Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2017 Earnings Presentation
30 slides from Lifestyle Communities's earnings presentation, Feb 15, 2017
Slide 1: Results Presentation Half-Year ended 31 December 2016
For personal use only Making a difference. Results Presentation Half-Year ended 31 December 2016 15th February 2017 LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life A BUSINESS MAKING A DIFFERENCE 1
Slide 2: The Lifestyle Story
The Lifestyle Story For personal use only Lifestyle commenced 2003 with James, Dael & Bruce developing a business plan Development of first community at Brookfield in Melton. 2004 Opened June 2005 Company listed on 2007 Stock Exchange Major Capital Raising 2012 of $36m 1,000th homeowner 2014 moves i
Slide 3: Lifestyle Communities
Lifestyle Communities For personal use only • Builds affordable highly desirable master planned communities; • Provides facilities that exceed the expectations of our target customer by: – selling houses at 75-80% of the median house price – minimising ongoing maintenance – designed to promote commu
Slide 4: Why do we create Lifestyle Communities?
Why do we create Lifestyle Communities? For personal use only • Enable over 50’s to downsize and enrich their lives • Provide financial freedom for our homeowners • Give homeowners a choice – to mix/participate to the extent that’s right for them • Change the mindset of what over 50’s can offer • Pr
Slide 5: Making A Difference years later - how do we know?
Making A Difference 13 years later - how do we know if we are achieving this? For personal use only • Over 2,150 homeowners call a Lifestyle Community home • 94% of homeowners would recommend us to friends and family(1) • Approximately one in three new home sales come from referrals • Pre-sales on n
Slide 6: 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.” We wanted to downsize, there’s more to life than working, getting stressed and doing housework – Natalie & Stuart ‘‘ a new lease on lif
Slide 7: 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 8: Portfolio Overview
Portfolio Overview 13 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 Communi
Slide 9: Portfolio Snapshot
Portfolio Snapshot Lifestyle Communities’ portfolio continues to grow 31 December 2016 For personal use only Home sites occupied or sold Total home sites in Home sites sold & Home sites sold & and awaiting settlement Communities communities occupied awaiting settlement # % Existing Communities – Sol
Slide 10: Overview: 1HFY2017 Snapshot
Overview A proven business model structured for sustainable growth 1HFY2017 Snapshot Home sites (annuities) under management (1) For personal use only Business Snapshot 1500 •S olid half-year of settlements (128) and 1400 sales (140)(1) 1300 • 1 ,476 occupied home sites (1) 1200 •O ver 2,150 homeown
Slide 11: Lifestyle Officer
Lifestyle Officer Each community is better than the last as we keep evolving For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life A BUSINESS MAKING A DIFFERENCE 10
Slide 12: Latest Community: Lifestyle Berwick Waters
Latest Community For personal use only Lifestyle Berwick Waters: A promising start • Civil works commenced in September 2016 • First homes targeted to be completed in May/June 2017 • 71 homes were pre-sold as at 31 December 2016 LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life A BUSINESS MA
Slide 13: Financial Results Over Years of Growing Annuity Income Streams
Financial Results Over 11 Years of Growing Annuity Income Streams Growing annuity income streams For personal use only There are two components to the annuity stream: Annuity Income 1. Site Rental Fee $9,000,000 •A pproximately $180.00 per week per home $8,000,000 • Indexed at greater of CPI or 3.5%
Slide 14: Sales & Settlements
Sales & Settlements 38% of settlements in 1HFY2017 came from customer referrals For personal use only Sales Commitments Settlements • 1 40 new home sales in 1HFY2017 • 1 28 settlements in 1HFY2017 •S hepparton has continued to perform well achieving 23 sales during the half- • 5 4 settlements at Off
Slide 15: Sales & Settlements Continued
