Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Goldman Sachs Small and Mid-Cap Conference (April 2017)
22 slides from Lifestyle Communities's conference presentation, Apr 27, 2017
Slide 1: Making a difference
For personal use only Making a difference Goldman Sachs Small and Mid-Cap Conference 27th April 2017 LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life A BUSINESS MAKING A DIFFERENCE 1
Slide 2: Our story
Our story For personal use only James Kelly, Dael Perlov 2003 and Bruce Carter develop business plan Development of first community at Brookfield. Opened in 2004 June 2005 Listed on the Australian 2007 Stock Exchange Major capital raising of 2012 $36m 1,000th homeowner moves in 2014 2,000th homeowne
Slide 3: Our model
Our model For personal use only Lifestyle Communties builds and manages land lease communities for working, semi-retired and retired people aged over 50. To exceed customer expectations, we: • Price homes at 75-80% of the local median house price • Offer a 90-year land lease • Set rent at an afforda
Slide 4: Making a difference years of results
Making a difference 14 years of results For personal use only • Over 2,250 homeowners • 94% of homeowners would recommend us to friends and family(1) • More than one in three new home sales are from referrals • Higher demand for new communities • Wait lists to purchase at completed communities • Ave
Slide 5: Homeowner testimonials
‘‘It’s changed our lives.” For personal use only We’ve never been happier in our entire life, ever! Ever, ever, ever! Julie & Rod ‘‘ Best decision we’ve ever made.” There’s more to life than working, getting stressed and doing housework – Helen & Ted ‘‘ A new lease on life.” We have made so many fri
Slide 6: Financial model
Financial model A win-win for homeowners and shareholders For personal use only CREATING COMMUNITIES MANAGING COMMUNITIES Total annuities at year end Dividend flow Cash break even after allocation of costs to management business Completed communities RECYCLING building a long term CAPITAL POOL susta
Slide 7: Community overview
Community overview 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 fully protected by the Reside
Slide 8: Financial overview
Financial overview Growing annuity income streams For personal use only Financial Summary 31-Dec-16 31-Dec-15 Net profit after tax attributable to shareholders $12.0 million $8.9 million Dividends (interim) 1.5 cents per share 1.0 cent per share 31-Dec-16 30-Jun-16 Total assets $232.2 million $222.5
Slide 9: Portfolio overview
Portfolio overview 14 communities in planning, development Focus remains in Victoria or under management For personal use only • Favourable planning legislation • Better access to zoned, flat land for development • Low saturation of land lease communities • Balanced state legislation for the managem
Slide 10: Acquisition strategy
Acquisition strategy Focused on Melbourne and Geelong’s growth corridors Melbourne’s Growth Corridors For personal use only • Targeting zoned land in Melbourne and Geelong’s growth corridors • Increasing opportunities to buy superlots from land developers • Melbourne has the strategic benefit of fla
Slide 11: Key themes
Key themes Two key emerging trends come together to create the Lifestyle Communities For personal use only business model Affordability Baby Boomers • Opportunity to create • Want to maintain control more affordable housing • Want to own their home • Rents sustainable for • Want to free up equity Ag
Slide 12: Market overview
Market overview Victorian population growth For personal use only 85+ (114k) War Generation Average age 80-84 (116k) of Lifestyle Baby Boomer Generation Communities’ 75-79 (151k) homeowners 72 years (1) 70-74 (194k) 65-69 (264k) 60-64 (302k) 55-59 (340k) As at 30 June 2013 there were We’re ready for
Slide 13: Lifestyle Wellness program
Lifestyle Wellness program For personal use only • In 2017, we employed a Wellness Coordinator • Provides practical support for holistic homeowner health and wellbeing • Monthly community seminars and fitness programs targeted to age group • Induction programs to help homeowners use and enjoy equipm
Slide 14: Customer touchpoints
Customer touchpoints Every touchpoint drives customer referral Increased referral rate set as an organisational goal For personal use only • Implemented a focused strategy to lift the number of homeowner referrals for new sales • Developed an action plan for each of the 32 Brand Sales touchpoints •
Slide 15: Community designs
Community designs Evolving every part of the product For personal use only Urban Layout Entry Landscaping Clubhouse Home Designs Ensure that the homes Create a sense of arrival Significant investment in Ongoing evolution with Evolving to meet Baby work together by varying and security landscaping to
Slide 16: Lifestyle Officer
Lifestyle Officer Each community better than the last For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life A BUSINESS MAKING A DIFFERENCE 15
Slide 17: Sales rates
Sales rates The proof is in the pudding - increasing the sales rate For personal use only • Lifestyle Communities’ focus has shifted to improve pre-sales. This reduces risk by Sales SALES PROFILE FROM DATE OF FIRST SALE supporting a more aggressive construction program to enable a quicker recycling
Slide 18: New communities
New communities Lifestyle Berwick Waters: For personal use only • Civil works commenced in September 2016 • First homes targeted to be completed in May/June 2017 • 104 homes are already pre-sold up until 31 March 2017 Lifestyle Bittern: • Planning to commence construction in the first quarter of the
Slide 19: Settlement goals - new sales
Settlement goals - new sales Better sales rates along with new For personal use only projects are increasing settlements FY2017 YTD settlements FY2017 settlement FY2018 settlement (31 March 2017) range range TOTAL 202 250-270 260-290 Shepparton 36 45-55 40-55 Lyndarum 37 60-70 35-45 Geelong 33 40-50
Slide 20: Summary
Summary For personal use only Lifestyle Communities set to capitalise on the solid base established for future growth • Emerging Baby Boomer market driving increased interest • More than one in three sales are coming from customer referrals • Settlements in FY2017 expected to be in the range of 250
Slide 21: Important notice and disclaimer
Important notice • This Presentation contains general background information about Lifestyle suffered by any recipient through use or reliance on anything contained in or omitted words “forecast”,“estimate”, “expect”, “anticipated” and similar expressions and disclaimer For personal use only Communi
Slide 22: Downsize to a bigger life
For personal use only DOWNSIZE TO A BIGGER LIFE LIFEST YLE 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 A BUSINESS MAKING A DIFFERENCE 21
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