acquisitions based on Shepparton Focus remains on Melbourne and Geelong’s
Slide 9: ESG materiality assessment
1.7 ESG materiality assessment Prioritising ESG Focus Across the Business For personal use only There are numerous ingrained environmental and social benefits underpinning the business. Affordable Housing Homeowner Health & • Community living promotes social inclusion which Health & Wellbeing Safety
Slide 10: Greenhouse gas emissions inventory
1.8 Greenhouse gas emissions inventory Measuring our baseline For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE The table below shows operational greenhouse gas emissions • Engaged independent sustainability consultants, WSP, to for the 2019 and 2020 calendar years: conduct a greenh
Slide 11: Net zero carbon future
1.9 Net zero carbon future For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Lifestyle Communities commits to achieve net zero operational carbon emissions for scope 1, 2 and 3, by no later than 2035. The plan to achieve this is outlined in the chart to the right. Define CO2 footpri
Slide 12: Operations Update
Se ct io n 2 For personal use only Operations Update 10 Lifestyle Deanside
Slide 13: Sales and settlements
2.1 Sales and settlements For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE • 248 new home sales in a year heavily affected by Covid lockdowns No. of • Shepparton settled the last home Community Homes Sold % Sold • Ocean Grove settled the last home in July 2021 Ocean Grove 220 220 1
Slide 14: Sales rates
2.2 Sales rates A BUSINESS FOR PURPOSE For personal use only • Sales rates held up well despite multiple Sales profile from date of first sale lockdowns 160 • Deposit holders remaining engaged. No Historical material change in cancellation rates Kaduna Park average (Sep-18) • Lockdowns slow momentum
Slide 15: Sales milestones and customer buying triggers
2.3 Sales milestones and customer buying triggers Typical sales profile - Major sales milestones and customer buying triggers A BUSINESS FOR PURPOSE Sales launch For personal use only • Major customer event St Mount • Local press marketing Meridian Leonards Deanside Wollert Duneed • Database engagem
Slide 16: Our go-to-market strategy
2.4 Our go-to-market strategy A BUSINESS FOR PURPOSE For personal use only Segmenting our target market 5% 93% LIFESTYLE COMMUNITIES 2% Considering traditional Not actively engaging Actively looking for retirement land lease villages Already want to live in a Already want to downsize to a Not in the
Slide 17: Developments in progress
2.5 Developments in progress 6 Communities in development phase For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Community complete. Clubhouse complete, over 70% sold. Clubhouse completed in May 2021. 15 homes remaining to sell. Clubhouse completed in June 2021. First homeowners se
Slide 18: Meridian – our smartest community yet!
2.6 Meridian – our smartest community yet! The proposed For personal use only design solution • 274 Homes Ubi devices installed at each dwelling configured for rooftop solar • Civil works commenced in July 2021 • Sales launch planned for September 2021 Gate meter and grid • Reimagined Clubhouse desi
Slide 19: Financial Results
For personal use only Se ct io n 3 Financial Results 17 Snickers the sausage dog living her best life
Slide 20: Financial results
3.1 Financial results Annuity income will continue to increase through new home settlements, rental increases and resales of existing homes A BUSINESS FOR PURPOSE For personal use only There are two components to the annuity Home sites under management Homes stream: 3,000 2,792 (2) 1. Site Rental Fe
Slide 21: Income statement
3.2 Income statement A BUSINESS FOR PURPOSE For personal use only • A combination of new home settlements, a continued FY21 FY20 % compression in capitalisation rates, and movements in the Income statement ($’000) ($’000) Movement residential property market, has resulted in a $108.6m uplift in Home
Slide 22: Balance sheet
3.3 Balance sheet A BUSINESS FOR PURPOSE For personal use only • The value of inventory held has increased due to: FY21 FY20 % – the ramp-up of civil costs at Wollert, Deanside and St Balance sheet highlights ($’000) ($’000) Movement Leonards to facilitate housing construction and future Cash and ca
Slide 23: Cash flow
3.4 Cash flow For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE • Receipts from customers increased due to increasing FY21 FY20 annuity revenue, increased deferred management fees, Cash Flow Highlights ($’000) ($’000) and change in settlement mix Receipts from customers 149,101 138,
Slide 24: Outlook