Sales & Settlements Continued For personal use only New homes - net sales Resale homes - net sales New home settlements Resale homes settlements commitments commitments 1HFY17 1HFY16 1HFY17 1HFY16 1HFY17 1HFY16 1HFY17 1HFY16 Brookfield - - - - 7 16 7 9 Tarneit - - - - 2 3 1 4 Warragul - 1 - - 7 2 7
Slide 16: Sales Rates
Sales Rates “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 140 program which enables a quicker recycl
Slide 17: Financial Model
Financial Model Creates 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 PO
Slide 18: Market Environment
Market Environment For personal use only Housing Market • The continued strength of the Melbourne housing market has seen positive consumer confidence and an ability to sell their existing homes. Land Access • Focused on acquiring land in the key growth corridors in Melbourne. The Company is pursuin
Slide 19: Profit & Loss
Profit & Loss • Net profit attributable to shareholders up 36% to For personal use only $12.0 million • Home settlement revenue up $6.1 million to $36.2 Profit loss highlights 1HFY17 1HFY16 % million; average realisation uplift of 4% to $309k ($’000) ($’000) Movement (GST inclusive) Home settlement
Slide 20: Balance Sheet
Balance Sheet Balance sheet remains strong For personal use only • Gearing (net debt to net debt plus equity) was Balance sheet highlights 31 DEC 16 30 JUN 16 % 28.0% at 31 December 2016 ($’000) ($’000) Movement • Total bank debt drawn at 31 December 2016 of $55.5 Cash 666 3,352 million in addition
Slide 21: Cash Flow
Cash Flow Cash Flow highlights 1HFY17 1HFY16 For personal use only • Cash flows from operations up by 320% to $3.0 ($’000) ($’000) million, adjusted cash flows from operations Receipts from customers 49,117 40,952 (excluding project capital expenditure) up by 61% to Payments to suppliers and employe
Slide 22: Dividend Policy
Dividend Policy Lifestyle Communities intends to pay dividends out of operating cash flow from the community management business As a general principle, the Board of Lifestyle Communities intends For personal use only to pay dividends out of post tax, operating cashflow generated from community mana
Slide 23: Likely Settlement Program
Likely Settlement Program Currently 2,445 homes in the portfolio (1) For personal use only Community FY17 FY18 FY19 FY20 FY21 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Shepparton Wollert Geelong Officer Berwick Waters Bittern(1) Ocean Grove(1) Represents tail of development which is ofte
Slide 24: Outlook
Outlook Lifestyle Communities capitalises on the solid base established for future growth For personal use only • Increasing interest in our communities continues to be driven by baby boomers • 38% of settlements in 1HFY2017 came from referral (1) • As per previous guidance settlements in FY2017 are
Slide 25: Settlement Goals
Settlement Goals Settlements growing with increased sales rates and new projects For personal use only 1HFY17 FY17 FY18 settlements settlement settlement (actual) range range TOTAL 128 250-270 260-290 Shepparton 28 40-55 40-55 Lyndarum 25 50-65 40-50 Geelong 21 40-50 40-50 Officer 54 80-90 30-40 Ber
Slide 26: Deferred Management Fees
Deferred Management Fees For personal use only Brookfield Seasons Warragul Casey Sheppar- Chelsea Hastings Total Fields ton Heights Historical resales(1) 94 18 33 22 4 11 10 192 Average tenure (years) 5.34 4.70 3.75 2.69 2.52 2.07 1.98 4.28 Average price growth p.a. 3.6% 2.2% 2.7% 4.5% 12.7% 15.7% 1
Slide 27: Cashflow Analysis 1HFY2017
Cashflow Analysis 1HFY2017 Supplementary Cash Flow Brookfield Seasons Warragul Casey Shepparton Chelsea Hastings Lyndarum Geelong Officer Berwick Bittern Ocean Total Analysis for FY2016 Fields(3) Heights(3) Waters Grove For personal use only Total Number of Homes 228 136 182 217 268 186 141 154 164
Slide 28: Summary
Summary For personal use only • Solid half-year of settlements (128) and sales (140) • Total portfolio of 2,445 homes (1) of which 60% are settled and 70% are sold • Community cashflows (net contribution from rentals and DMF) increased by 27% to $4.9 million compared to the prior half-year • Net pro
Slide 29: 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 30: 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 29
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