Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2024 Earnings Presentation
35 slides from Lifestyle Communities's earnings presentation, February 2024
Slide 1: Results Presentation for the half year ended 31 December 2023
A business for purpose For personal use only Results Presentation for the half year ended 31 December 2023
Slide 2: Contents
Contents Appendix A business for purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i A.1 Model of living. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Macro themes underpinning our strategy. . . . . . . . . . . . . . . . .
Slide 3: A business for purpose
A business for purpose For personal use only An empowering and An affordable housing engaging homeowner option for Australians experience offering aged over 50. that reimagines traditional retirement. A sustainable financial model where homeowners A sales approach that can prosper. High quality reso
Slide 4: Macro themes underpinning our strategy
Macro themes underpinning our strategy For personal use only Property market — Ageing population First home buyers Economic environment outer suburbs • Shortage of Affordable • Typically buy the homes Lifestyle • Increased cost of living affects the • Consumer confidence impacted Housing Options cus
Slide 5: Overview
Overview Lifestyle Ocean Grove For personal use only SECTION 1 Overview Lifestyle Communities®— HY results presentation — December 2023 1
Slide 6: 1HFY24 highlights
1HFY24 Overview highlights Strong operating performance from For personal use only established business • Community Operations cash flows grew by 12% compared to the prior period — supported by increased homes under management and DMF • Resales prices continue to increase — average annual capital gr
Slide 7: 1HFY24 results snapshot
1HFY24 results Overview snapshot For personal use only Key metrics Annuity revenue (rent + DMF) Measure 1HFY24 2HFY23 1HFY23 2HFY22 1HFY22 30 New home settlements Homes 124 215 141 235 166 Established home resales Homes 75 90 88 83 73 28 26.9 Total settled homes (end of year) Homes 3,673 3,549 3,334
Slide 8: Portfolio snapshot 1HFY24
Portfolio Overview snapshot 1HFY24 Homes occupied or sold and awaiting settlement Total homes Homes sold Homes sold and For personal use only Communities in communities and occupied awaiting settlement No. % Established Communities 15 fully completed Communities 2,864 2,864 2,864 100% Communities —
Slide 9: Portfolio overview and land acquisition strategy
Portfolio overview and land Overview acquisition strategy Yarrawonga Focus remains on Melbourne and Geelong’s growth corridors: Shepparton • Cluster approach – each growth corridor 32 Communities in planning, can sustain multiple communities • Capitalise on brand development or under management. • D
Slide 10: Operations update
For personal use only Operations update SECTION 2 Lifestyle Meridian Clubhouse Operations update Lifestyle Communities®— HY results presentation — December 2023 6
Slide 11: Sales and settlements
Sales and settlements Operations update No. of • 197 new home sales and 124 new home Community homes Sold % sold Settled % settled For personal use only settlements in 1HFY24 Wollert North 246 216 88% 194 79% • 420+ presales contracts in hand worth in Deanside 266 180 68% 153 58% $287.4+ million 1 S
Slide 12: Sales rates
Sales rates Operations update Northern Growth Corridor Sales profile from date of first sale • Wollert, Deanside, and Woodlea sales rates are in line For personal use only 240 with historical average Meridian Wollert (Mar-19) 220 (Sep-21) • We continue to build our brand in this important growth cor
Slide 13: Deferred management fees/benefits
Deferred management Operations update fees/benefits For personal use only • Lifestyle continues to articulate to homeowners the substantial benefits of the Deferred Fee structure – Co-Investment — aligns long term interests of homeowners and the community operator – Incentivises planned maintenance
Slide 14: Developments update
Developments update Operations update Cash recovery Cash draw Projects not 1HFY24 • Wollert and Deanside projects in cash recovery phase For personal use only Community projects projects yet started cash flow • Meridian transitioned to cash recovery during the period Wollert ● 10.77 • Bellarine, Riv
Slide 15: Meet the GenX
Meet the GenX Operations update • Branding has moved to better appeal to the GenX - Life.Unlimited For personal use only • Repositioning our facilities with more appealing and attractive offers in all our new communities • Changing house designs with new product that is a better fit for their needs
Slide 16: Club Lifestyle
Operations update Club Lifestyle For personal use only Club Lifestyle now completed for all homeowners to have a holiday for free on us. • 28 Villas, 23 caravan sites and 3 motor homes for their exclusive use • Camp kitchen, pitch and putt, bird and animal reserves and a lagoon beach for holiday eng
Slide 17: Introducing Lifestyle Plus
Introducing Operations update Lifestyle Plus For personal use only • Referrals represent up to 40% to 50% of all sales • Driving a range of initiatives to increase referrals • Reimagining the entire customer touch-point journey to deliver even better service • Launched a range of other initiatives i
Slide 18: Protecting our brand