Section 4 For personal use only Outlook 22 Lifestyle Lyndarum
Slide 25: Outlook
4.1 Outlook A BUSINESS FOR PURPOSE For personal use only • Lifestyle Communities has a focused strategy to service a niche - providing high quality affordable housing to downsizers Community FY22 FY23 FY24 • Currently funded and resourced to acquire at least two new sites Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 26: Summary
Section 5 Summary For personal use only 24 Inside the “Allen” house design
Slide 27: Summary
5.1 Summary A BUSINESS FOR PURPOSE For personal use only • Enquiries, sales and settlements impacted by Covid-19 restrictions • Four new clubhouses opened. Three Communities welcomed first homeowners during the year • FY21 delivered 255 new home settlements and 105 resale settlements that attracted
Slide 28: Appendix
Appendix For personal use only 26 Twilight hour at Lifestyle Meridian
Slide 29: Model of living
A.1 Model of living How does the Lifestyle Communities’ model of living work? For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Homeowners at Lifestyle Communities own their own home and lease the land upon which their homes are located, via a weekly site fee. Homes typically priced
Slide 30: Growing recurring revenue stream
A.2 Growing recurring revenue stream Lifestyle Communities’ business has two core elements A BUSINESS FOR PURPOSE For personal use only 1. Creating communities 2. Managing communities A mix of equity and debt capital is used to develop greenfield Completed communities generate recurring revenue stre
Slide 31: Dividend policy
A.3 Dividend policy For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE As a general principle, Lifestyle Communities intends to pay dividends out of post-tax operating cashflow generated from community management including: • Operating cash flow generated from community management (n
Slide 32: Sales and settlements
A.4 Sales and settlements For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE New home settlements Net sales Resale home settlements Communities FY21 FY20 FY21 FY20 FY21 FY20 Existing Communities – Sold out Brookfield at Melton 13 14 Seasons at Tarneit 8 3 Warragul 5 10 Casey Fields a
Slide 33: Investment property analysis
A.5 Investment property analysis For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Community Valuation Summary (On completion) Rent DMF metrics (extracts from valuations) Net rental per Last independent home (3) (from DMF terminal Average sale value valuation date Rental cap. rate 1
Slide 34: Investment property analysis
A.6 Investment property analysis Investment properties per Community Valuation Summary financials 30 June 2021 For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Investment properties at Total Homes Homes Occupied cost (1) ($m) At fair value ($m) Mature Communities Brookfield at Melt
Slide 35: Deferred management fees
A.7 Deferred management fees For personal use only LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Chelsea Berwick Ocean Brookfield Seasons Warragul Casey Fields Shepparton Heights Hastings Lyndarum Officer Geelong Waters Bittern Grove Total Historical resales(1) 149 37 71 64 35 51 45 14 18 13 13 13 4
Slide 36: Fair value breakdown
A.8 Fair value breakdown At Lifestyle Communities, homeowners purchase a proportionate share of the clubhouse, pool, recreational facilities, and all associated infrastructure when they purchase their home. This helps Investment Properties Carrying Value at 30 June 2020 493,602 build a sense of comm
Slide 37: Cash flow analysis FY21
A.9 Cash flow analysis FY21 A BUSINESS FOR PURPOSE For personal use only Supplementary Cash Flow Fully settled Meridian at Future Analysis for FY21 Communities(3) Ocean Grove Mount Duneed Kaduna Park Wollert North Deanside St Leonards Clyde North Communities(4)) Total Total Number of Homes 2,284 220
Slide 38: Cash flow analysis FY20
A.10 Cash flow analysis FY20 Future A BUSINESS FOR PURPOSE Supplementary Cash Flow Communities For personal use only Fully settled Berwick Ocean Mount Wollert Analysis for FY20 Communities(3) Shepparton Geelong Waters Bittern Grove Duneed Kaduna Park North Deanside in planning(4)) Total Total Number
Slide 39: Important notice and disclaimer
Important notice and disclaimer For personal use only warranty, express or implied, beliefs of LIC’s management cautioned not to place undue is made as to the fairness, as well as assumptions made reliance on forward-looking accuracy, completeness or by and information currently statements and LIC a
Slide 40: Lifestyle Communities Limited
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