Protecting our brand Operations update • Pioneered the land lease industry in Victoria – The Lifestyle For personal use only Communities® brand and the LIFESTYLE COMMUNITIES registered trade mark is well-known in the trade and in the market • We are being proactive in protecting our brand and will f
Slide 19: Spotlight on Woodlea
Operations update Spotlight on Woodlea. Perfectly positioned in the hugely popular Woodlea estate directly opposite the Woodlea town centre. For personal use only • 47 * homes sold out of a total of 180 homes • Unique clubhouse design opposite the shopping centre that really promotes the resort natu
Slide 20: Financial results
Financial results Ariel view of Phillip Island with our latest community under construction For personal use only SECTION 3 Financial results Lifestyle Communities®— HY results presentation — December 2023 16
Slide 21: Growing annuity income stream
Growing annuity Financial results income stream There are two components to the Home sites under management For personal use only annuity income stream: 4,000 Site rental fee 3,673 2 3,500 3,334 • $212 per single and $245 per couple, per week, per home 2,958 3,000 • Indexed at greater of CPI or 3.5%
Slide 22: Income statement
Income statement Financial results $000s 1HFY24 2HFY23 1HFY23 2HFY22 1HFY22 Community operations • 124 New Home Settlements (1HFY23: 141) and 75 Site rental 20,487 17,283 16,961 15,165 14,547 Resales Settlements (1HFY23: 88) Deferred management fees 6,436 6,666 6,255 6,217 4,689 For personal use onl
Slide 23: Balance sheet
Balance sheet Financial results • Inventories and debt levels increased as new Balance sheet highlights projects ramp up For personal use only $000s 1HFY24 2HFY23 1HFY23 2HFY22 1HFY22 • We are mindful of elevated leverage as settlement Cash and cash on deposit 1,839 1,233 1,050 1,893 519 time frames
Slide 24: Cash flow
Cash flow Financial results Community Operations cash flows: 1HFY24 2HFY23 1HFY23 2HFY22 1HFY22 Community operations cash flows • 12% increase compared to the prior year due to For personal use only Site rentals 20.5 17.3 17.0 15.2 14.5 more homes under management Deferred Management Fees 6.4 6.7 6.
Slide 25: Modernising our debt facility
Modernising our Financial results debt facility For personal use only • Total facility size increased from $525 million to $700 million • Common Terms Deed with bilateral pricing • Interest Cover Ratio (ICR) covenant reduced from 2x to 1.5x for the next four reporting periods before stepping up to 1
Slide 26: Outlook
Outlook Financial results Settlement Profile of Communities in Development • No change to 3-year guidance – expect 1,400 to 1,700 For personal use only FY24 FY25 FY26 settlements between FY24 and FY26 Community Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Homeowners currently taking longer to list their ho
Slide 27: Appendix
For personal use only Appendix Twilight at Lifestyle Meridian Appendix Lifestyle Communities®— HY results presentation — December 2023 23
Slide 28: A.1 Model of living
A.1 Model of living Appendix How does the Lifestyle Communities’® model of living work? Homeowners at Lifestyle Communities® own their own home and lease the land upon which their homes are located, via a weekly site fee and a deferred management fee. For personal use only 75-80% On average, homes t
Slide 29: A.2 Growing recurring revenue stream
A.2 Growing recurring Appendix revenue stream Lifestyle Communities’® business has two core elements 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 streams which are
Slide 30: A.3 Dividend policy
A.3 Dividend Appendix Club Lifestyle Bellarine policy As a general principle, Lifestyle Communities® For personal use only intends to pay dividends out of post-tax operating cashflow generated from community management including: • Operating cash flow generated from community management (net rental
Slide 31: A.4 Sales and settlements
A.4 Sales and settlements Appendix New home settlements Net sales commitments Resale home settlements 1HFY24 1HFY23 1HFY24 1HFY23 1HFY24 1HFY23 For personal use only Existing Communities - Sold out 9 66 83 Existing Communities - Under Construction Wollert North 29 24 19 26 1 Deanside 19 16 13 17 1 S
Slide 32: A.5 Cash flow analysis 1HFY24
A.5 Cash flow analysis 1HFY24 Appendix Completed Wollert Phillip Bellarine Communities Communities North Deanside St Leonards Ridgelea Meridian Riverfield Woodlea Island (Leopold) Merrifield in planning Total Community operations cash flows For personal use only Site rentals 16.10 1.06 0.85 1.18 1.0
Slide 33: A.6 Cash flow analysis 1HFY23
A.6 Cash flow analysis 1HFY23 Appendix Completed Mount Kaduna Wollert Communities Communities Duneed Park North Deanside St Leonards Meridian Riverfield Woodlea Philip Island Leopold in planning Total Community operations cash flows For personal use only Site rentals 12.97 1.05 0.96 0.66 0.53 0.79 1
Slide 34: Important notice and disclaimer
Important notice and disclaimer For personal use only This Presentation contains general background information about Lifestyle Communities® Limited (LIC) and its activities current at 31 December 2023 unless otherwise stated. It is information in a summary form and does not purport to be complete.
Slide 35: For personal use only
For personal use only Level 5, 101 Moray Street South Melbourne VIC 3205 1300 50-55-60 lifestylecommunities.com.au
Lifestyle Communities — H1 FY2024 Earnings Presentation on 6ix